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BY Angelo S. Samonte, Reporter
The Chamber of Mines of the
Philippines eyes some $500 million new money in the industry this
year in addition to previous investments made by existing mining
companies.
Philip Romualdez, the president
of the Chamber of Mines, said the money flowing into major mining
projects in the country is still part of the commitments earlier
made by mining companies.
The $500-million investment for
this year includes the $100-million funding the Atlas Consolidated
Mining and Development Corp. obtained from a financier for its
project in the Philippines.
Another $100 million will be
infused by Oceana Gold Ltd of New Zealand and Climax-Arimco Mining
Corp. of Australia, which merged recently. The investment will be
used for the development of the Didipio project in Nueva Viscaya.
Coral Bay Nickel Corp., on the
other hand, will also invest another $100 million for the expansion
of its operation in Rio Tuba in Palawan. The money is part the
company’s $210 million allocation for the project in the next two
and a half years.
Other expected investments for
this year also include the $62 million by Indophil Resources NL. The
company is also allocating $15 million for the conduct of
feasibility studies.
Romualdez said the remaining $200
million will come from smaller investments by other companies. Some
of these projects include the deal by Xstrata Copper for copper
mining projects. Xstrata is also pursuing a nickel-mining project,
he said.
The move of Xstrata is a
significant development as confidence and interest are mounting in
the industry. Xstrata was encouraged after the pre-feasibility
commissioned by Indophil on its Tampakan property. The company has
acquired 62.5 percent of the Tampakan copper-gold deposit in South
Ctabato from Indophil Resouces NL.
Moreover, the Tampakan rdeposit
is one of the largest undeveloped copper deposit in southeast Asia
and the western Pacific, which contains about 11.6 million metric
tons of copper and 14.6 million ounces of gold at 0.3 percent Cu
cutoff. The project will require a budget of $2 billion to operate
commercially.
Romualdez said the prospects of
these additional investments come at an opportune time because the
prices of metal prices in the world market remain high.
“These companies are confident
that mining activities in the country will remain profitable owing
to good prices of metals at this time,” he said.
Romualdez also challenged the
government to do its part in starting new projects to commence
operations.
“The Chamber has already done
its part and it has successfully brought the top mining companies in
the world to the Philippines. The challenge is how to move
forward,” he said.
However, Romualdez said he is
optimistic that investors will remain confident in the Philippines
despite the political noise because of the changes and the
willingness of the government to hold on a better mining policy.
“There are good signs: mining
permits moves, bureaucratic processing has changed, and the
government assured us support. The government has shifted towards a
better direction that’s why the flow of investment will
continue,” he said.
Relatedly, the Department of
Environment and Natural Resources sees growth in mining industry,
Secretary Angelo Reyes said Thursday. “The takeoff of the mining
industry this year has become apparent with the presence of the
world’s biggest players, and their investments indicate the
increased confidence of the global mining investors in the country,
and if we’re able to sustain it, we can all expect a mining boom
starting next year,” Reyes said.
Last week, Reyes announced he had
approved the exploration permit of Manila Mining Corp., which is
finalizing a joint venture with Anglo-American Philippines
Exploration, Inc. for the exploration of the Bayugo Copper Gold
Project in Anislagan, placer in Surigao del Norte.
Anglo-American has committed
itself to spend an initial $100 million for exploration works in the
next two years. While the Bayugo copper-gold prospect has a similar
nature and occurrence with the well-known adjacent Boyungan
Copper-Gold Porphyry Deposit that Anglo is exploring under a JV with
Philex Mining Corp.
Other new major players include
Chemical Vapor Metal Refinery Co. (CVMR), Phelps Dodge, BHP-Billiton.
Reyes said that CVMR plans to
invest in nickel processing and refinery project, while Phelps Dodge
expressed its interest to bid for the development of the Batong
Buhay Copper-Gold Project in Kalinga Apayao.
Meanwhile, the Masbate Gold
Project of Filminera Resources Corp. has submitted its feasibility
study to the DENR and is expected to start construction work within
the first quarter this year at a cost of $100 million.
Reyes said that the government is
revitalizing the mineral industry to serve as a catalyst for
economic growth in the country. The revitalizing program is
projected to raise about $6.5 billion in investments in the medium
term, and generate 200, 000 jobs.
--With Katrina Mennen A. Valdez
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