NEWS

By Jonathan L. Mayuga | Business World | February 22, 2022

(Photo: Business World)

WITH the recent policy moves by the Duterte administration, the mining industry’s big players said the Philippines is back on the radar of foreign mining investors.

Chamber of Mines of the Philippines chairman Michael T. Toledo said for one, Australian investors welcomed the recent decisions of the Philippine government to ease mining policies, raising the possibility of a renewed influx of foreign capital in the sector.

“Recent policy moves by the Philippine government are expected to boost investor confidence in its mining sector while unlocking the country’s vast mineral resources responsibly and equitably,” Toledo said.

Toledo is currently the chief operating officer of Silangan Mindanao Mining Co., a wholly-owned subsidiary of Philex Mining Corp.

Mining is a pillar of Australia’s economy, Toledo noted, and industry there is showing signs of potential boom, with investments surging and metal prices still soaring.

In separate statements, The Philippines-Australia Business Council (PABC) and Australia Philippines Business Council (APBC) said recently that the consecutive decisions of the Department of Environment and Natural Resources (DENR) to lift the 4-year-old ban on open pit mining for the extraction of copper, gold, silver, and complex ores, and the removal of the moratorium on new mineral agreements between the government and private contractors, are clear signals that the Philippine mining sector is again open for business for local and foreign direct investment.

“This is good news for the mining sector which hasn’t seen any major investments since 2016 due to tighter government regulation. Renewed investor interest in mining could lead to fresh capital inflows that could unleash the industry’s huge potential,” Toledo said.

Since the government tightened mining rules, only Philex has decided to go ahead with its investment plan to develop, beginning this year, a starter mine that would cost $224 million. The Silangan copper-gold prospect in Surigao del Norte is expected to produce gold and copper in early 2025.

5th-most mineralized

The Philippines is the fifth-most mineralized country in the world, with the third-largest deposits of gold, fourth for copper, and fifth for nickel. Around one-third of the country’s land area has mineral potential but only one-tenth of that is covered by mining tenements.

Estimated to be worth around $1 trillion in value, these resources remain underground.

“Mining is one industry that truly highlights the complementarity between Australia and the Philippines,” said APBC President Rene Cabrera in a statement.

“The Philippines has vast untapped natural resources; Australia is a global expert in minerals development and production underpinned by responsible mining practices sought by the Philippine government and community. The potential for rewarding opportunities has always been there,” he added.

Philex had initially sought foreign investors to fund a grander development of Silangan, but failed to find one largely because of uncertainty in government policy. Philex will issue stock rights, use reserve funds and borrow from banks to fund the Silangan project.

Toledo said, however, that Philex isn’t closing its doors to investors, both local and foreign, who may want to infuse fresh for the development of the Silangan project. “It now depends on valuation and commercial terms, compliance with government regulations, and the strategic value that the potential investors will bring into the success of Silangan.” he said.

Source: Business World