Philex Mining eyes Partners for USD 1.1 Billion Silangan project by 2022
Reuters, citing Philippines’ copper and gold producer Philex Mining Corp, reported that it’s seeking possible strategic partners for a long-delayed USD 1.1 billion mine project in the south of the country that it hopes to fully develop by 2022.
The Silangan project, originally slated to begin production by 2018, was hit by a ban on new open-pit mining introduced in 2017 as the government in one of the world’s top copper, gold and nickel producers stepped up environmental protection.
Philex, which has a market capitalisation of around USD 330 million, didn’t identify potential partners by name nor give details of the type of relationship it might seek with them. The mine is scheduled to be Philex’s biggest source of revenue after the closure of its 61-year-old Padcal mine in the north.
Located in Surigao del Norte province in Mindanao, Silangan is a large-scale project composed of three ore prospects, namely Boyongan, Bayugo and Kalayaan. Based on latest estimates by Philex, it has 571 million tonnes of mineral resources, up 43% compared to the previously declared levels of 398 million tonnes.
Philex said that it would earmark around $750 million for the development of the Boyongan ore body, and has appointed J.P. Morgan for equity investment and Japan’s Mizuho for project financing. The miner said it was working closely with regulators for the issuance of final operating permits for underground mining.
Source : SteelGuru
Posted by: Job Paul Bulos