Fil-Canadian mining firm to invest P563M in RP

TVI Resource Development Phils. Inc. (TVIRD), a 60 percent-40 percent Filipino-Canadian-owned corporation engaged in mining and processing of minerals, is investing P563.2 million in the country to produce dore bullion.

Dore is an impure metal alloy of gold or silver used for further processing.

TVIRD’s mining operation is located at Canatuan, Zamboanga del Norte.

TVIRD has an existing Mineral Production Sharing Agreement (MPSA) covering a total area of about 508.3396 hectares.

It also has the required environmental compliance certificate (ECC) issued by the Department of Environment and Natural Resources (DENR).

According to Trade and Industry Secretary Juan B. Santos, the recent Supreme Court (SC) decision upholding the constitutionality of the Mining Act has ignited the interest of foreign ventures in the large-scale exploration, development and utilization of minerals in the country.

TVI is just one of the many mining firms that are now engaging and looking for mining prospects in the country.

The firm has a target production capacity of about 979,195.38 oz of dore bullion annually, broken down more specifically to 31,431.42 oz of gold and 947,763.96 oz of silver.

Santos believes that the resurgence of the country’s mining industry will not only contribute to the much-needed export revenues, but also to generating more employment.

TVIRD’s venture will employ 425 workers in the mining site consisting of administrative, direct and indirect labor.

Santos said that the DTI has identified the mining industry as among the priority industries that are being given assistance and support because of its great potential to attract substantial investments.

The DTI, Santos said, is pushing for a more streamlined and time-bound processing of mining permits, clearances, certifications from various concerned government agencies to hasten approval of pending applications,.

Santos was quick to assure though that only environmentally compliant, economically and socially sound projects would be approved and that they should have the support of communities where they intend to locate.

Mining experts estimate that the country’s mineral deposits are worth around $965 billion or P54 trillion.

Of the nine million hectares of the country’s mineralized land, only 1.4 percent or 420,000 hectares are covered by mining permits.

Close to 8.6-million hectares of land rich in mineral deposits are waiting to be explored.

"To hasten the development and utilization the country’s mineral resources, the DTI together with the DENR and the Chamber of Mines have lined up several international mining road shows and conferences for this year, " Santos said.

At present, prices of metal are currently at their peak. Copper prices stand at $1.44/lb, for a 78 percent increase from 2003. Gold stands at $ 453/oz, for a 25 percent increase, while that of silver is at $ 7.82/oz or a 60 percent improvement over the previous year. Nickel is at $7.13/lb, up 63 percent from a year ago.

Current metal prices indicate an opportune time for the mining sector to expand its operations.

In 2003, the mining industry contributed P41.5-billion in productive value, P17.9-billion in value-added contribution or 1.6 percent of the gross domestic product (GDP), $638-million in exports and provided more than 104,000 direct employments.