Mining investments to reach $6B

The government and the private sector expect $6 billion in new investments to be poured into mining projects in the country over the next six to 10 years.

Chamber of Mines of the Philippines chairman Benjamin Philip Romualdez said they are bullish on the mining industry’s prospects, with more and more companies expressing interest to invest in mining projects in the country.

"Mining investments are undeterred. Foreign and local firms are committed to doing more investments in the mining sector. We are on the road to our goal of strengthening the industry. We would like to assure that there are many more investments coming in despite the political problems we are facing now. As a matter of fact, a lot of companies that have suspended operations are planning to revive their business," Romualdez said.

He said a total of $339.7 million worth of investments have been generated by the 23 projects that have either started operations or are in the development and construction phases of work. For the first half of the year alone, these projects contributed $18.55 million in fresh investments and created more than 2,200 new jobs.

Bigger investments came from projects that have started operations namely the Palawan nickel project of Coral Bay Mining Corp. in Bataraza, Palawan with investments reaching $175.8 million; the Rapu-rapu project of Lafayette Philippines Inc. in Albay with over $39 million in investments; the Canatuan gold project of TVI Resources Development Phils. in Siocon, Zamboanga del Norte with $17 million investments; and the Teresa gold project of Lepanto Consolidated Mining Co. in Mankayan, Benguet which pumped in $6.1 million in investments.

At least $50 million more is expected to be poured in up to the end of this year, Romualdez said.

Mining projects that are scheduled to go on stream are the $19 million ACT nickel project of SIRC scheduled to start construction in September this year and start production in 2007; the $66-million Didipio copper project with planned construction by early 2006; full rehabilitation of the Atlas mine in Cebu next year and initial production before end-2007 with an investment requirement of $17 million; and expansion of construction works of the $14.7-million Akle cement project by Eagle Cement Corp.

Ongoing feasibility studies or review are the Masbate gold project of Filminera Resources Corp., the Siana gold project of JCG Corp Resources, Benguet Corp’s King-King Mine in Compostela Valley; Nonoc Mines of Pacific Nickels Phils. in Surigao del Norte and the Tampakan copper of Sagitarious Mines Inc in South Cotabato.

Deinrado Dimalibot, Environment and Natural Resources Undersecretary for mining and legal affairs, said the government is also looking at shortening the processing of applications for mining licenses from four to five months to just two to 3 months.

He said the government continues to lure interest and seal investors commitment for other mining projects.

Crew Gold Corp. of Norway earlier purchased 72 percent of Apex Mining Co. for $6.6 million.

Apex, a listed company, owns the Masara gold mine in Compostela Valley.

A local mining outfit, Coral Resources Philippines Inc., was recently established in the country by a group of London-based investors for the exploration and possible development of various copper and gold projects in Masbate and possibly other prospective areas in the Bicol region.

Another London-based group associated with Regent Advisers has recently committed to finance the final feasibility study of the Colet mines in Negros Occidental.

The conduct of confirmatory drillings and finalization of the feasibility study is expected to cost at least $11 million.

The copper mining project, on the other hand, is estimated to cost $250 million.

Atlas Consolidated Mining & Development Corp., through its Carmen Copper Corp., is finalizing various financial arrangements for the $150-million proposed reopening of Asia’s former biggest copper mine located in Toledo City, Cebu.

Plans are also underway for the resumption of operations with rehabilitation works scheduled to start within this year.

The state-owned Natural Resources Development and Mining Corp. has initiated early this month the conduct of technical due diligence of various mining projects for future offering to interested parties.

Currently being packaged are the mining properties of the former North Davao Mining Corp. in Davao, the nickel-chromite deposits in the Dinagat Island, Surigao del Norte within the existing mineral reservation and the gold-copper deposit of Batong-Buhay mines in Benguet.

NRMDC is targeting the initial offering for public bidding of these properties starting this August.