Philex to proceed with Boyongan mining project

Philex Mining Corp. will proceed with its Boyongan copper-gold project “as soon as possible, ” Philex president and chief executive officer Jose Ernesto Villaluna said yesterday.

In an interview at the sidelines of the 9th ASEAN Senior Officials Meeting on Minerals (ASOMM), Villaluna said Philex is bent on pursuing the Boyongan copper-gold project either by itself or through a joint venture for the project.

“We have to see what is the best deal for Philex,” Villaluna said.

Philex’s decision to go ahead with the Boyongan copper-gold project comes after its agreement to buy out for $55 million its former partner — Anglo-American Exploration (Philippines) BV.

Villaluna said the project is now in the pre-feasibility stage. Several issues will have to be resolved such as project cost, remaining reserves, process of recovery, delivery of equipment and securing an extension of the pre-feasibility timetable under the original mineral production sharing agreement (MPSA) granted during the control of Anglo-American, Villaluna said.

He said Philex plans to reduce by up to $100 million the original project cost of $700 million and the amount will be spent over a period of three years.

According to Villaluna, Philex is studying whether it will undertake the project by itself or go into a joint venture with interested parties.

A study is also being undertaken to estimate the remaining reserves of the mine as well as the mining and recovery process — either open pit mining or underground and catch all process or flotation process.