Local mining companies hike output as gold prices increase

MANILA, Philippines - Strong gold prices have encouraged several mining firms to ramp up production and explore new areas to be able to cash in on the gold bonanza which could last until next year or while the US economy remains in the doldrums.

This was the common sentiment expressed yesterday among several mining firms which presented their projects and plans on the last day of the three-day Mining Philippines 2009 Exhibit and Conference.

Metals Exploration Plc, CGA Mining Ltd., TVI Resource Development Philippines, Inc. (TVIRD) and Sagittarius Mines, Inc., which made presentations yesterday, said they plan to ramp up their gold and copper production and explore promising new areas.

Metals Exploration chairman Ian Holzberger remained bullish on their Runruno gold-molybdenum project in Nueva Vizcaya which currently produces three million tons of ore and 183,000 ounces of gold.

Strong gold prices, Holzberger predicted, would hold for a couple of years as the global economy recovers. The price of gold is now hovering above $1,000 per ounce.

Holzberger said they are awaiting the approval by Malacañang of their Financial and Technical Assistance Agreement (FTAA) for the Runruno project which was endorsed about four months ago by the Department of Environment and Natural Resources.

TVI Resource, which is currently concentrated on copper production, expressed interest in going into gold production.

In his presentation, Clifford M. James, chairman and chief executive officer of TVI Pacific Inc., announced TVIRD’s plans to go back to gold production. Its current operation is concentrated at its Canatuan mine in Siocon, Zamboanga del Norte which produces an average of 198 tons of copper concentrate.

CGA Mining Ltd., which owns 40 percent of Filminera Resources, reiterated its confidence in its Masbate gold project which is targeting to increase its gold production from 200,000 ounces per year to 250,000 ounces.

Filminera is the largest gold producer in the Philippines.

Sagittarius Mines, Inc., said it has started a $74 million feasibility study (FS) and Environmental and Social Impact Assessment (ESIA) for its $5.2 billion Tampakan copper-gold project in South Cotabato.

A potentially rich project, production is scheduled possibly by 2016.