DENR trims projections for mining investments

MANILA, Philippines - After reviewing its projected investment figures, the Department of Environment and Natural Resources-Mines and Geosciences Bureau (DENR-MGB) has revised downward its projected investments for this year to just $1.429 billion from $2.2 billion.

 However, the lowered projected investments this year in the mining sector is still more than double the $640 million that was invested last year.

The lowered projected investment of $1.429 billion this year is due to a lack of funding for the Mindoro Nickel project, the Far Southeast Gold project, Benguet Corporation’s King-King Copper-Gold project, the Nonoc Nickel project, the Silangan Copper project and even the Tampakan Copper project.

 The Mindoro Nickel project, the Far Southeast Gold project and the King-King Copper-Gold project are all expected to bring in around $300 million each this year, thus effectively removing already around $900 million alone from the projected investment inflow.

The Nonoc Nickel project still has no takers even after several years of negotiations with several prospective investors.

Intex Resources, which will undertake the Mindoro Nickel project, is still bogged down with its Environment Clearance Certification (ECC) from the DENR as the local community and indigenous people in Mindoro continue to oppose any mining activities in the area.

Intex Resources had previously announced that it would spend around $2 billion for its Mindoro Nickel project which is still in the feasibility/financing stage.

Similarly, funding for the Mankayan, Benguet gold project of Far Southeast Gold Resources Inc. of Lepanto Consolidated and the Zijin Group of China is also experiencing some delay.

Benguet Corp. is likewise not able to proceed with its King-King Copper-Gold project as it continues to resolve some legal issues with the National Development Corporation (Nadecor) over the right to operate the King-King project.