Philex sees 10% hike in core income to P2 bilion

MANILA, Philippines - Philex Mining Corp., the country’s biggest mining firm, expects to post a core income of P2 bilion this year, 10 percent higher than the P1.8 billion it earned last year, company chairman Manuel V. Pangilinan said.

He said, the higher income projection is anchored on the expected higher metal prices this year.

However, Philex treasurer, chief financial officer and vice president for finance Renato N. Migrino admitted that the mining firm actually expects lower production this year due to water intrusion in its Padcal mine.

He said the water intrusion results in clay which makes mining operations more difficult.

While its Padcal mine in Tuba, Benguet  will remain as Philex’s main mine, Pangilinan revealed that the company has already commissioned a feasibility study for its Silangan mine in Surigao del Norte, with its results expected to be completed next year.

Pangilinan said Philex hopes to start operating the Silangan mine “no later than 2015.” The company is investing between $600 million to $800 million for the development of the Smine site.

Philex acquired full control of the Silangan mine project  in April this year after buying back the minority shares of Philex Gold Inc. in February last year, Philex acquired the entire 50-percent share of its partner Anglo-American for $55 million.

 Anglo-American, one of the world’s largest and most diversified mining and natural resources group, said it was not as bullish in proceeding with the project, leading to an eventual rift and parting of ways with Philex which decided to proceed with the mine project on its own.