Philex to spend $1 billion more to develop Silangan

MANILA, Philippines — Pangilinan-led Philex Mining Corp. (Philex), one of the country’s oldest and largest gold producers, said its Silangan project will spend $1 billion (P55 billion) in capital expenditures to develop and ramp-up its production.

The projected spending will raise Silangan mine’s full capacity to four million metric tons (MT) every year, according to Philex.

The estimated capex excludes the sustaining capex needed by the project and is also on top of the firm’s pre-development investment in Silangan mine of P18 billion, according to Philex.

Furthermore, Silangan is spending around P5 million per year on its social development and management program even if the project is not yet operating, Philex said.

Based on the in-phase mine plan and on the latest updates on the construction and procurement process, the Silangan Project is slated to have its first metal production by March 2026.

Philex said it recently unveiled its Silangan project at its project site in Barangay Timamana, Tubod, Surigao del Norte.

The ceremony was held in front of the grinding complex which is composed of major equipment such as the semi autogenous grinding mill, mill liner handler and cyclone cluster pump at the process plant to showcase it as one of the most critical areas of the mine project.

The process plant also includes copper leaching and gold leaching operations, Philex said.

In March, Philex chairman Manuel V. Pangilinan hinted that the group has found a foreign investor for the development of the Silangan project, but did not confirm if a deal has been closed.

“If you’re an investor, where will you go? Of course there in the new one and with high grade ore,” Pangilinan said, referring to the Silangan gold and copper mine.

Pangilinan said Philex would likely maintain majority control in Silangan, with the incoming investor taking a minority stake.

Philex has previously expressed its openness to investors who may want to infuse fresh funds for the development of the Silangan project.