Mitsubishi Corp., the local subsidiary of Japan’s largest general trading company, said it is ready to invest up to $1 billion in real estate and mining ventures in the country.
“We are willing to invest … $1 billion in the Philippines,” Toshifumi Inami, senior vice president and general manager of Mitsubishi told reporters. “It all depends on the market conditions.”
Inami said they are looking at the real estate industry and may possibly enter into partnership with local firms. He said a strong candidate for Mitsubishi local partner is Ayala Corp. where Inami sits in the board.
Inami said their plan for real estate investments is still evolving. He said they are not sure whether they will develop a low cost mass housing project or go into high end condominium units.
Another possibility is a hotel and leisure facility, Inami said, adding that they don’t know as of now where to put their investment. He said they are in the middle of their project study.
“It all depends on the outcome of the study,” he added.
For mining, Inami said they are studying possible sites for their copper and nickel exploration. He noted that most of the copper and nickel deposits are concentrated in the southern part of the Philippines.
“We are still studying but hopefully we can start the project within the year,” Inami said.
He said it would be good if they can start the project before the end of the year because the gestation period for mining is three to five years.
Inami declined to identity their choice for a partner for the mining project. He said they have narrowed down the possible local partners.
Interest in the mining sector boomed in 2004 after the Supreme Court allowed foreign ownership of large-scale mining operations. However, foreign and local investors still need to contend with opposition from environmental groups, the local community and even the Catholic Church.
The Department of Environment and Natural Resources reported a total of P95 billion in mining investments last year, up significantly from P72 billion in 2006.