Mining investments seen to hit $1B

Mining investments are projected to hit $1 billion this year, twice the amount recorded last year, Mines and Geosciences Bureau (MGB) director Horacio C. Ramos said yesterday.

Validated investment figures for 2007 amounted to $500 million, Ramos said.

In an interview, Ramos said mining investments this year are likely to surpass by a wide margin earlier estimated which pegged the total at a mere $890 million due to the drop in metal prices.

Ramos said the current drop in metal prices is expected to be short term. He said the long-term outlook for metal prices is still upward.

Even with the short-term drop in metal prices, Ramos said, mining investors continue to pour in money for their mining and exploration activities in preparation for the long-term upward trend and demand for minerals.

He pointed out that “while one project is delayed, the others are continuing with their investments and new ones continue with their exploration activities.”

Continuing investments include those of Atlas Consolidated Mining and Development Corp., Filminera Resources, Philsaga, the ferrous nickel projects of the Platinum Group Metals Corp., the expansion of Coral Bay Nickel Corp. and Taganito.

According to Ramos, preliminary first half investments amounted to $300 million excluding investments in exploration activities. (OJO! Trying to get actual figures from MGB economic division, hinihintay ko may hawak ng figures).

Atlas has brought in some $18 million worth of heavy equipment and is scheduled to start production in its Carmen Copper mine this year.

Filminera already has a mineral processing permit and is expected to start investing for its mill by next year.

Filmineral only needs approval for its feasibility study. Filminera could start operations within the year as it has also invested about P120 million for its start-up.

According to Ramos, the Philippines remains on track tohitting its $10-billion investment target by 2010-2011.