MGB upbeat despite BHP pullout from RP

MANILA, Philippines - The Mines and Geosciences Bureau (MGB) does not consider the pullout of global mining giant BHP Billiton from the Philippine mining industry a total loss.

Instead, the MGB now foresees the entry of smaller investors who are interested in operating a mine, rather than a big mining firm biding its time.

In an interview with The STAR, MGB assistant director Edwin G. Domingo explained the proper context of BHP’s decision to finally sign off on its long simmering partnership with Filipino businessman Peter Tan.

In the regional context, Domingo pointed out, BHP has been pulling back from its investments in the nickel mining sector because of the continued depressed demand for the metal which is used to produce stainless steel.

BHP’s disinterest in its nickel investments, Domingo pointed out, was already signaled by its decision to sell its stake in its own nickel projects – Ravensthorpe and Yabulu in Australia.

Instead, Domingo said BHP is focusing its attention in the Philippine energy sector, which indicates that it is still investing in the country – just in another sector and no longer in the mining sector.

By finally selling its 40 percent stake in its joint venture with Asiaticus Management Corp. (AMCOR), Domingo said Filipino partner Tan can now seek other, perhaps, smaller investors who are keen on immediately operating AMCOR’s nickel project in Davao.

There are industry rumors that Tan may be partnering with interested Chinese investors although Domingo himself could not confirm whom Tan is talking to.

Environment and Natural Resources Secretary Jose L. Atienza had been trying, for the longest time, to broker an amicable settlement between Tan and BHP, in the hope of securing BHP’s estimated $2 billion investment in the Philippine mining sector.