Mines bureau misses 2009 investment target

MANILA, Philippines - Investments in the mining sector this year are expected to reach only $375 million, way below the downscaled target of $600 million, Mines and Geosciences Bureau director Horacio Ramos said yesterday.

In an interview with The STAR, Ramos said metallic mineral production for 2009 would likely increase 39 percent on the back of higher metal prices.

Ramos said the sharp slowdown in mining investments is due to the continuing effect of the global financial crisis that erupted in the third quarter of last year.

Ramos noted that several mining projects failed to find partners and financing such as that of Philnico, Oceana Gold’s Didipio copper-gold project, and that of Intex Resources which has run into some opposition from the local government.

On the other hand, Ramos pointed out that metallic mineral production is projected to increase 39 percent this year due to high metal prices, particularly for gold which hit a high of $1,200 per ounce this year.

The MGB still has no figures for non-metallic production.

Even nickel prices, although still below its historic high is commanding a reasonable price of $7.733/lb.

Additionally, Ramos said, six to seven mining firms finally started operations this year, contributing to higher metallic production.

The firms that started production this year include TVI Resources, Masbate Gold, Palawan Nickel, Philsaga and Metals Exploration.