Philex unit gets BOI perks

MANILA, Philippines - Silangan Mindanao Mining Co. Inc., a wholly-owned unit of Philex Mining Corp., has received the incentive package from the Board of Investments as a new producer of copper concentrate with gold and silver by-products on a non-pioneer status.

This will entitle SMMCI’s $1-billion Silangan project located in Surigao del Norte to fiscal and non-fiscal perks such as the enjoyment of income tax holiday and the tax and duty-free importation of spare parts and consumable supplies.

Among the general terms and conditions of the registration is the compliance by SMMCI to the provisions of the Omnibus Investments Code of 1987, the Philippine Mining Act of 1995 and the Mineral Production Sharing Agreement (MPSA).

The MPSA covers around 2,880 hectares of the province.

The project, which contains the combined Boyongan-Bayugo deposit, is expected to have an annual ore milling capacity of 10.9 million metric tons.

The mine was estimated to have an initial mine life of 25 years based on the current resource estimate of about 400 million tons. Depending on metal prices and how much of the resources could be converted into reserves, the Silangan project’s mine life could be extended up to 50 years.

In June, Philex said the combined Boyongan-Bayugo resources contained an estimated metal content of nine billion pounds of copper and five million ounces of gold.