Philex sets sights on Indonesia, Burma

MANILA, Philippines - Philex Mining Corp. is exploring the potential of offshore mining in Southeast Asia, particularly in Indonesia and Burma, a top company official said yesterday.

Philex director and senior vice-president Mike Toledo told reporters yesterday that the country’s most profitable mining firm is on expansion mode and mulls extending its presence outside the Philippines to take advantage of opportunities in the region, which has vast, untapped reserves of ore.

Indonesia is one of the world’s largest producers of tin (ranked second after China), coal (ranked the third largest thermal coal exporter after Australia and South Africa) and copper (ranked third largest, after the US and Chile). It also produces significant quantities of gold and nickel. Minerals and related products represented 19 percent of Indonesia’s total exports, with gold being the largest revenue earner. It also produces bauxite, phosphates and iron sand, with potential for alluvial diamond production as well.

The mining industry accounted for an estimated 10.9 percent of Indonesia’s GDP in 2010, with minerals and related products contributing about a fifth of the country’s total exports.

On the other hand, the Mogok Valley in north central Burma is the source of the majority of the world’s finest rubies and sapphire.

Toledo, meanwhile, said the company is amenable to the government’s plan to increase revenues from mining activities as long as it would not affect the financial performance of Philex.

Toledo is seeking a dialogue with the government with respect to the draft mining policy that is expected to be issued by Malacañang by the end of the month.

“Philex is one with the government in so far as coming up with a winnable solution. We’re hoping that the interest and concerns of investors and the mining players are taken into consideration before they sign it,” Toledo said.

Toledo has expressed concern over a provision that calls for a moratorium on the issuance of new mining licenses, which could affect the company’s Silangan copper-gold project in Surigao del Norte.