Philex secures pertinent papers for Silangan mine

MANILA, Philippines — It’s all systems go for Pangilinan-led Philex Mining Corp.’s Silangan copper and gold project after it complied with all the requirements to proceed with its operations.

In a regulatory filing, Philex said the Department of Environment and Natural Resources, through the Mines and Geosciences Bureau, approved the underground sub-level cave mining method.

The approval of the underground sub-level cave mining method included the three-year development and utilization work program for the second half of the year up to the first semester of 2022.

It also includes the environmental protection and enhancement program, final mine rehabilitation and decommissioning plan, and social development and management program.

Prior to such approval, the Silangan copper-gold project was also granted an environmental compliance certificate for underground sub-level cave mining method.

Philex finally concluded its definite feasibility study for the first phase of the Silangan project with higher mineral resource estimates of 571 million metric tons, up 43 percent from the previously declared levels of 398 million MT for the Boyongan, Bayugo and Kalayaan ore deposits.

The Silangan mine is a large-scale high-grade copper-gold development, with a number of greenfield and brownfield components, located in Surigao del Norte. It is one of three big-ticket mining projects seen to propel the Philippines as a major regional copper producer.

Philex is earmarking an initial $750 million for the development of the Boyongan ore body, the maiden phase of the project.

Silangan will be developed in phases with the Boyongan deposit to be fully developed within two-and-a-half years and is expected to commence commercial production by the second half of 2022.

The first phase of the Boyongan deposit has an initial estimated mine life of 22 years. For the initial stage, Silangan is expected to yield high grade mineable ore grades of 0.63 percent for copper and 1.2 grams per MT for gold.

The second phase, which will be composed of the Bayugo deposit, is scheduled to undergo preliminary feasibility study for underground sub-level cave mining within the year.

Bayugo is expected to be mine-ready as early as the fifth year from the start of Boyongan’s commercial operations.

The remaining substantial mineral resource and inventory including Kalayaan and the remnants of Boyongan will be subjected to future studies.

Philex reported a 29 percent drop in its first semester net income to P391 million amid lower production levels as Padcal nears the end of its mine life.