Philex Mining eyes other mining projects

MANILA, Philippines — With its Silangan copper-gold project set to start development this year, Philex Mining Corp. is looking at other prospective mining ventures.

In a television interview with ANC, Philex Mining chairman Manuel V. Pangilinan confirmed that the company is eyeing new projects.

“I think we’ve got other mining prospects now that we’ve started Silangan and we’ve been approached by other mining owners about that,” Pangilinan said.

“We’ll be looking at gold, copper and even nickel,” Pangilinan said as he expressed optimism about higher demand for metals from the e-vehicles industry.

Pangilinan identified Mindanao and Benguet as among prospective areas for the group’s new projects.

“There are prospects in Mindanao. Even in Benguet province, in areas of Padcal itself. The prospects appear to be bright,” Pangilinan said.

Pangilinan said some of these opportunities could be pursued this year, as some discussions are already in “advanced stage”.

Philex earlier announced it would start the development of the first phase of the Silangan project this year.

This will begin with the development of a starter mine which will produce around 2,000 tons of ore per day. This will be ramped up to 12,000 tons a day or four million tons a year by the 12th year of operations.

The mine is targeted to commence commercial operations in the first quarter of 2025.

Meanwhile, despite the lifting of the ban on open pit mining by the government, Philex has decided to push through with using the underground mining method, instead of reverting back to the open pit method for the Silangan project.

Pangilinan said it would cost the company up to $130 million to revert to the open pit method.

He said there is still uncertainty on whether the next government would maintain the policy allowing open pit mining.

“In light of the uncertainties and the fact that we will be spending more to revert to open pit, let’s just proceed with the underground approach, which is also more environmentally friendly,” Pangilinan said.

Philex recently received the green light from the Securities and Exchange Commission (SEC) for its stock rights offer (SRO) worth as much as P3.15 billion.

Proceeds from the SRO will be used for the development of the Silangan project.

Philex chief finance officer and treasurer Romeo Bachoco earlier said part of the $224 million funding needed for the starter mine of the Silangan project would come from the SRO.

“Any balance that will be left from SRO and cash infusion through Philex, will be raised through debts,” he said.

In January, the mining company said it was studying the further extension of the lifespan of the Padcal mine in Benguet to potentially overlap with the start of the commercial operations of the Silangan project in 2025, in a bid to bolster its income stream.