Philex remains open to investors for its Silangan project

MANILA, Philippines — Philex Mining Corp. is not closing its doors to foreign and local investors for its Silangan Copper-Gold project in Surigao del Norte, an official said.

In a statement yesterday, Silangan chief operating officer Michael Toledo said they remain open to investors who may want to infuse fresh funds for the development of the Silangan project.

“It now depends on valuation and commercial terms, compliance to government regulations, and the strategic value that the potential investors will bring into the success of Silangan.” he said.

Philex earlier sought $750 million to start the development of the Silangan project, however it failed to find one largely because of uncertainty in government policy.

This led the company to pursue an in-phase development plan for the Silangan project, where the company would spend an initial $224 million for the development of a starter mine.

The $224 million funding will be financed by a combination of capital infusion from Philex, equity via stock rights offer (SRO), and debt.

Meanwhile, with the recent moves of the Philippine government to ease mining policies, such as the lifting of the ban on open pit mining, Toledo said this raises the possibility of a renewed influx of foreign capital in the sector.

“Recent policy moves by the Philippine government are expected to boost investor confidence in its mining sector while unlocking the country’s vast mineral resources responsibly and equitably,” said Toledo, who is also the chairman of the Chamber of Mines of the Philippines (COMP).

“This is good news for the mining sector, which hasn’t seen any major investments since 2016 due to tighter government regulation. Renewed investor interest in mining could lead to fresh capital inflows that could unleash the industry’s huge potential,” Toledo said.

In separate statements, The Philifourpines Australia Business Council (PABC) and Australia Philippines Business Council (APBC) said the consecutive decisions of the Department of Environment and Natural Resources (DENR) to lift the four-year-old ban on open pit mining for the extraction of copper, gold, silver, and complex ores, and the removal of the moratorium on new mineral agreements between the government and private contractors were clear signals that the Philippine mining sector is once again open for business for local and foreign direct investment.

The Philippines is the fifth most mineralized country in the world, with the third largest deposits of gold, fourth for copper, and fifth for nickel. Around one-third of the country’s land area has mineral potential, but only one-tenth of that is covered by mining tenements.

“Mining is one industry that truly highlights the complementarity between Australia and the Philippines,” APBC president Rene Cabrera said in an earlier statement.

COMP said the lifting of the ban on open pit mining would allow the industry to contribute more to the country’s economic recovery.