Philex upbeat on mining sector’s prospects this year

MANILA, Philippines — The Philippine mining sector will have an upbeat year this 2022 on the back of favorable foreign exchange movement (forex) and government support, according to top officials of Philex Mining Corp.

Philex chairman Manuel V. Pangilinan expects this year to be a good year for the company and the industry in general.

“I trust that on the basis of our sustained performance, 2022 will still be a relatively good year for the company and for the industry,” he said.

“The recent pronouncements of the government toward the mining industry has given us hope, as we strive even harder to contribute to the development of the mining industry in general, and uplift the lives of our host communities in particular,” he said.

The government under President Marcos has not waned from its resolve for mining to be one of the major contributors to accelerate economic recovery, the company said.

The company cited Marcos’ emphasis on the importance of utilizing and developing the country’s natural wealth and resources in the recent multi-stakeholder forum organized by the Department of Environment and Natural Resources (DENR).

Philex  also said the continued strengthening of the dollar  is a positive factor to the company’s revenue which is denominated in  dollars.

The government support and the forex movement allow the industry to enjoy a healthy outlook despite the current global concerns of high inflation, and industrial production and supply issues in countries such as China, the company said.

“In spite of the current concerns worldwide, particularly on the high levels of global inflation, the volatility of currencies and of metal prices, we maintain a positive outlook, considering that copper, one of our major products, has been identified as a green metal necessary for the global fight against climate change,” Philex president and CEO Eulalio B. Austin Jr. said.

“Philex will continue to raise the bar to promote right and principled mining, particularly where ESG, sustainability and, most especially, resiliency are concerned,” he said.

The Philippine government is luring in investments in processing facilities for green metals in the country.

The so-called green metals used in cleaner-energy applications include copper, nickel, cobalt, lithium, and rare earth metal or elements.

As of end-September, Philex registered a 17-percent decline in core net income to P1.543 billion due to lower copper price, decreased metal output, and higher power rates?despite efficient deployment of operating costs and expenses.

The company’s revenues inched lower to P7.677 billion from P7.742 billion on the back of lower gold and copper prices, which was tempered by favorable exchange rate effect.