The Philippines Awaits Metals Mining Boom

Researched by Industrial Info Resources Australia (Perth, Australia)--With its gold, nickel and copper resources, the Philippines has emerged as one of the fastest-growing economies in southeast Asia, just behind India.

Under the government of Benigno Aquino III, the nation has experienced an unprecedented period of economic growth and political stability that has restored business confidence in the nation. Gross domestic product growth for the year has testified to the increasing resiliency and diversity of the Philippine economy amid economic stagnation in the West, with a number of sectors leading the country's development.

Of the 161 operational plants within the country's Metals & Minerals and Oil & Gas industries, Industrial Info has confirmed that more than $19.54 billion in planned spending activity is expected in the Philippines. Mining represents the largest share of the country's total investment value, with more than $14.86 billion in planned activity. Comparatively, Oil & Gas and terminals spending activity makes up $4.67 billion of that total.

All signs of the country's sustained growth are pointing toward a minerals resource boom. From a global perspective, the Philippines is the third-largest producer of gold, the fourth-largest producer of copper, and the fifth-largest producer of nickel--a commodity that has driven the country's mineral resources boom since Indonesia placed a ban on its own nickel exports. Some sources suggest that the country holds about 1 billion tonnes of nickel reserves, 5 billion tonnes of gold reserves, and 8 billion tonnes of copper reserves. Such figures reinforce the importance of these metals for the country's future.

Metropolitan Manila is the country's largest producer of metals and minerals, with more than 17 operational plants. The island province of Cebu is the second-largest producer, with 10 operational plants. Rizal has eight plants, while Surigao del Norte and Bulacan each have seven operational metals and minerals plants.

The Surigao del Norte province will experience the most investment activity, with $4.62 billion to be spent on 11 separate projects. Mindoro Oriental in Luzon is expected to see seven projects with a total investment value of $3.34 billion. The Compostela Valley province has seven projects with a total investment value of $2.63 billion, while Bataan has 10 projects valued at $1.87 billion.

The Philippines is playing to its strengths, with major projects like Clariden Holdings Incorporated's $2.5 billion restart and modernization of the Surigao Nonoc Nickel Refinery, which is planned to kick off by 2017. Clariden Holdings is owned by Top Frontier Investment Holdings Incorporated (Manila, Philippines).

Another example is the $2 billion grassroot King-King Copper-Gold Mine and Processing Plant by San Agustin Services Incorporated (Davao City, Philippines), located 10 kilometers northeast of Pantukan, which is due to kick off by the end of the year. It will produce more than 25 million tonnes of copper per year.

The nation also may see the revival of Philex Mining Corporation's (Manila) $1.4 billion grassroot Sllangan Copper-Gold project, which could represent a key turning point in the country's looming minerals boom. Kickoff is slated for mid-2015, but the project is awaiting government approval.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.