Over $10 Billion to be Invested in Philippines Mining Sector

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Researched by Industrial Info Resources (Sugar Land, Texas). The unique location of the Philippines, within the Pacifica Rim of Fire, lends this Asian nation to be a potential major player in the global mining industry. As the gateway to Southeast Asia, it is better positioned to serve China, in particular, and Asia as a whole, faster and cheaper than Brazil, Chile, Australia or South Africa. Thus far, only about 20% of the country’s mineral wealth has been cataloged by the government and even far less developed. Some of the metals and minerals found in the Philippines include iron ore, chromite, nickel, molybdenum, manganese ore, cobalt, copper, lead, zinc, quicksilver, cadmium, aluminum or bauxite, manganese, gold, silver, platinum, and uranium.

In spite of its political instability, when compared to other mining countries like Australia and South Africa, foreign mining companies are not deterred from the Philippines. This is evident in an investment commitment of over $10 billion by companies such as Thistle Mining (Welkom, South Africa), Oceana Gold (Melbourne, Australia), Red 5, Limited (Perth Australia), and Toledo Mining Corporation Plc (London, England) with projects in various phases of development in Philippines. These projects have the full support of the Filipino government in its efforts to revitalize the country’s Metals and Minerals Industry. Although the government owns all natural resources, minerals inclusive, foreign mining companies are allowed to own up to a 40% interest in mine production companies with the remaining 60% belonging to Filipino corporations, citizens or government.

Currently, the Filipino government has prioritized 24 projects (medium to large-scale) to be developed between 2004-2010, and industrial Info is tracking them all. Of those projects, only four will become operational starting 2007. As with all mining projects that industrial Info tracks globally, these projects have a minimum capital investment of $25 million. For example, the Masbate greenfield gold mine, being developed by Thistle Mining, is expected to become operational by early 2009 at the cost of $92 million. The E+P+C (engineering, procurement and construction) contract for Masbate is being carried out jointly by Leighton and Intermet Engineering. The Philippines is also home to Indophil Resources NL (Melbourne, Australia), where together with its partner Xstrata Copper of Brisbane, Australia, is working diligently to complete a definitive feasibility study on Tampaken, a world-class copper-gold resource. It is projected that it will cost over $1.8 billion to bring Tampaken on stream, with construction commencing in late 2007.

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