Bumolo resources could extend Philex’s Padcal mine life to 2024
PHILEX MINING Corp. said resources discovered in its Bumolo porphyry copper-gold project in Benguet may stretch its Padcal mine’s life to two more years to 2024 from its earlier projected end in 2022.
“Hopefully, identified resources in Bumolo could potentially add two more years to Padcal mine life,” Philex President and CEO Eulalio B. Austin, Jr. told reporters on the sidelines of the company’s annual stockholders meeting held Wednesday.
“It is still subject for further study. If ever proven mineable, it could extend from 2022 to 2024,” Mr. Austin added, noting that the firm has yet to consider if the input cost, among other factors, in mining these resources will be economically viable.
In October 2015, Philex Mining said it found an additional 111 million tons of resources at the 800-600 meter level, extending Padcal Mine’s life by two years to 2022 from 2020.
The maiden inferred resource estimate of 21.7 million tons identified in the Bumolo Project, which is adjacent to the Padcal mine, can provide additional ore to Padcal and further stretch the mine’s life to 2024.
As for its Silangan project operated by its wholly owned subsidiary Silangan Mindanao Mining Co., Inc., the firm said it has completed its feasibility study.
“We are expanding some parts of the feasibility to make it a more comprehensive study. In the meantime, we have to complete all of the requirements and approvals from the government,” Philex Mining Chairman Manuel V. Pangilinan told reporters on Wednesday.
Asked on seeking joint ventures (JV) for the Silangan project, Mr. Pangilinan said they will be seeking “strategic investors” to partner with.
For his part, Mr. Austin noted that the controversial ban on the open-pit mining method issued by former Environment Secretary Regina Paz L. Lopez on the basis of claims that the method can harm the environment has to be resolved first.
“Sino JV sa’yo kung wala rin, kung mayroong ban on open-pit? ( Who will enter a JV with us if there’s a ban on open- pit mining?)” Mr. Eulalio said.
Miners have raised that the open-pit ban should be revoked as the method has been internationally accepted as a safe way to mine and deemed economically viable.
However, the Silangan mine in Surigao del Norte was also one of the 75 mines in pre-operational phase Ms. Lopez ordered canceled for being situated in watersheds. Philex Mining has replied to the show cause order it received from the agency on the said issue but has yet to receive a reply that will render a final decision on the fate of its mine.
The Silangan mine is a twostage mining development which will make use of the open- pit method in the first stage and underground for the second stage.
Meanwhile, as for the firm’s outlook for the year, Mr. Pangilinan said profit by year end may stand “flattish” as the industry is faced with volatile prices of ore in the world market
“It will probably be similar to 2016... We’re having some issues with the production now — nothing serious, but it may lead to a slight decline in production of ore and therefore could impact the amount of gold and copper production for 2017,” the firm’s chairman said.
Last year, Philex Mining’s net income surged to P1.567 billion from the prior year’s P776 million. The gold and copper miner saw its net income grow 2.8% year on year to P432.27 million in the first three months of 2017.
The firm has allotted P1.8 billion in capital expenditure for the year, with most of the budget to be allocated on purchase of equipment.
Philex Mining shares inched up 0.45% on Wednesday to close at P9 apiece.
Philex Mining is one of three Philippine units of Hong Kongbased First Pacific Co. Ltd., the others being PLDT, Inc. and Metro Pacific Investments Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains interest in BusinessWorld through the Philippine Star Group, which it controls.