SSS seen to reap profits from Philex mining ops

THE state-run Social Security System (SSS) is bound to be among the topmost beneficiaries of the $224-million Silangan copper-gold project, according to the vice chairman of the House Committee on Appropriations.

Makati City Rep. Luis N. Campos Jr. said in a statement that the SSS has a substantial equity investment in one of the largest new mining ventures in the country.

Campos was referring to the $224-million Silangan copper-gold project of publicly listed Philex Mining Corp. The project is targeted to commence commercial operations by early 2025.

The SSS owns a fifth, or 20.09 percent, of the outstanding common shares of Philex, based on the records of the Philippine Stock Exchange (PSE) as of June 30.

Besides producing some 8,000 new jobs, Silangan is expected to contribute up to P80 billion in royalties and taxes to the government and result in P6-billion worth of community development spending around the mine site.

The figures are based on estimates from the Mines and Geosciences Bureau and project details on Philex’s website.

According to Campos, the windfall from the project would help the SSS provide social security protection to 40.49 million covered Filipinos.

“We foresee the SSS reaping more benefits from its long-term equity stake in Philex. In the years ahead, we expect the pension fund to profit from a rising share price plus higher cash dividend income,” Campos said.

But the lawmaker said the Silangan project in Tubod, Surigao del Norte, is not just about investment gains for the SSS,

“We want the project to succeed because it will yield new badly needed royalty and tax income for the government, create more jobs, and generate additional foreign exchange earnings for the country,” Campos said.

Last week, Finance Secretary Benjamin E. Diokno declared that “the mining industry holds the greatest potential to be a key driver of our economic recovery and long-term growth, especially now that world metal prices are high.”