EO 79 remains a setback to build more nickel processing plant here

With the moratorium on new mining projects still in place, it will be hard to put up a new nickel processing plant in the Philippines even if the government badly wants to develop the downstream industry for metals and minerals, a top mining company official said.

Dante Bravo, president of Global Ferronickel Holdings, Inc. (FNI), said it "would be very difficult" for his company and its Russian partner to proceed with its plan to build a processing plant if the Executive Order (EO) 79 is still effective.

FNI is the third largest nickel ore producer in the Philippines and the largest single lateritic mine exporter in the world.

Right now, FNI is working with Russian firm Vi Holding on a feasibility study for the proposed processing plant for lateritic ores here in the Philippines.

Vi Holding is a member of an international investment and industrial group of companies from Russia with interests in mineral exploration and processing, real estate, energy and innovative solutions.

"I'm not saying there's no chance but it's going to be difficult because if you put up a plant, you need at least 15 years of mining. We can put up smaller plants but it is worth the investment?" Bravo said in a briefing on Wednesday.

"If we have the EO 79 lifted and we're finally allowed to explore other areas, then it is possible [to pursue the project]," he added.

It was on the exact day of his confirmation last year when Environment Secretary Roy Cimatu first mentioned about VI Holding's plan to expand here.

He said the foreign firm's entry in the Philippines will help add value to the country's mineral resources.

Over the years, the government has been pushing for the development of more mineral processing plants in the country so that miners could extract more value from the country's natural resources at the same time generate more jobs.

At present, there are only two mineral processing plants in the country.

Cimatu said that as long as the country doesn't have enough of these facilities, "we have to keep on exporting raw minerals at a lower price."

Right now, the country has one of the most untapped mineral resources, projected to have a value of over US$1 trillion.

Bravo said it takes "a billion dollar" to build a plant, which would require 18 months of construction.