The Philippines is on track to meeting its $1.44-billion mining investment target for 2011, officials said.
Environment Secretary Ramon J.P. Paje and Mines and Geosciences Bureau Director Leo L. Jasareno said the target was “attainable” despite market correction in the price of gold.
“Gold will at least be stable at $1,500. We think that is the true price and the previous higher prices were artificial,” Paje said.
Jasareno said copper was also enjoying good prices and might stabilize at about $4 per pound, while nickel had mellowed to $10 to $11 per ton.
With metal prices still relatively good, Jasareno said, producers had been increasing production.
As for investments, Jasareno said the government had so far recorded about $430 million in fresh mining investments for 2011 and was consolidating this figure with ongoing investments, such as those from Taganito (Mining Corp.) and an adjacent nickel processing plant.
Sumitomo Metal Mining Co. Ltd., majority owner of the processing plant, programmed $1.3 billion for the project for its fiscal year 2011-2012, which ends on March 30, 2012. PDI
The Alcantara-led Alsons Power Holdings Corp. has increased to 19.99 percent its stake in mining firm Indophil Resources NL, which currently owns part of the $5.9-billion Tampakan gold copper project.
In a regulatory filing, Indophil said this transaction, which was done by way of a US$99.4-million placement agreement, would allow the mining firm to strengthen its local alliance focused on supporting the Tampakan project.
“As a first step, Indophil will welcome Alsons’ Nicasio Alcantara to the board. Indophil has sought for some considerable time to bolster its local representation, and we are very pleased to confirm that Alcantara, a highly respected Philippine business leader, will fulfill that role and add a new dimension to board representation,” said Indophil CEO Richard Laufmann.
Indophil explained that the placement would consist of two tranches, the completion of which would allow the Alsons Group to control 19.99 percent of Indophil’s revised shares on issue, which would be 1.2 billion ordinary shares. There are 995 million shares currently on issue.
Laufmann added that the completion of the new placement, before costs, would give Indophil a cash position of approximately A$264.1 million, which he described as “a firm foundation upon which Indophil can build its continued participation in securing approvals and proceeding to construction of the world-class Tampakan copper and gold deposit.”
The $5.9 billion project is expected to start production by 2016, with an expected mine life of 17 years.
The Tampakan deposit contains a 2.4-billion tonne mineral resource with an estimated 13.9 million tonnes of copper and 16.2 million ounces of gold. Production of copper and gold is estimated at 375,000 tonnes and 360,000 ounces of gold per year, respectively.
To date, more than A$300 million has been spent on exploration and development at Tampakan. Its direct contribution to the Philippine economy over the known mine-life is estimated at US$37 billion, with an estimated US$8 billion being paid in Philippine taxes and royalties. Estimated direct employment during construction is 10,000 people, with a workforce of 2,000 during the operational period. PDI
