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Philippines expects mining investments to reach $502 MillionManila Philippines - Dec 7, 2005 The Philippine government is adjusting its forecast of mining investments from from the previous $355 million to $501.7 million by the year end as the renewed confidence in the local mining industry pumps up more capital into exploration and development. The Philippines Department of Environment and Natural Resources (MGB-DENR) cited the following as among the reasons for higher investments this year: the purchase of Crew Mineral Gold (CMG) of Canada into Apex Mining Corp. ($6.6 million), the joint venture of Abra Mining and an Indian company ($5 million), and the investments of Philex Mining Corp. in its Sto. Tomas II project ($5 million).
Crew Mineral Gold and affiliate firm Mapula Creek Gold Corp. announced last August its purchase with $6.6 million of a combined 72.87 percent interest in all the mining projects of Apex Mining Corp. (AMC) which is involved in the Masara gold project in Compostela Valley. CGC plans to upgrade Apex Mining's processing plant in order to produce 1,200 to 1,500 tons per day. Masara gold reserve is estimated at 500,000 to 600,000 tons at nine to 10 grams per ton and an inferred resource of 1.7 to 1.9 million ounces at the same grade. The Philippines' Mines and Geosciences Bureau (MGB) has been considering putting Apex Mining's project as one of the country’s 24 priority mining projects given Crew Mineral Gold's investment. Indian firm H.L. Nathurmal also announced earlier talks on a joint venture agreement with Abra Mining which will make it the first Indian firm to invest in the local mining industry. The Philippine government has likewise included in its adjusted mining investments figure the deferred construction for $19 million of the Adlay-Agdianao Tandawa nickel-cobalt project of Surigao Integrated Resources Co. with QNI and BHP Billiton in Surigao del Sur and Surigao del Norte. With its investment so far of $4 million, this nickel-cobalt project is estimated to generate an annual gross sales of $14 million and an employment of 800 during construction and development and 400 during operation. The Didipio copper-gold project of the Climax Arimco Mining Corp. also has a deferred construction cost of $112 million as the company earlier announced that it is in the process of conducting detailed engineering for the project's construction next year. For the Philex Sto. Tomas project, MGB said the project is "on schedule." The Sto. Tomas II copper-gold project is an expansion of Philex's mine in Padcal, Benguet which it has operated for the last 44 years and which was the first block cave operation in the Far East. As of end-2001, Padcal had an ore mined of 268.1 million tones with a metal production of 771.3 million kilos of copper in concentrate, 138.9 million grams of gold, and 154.3 million grams of silver in concentrate and bullion form. A total of $4.7 million investment represents commitment for new exploration program and the bulk of $350 million represents previous investment commitment of the 24 priority projects. Condensed from Manila Bulletin
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