Corporate News


Production at Silangan mine delayed anew




Posted on August 04, 2016


THE start of production at the Silangan copper-gold mine in Surigao del Norte has been delayed anew, Philex Mining Corp. Chairman Manuel V. Pangilinan said on Tuesday.

Mr. Pangilinan said the company now aims to start by 2020 the commercial activities of the mine, which is being developed by subsidiary Silangan Mindanao Mining Company, Inc. (SMMCI). This is a year later than the earlier schedule due to the extension of the mine life of the Philex Mining’s Padcal copper-gold mine in Benguet.

“We are currently completing requirements for the feasibility study on Silangan,” Mr. Pangilinan told reporters at the sidelines of Philippine Long Distance Telephone Co. (PLDT) financial results briefing on Tuesday.

SMMCI’s Silangan project was initially targeted to be operational by 2016, but the timeline has been repeatedly pushed back due to various delays.

The Silangan project, which involves the development of Boyongan and Bayugo mineral deposits comprised of gold, copper, and silver, has estimated reserves of five billion pounds of copper and nine million ounces of gold in its 25-year mine life.

Mr. Pangilinan, however, said that the estimated cost of developing the Silangan mine has been reduced to $900 million.

As of end-2014, the company has invested more than P13 billion on the Silangan project, on top of the estimated commercial operations project cost of about $1.2 billion, for the initial exploration and related works on the site.

The project is expected to replace Padcal, whose mine life is expected to end by 2020.

The company gained full ownership of the Silangan mine site when it consolidated its interest by purchasing the 50% equity interests of Anglo American Exploration BV and Anglo American Exploration (Philippines), Inc. in February 2009 for $55 million.

Philex Mining is one of three Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the other two being Metro Pacific Investments Corp. and Philippine Long Distance Telephone Co. (PLDT).

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