PHILEX Mining Corp. targets the listing of its P3.15-billion rights offer shares on April 5, its finance chief said on Thursday, as the listed firm prepares to explore a prospective copper and gold site in Mindanao.

“Based on our latest submission with the Securities and Exchange Commission (SEC) [on] the timeline for this launch, [we] estimated a listing date of April 5,” said Philex Chief Finance Officer Romeo B. Bachoco at a virtual media round table.

He said the company engaged BDO Capital & Investment Corp. to assist in the stock rights offering.

Proceeds from the fund raising will be used to invest in its Silangan copper-gold project in Surigao del Norte, which will be led by its subsidiary, Silangan Mindanao Mining Co., Inc. (SMMCI).

The project will require an initial investment of $224 million for its first phase, which will be the 2.5 years of developing the mine until it is completed in late 2024 or early 2025.

“We are committed to contributing and providing financial support to local government and host communities. Philex is, and will always be, a responsible miner,” Mr. Bachoco added.

Philex will not pursue open-pit mining for the Silangan project, its officials said, because of the upcoming change in political leadership and the uncertainty of future industry policies.

Ahead of the national elections in May, the current administration on Dec. 23 lifted the four-year ban on open-pit mining.

“We are fine enough with the current terms of mining, which is sub-level caving, where we will go underground. We have opted not to do open-pit mining. To sort of retrace our steps and go open-pit mining, it will take more expenses. It is not sensible to go back to it,” said Philex Chairman Manuel V. Pangilinan.

Philex estimated a cost of another $130 million to revert the project to the open-pit method.

“We are also committed to the environmental protection in this project. It will be environmentally challenging to do open-pit mining at this stage. Despite the change of mind of the government, it’s best for Silangan to proceed as planned. There is a new government coming and we don’t know whether that policy will be sustained under the new government, so we might as well stay where we are,” Mr. Pangilinan said.

The mining firm is hoping for more consistent industry policies in the future so it can show the benefits of sustainable mining.

“The policy has got to rest on what’s good for our people. Will it create greater welfare and livelihood for our people? If the answer is no, then chop the business or prohibit it. We have to demonstrate that mining is good for our people,” Mr. Pangilinan said.

SMMCI Chief Operating Officer Michael T. Toledo added: “If you want to tax us or prohibit mining methods, let us know in advance. The flip flopping of policies is what makes it difficult to proceed.”

“Mining is not the enemy, but poverty is. If mining is allowed to flourished, it can contribute to nation-building especially after we make sure the economy survives post-pandemic,” he said.

For 2022, Philex is forecasting new mining deals and a boost to the industry.

“Given the prices of metals in general, it will certainly attract investors, hopefully local as well. It’s been said we are one of the highest mineralized countries in the world,” Mr. Pangilinan said.

On Jan. 17, Philex announced it was studying to prolong its Padcal mine operations in Tuba, Benguet.

“The study for the extension is a continuous project, which we intend to finish by yearend. As for the extension itself, it depends on a lot of factors, like the price of metal,” said Philex President and Chief Executive Officer Eulalio B. Austin, Jr.

At the stock exchange on Thursday, Philex shares rose 1.35% or P0.07 to close at P5.27 apiece.

Philex is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Metro Pacific Investments Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Luisa Maria Jacinta C. Jocson

RELATED ARTICLESMORE FROM AUTHOR