Philex says Silangan feasibility study to be released in July

PHILEX Mining Corp. said it would require around $1.1 billion in capital expenditures to start operations of Silangan mine by 2022.

“Before we have already invested something like P17 billion (around $330 million) plus, so… P17 billion plus around $740 million, preliminary estimate ’yan [that is preliminary estimate] … Roughly it’s around $1.1 billion — the total cost to operate the mine assuming the definitive feasibility study confirms this,” Manuel V. Pangilinan, chairman of Philex Mining, told reporters after the company’s annual stockholders’ meeting in Ortigas on Wednesday.

The definitive feasibility study on the Silangan mine in Surigao del Norte is set to be released next month.

“We have already appointed a banker to raise the equity with us and another bank to raise the project financing, so I think it’s looking good. Quite positive with it, but of course just wait until July,” Mr. Pangilinan said.

The company is focusing on the development of the Silangan mine, which has three deposit areas, namely Boyongan, Bayugo, and Kalayaan, with the latter a joint venture with Manila Mining Corp.

Silangan is expected to replace the 61-year-old Padcal mine in Tuba, Benguet, which is already nearing the end of its mine life.

“We’re nearing 2020. Basta working assumption naming matatapos ’yan, papalitan ng Silangan [Our working assumption is that it will be finished, and will be replaced by Silangan]… so as Padcal goes down, Silangan naman nagra-ramp ang [will ramp] production. That’s the plan for now,” Mr. Pangilinan said.

Philex Mining is one of the three local units of Hong Kong-based First Pacific Co. Ltd., the two other being PLDT, Inc. and Metro Pacific Investments Corp. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which is controls. — Vincent Mariel P. Galang