Philippines details flagship mining projectsPhilippines details 23 flagship mining projects
MANILA, Feb 4 (Reuters) - The Philippines, sitting on an estimated $1 trillion in unexplored mineral wealth, expects local and foreign mining firms to pump about $6 billion into 23 priority projects over the next six years.
The Southeast Asian country, which is wooing foreign firms to its nearly dormant mining industry, also said it expects 37 exploration projects worth $92 million each year.
With the government trying to cut its budget deficit and debt, officials rolled out the welcome mat this week at a mining conference for nearly 300 delegates from Australia, Canada, China, Hong Kong, Japan, Germany, Taiwan and South Africa.
It was not immediately clear whether local firms were able to seal any deals with the foreign investors.
The 23 priority projects to revive old mines and develop new ones have the capacity to generate $3 billion in annual gross sales and nearly $500 million in taxes.
"We are now open for business," Environment Secretary Michael Defensor told the delegates on Thursday.
Investors have been put off mining in the Philippines in recent years by low prices and court challenges to ownership by aboriginal groups.
On Tuesday, the Supreme Court dismissed an appeal against its decision in December that foreign investors can own up to 100 percent of mining projects, up from the previous 40 percent.
"The winds of change are sweeping through the Philippine mining industry," Tony Robbins, managing director of Australia's Indophil Resources Ltd. , said on Wednesday at the start of the three-day conference.
The Philippines is potentially the world's fifth-biggest mineral producer, based on government estimates of copper ore resources at 1.44 billion tonnes, gold ore at 795 million tonnes and nickel ore at 534 million tonnes as of 2002.
Following are details of the 23 flagship mining projects:
1. Rapu-Rapu
Cost: $53 million
Investors: Australia's Lafayette Mining Ltd. , LG International Co. Ltd. and KORES, the resources investment arm of the South Korean government.
Production: An average of 50,000 ounces of gold per year, 10,000 tonnes of copper concentrate and 14,000 tonnes of zinc concentrate. Gold production will start in May, with output of copper concentrate and zinc concentrate to begin in August.
2. Palawan
Cost: $180 million
Investors: Coral Bay Nickel Corp., which is 54 percent owned by Sumitomo Mining Co. Ltd.. Other partners are Mitsui & Co., Sojitz Corp. and Rio Tuba Nickel Mining Corp.
Production: 10,000 tonnes of nickel and 750 tonnes of cobalt yearly in the form of mixed sulphide material. The firm is expected to ship nickel powder to Japan by March.
3. Masbate
Cost: $100 million
Investor: Filminiera Resources Corp.
Production: gold and silver bullion
4. Diwalwal
Cost: $2 million
Investor: Natural Resources Development Corp.
Production: gold and silver bullion
5. Adlay
Cost: $15 million
Investor: Case Mining and Development Corp.
Production: nickel ore
6. Nonoc (iron)
Cost: $1 million
Investor: Pacific Nickel Inc.
Production: iron fines
7. Dinkidi
Cost: $135 million
Investor: Climax Mining Ltd.
Production: Average of 100,000 ounces of gold and 15,000 tonnes of copper per year over 14 years. Firm expects commercial production by the end of 2006.
8. Teresa
Cost: $80 million
Investor: Lepanto Consolidated Mining Corp.
Production: gold and silver bullion
9. Padcal
Cost: $15 million
Investor: Philex Mining Corp.
Production: copper concentrates, gold and silver bullion
10. King King
Cost: $532 million
Investor: Benguet Corp. and Nationwide Development Corp.
Production: copper concentrates, gold and silver bullion
11. Tampakan
Cost: $500 million to $600 million
Investor: Indophil Resources Ltd.
Production: 145,000 ounces of gold per year and 145,000 tonnes of copper by late 2009 or early 2010.
12. Itogon
Cost: $10 million
Investor: Itogon-suyoc Mines
Production: gold and silver bullion
13. Canatuan
Cost: $7.4 million
Investor: TVI Resources Development Philippines Inc.
Production: gold and silver bullion
14. Far Southeast
Cost: $500 million
Investor: Lepanto Consolidated Mining Co.
Production: copper, gold and silver bullion
15. Bayungan
Cost: $500 million
Investor: Silangan Mindanao Mining Corp.
Production: copper, gold and silver bullion
16. Pujada
Cost: $1 billion
Investor: Asiaticus
Production: nickel, cobalt briquettes
17. Toledo
Cost: $170 million
Investor: Atlas Consolidated Mining Corp.
Production: copper concentrates, gold and silver bullion
18. San Antonio
Cost: $100 million
Investor: Marcopper Mining Corp.
Production: copper concentrates
19. Batong Buhay
Cost: $200 million
Investor: Batong buhay Gold Mines
Production: copper with gold and silver
20. Amacan
Cost: $200 million
Investor: North Davao Mining Corp.
Production: copper concentrates
21. Siana
Cost: $10 million
Investor: Red 5 Ltd. (Australia)
Production: gold
22. Mindoro
Cost: $1 billion
Investor: Aglubang Mining Corp., Crew Minerals Inc
Production: nickel
23. Nonoc (nickel and cobalt)
Cost: $1 billion
Investor: Philnico Mining and Industrial Corp.
Production: nickel and cobalt