TUBA, Benguet – Philex Mining Corporation scaled down its multi-billion Silangan project which is projected to initially start mining operations by the first quarter of 2025.
Philex president and chief executive officer Engr. Eulalio B. Austin said that from a whopping $870 million project with a production output of more than 12,000 cubic meters of ore daily, the project will start with an initial funding of $224 million with a production output of around 2,000 cubic meters.
“We have to start small because of the absence of investors who are willing to raise the needed amount to be able to bankroll the project. We were able to raise the required initial amount that is why we are working on the tunnel in preparation for the initial mining operation by the first quarter of 2025,” Austin stressed.
The Philex official disclosed that the company was able to raise $45 million from an earlier stock rights offering, and some $150 million will be sourced from a loan to be obtained from a bank willing to lend the mine firm the said amount while the remaining balance of $224 million initial capital will be borrowed from Philex Mining Corporation.
According to him, the company had a difficult time looking for investors locally and internationally that is why he convinced the members of the Board of Directors to approve his proposal to start small and gradually increase the company’s production output until it reaches the proposed 12,000 cubic meters daily.
Austin stipulated that after its initial operation by the first quarter of 2025, Philex’s Silangan project is expected to gradually increase its production by 2,000 cubic meters of ore daily every two years until such time that the maximum production will be realized.
He claimed that the operation of the Silangan project will serve as an alternative employment for workers in the Padcal mine who are interested to transfer to the area in Surigao del Norte considering the projected end of life of its present Padcal mine by 2027.
Austin emphasized that the company will not have difficulties in setting up its Silangan mine because of the presence of experienced personnel who can be tapped to start working on the proposed mine site in preparation for the targeted start of operation by the first quarter of 2025.
Philex’s Padcal mine had been operating for over six decades since its corporatization in 1958 and that it was able to have its mine life extended from the earlier target of 2024 which was later extended to 2027 primarily because of the promising world metal prices and the company’s effort to reduce operating costs.
Austin said that the company is hopeful that all the initial plans for its Silangan project will be realized so that the desired production will be achieved to be able to contribute in the country’s growth and development in the future
Philex is the country’s major gold and copper producer through the use of underground mining to be able to extract the copper and gold from underneath as the same had been embedded in the ore body.
