MANILA -(MarketWatch)- Mining investments could reach $2.8 billion in the Philippines this year if Chinese investors proceed with plans to jointly develop mining projects in the country, a senior mining official said Tuesday.
There is a good chance that an initial target of $1.4 billion could be doubled if Chinese investors follow through in the last quarter on investments they have expressed interest in, Mines and Geosciences Bureau director Leo Jasareno said.
Sustained high prices of metals have been “driving interest” in the Philippines mining sector, Jasareno told reporters.
Early this month, Jinchuan Group Ltd. said it planned to jointly develop two laterite nickel mines in the Philippines.
Jinchuan, China’s largest nickel producer by output, will set up two joint ventures, with Zamora Group and Macroasia Group to develop the Ipilan and Infanta nickel laterite projects, respectively, both located on Palawan island, the company said.
Mining-related investments reached only around 40% of the target in the first six months of the year, Jasareno said, adding that he is “optimistic” the $1.4 billion target will be reached. In 2010, mining investments reached $900 million.
According to Jasareno, mining investments from 2012-2016 are expected to reach $8 billion excluding the $5.9 billion development cost for Xstrata PLC’s (XTA.LN) much-touted Tampakan copper-gold project.
The $8 billion includes $1 billion in development costs for Philex Mining Corp.’s Boyongan-Bayugo project.
Jasareno also said the agency is set to endorse the Financial Technical Assistance Agreement for Metals Exploration PLC’s (MTL.LN) Runruno gold project.
Development costs for Runruno are expected to reach $150 million over a five-year period.
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By: Cris Larano
Source: MarketWatch.com, Sept. 13, 2011
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