PHILEX MINING Corp.’s Silangan copper and gold project in Surigao del Norte has qualified for tax incentives, a disclosure issued yesterday showed.
The miner said its wholly owned subsidiary Silangan Mindanao Mining Co., Inc. has received a certificate of registration from the Board of Investments (BoI) as a new producer of copper concentrate as well as gold and silver byproducts.
“The registration entitles the Silangan project to fiscal and non-fiscal incentives, such as the enjoyment of income tax holiday and the tax and duty-free importation of spare parts and consumable supplies,” Philex said.
Mining ventures are among the activities the BoI is mandated to grant incentives to in line with the Philippine Mining Act of 1995.
Projects like Silangan must cost $50 million for gold and $300 million for copper to qualify for income tax holidays according to the Investment Priorities Plan.
All projects must also have a mine life of at least 10 years to qualify for the perks.
Jose Ernesto C. Villaluna, Jr., Philex president and chief operating officer, said in a briefing on Monday the firm is looking at a longer mine life for the project, at 40 years from an initial target of 25 years.
He said the longer mine life would depend on the cost of mining and if the resource in the site is converted into reserves.
Based on earlier reports, the 5,184-hectare Silangan project contains an estimated five billion pounds of copper and nine million ounces of gold.
Last week, Denis R. G. Lucindo, Philex vice-president, said the firm intends to secure $1 billion worth of financing for the development of the project in the second half of 2012.
The plan, he said, would involve the firm providing 30% to 40% of the project cost, with the balance to come in the form of debt.
Philex is looking to start development of the Silangan project in the second half of next year.
Philex shares last traded at P23.55 apiece yesterday, up slightly from the previous day’s P23.20 apiece.
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By: Louella D. Desiderio
Source: Business World, Oct. 13, 2011
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