The mining industry remains bullish as it expects to infuse $20 billion to $30 billion into the local economy over next five to 10 years.
The Chamber of Mines of the Philippines said in 2016 alone, mining investments were expected to reach $2.25 billion with the entry of Asiaticus Mining Corp. in Davao Oriental and Global Ferronickel Holdings Inc. in Palawan.
Mining investments next year would reach $6 billion with the start of operations of Philex Mining Corp.’s Silangan project in Surigao del Norte, Nadecor’s Kingking project in Davao del Norte and Balabag Gold-Silver project of TVI Resource Development Philippines Inc.
Projects that are expected to operate in 2018 are the Tampakan mine development of Sagitarius Mines in South Cotobato, Intex Resources in Mindoro, the Masbate gold project of Philsaga Mining Corp., a nickel mine of San Miguel Corp. through Philnico in Surigao del Sur and the Balatoc mines of Benguet Corp.
Investments from these companies are expected to reach $14.75 billion.
The group said the sole project expected in 2019 is that of Far South East Gold of Lepanto Mining Corp. in Benguet, which is expected to cost $2 billion.
“These pipeline projects are approved for implementation by the Mines and Geosciences Bureau, with definitive feasibility studies,” said CoMP executive vice president Nelia Halcon.
“Of course, investors have already factored in their feasibility studies the current fiscal regime and if this will be changed, there might be some delays,” Halcon said.
Halcon was referring to the the government’s proposal to increase the taxes paid by mining companies.
Despite these challenges, Halcon said the industry remained optimistic that the projects in the pipeline would be able to start operations under the new administration.
“We are positive that the projects will be pursued under the Duterte administration after addressing the roadblocks that are hampering the progress of the projects,” Halcon said.