Philex Mining Corp. won’t be pursuing open-pit mining for its upcoming Silangan copper-gold project in Surigao Del Norte.
In a report by BusinessWorld, Philex’s officials said that the decision was due to the upcoming change in political leadership and the uncertainty of future policies in mining.
Philex Chairman Manny V. Pangilinan said the firm opted to go for sub-level caving instead of open-pit mining, as it would be environmentally challenging and more expensive for the project.
Pangilinan added that opting for open-pit mining for the project would entail more expenses since the results of the sub-level caving would need to be reverted. The company estimated an additional $130-million cost to conduct the open-pit method.
Meanwhile, Philex is looking to list Php3.15 billion in stock rights offer (SRO) shares on April 5. Proceeds from the funding will be used to invest in the Silangan project, which will be led by its subsidiary, Silangan Mindanao Mining Co., Inc. Last week, the Securities and Exchange Commission approved the SRO slated for February 28.
The Silangan project requires an initial investment of $224 million for the first phase, which would be completed in late 2024 or 2025. By that time, the Philippines would have a new president, and policies on mining may change.
Image from Philex Mining website.
