Philex Mining Corporation has extended the operational life of its Padcal Mine in Benguet by another year, pushing its closure to the end of 2028.
In a report by Philippine Star, the mine was previously expected to operate only until the end of 2027, contingent on gold prices staying profitable to sustain operations without incurring losses.
A recently completed study revealed additional extractable ore at the mine site, including deposits from the 760-ML production level and previously developed draw points with good grades, the company announced.
The company confirmed the extension’s economic feasibility after conducting price sensitivity analyses, particularly as gold prices remain a key determinant for continued operations.
Philex officials emphasized that the mine’s profitability depends on gold prices staying above USD 2,000 per ounce to avoid operational losses.
Last year, Philex extended Padcal’s mine life to 2027 after additional reserves were discovered through confirmatory drilling.
The updated mine plan estimated 30.25 million metric tons of remaining mineable reserves, with average gold and copper grades of 0.20 grams per ton (g/t) and 0.18 percent, respectively.
The company estimates recoverable gold at 137,600 ounces and recoverable copper at 93.2 million pounds.
These newly declared reserves are based on a previously disclosed mineral resource estimate of 190.8 million metric tons with average grades of 0.3 g/t and 0.18 percent for gold and copper, respectively.
Philex noted that the extension would sustain the employment of 1,879 workers at Padcal and continue providing social development assistance to nearby communities.
The additional year will also ensure a seamless transition to the commercial operations of Philex’s Silangan Project in Surigao del Norte, slated to begin in early 2026.
From January to September, Philex recorded a 24 percent decline in attributable net income, dropping to Php 636.03 million due to rising expenses outpacing revenue growth.
This represents a Php 207.94 million decrease compared to the Php 843.98 million net income during the same period last year.
To capitalize on elevated global metal prices, the company is accelerating the development of its Silangan Copper and Gold Project, with its first metal output expected by February 2026 and commercial operations beginning in the first quarter of that year.
