Philex Mining Corp. chose underground mining over open pit method in proceeding with their Silangan project in Surigao del Norte to avoid further delays on their operations.
The removal of the open pit practice as a choice in exploring the Silangan project site was has been around since 2018 with Philex Mining conducting viability of the project without said practice – a decision prompted by the government’s unclear next move with regards to the lifting of open pit mining ban.
For preparation, Philex Mining invested over P 13 billion for the initial exploration of the site and other related works. This is in addition to the estimated project cost of about $ 1.2 billion.
“We are currently working on securing all requisite permits and approvals to operate Silangan. We look forward to realizing the massive potential of a project of this magnitude,” Austin added in a PhilStar.com report.
The $ 2 billion Silangan project is considered as one of the three big projects to propel the country’s standing in copper production.
Boyongan, Bayugo and Kalayaan are Silangan tenements’ three deposit areas, with the latter representing a joint venture with Manila Mining Corp. with Philex Mining having the option to increase their stake up to 60 percent.
Projections for profit from Silangan project is said to be P 170 billion in revenues, P 31 billion in national and local taxes and could provide 8,000 employment opportunities in its first 10 years of operations.
Mindanao will also benefit from the gold and copper mine in Surigao del Sur through the expected spending of P 6 billion over the same period for social development and infrastructure programs.
Philex Mining revealed that it will launch the Silangan project in four phases with the Boyongan set to commence maiden operations by 2022 just in time as the site replaces the Padcal copper-gold mine in Benguet whose mine life is expected to end by December the same year.
