Despite shifting to underground, sub-level cave mining method, Philex Mining Corp. revealed that it is having difficulty in getting investors for its $750-M Silangan copper and gold project due to the current regulatory climate in the country.
According to PhilStar report, Philex President and Chief Executive Officer Eulalio Austin said that the firm needed to raise at least $350-M by the first half of 2020 to get on track with the project.
“As of the moment, we don’t have fixed investors for the project yet. There are some issues being raised because of the regulatory environment, but we are trying to convince them that Silangan is a different story. Some investors are telling us that the project is too small for them and the other one is the current climate wherein government is lukewarm to the mining industry. These are some of the feedback we are getting,” Austin was quoted as saying in the report.
Austin expressed that clear-cut rules or policy regulations would help them secure investors — one of which are the tax reform programs to be imposed on the mining industry.
“We support the increase in taxes, but it should be some sort of equitable because the mining industry is so dependent on metal prices that’s why we are proposing tax measures that are linked also to metal prices and margins. The tax regime should be structured in such a way that they take into account the volatile metal prices,” Austin was quoted as saying.
In related news, Austin said Philex should be able to fully operate the Silangan mining project before Padcal mine in Benguet seizes operations by 2022.
Silangan will be developed in phases with the Boyongan deposit to be fully developed within two and a half years. It is expected to commence commercial production by the second half of 2022.
The second phase, which will comprise of the Bayugo deposit, is scheduled to undergo preliminary feasibility study for underground sub-level cave mining within the year.
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