Project delays set back mine investment target for '08
08-AUG-2008 Intellasia | Inquirer
Aug 8, 2008 - 7:00:00 AM
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The Philippine mining sector may not be able to hit its investment target for the year of US$892 million due to delays and setbacks in some priority mining projects, according to a government official.
The Mines and Geosciences Bureau reported that investments in the sector in the first quarter of the year reached only US$68 million, or 7.6% of the government's target for the year.
At the 2008 Sustainable Mining Exploration Investment Conference on Wednesday, MGB director Horacio Ramos said the agency would review mining investment targets and the status of the projects within the month.
Among the more crucial projects that are expected to go on stream either this year or in 2009 are Carmen Copper Corp.'s Toledo copper mine, OceanaGold's Didipio copper-gold project, Coral Bay Nickel Corp.'s Palawan Nickel Expansion, Platinum Group's Iligan Ferronickel Smelter project and Manticao Ferronickel Smelter project, and Philsaga's gold project. These projects would account for the bulk of the expected investments for this year.
"Delays in the mining projects consequently mean delays in investments," Ramos said.
For instance, Ramos said the Didipio copper-gold project in Nueva Viscaya had been delayed by four months, pushing back target start of commercial operations to the third quarter of 2009.
In June, OceanaGold suspended a number of mining projects in its Didipio mine, due to a US$185 million funding shortfall. The Australian mining firm has yet to find fund sources for its mining operations.
However, Ramos said the MGB was banking on new investments from new and potential mining ventures to make up for the delays of the other projects.
For one, he said, a mining firm is set to put up a US$400 million High Pressure Acid Leaching facility this year, following the granting of a Mineral Production Sharing Agreement (MPSA) to the company.
Other sources of delay had been caused by attacks from rebel groups and protests from civil and non-government organisations.
Last month, rebel groups had attacked Xstrata Plc's planned US$3 billion Tampakan copper-gold mine in South Cotabato.
According to Ramos, Xstrata, while it has resumed operations, has been doing its drilling activities on a slower pace. It is reportedly focusing on one drilling at a time to concentrate security forces and ensure the safety of its mine employees.
Despite the delays in several projects, the government remains bullish on the local mining sector's prospects, according to Ramos.
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