China Metallurgical Construction Group Corp (MCC) wants to build a copper processing and smelter plant in the Philippines, the minister in charge of mining said on Thursday, at a probable cost of at least US$1 billion.
Some miners in the Philippines are rethinking investment plans as the global credit crunch boosts financing costs and cools demand for metals.
MCC, a state-backed Chinese firm that develops mines and metals smelters, had earlier eyed plans for a US$1.5 billion integrated steel plant in the southern Philippines.
But Environment and Natural Resources Secretary Lito Atienza said MCC was "going slow" on the steel mill project as it might not fit its current requirements, and was keen on building a copper processing and smelter plant instead.
"We're asking them specific details of the project that they want to put up so we can determine the kind of support we can provide in the venture," Atienza told reporters.
A copper processing and smelting plant would cost at least US$1 billion to build, Horacio Ramos, head of the mines and geosciences bureau, said.
The southeast Asian country's only copper smelter and refinery is operated by Philippine Associated Smelting and Refining Corp, which was acquired by a unit of Swiss commodities firm Glencore [GLEN.UL] in 1999.
MCC operates mines in Papua New Guinea, Pakistan, Australia and Argentina.
Sumitomo Metal Mining Co (5713.T: Quote, Profile, Research, Stock Buzz), Japan's largest nickel producer, this month said it might delay construction of its Taganito nickel plant in the southern Philippines, originally planned for 2009, to consider cutting its US$1.7 billion estimated cost.
