Philex Mining Corp. continues to look for investors who will infuse $200 million to fund a significant ramp up ore production at its Silangan project in Mindanao scheduled to start producing gold and copper in the first quarter of 2025, the president of the country’s largest gold and copper producer said Tuesday.
Philex president Eulalio Austin told reporters that the $224 million the listed mining company raised from a combination of equity infusion, shares sale and bank borrowings to finance the development of Silangan project only allows an initial production of 700,000 tons of ore per year. He said it would take five years before output hits an annual 1.3 million tons without additional funds either from investors or lenders.
The ultimate goal is to increase output to 4 million tons per year.
Silangan, a sprawling mining claim in Surigao del Norte province, has an estimated deposit of 14.89 million ounces of gold and 8.32 billion pounds of copper.
Austin, who is also Philex’s chief executive officer, said that with an additional investment of $200 million, Philex could immediately ramp up production to 1.3 million within a year after the funds are made available.
Even as Philex prepares for the operation of Silangan mine, the company is looking for ways to extend the life of its existing copper-gold mine in Padcal by doing “scout drilling” at the mining claims of Macawili Gold Mining and Development Corp. adjacent to the Padcal mine.
Philex has already extended the mine life of Padcal several times, the latest pushed back the deadline to 2027. Austin said exploration work is undertaken at the Padcal to determine if there are additional reserves beneath its drain tunnel and whether the additional cost of draining water will make the project financially feasible.
Padcal currently produces 20 million tons of copper ore and 4,000 ounces of gold per month.
Austin said Philex is also in talks with Dizon Silver-Copper Mines, whose operations were suspended in 1997 after 18 years, for a possible acquisition of the mine. Aside from gold and copper deposits, Dizon Mine has a dam at its mining claim in Zambales province that has impounded 110 million tons of mine tailings estimated to contain around 1.2 million ounces of gold.
Aside from gold and copper, Austin said the listed gold and copper miner has secured a government permit to explore a nickel mining claim, also in the province of Zambales.
“We are also looking at the nickel space considering the global transition to green energy,” Austin told reporters. He said Philex has already started the ground work to do sampling for nickel deposits. He said that as a neophyte in the nickel space, Philex is looking for a partner that will help it export the nickel ore.
“We have to try our luck in nickel. We have been in gold and copper for so long,” said Austin, adding that the increasing global demand for electric vehicles amid a push to greenhouse gas emissions opens up opportunity that Philex can’t ignore.
Nickel is used in the production of batteries that is the heart of electric vehicles.
