| By Mary Ann LL. Reyes (The Philippine Star) Updated October 21, 2010 12:00 AM |
MANILA, Philippines - Philex Mining Corp. the country’s biggest mining firm, plans to pursue more coal explorations in order to provide more domestic sources of fuel.
In an interview, Philex chairman and chief executive Manuel Pangilinan also revealed that the company performed better during the third quarter of this year compared to the same period last year and the second quarter of 2010.
“In terms of rate of production, yield has gone up. The amount of gold and copper shipped during the third quarter is higher than the second quarter,” he said.
Pangilinan likewise disclosed that Philex is looking at the possibility of going into forward and backward linkages, or upstream and downstream industries related to the mining industry.
“Part of the criticism against the mi-ning industry is that it has not really explored its forward and backward linkages. If Tampakan, for instance, could justify a domestic smelter, then that would be good,” he said.
Philex, a part of the Hong Kong-based First Pacific Group, posted a 3.8 percent increase in its core netincome during the first six months of 2010 to P983.9 million, compared with P948.3 million in the same period last year, as income from oil production and higher metal prices offset lower ore grades at its Padcal gold and copper mine.
But consolidated net income slipped to P965 million for the first half of the year from P1.13 billion in the same period last year.
Meanwhile, consolidated revenues increased 10.1 percent to P4.86 billion in the first half of the year from P4.4 billion a year earlier as copper revenues rose 27.7 percent to P2.23 billion from P1.75 billion. Gold revenues fell six percent to P2.46 billion from P2.62 billion owing largely to lower ore quality, offsetting a rise in gold prices.
“While ore grades were disappointing in the first half of the year, we are confident that the second half of the year will be boosted by higher metal prices and better-quality ore which we are already mining now, as well as by the continuing greater contribution from our energy operations,” Pangilinan earlier said.
With respect to production from the Padcal mine for the remaining months of 2010, Philex president and COO Jose Ernesto Villaluna Jr. said they expect to have both greater volume and greater quality of ore than in the first half of the year. “We are opening up new draw points which promise to deliver higher-quality ore in greater volumes,” he said.
Meanwhile, Pangilinan said that looking forward, the Silangan project is driving full steam ahead and they aim to start the development phase of this mine by next year. “Silangan will play a key role in building a bright future for Philex,” he emphasized.
The Silangan copper-gold mine in Surigao del Sur province is estimated to hold much higher resources than Philex’s Padcal mine, which has been in operation for half a century.
Looking to the future, Philex said that richer ore is scheduled to be mined while aggressive exploration continues around Padcal.
It also said oil and gas contribution is seen rising further after a 12-fold increase in the first half of 2010 in terms of contribution.
Company officials also said they expect strong copper demand, particularly in Asia, while the Silangan project, whose gross value of reserves is indicated at around $20 billion, and with high-grade gold and copper, offers transformation of Philex’s prospects.
In an interview, Philex chairman and chief executive Manuel Pangilinan also revealed that the company performed better during the third quarter of this year compared to the same period last year and the second quarter of 2010.
“In terms of rate of production, yield has gone up. The amount of gold and copper shipped during the third quarter is higher than the second quarter,” he said.
Pangilinan likewise disclosed that Philex is looking at the possibility of going into forward and backward linkages, or upstream and downstream industries related to the mining industry.
“Part of the criticism against the mi-ning industry is that it has not really explored its forward and backward linkages. If Tampakan, for instance, could justify a domestic smelter, then that would be good,” he said.
Philex, a part of the Hong Kong-based First Pacific Group, posted a 3.8 percent increase in its core netincome during the first six months of 2010 to P983.9 million, compared with P948.3 million in the same period last year, as income from oil production and higher metal prices offset lower ore grades at its Padcal gold and copper mine.
But consolidated net income slipped to P965 million for the first half of the year from P1.13 billion in the same period last year.
Meanwhile, consolidated revenues increased 10.1 percent to P4.86 billion in the first half of the year from P4.4 billion a year earlier as copper revenues rose 27.7 percent to P2.23 billion from P1.75 billion. Gold revenues fell six percent to P2.46 billion from P2.62 billion owing largely to lower ore quality, offsetting a rise in gold prices.
“While ore grades were disappointing in the first half of the year, we are confident that the second half of the year will be boosted by higher metal prices and better-quality ore which we are already mining now, as well as by the continuing greater contribution from our energy operations,” Pangilinan earlier said.
With respect to production from the Padcal mine for the remaining months of 2010, Philex president and COO Jose Ernesto Villaluna Jr. said they expect to have both greater volume and greater quality of ore than in the first half of the year. “We are opening up new draw points which promise to deliver higher-quality ore in greater volumes,” he said.
Meanwhile, Pangilinan said that looking forward, the Silangan project is driving full steam ahead and they aim to start the development phase of this mine by next year. “Silangan will play a key role in building a bright future for Philex,” he emphasized.
The Silangan copper-gold mine in Surigao del Sur province is estimated to hold much higher resources than Philex’s Padcal mine, which has been in operation for half a century.
Looking to the future, Philex said that richer ore is scheduled to be mined while aggressive exploration continues around Padcal.
It also said oil and gas contribution is seen rising further after a 12-fold increase in the first half of 2010 in terms of contribution.
Company officials also said they expect strong copper demand, particularly in Asia, while the Silangan project, whose gross value of reserves is indicated at around $20 billion, and with high-grade gold and copper, offers transformation of Philex’s prospects.
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