November 10, 2019 | 11:48 pm By
Vincent Mariel P. Galang
THE Mines and Geosciences Bureau
(MGB) said it is projecting the mining industry to grow next year, factoring in
the priority mining projects in the pipeline, as well as increased prices for
nickel ore due to the export ban in place in Indonesia, the top producer.
“Personally, positive ang
outlook ko (my outlook is positive). Una (First), we have signs,
like yung ating mga (that our) priority projects that are going to
proceed to developmental and commercial extraction,” MGB Director Wilfredo G.
Moncano said in news conference.
He cited projects like the Silangan
Copper-Gold Project of Philex Mining Corp. in Surigao del Norte, and the
Balabag Gold-Silver project of TVI Resources Development (Phils.), Inc. (TVIRD)
in Zamboanga del Sur.
In a Sept. 26 letter, the Department
of Environment and Natural Resources (DENR) through the MGB approved Philex
Mining’s underground sub-level cave mining method for the Silangan mine. This
project could be the company’s biggest source of revenue once its 61-year-old
Padcal Mine in Tuba, Benguet closes in 2022.
Philex is also in the process of
looking for possible investors for the Silangan project to raise 40% of the
$750-million initial investment. It has also appointed JPMorgan to advise on
possible equity investments and Mizuho Financial Group to raise project
financing.
TVIRD, the Philippine affiliate of
Canadian miner TVI Pacific, Inc., is in the pre-operational phase at Balabag
after its permit was cancelled by former Environment Secretary Regina Paz L.
Lopez, who found the project to be near a watershed.
The Chamber of Mines of the
Philippines has estimated that the project could attract $20 billion to $30
billion worth of investment.
The Philippine Mining Law of 1995
prohibits operations in critically protected areas, like proclaimed watersheds
and forest reserves, but is silent on functional watersheds.
Mr. Moncano said that TVIRD has
proceeded to development and commercial extraction since its operation is not
covered by the ban on open-pit mining and Executive Order 79, which prohibits
granting permits to new mining projects.
Indonesia has also imposed a
nickel-ore export ban starting next year, which the Philippines could take
advantage of the second-largest producer.
“Ayaw na nilang mag-export ng
kanilang nickel (They do not want export their nickel) to China and Japan,
so that would be a good reason para mag-increase yung production ng
ating (to increase production of our) nickel,” he said.
Indonesia is hoping to develop a smelting
industry as an alternative to exporting its ore, hereby capturing more
value-added activity. It was the top nickel-producer in 2018 with 560,000 tons,
followed by the Philippines with 340,000 tons. Their top export market is
China.
He said that the ban may also result
in higher prices of nickel, which could make more mines in the Philippines
viable.
Philippine Nickel Industry
Association (PNIA) President Dante R. Bravo said, “It’s going to boost the
local production of nickel and it’s going to improve the prices even for lower
grades.”
“Marginal producers… will have more
market for lower grades. We might be able to sell that next year and will be
able to optimize the ore utilization,” he said, adding that with more stable
prices next year, the Philippines could also attract more investors for
value-added processing of nickel.
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