Philex Mining Corporation and its subsidiaries are organized into two main business groupings: the metals business under Philex Mining and the energy and hydrocarbon business under Philex Petroleum Corporation.
Philex Mining was incorporated in the Philippines in 1955 and was listed on the Philippine Stock Exchange on Nov. 23, 1956. Philex Mining, Philex Gold Philippines, Inc. (PGPI), Silangan Mindanao Exploration Co., Inc. (SMECI), and Silangan Mindanao Mining Co., Inc. (SMMCI) are primarily engaged in large-scale exploration, development, and utilization of mineral resources. PGPI is a wholly owned subsidiary of Philex Mining through a holding company and incorporated in the Philippines while SMECI is a wholly owned subsidiary of Philex Mining through a holding company and PGPI, and incorporated in the Philippines. Philex Mining operates the Padcal Mines in Benguet while PGPI operated the Bulawan mine in Negros Occidental between January 1996 and June 2002. SMECI, through its subsidiary SMMCI, owns the Silangan Project covering the Boyongan and Bayugo deposits, which are currently under prefeasibility stage.
Philex Petroleum and its subsidiaries Forum Energy plc (FEP) and FEC Resources, Inc. (FEC) are engaged primarily in oil and gas operation and exploration, holding participating interest in serveral oil and gas production and exploration activities through their investee companies. Philex Petroleum, which is 64.79 percent-owned by Philex Mining and incorporated in the Philippines, has a 64.5 percent stake in FEP (registered in England and Wales) and a 51.2 percent stake in FEC (incorporated in Canada). Philex Petroleum also owns 100 percent of Brixton Energy & Mining Corporation (BEMC), which is engaged in coal operation in Diplahan, Zamboanga Sibugay, and started commercial production during 2012.
Philex Mining's exploration strategy in the late 1980s was focused on gold exploration, resulting in the acquisition and staking of a number of primarily gold claimholdings throughout the Philippines. In July 1996, these gold assets, including the Bulawan Project, were spun off to PGPI. Situated in Negros Occidental, the Bulawan mines commenced commercial production in Jan. 1996 and continued until June 2002, when it was decommissioned due to unfavorable metal prices. It has since been placed on a care-and-maintenance phase.
Through swap of shares, ownership in PGPI was subsequently transferred to Philex Gold Inc. (PGI), then an 81 percent-owned Canadian subsidiary. PGI was initially listed on the Toronto Stock Exchange, in Oct. 1996, following a public offering to primarily North American and European investors. From 2001, PGPI focused on its North Property, where the Boyongan copper-gold porphyry deposit in Surigao del Norte was discovered in Aug. 2000 under SMMCI, a joint venture with Anglo American Exploration (Philippines) BV (Anglo). On Feb. 6, 2009, Philex Mining acquired Anglo•s 50 percent interest in the Silangan Project, under SMMCI, for $55 million. In April 2010, Philex Mining undertook to buyback the minority shareholdings of PGI, which was thereafter delisted from the TSX Venture Exchange. This transaction made the Silangan companies now owned jointly by the Parent Company and a wholly-owned subsidiary holding company.
Philex Mining has long been a silent investor in oil properties, owning participation in several service contracts. In 2007, Philex Mining incorporated Philex Petroleum to engage in petroenergy business, of which 49 percent was subsequently acquired by Anatolian Property BV, a Dutch company whose shareholders are funds-managed by Ashmore Investment Management Limited. In July 2009, Philex Mining repurchased the 49 percent interest of Anatolian Property BV, giving back to Philex Mining full control over Philex Petroleum. In Sept. 2010, Philex Mining transferred its investments in energy and hydrocarbon assets to Philex Petroleum, which currently holds 38.82 percent of FEP, a UK-based company listed at the Alternative Investment Market of the London Stock Exchange.
FEP is an oil exploration company owning participation interests in several service contracts in the Philippines, principally Service Contract 72 (previously GSEC 101) covering the Sampaguita natural gas discovery in Northwest Palawan. Philex Petroleum also holds 51.24 percent of FEC, which owns 25.63 percent of FEP, 40 percent of Lascogon Mining Corporation (under a joint venture agreement with PGPI in 2005), 18.46 percent of Pitkin Petroleum Corporation, and 100 percent of BEMC. Philex Mining controls 64.45 percent of FEP through the direct holdings of Philex Petroleum and FEC. Pitkin Petroleum is a UK-based company that has various exploration activities principally in Vietnam, Peru, and the Philippines.