Philex sees 4 MT/year copper-gold ore from Silangan by 2023

Philex sees 4 MT/year copper-gold ore from Silangan by 2023

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MANILA — Philex Mining Corp. said on Thursday it expects to produce up to 4 million tons per year of high-grade copper and gold ores from its $1.1 billion Silangan project in southern Philippines by 2023.

Silangan is a large-scale mine that the Philippine miner plans to fully develop within two-and-a-half years.

Philex is looking for a strategic partner for the project, which the miner aims to finalize within the first half of 2020 along with contracts that will pave the way for development.

“The mine is designed for four million tons per year,” Philex President and CEO Eulalio Austin said in a statement.

“We will start lower, then on the second year, that is in 2023, it will be a full four million tonnes per year,” Mr. Austin added.

Silangan will be Philex’s biggest source of revenue after the closure of its 61-year-old Padcal mine in northern Philippines possibly by 2022.

The Silangan project, which will use the underground sub-level cave mining method, and not the open-pit mining method as initially planned, is expected to yield ore grades of 0.63% for copper and 1.20 grams per tonne for gold.

Silangan, in Surigao del Norte province on the mineral resources-rich Mindanao island, was previously slated to begin production by 2018. However, the project was hit by a ban on open-pit mining introduced in 2017 as the government stepped up environmental protection.

Silangan consists of three deposit areas — Boyongan, Bayugo and Kalayaan — with the latter being a joint venture between Philex and Manila Mining Corp.

Boyongan, with an initial estimated mine life of 22 years, is expected to be the first to start operations in 2022.

Philex has earmarked around $750 million for the development of the Boyongan ore body, and has appointed J.P. Morgan for equity investment and Japan’s Mizuho Financial Group Inc for project financing. — Reuters

Mining industry seen growing in 2020 on Indonesia export ban

Mining industry seen growing in 2020 on Indonesia export ban

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By Vincent Mariel P. Galang
Reporter

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.

A catalyst for inter-generational growth

A catalyst for inter-generational growth

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If we keep our ores underground, we will miss the boat again.”

  Mineral resources are the indispensable natural endowments of our planet that humans started harnessing since the stone ages more than 6,000 years ago. From stone tools, we now have all these gadgets and technologies that have become integral to our daily survival.The most prosperous nations have maximized the harvesting of their mineral resources for sustaining the development of new technologies essential for the operations of all its industries and is integral in accelerating the pace of new innovations. The International Monetary Fund’s (IMF) projected ranking for 2019 lists the United States, China, Japan, Germany, India, France, United Kingdom, Italy, Brazil and Canada as the top ten in terms of Gross National Product. All of them of course have a well-developed and vibrant mining sector.I’ve pointed out many times in previous columns on this subject that the Philippine mining sector is a “trillion-dollar” potential just waiting to be channeled to spark sustained prosperity, not just for its host communities but as a long-term engine of growth in remote undeveloped areas where responsible mining is the best, and actually, the most viable option for fast progress on a big scale.So, is this another case of government shooting itself in the foot, with so many confusing, unpredictable policies; a costly misunderstanding of a much-maligned industry who, not without its faults, has been eclipsed with so much demonizing from unscientific anti-mining propaganda backed by antidevelopment agendas? Perhaps it is all of these. Government and industry can actually resolve the complexity of sector through strict enforcement of the existing mining law and environmental regulations. They are, like many of our laws, recognized as a global benchmark for mining regulation that even goes beyond the policy regimes of the big mining economies.I am hopeful that the industry gets its chance to restart what was once one of the major contributors of the country’s GDP. In the last Congress, the House of Representatives passed what could have been a new mining revenue-sharing regime that, after a long series of deliberations, is the most viable compromise with the legitimate large-scale mining sector. For lack of time, however, this did not pass in the Senate. As Congress is back in session, deliberations are expected to take up the re-filed version and should now have enough time and momentum to finally become law. Linked to the passing of the new revenue sharing scheme is the lifting of Executive Order 79 which effectively stopped the mining industry from further expansion because of its ban on new mining permits.There’s some good news though, especially for the municipalities of Tigana-an (second-class municipality), Plaser (fourth-class municipality), Tubod and Sison (fifth-class municipalities) in Surigao del Norte with the recent DENR’s approval of the underground sub-level cave mining method for the Silangan Copper-Gold Project. This is a large scale, high grade gold and copper project of Silangan Mindanao Mining Company, Inc., a wholly owned subsidiary of Philex seen to become a major copper and gold producer of the region. The project’s Boyongan deposit is estimated to have 81 million tons of mineable reserves of high-quality ore grades, not counting the ore reserves in Bayugo. $750 million has been earmarked for the development of the Boyongan ore body.

 

In my interview with Philex President and CEO, Eulalio B. Austin, they are targeting to start construction in 2020 and have already started hiring some people which is estimated to reach a peak about 3,500 workers wherein local residents will be given priority. Had it not been for regulatory delays, the Silangan project should have started this year with a projected production of 4 million tons of high-grade ore a year.Unlike the common criticism of anti-mining groups, the people of the host communities of the Silangan project are very supportive and the anticipation can be felt with increasing activities in the four host municipalities.Austin points out that, just like their highly successful PADCAL mine, building symbiotic relationships with the community has been a priority even before the initial phase of exploration. All 13 barangays of the four host municipalities have endorsed the project and even formalized their approval with a manifesto.The first infrastructure concern that is now being addressed is to ensure that the water supply of the nearby residents will not be affected. Deep wells have been drilled and early development of environmental controls are being put in place. Add to this, P11 million has been donated to boost the capacity the local hospital for the medical needs of Silangan’s employees; P115 million for the Silangan community development program; P24 million for Corporate Social Responsibility activities; 2,134 elementary and highs school academic grants with a yearly supply of school materials; medical and dental services for over 19,500 patients; livelihood skills and enhancement training; construction of public footbridge and the Hinapuyan Chapel. Under the Mining Act, 1.5 percent of the project’s operating cost will go to the social development management program wherein the LGU’s are able to determine the needed projects for their constituents. All these will directly impact the more than 71,000 population of the 4 municipalities and like all successful mining projects, will quickly bloom into thriving first-class municipalities.In one of the President’s SONA speeches he directed to, “Exalt all concerned government agencies and local government units to uphold the concept of inter-generational responsibility in exploring and the utilization of our mineral wealth, protection and preservation of our biodiversity, anchored on the right to balanced and healthy ecology.”DENR Secretary Roy Cimatu said: “We will be coming out with a proposed policy reinventing mining that will spread the benefits for the people without compromising the environment and natural resources of the country.”There are 11 stranded mining projects worth US$ 23 billion in investments waiting to engage as a long-term partner that will potentially bring prosperity to millions of families in underdeveloped municipalities where there no opportunities for big growth. The technology-dependent society we now live in presents a great opportunity to develop our mineral resources. If we keep our ores underground, we will miss the boat, again.

Philex targets to finalize list of Silangan investors by yearend

Philex targets to finalize list of Silangan investors by yearend

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PHILEX Mining Corp. hopes to finalize its list of possible investors for its Silangan mine by December, from whom it will source 40% of its initial investment for the site.

“We are targeting that early December, more or less, we have an idea who are the prospective investors…. That’s why March or April, there would be finalization of contracts,” Philex Mining President and Chief Executive Officer Eulalio B. Austin, Jr. said in an ambush interview.

“The $750 million is our initial capex (capital expenditure). Therefore to raise that, we are looking for partners to get 40% of that $750 million,” he explained.

Philex Mining has completed its definitive feasibility study for the first phase of the mine site in Surigao del Norte. The study showed significantly higher mineral resource estimates of 571 million tons for the Boyongan, Bayugo and Kalayaan ore deposits of the Silangan mine, 43% higher than the previously declared level of 398 million tons in 2011.

The company appointed JPMorgan for equity investment and Japan’s Mizuho for project financing. Mr. Austin said some companies have expressed interest but did not give any details.

The $750-million capex is for the development of the first phase of the project, which is the Boyongan deposit, which has an estimated mine life of 22 years. Target date for commercial operations is July 2022.

“The mine is designed for four million tons per year… We start lower, then on the second year, that is 2023, it will be a full four million tons per year,” he explained.

Moreover, the Boyongan site will be operated through underground sub-level cave mining, which is more beneficial for the company.

“We have been doing tunnelling for the last 60 years. We have an experience in terms of doing an underground mining… that is why we don’t find problems,” Mr. Austin said.

“The capex of sub-level is higher compared to open pit, but you could not compare apple to apple because the underground is 22 years, the open pit is 10 years,” he said.

Sub-level cave mining is a mining method that starts at the top of the orebody and develops downward. Ore is mined from sub-levels with regular intervals. On the other hand, open-pit mining is a surface mining technique of extracting rocks by their removal from a pit.

The company’s attributable income in the first semester dropped 29% to P391.39 million. It recorded a core net loss of P19.035 million during the first six months versus a core net income of P646.31 million a year ago.

Philex Mining is one of the three local units of Hong Kong-based First Pacific Co. Ltd., the two other being PLDT, Inc. and Metro Pacific Investments Corp. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Vincent Mariel P. Galang

Philex seeking partners for Silangan

Philex seeking partners for Silangan

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PHILEX Mining Corp. is looking for partners for the long-delayed Silangan mine project, which it hopes to begin operations by mid-2022.

In a disclosure to the stock exchange, Philex said it has completed the definitive feasibility study for the first phase of the mine site in Surigao del Norte.

The company said the study showed significantly higher mineral resource estimates of 571 million tons for the Boyongan, Bayugo and Kalayaan ore deposits of the Silangan mine, 43% higher than the previously declared level of 398 million tons in 2011.

Philex said it is allocating $750 million for the development of the Boyongan deposit, which is the first phase of the project. To raise funds for the project, it has appointed JPMorgan for equity investment and Japan’s Mizuho for project financing.

The Silangan project was originally set to begin production in 2018, but was affected by the government’s ban on new open-pit mining in 2017.

“I think sometime in second quarter next year, financing for the project will be closed. However, the board decided that the preliminary works, the design of the plant, certain pre-construction work, the board authorized that starting this month, capex of up to $14 million to get the project construction started. Actual construction work will start sometime middle of next year,” Philex Mining Chairman Manuel V. Pangilinan said during a briefing on Thursday.

The development of Boyongan is expected to take two and a half years, with commercial production to begin by the second half of 2022.

“The first phase of the Boyongan deposit has an initial estimated mine life of 22 years. For this initial stage, Silangan is expected to yield high grade mineable ore grades of 0.63% for copper and 1.20 grams per tonne for gold,” Philex said, adding it will adopt underground sub-level cave mining for ore extraction.

For the second phase, which involves the Bayugo deposit, will undergo preliminary feasibility study for underground sub-level cave mining within the year.

“Bayugo is expected to be mine-ready as early as the fifth year from the start of Boyongan’s commercial operations. The remaining substantial mineral resource and inventory including Kalayaan and the remnants of Boyongan will be subjected to future studies,” Philex said.

For the first half, Philex’s attributable income dropped by 29% to P391.39 million, from P551.66 million a year ago. It recorded a core net loss of P19.035 million during the first six months of 2019, versus a core net income of P646.31 million a year ago.

Philex reported its attributable net income stood at P184.89 million during the second quarter, but did not provide comparable figures.

“The Company is optimistic that global interest for mineral products will stay robust in the long-term with consistent growth from Asia particularly from China, led by its power and infrastructure sectors. Also, notable advancements in electric vehicle technology and renewable energy will also serve as demand catalysts to drive usage for copper materials,” Philex said.

Philex Mining is one of the three local units of Hong Kong-based First Pacific Co. Ltd., the two other being PLDT, Inc. and Metro Pacific Investments Corp. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls. — V.M.P.Galang

Philex completes feasibility study on Silangan project

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MANILA — Philex Mining Corporation on Thursday said the definitive feasibility study for the first phase of the Silangan Project is finally complete.

The Silangan mine is a large-scale, high-grade copper-gold development, with a number of greenfield and brownfield components, located in Surigao del Norte, Mindanao.

Its tenements are composed of three deposits — Boyongan, Bayugo and Kalayaan, with the latter being held by the company through a joint-venture with Manila Mining Corporation.

Silangan has been branded as one of three big-ticket mining projects seen to propel the Philippines as a major regional copper producer.

Based on the development timeline, the Silangan Project will be developed in phases. The Boyongan deposit, which is planned as the maiden phase, will be fully developed within 2.5 years and is expected to commence commercial production by the second half of 2022.

The first phase of the Boyongan deposit has an initial estimated mine life of 22 years. For this initial stage, Silangan is expected to yield high grade mineable ore grades of 0.63 percent for copper and 1.20 grams per tonne of gold.

The second phase, which will be comprised of the Bayugo deposit, is scheduled to undergo preliminary feasibility study for underground sub-level cave mining within the year.

Bayugo is expected to be mine-ready as early as the fifth year from the start of Boyongan’s commercial operations. The remaining substantial mineral resource and inventory including Kalayaan and the remnants of Boyongan will be subjected to future studies.

In terms of methodology, Philex said it will be adopting underground sub-level cave mining for ore extraction which will feature a state-of-the-art milling facility that will utilize modern convention technologies for ore processing.

“We are thrilled with the outcome of the study which reaffirms the immense potential and magnitude of the project.

Over the next few months, we will be focusing our efforts on raising equity and financing for mine development,” said Eulalio B. Austin Jr., President and Chief Executive Officer of Philex Mining Corporation, in a statement.

The mining firm is set to earmark around USD750 million for the development of the Boyongan ore body.

For its fund-raising exercise, Philex has appointed reputable financial institutions J.P. Morgan for equity investment and Mizuho for project financing.

It has also engaged international law firm White & Case and Philippine law firm Sycip Salazar Hernandez & Gatmaitan as legal consultants.

Meanwhile, Philex Board of Directors reported a net income of PHP391 million for the first half of 2019 while core net loss narrowed to PHP19 million or almost break- even.

For the second quarter alone, the company registered a core net income of PHP93 million, marking a sharp rebound after a challenging start.

Total tonnes milled was at 3.805 million from 4.388 million in the first half of 2018. Metal production was slowed down by programmed maintenance and other unscheduled repair works of aging mining equipment as well as uncontrollable power interruptions that resulted in lesser operating days.

Consequently, gold and copper production were at 23,675 ounces and 12.007 million pounds versus previous year’s haul of 34,583 ounces and 14.149 million pounds, respectively.

Gross revenues recorded at PHP3.365 billion from PHP4.646 billion while smelting charges decreased to PHP276 million from PHP377 million for the first half of 2018. Net revenues stood at PHP3.089 billion from PHP4.269 billion for the first half of 2018.

Average realized prices for gold and copper were at USD1,316 per ounce and USD2.75 per pound against USD1,314 per ounce and USD3.11 per pound year-on-year.

Following a core operating loss in the first quarter, Philex has swung back to profitability in the subsequent period after realizing the impact of improved operational efficiencies and cost containment measures that were carried out in the first three months of 2019.

As a result, metal output increased by 8 percent to 1.973 million tonnes for the second quarter of 2019 from 1.832 million tonnes for the first quarter of 2019.

Gold and copper production came in at 13,182 ounces and 6.280 million pounds for the second quarter of 2019 compared to 10,493 ounces and 5.727 million pounds for the first quarter of 2019, respectively.

Philex is optimistic that global interest for mineral products will stay robust in the long- term with consistent growth from Asia particularly from China, led by its power and infrastructure sectors.

Also, notable advancements in electric vehicle technology and renewable energy will also serve as demand catalysts to drive usage for copper materials.

On the domestic front, Silangan is envisioned as a key economic and social contributor for the development of Mindanao in particular and for the country in general, through substantial tax payments and the creation of more than 3,000 new jobs in Mindanao, where the project is located, to be supported by an expansive corporate social responsibility agenda. (PNA)

  • Lilybeth Ison
Philex awaits ECC permit for $2-B Silangan project

Philex awaits ECC permit for $2-B Silangan project

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Philex Mining Corp., the country’s largest gold producer, is securing another environmental permit for its $2-B Silangan Mine project as it hurries to get the project on board before its mine in Padcal, Benguet gets fully depleted.

Philex’s Padcal mine is moving closer towards the end of its mine life. It is the longest operating mine in the country and currently serves as the listed company’s primary source of revenues.

The company has been operating Padcal mine for the last 61 years, employing the underground block-cave method. With Padcal mine now almost depleted, the company is now fast-tracking developments at its Silangan Mine in Surigao del Norte.

Philex Mining President and Chief Executive Officer Eulalio Austin Jr. said in an interview with reporters that the company decided to employ sub-level caving method in Silangan Mine, a move that requires a different Environmental Compliance Certificate (ECC) from the Department of Environment and Natural Resources (DENR).

“It makes more sense to do sub-level caving method rather than block caving for Silangan,” Austin said. “We’re now working on getting the ECC permit for this method”.

The DENR’s Environmental Management Bureau (EMB) is currently reviewing the application. The permit should be obtained by the company in two to three months.

Silangan’s tenements consist of three deposit areas – Boyongan, Bayugo and Kalayaan, with the latter representing a joint venture with Manila Mining Corporation. The company’s focus is on Boyongan.

Austin said that Philex already spent around P16 billion to P17 billion gearing up for the Silangan mine project since it started exploration. All in all, the company requires an initial capital expenditure of $800 million or about P42 billion to commence the operations of Silangan mine by 2022.

The company is now in the process of securing foreign financial advisers as it scouts for foreign investors for the project.

“It’s a challenging task to have this on board before closing Padcal,” Austin further said, adding that the company targets to complete the definitive feasibility study for the project by July this year.

Once approved, Philex Mining, through Padcal mine, will be the first company since the passage of Philippine Mining Act in 1995 to formally implement Final Mine Rehabilitation and Decommissioning Plan (FMRDP).

“The closure of Padcal mine will be opportunity for us to showcase that the end of mine life in the Philippines can be done with dignity,” Austin said.

For the entire 2018, Philex Mining saw its net income falling by 63 percent to P608 million from P1.7 billion in 2017 pulled down by its two-year losing streak in its gold and copper production.

“Overall profitability was significantly weighed down by the impact of lower tonnage and head grade that was partially cushioned by lower smelting charges, lower cash costs and better foreign exchange on revenues,” the company earlier told the stock exchange.

The company’s gross revenues also went down to P8.3 billion in 2018 from P9.9 billion in 2017. This, as its gold production from Padcal mine went down to 61,977 ounces in 2018 from 84,638 ounces in 2017 and 103,304 ounces in 2016.

Austin said that with Padcal mine soon closing down, Philex Mining is not seeing any improvement in its gold output for the entire year.

By Madelaine B. Miraflor

Philex to proceed with Silangan project via underground route

Philex to proceed with Silangan project via underground route

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Louise Maureen Simeon (The Philippine Star) – March 24, 2019 – 12:00am

 

MANILA, Philippines — Pangilinan-led Philex Mining Corp. is proceeding with its $2-billion Silangan copper and gold project via the underground method.

In a regulatory filing, Philex said it would launch Silangan in four phases with the Boyongan set to commence maiden operations by 2022.

Definitive feasibility studies are underway and are expected to be completed in May this year.

 

“For now, mineral resource estimates are indicative of large high-grade gold and copper deposits within tenement scopes. In terms of methodology, Philex is planning an infrastructure design to employ underground sub-level cave mining for ore extraction,” Philex president and CEO Eulalio Austin Jr. said.

“We are currently working on securing all requisite permits and approvals to operate Silangan. We look forward to realizing the massive potential of a project of this magnitude,” he added.

 

The Silangan mine, situated in Surigao Del Norte, is considered one of three big-ticket projects seen to catapult the country to become a major copper producer.

Silangan’s tenements consist of three deposit areas – Boyongan, Bayugo and Kalayaan, with the latter representing a joint venture with Manila Mining Corp.

For Kalayaan, Philex holds the option to further increase its stake up to 60 percent in the project.

Since last year, Philex has been studying the viability of the project with the removal of the open pit method in the picture as the government has yet to decide on whether it will keep the ban or not.

The Silangan project is seen to replace the Padcal copper-gold mine in Benguet whose mine life is expected to end by December 2022.

Philex has invested over P13 billion for the initial exploration and related works on the site as of the end of 2014, on top of the estimated project cost of about $1.2 billion.

The Silangan project is estimated to generate P170 billion in revenues, P31 billion in national and local taxes and at least 8,000 employment opportunities in the first 10 years of operation.

Silangan is also expected to spend P6 billion over the same period for social development and infrastructure programs that will benefit Mindanao.

Philex to start Silangan mine operations in 2022

Philex to start Silangan mine operations in 2022

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By James A. Loyola

Philex Mining Corporation is planning to launch operations in its Silangan, Surigao del Norte mine in four phases with Boyongan set to commence maiden operations by 2022.

In a disclosure to the Philippine Stock Exchange, the firms aid Silangan’s tenements consists of three deposit areas – Boyongan, Bayugo and Kalayaan, with the latter representing a joint venture with Manila Mining Corporation.

 

Based on the initial development timeline, definitive feasibility studies are currently underway and are expected to be completed in May 2019.

“For now, mineral resource estimates are indicative of large high-grade gold and copper deposits within tenement scopes. In terms of methodology, PX is planning an infrastructure design to employ underground sub-level cave mining for ore extraction,” the firm said.

Philex President and Chief Executive Officer Eulalio B. Austin Jr. said “we are currently working on securing all requisite permits and approvals to operate Silangan. We look forward to realizing the massive potential of a project of this magnitude.”

Meanwhile, Philex announced that its core net income amounted to P600 million last year as the Company faced various headwinds particularly rising inflation, regulatory hurdles and depleting ore grades.

As it moves closer towards the end of mine life, Philex Mining will be focused on maximizing the remaining cash generation capabilities of Padcal.

Total tons milled was at 8.52 million from 8.67 million in 2017. Marginal ore grades, which are inherent within the fringes of the mineral body, contributed to weaker metal output.

Less valuable mineral concentrations are a natural occurrence when extracting ore away from the core of the deposit.

Philex Mining infuses P1.38 billion into PXP Energy

Philex Mining infuses P1.38 billion into PXP Energy

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posted February 12, 2019 at 08:15 pm by Alena Mae S. Flores

Philex Mining Corp. said it paid P1.386 billion to increase its stake in oil and gas firm PXP Energy Corp.“Further to our previous disclosure last 27 December 2018, please be informed that Philex Mining Corp. paid today the amount of P1,386,450,000 in relation to its subscription payable to PXP Energy Corp.,” Philex Mining said in a disclosure to the stock exchange.PXP Energy confirmed the receipt of the payment in a separate disclosure.Philex earlier paid a 25-percent downpayment or P770.25 million as a part of its subscription agreement involving 260 million common shares of PXP Energy at P11.85 per share, or for a total of P3.081 billion.The remaining balance of P925 million will be paid from the date of the “call” by the PXP Energy board which was not yet disclosed.Philex owned 19.76 percent of PXP prior to the new subscription.  This will increase to 25.91 percent upon completion.Dennison Holdings Corp. led by businessman Dennis Uy last month paid out an initial downpayment of P40.29 million for the subscription of its shares in PXP Energy with the full payment due by March 31.Dennison agreed on Oct. 26 agreed to subscribe to 340 million common shares in PXP Energy at an anaggregate subscription price of P4.03 billion.

 

Dennison will have a total ownership interest in PXP of 14.78 percent once the deal was sealed.Total subscription of both Dennison and Philex in PXP Energy reached P7.11 billion which the oil and gas firm plans to use to fund exploration projects.“PXP intends to use the proceeds it expects to raise from the private placement to Dennison and Philex to fund its exploration activities and other oil assets within the Philippines and in Peru, and to repay its advances from Philex,” the company said earlier.PXP Energy is an upstream oil and gas company incorporated in the Philippines whose shares are listed on the Philippine Stock Exchange. The company directly and indirectly owns oil and gas exploration and production assets in the Philippines and other countries.PXP, through Forum Energy Ltd., a 78.98-percent owned subsidiary, is waiting for the guidance from the government on any future activity in Service Contract 72 (Recto Bank) and SC 75 (Northwest Palawan). Both service contracts are under force majeure amid the territorial dispute over the West Philippine Sea.