Photo credit: Philex Mining
The province of Surigao del Norte and other local government units welcomed the start of development of the Silangan copper-gold mine project (“Silangan”) of Philex Mining Corp., which at a cost of $224 million (about PHP11.2 billion), is one of the biggest investments in Mindanao.
Philex’s wholly-owned unit, Silangan Mindanao Mining Co. Inc. (SMMCI), will begin development of the copper and gold mine in the second quarter of 2022 and expects it to begin commercial operation in early 2025. Throughout its 28-year mine life, Philex estimates that total investments to reach $1.7 billion, with $1.5 billion coming from funds to be generated by Silangan mine.
Surigao del Norte Gov. Francisco T. Matugas said he is pleased that the long-delayed development of Silangan mine will soon commence to help generate jobs and spur economic activity in the province.
“This is another milestone in the minerals industry that is geared towards building a prosperous nation by way of responsible mining,” said Gov. Matugas in a letter to Philex and SMMCI President and Chief Executive Officer Eulalio B. Austin Jr.
“Similarly, this is also a welcome development for our province and constituents who have been immensely affected by the COVID-19 pandemic and, just recently, the Super Typhoon Odette,” he added.
Surigao del Norte 2nd Congressional District Congressman Robert Ace S. Barbers said the forthcoming development of Silangan should generate the employment, local expenditures and taxes needed to fuel economic recovery from the pandemic and the damage caused by Typhoon Odette.
Tubod Mayor Richelle B. Romarate welcomed the coming development of Silangan mine and called Philex an “able partner” in economic activities of the town.
Philex was awarded by government a Minerals Production and Sharing Agreement (MPSA) in 1999 for the Silangan mining claims that cover 2,880 hectares that straddle the towns of Placer, Tagana-an, Tubod and Sison—all in Surigao del Norte.
“Since its exploration stage, the Silangan project has always been an able partner of our town and my administration towards progress and economic development while consistently demonstrating its responsible stewardship of environmental and social concerns,” Mayor Romarate said.
Placer Mayor Jovymarie C. Villazon recalled how Philex and its unit Silangan Mindanao Mining Corp. had displayed good practices towards the community and the environment. “With that, we look forward to the realization of their plans and programs with the same sense of professionalism during the development and operating stages,” Mayor Villazon said.
Tagana-an Mayor Cesar B. Diaz Jr. said the imminent development of Silangan is most welcome coming in the wake of the pandemic and Typhoon Odette. “With this development comes new employment opportunities for the residents and helps the local economy to generate additional income through the generated taxes from this project,” he said.
Mike Toledo, Chief Operating Officer of SMMCI, said that among others the mining project will generate direct and indirect employment for around 8,000 people, raise about PHP86.7 billion in investments, and contribute an estimated PHP38.0 billion in government receipts throughout its 28-year mine life in Surigao del Norte, which is home to more than half a million Filipinos.
Aside from LGU approval and support, the Department of Environment and Natural Resources has also extended the Mineral Production Sharing Agreement, or MPSA, granted to SMMCI to 2049.
The Silangan Project has also secured tax holidays from the Board of Investments.
Article courtesy of Philex Mining
