Ang says Bulacan ecozone to accelerate economic growth, contribute US$200B in export revenues annually
by Philippine Resources - July 07, 2022
Photo credit: Global Daily Mirror
Government stands to reap upwards of US$200B in export revenues annually from potential foreign investors from the aviation, manufacturing, technology, education, healthcare, and tourism industries, if the vision for the Bulacan Airport Economic Zone is realized, SMC President and Chief Executive Officer Ramon S. Ang said.
Following the recent veto by Malacanang of House Bill 7575, “An Act Establishing the Bulacan Airport City Special Economic Zone and Freeport”, Ang expressed optimism that the vision for the ecozone could still be realized, given the many benefits it will bring to the country.
“We respect and abide by the government's decision. We thank him for recognizing where the proposed Freeport bill can be further improved, and we look forward to working with his administration towards perfecting this. We are eager to continue working with government, and play an active role in helping our country reach its goals — as we have faithfully and consistently done,” said Ang.
Ang, whose SMC is fully financing and building the P740 -billion New Manila International Airport (NMIA) project in Bulacan, maintained a positive outlook about the decision, saying that if all the issues raised in the President’s veto could be addressed, and recognizing that the primary intent of the ecozone is for the benefit the country and Filipinos, its full potential could still be realized.
Ang added that the Bulacan economic zone, if approved, would be managed by the Philippine government, and any tax incentives to be given to investors will still pass the Department of Finance’s Fiscal Incentives Review Board (FIRB) review and approval process, to ensure these are aligned with the CREATE Law.
The CREATE Law was enacted to provide relief to foreign and local corporations already doing business in the Philippines, in light of the pandemic.
“Among our plans for the ecozone is to help create science and technology export hubs with the cheapest logistics cost, because these will be close to the airport and seaport. We are looking to attract world-class semiconductor manufacturers, battery power storage system manufacturers, electric vehicle makers, and even modular nuclear power assemblies and other new and emerging tech industries. We estimate these industries alone will add some US$200 billion in annual exports—a big boost to our GDP,” Ang said.
He expressed firm belief that the long-term benefits to the country of the ecozone would far outweigh and outnumber any supposed “losses” due to the grant of incentives to potential investors.
He said these benefits include hundreds of thousands of new jobs to be generated, which will benefit the next and future generations of young Filipino graduates, professionals, and skilled workers.
The transfer of knowledge and technology from foreign investors and locators, as well as access to world-class education and healthcare opportunities and services — industries the ecozone also looks to attract — would also be invaluable.
These are on top of the trillions in tax revenues that will accrue to the government for the entire lifetime of the ecozone and airport, coming from the various industries and institutions that will set up facilities and operations there, to take advantage of the low cost of logistics, incentives, and our country’s primary asset: a high-quality workforce.
“Incentives are a way for government to attract much-needed investments into our country, especially now that we are all pulling together to help our economy not just recover, but continuously grow in the post-pandemic era. This way, our future generations will have enough and better opportunities than we have.”
Ang also addressed the issue of NMIA being close to the Clark Airport, which was mentioned in the veto and was initially raised by the DoF under the previous administration, which said NMIA would “compete” with Clark International Airport.
Ang said that apart from the considerable distance between the two airports—Clark is approximately some 100 kilometers from Metro Manila—large and progressive cities all over the world employ a multiple airport strategy, such as Tokyo and New York, among others.
Anticipating the long-term population and economic growth of Metro Manila and Luzon provinces in the next 20-30 years, and taking into consideration the limited expansion opportunities for the current gateway, Ninoy Aquino International Airport (NAIA)—which only has space for one runway operating at any given time, compared to NMIA’s four parallel runways—-the country would need several airports to efficiently serve Filipinos, tourists, and industries, Ang added.
“What we don’t want is to repeat the mistakes of the past where we were not quick enough to develop new infrastructure, giving rise to overcapacity and congestion on our aging roads, ports, and other facilities, and even in our skies. Temporary fixes will not do anymore. We are building for the future, with a clear vision of a fully-developed and progressive, prosperous Philippines,” Ang said.
Ang said that regardless of the outcome of any further government review or action on the ecozone, SMC remains fully committed to continuing on its path of growth through nation-building, and building the NMIA—seen as the solution to decades of air traffic and land congestion that have severely limited the country’s growth.
“We believe in, and fully subscribe to President Marcos’ message of unity. It’s something we have always tried to demonstrate in many ways, particularly in times of great difficulty for our nation. We will do everything we can to help President Bongbong Marcos and his administration succeed, because their success is our country’s success. We look forward to working with them and contributing to their efforts to build our country back even better,” Ang said.
Article courtesy of San Miguel
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Philippine Resources - September 02, 2021
Palafox to make Bulacan airport and aerocity the pacesetter for green, inclusive cities in the country
San Miguel Corporation’s (SMC) airport and aerocity project in Bulakan, Bulacan will be a pacesetter for green cities that are both sustainable and equitable, one that aims to address social and environmental concerns that affect even the country’s major financial districts today. This, according to the country’s top urban planner and green architect Felino “Jun” Palafox Jr. who outlined some of the major features that he and SMC president Ramon S. Ang envision for the much-anticipated development in Bulacan. Palafox Associates has been tapped by SMC to help masterplan its airport plus city concept or “aerocity” development--where its massive, P740-billion airport project, the New Manila International Airport will be located. Comparing the Bulacan project to environment-enhancing developments in Dubai and other parts of the world, Palafox said the development will integrate the best practices in green, sustainable, and disaster-resilient architecture that he has advocated and implemented in some 1,700 projects in about 45 countries worldwide. Palafox said the new development will take advantage of SMC president Ramon S. Ang’s forward-thinking and bias for taking action to undertake projects without cost to the government. “I’m aligned with the mission, vision and goal of Ramon Ang. He invited me to partner with him in this new undertaking: a green aerotropolis. At Palafox, we’ve analyzed that we need at least 100 new cities all over the Philippinex by 2050. If we don’t do it, our cities will become as bad, if not worse than Metro Manila. We envision the Bulacan Aerocity development as the first model and pacesetter for future green and sustainable cities in the country” Palafox said. (L-R) Urban planner and Architect Felino “Jun” A. Palafox, Jr., Mr Joey Nelson R. Ayson (President, Philippine Mining and Exploration Association), Marcelle P. Villegas (Journalist, Philippine Resources Journal) For his part, SMC president and chief operating officer Ramon S. Ang said that the project will be a legacy project, not just of him and Palafox, but of the present generation to future generations of Filipinos. “I want to emphasize to our countrymen that what we are building is more than just an international gateway with four runways, with an infrastructure network to connect it directly to Metro Manila and many other points in Luzon. The airport is just one component-- what we’re building is the Philippines’ first truly green city of the future,” Ang said. “We see this project as a silver lining amid all the difficulties we face today because of the pandemic. All Filipinos are looking forward to a future where COVID-19 is less of a threat to our lives and our economy. We want to see the positive developments that lie ahead for our country. I believe this is one of the best things we can look forward to with much hope and optimism,” he added. Ang also touted the significant economic impact the project will have on the country and the Filipino people. “Airport cities around the world generate a significant amount of jobs, and that is ultimately what we want to do. We need jobs and opportunities for our countrymen today, but more importantly, for the next generation in the coming years, especially since we are trying to recover from a pandemic,” Ang said. He added that “The jobs we will generate will not be limited to the airport city, or Bulacan province alone, but will extend to neighboring provinces, the rest of Luzon, and many other parts of the country which will benefit from increased tourism, increased investments because of better accessibility.” Ang also said that he and Palafox have agreed to integrate best practices in green architecture, green urbanism, and green urban planning to the Aerocity development, and avoid the mistakes that have contributed to the present-day problems of the country’s biggest cities today. Metro Manila: What went wrong Palafox pointed out a number of contributing factors that have made life difficult for many people working in today’s primary business districts, which the Aerocity project will aim to address. “The mistake in Makati’s central business district, Bonifacio Global City, and Ortigas is exclusionary or discriminatory zoning--excluding the employees from their places of work. Employees are like OFWs in their own countries, because they are five to six hours away from their places of work and families, because of traffic congestion,” Palafox said. “Before, real estate criterion was always location, location, location. Now, it’s more than location; it’s accessibility, accessibility, accessibility, and mobility, mobility, mobility. That is why the infrastructure that both government and private sector companies like SMC are doing now, are very welcome, as they alleviate the traffic that many people have no choice but to endure,” Palafox added. Palafox related that in 1990, Makati reclassified and increased the density of the Makati CBD by four times. However, access capacity and mobility was not similarly increased four times. Adding to the problem is the fact that the CBD is constricted by gated, low-density neighborhoods, villages, and a gated cemetery--making it more difficult for most people to walk to work. “Elsewhere in the world, NYC, European cities, Singapore, are ‘walkable’ because within 250-750 meters, there is a walking facility. Around Makati City, BGC, and Ortigas, you’re surrounded by gated communities, so you have to walk about one to two kilometers to go around. Our planning in the Philippines had the wrong model: Los Angeles, which was designed for automobiles,” he explained. He also cited the prevailing influence of Spanish rule as a constraint. “I’m talking about the colonial town plaza concept, where the elite or illustrados lived around the town plaza where the church, munisipyo and central park are. Meanwhile, the peasants or indios and Chinese merchants lived in extramuros, or outside. That was 500 years ago, but it’s still a concept in our urban planning development today,” he explained. Enhancing the environment Meanwhile, for Ang, apart from generating jobs, one of the most important considerations for the project is improving the environment--not just within and around the airport project, but throughout Bulacan province. “From the very beginning, I promised Bulakenyos and all our stakeholders in government that the airport project and the aerocity development will have significant benefits for the province and the whole country. We will make sure to do everything right, because this is our biggest investment to date, and our legacy to the next generations,” Ang said. “Specifically, we will clean up the environment, clear the river systems to enable water to flow freely again and address flooding; we will establish mangrove forests, with some 190,000 mangroves all over Bulacan and neighboring provinces to enhance biodiversity and help mitigate tidal flooding. We’re also looking to develop and enhance natural habitats of marine and bird species. There’s so much more we can do,” he added. For the development itself, Ang said he and Palafox look to integrate the following concepts: Adopt green architectural and green urbanism guidelines over and above the country’s building and zoning codes, which Palafox said no longer follows international standards. Follow the structural codes of other countries, specifically those situated in similar earthquake zones as the Philippines. Creation of an “innovation hub” where both learning institutions and technology-driven global companies can thrive. As such, Palafox has put forth a “town and gown” or university town concept, where learning institutions and the community partner together, such as in Cambridge and Boston in the United States, where Harvard University is. SMC is also looking to put up a medical and research facility along with the school. The aerocity project will be equipped with the latest in digital infrastructure, to enable people to work and conduct business anywhere. The development will also have lots of open spaces, as these are the “lungs” of a city. Palafox cited that Metro Manila went from green to gridlock because many parks and open spaces were reclassified into sellable and buildable properties. As the population grew, the parks and open spaces started disappearing. Meanwhile, the aim for the Bulacan development is to allot highest and best use for the improvement of the environment, and to address climate change. These will be included in his proposed guidelines for green architecture and green urban planning. Ultimately, the plan is to positively impact the whole of Bulakan, Bulacan so that in the end, Bulacan will not just be a province with an airport, but an airport-driven province. In master-planning the development, “ridge to reef” planning will also be employed, taking into consideration the improvement of mountain ridges or highlands, midlands, the lowlands, and the coastline. Public transport will also be easily accessible. One of the things being considered is a bicycle highway connected to the train system. Palafox said the city will be a “healthy city”. It will be “walkable and attractive”. It will have less need for security because it will be open and there won’t be too many walls around the city, which Palafox sees as encouraging crime, and contributing to the heat index, as they obstruct cross ventilation in cities. Meanwhile, the coastal area or Manila Bay waterfront will also be utilized for walkways, waterfront promenades. Finally, Palafox and Ang said they will prioritize the triple bottomline: people first for social equity, alleviating poverty, and job creation or inclusivity. Then planet and the environment come next, with prosperity, economic growth, and profit following. Article Courtesy of San Miguel Corporation
Philippine Resources - September 24, 2021
DOTr eyes GenSan airport as alternate int'l gateway
Photo credit: Department of Transportation The Department of Transportation (DOTr) is pushing for the inclusion of the newly rehabilitated and expanded airport here as among the alternate gateways for returning Overseas Filipino Workers (OFWs) and international travelers. DOTr Secretary Arthur Tugade proposed the move on Thursday as he personally led the formal unveiling and inauguration of the city airport’s new passenger terminal building and other completed facilities. He said the city’s international standard airport can accommodate airline passengers coming in from as far as the Middle East. Tugade said it can be realized once the proposed increase in the daily cap for returning OFWs, currently at 2,000 for the Ninoy Aquino International Airport (NAIA), is approved. Once the cap is expanded, he said NAIA might “choke” with the influx of airline passengers from various countries. “If we will increase the cap, we need to expand our gateways and not limit them to Clark, Cebu, and NAIA. We can include GenSan among the gateways for travelers from Doha who are going to Manila,” he said in a press conference. He said they will propose such strategy with the airlines serving the international routes, including the Philippine Airlines, and seek the approval of the city government. The other possible alternate gateways could be the Laoag International Airport in Ilocos Norte and the Bohol-Panglao International Airport, Tugade said. The rehabilitated and expanded General Santos Airport passenger terminal building, which was completed early this month, is part of the PHP959-million upgrade implemented by the national government. The other completed components are the procurement and installation of navigational aids and the construction of the new Civil Aviation Authority of the Philippines (CAAP) administration building at the airport. Under the project, Tugade said the passenger terminal area has tripled in size from 4,000 to 12,000 square meters. “This will allow the airport to accommodate more passengers and provide them comfortable and convenient travel,” he said in his speech. A DOTr report said the larger passenger terminal building can now accommodate around 2 million passengers annually, a significant jump from the previous 800,000 per year. Tugade said the improvement at the city airport will continue next year with the upgrading of its air control tower, which he considered as “too low.” He said they will build a “higher and modernized” tower in 2022 to make it “more world-class” and can easily adjust to the needs of the airport. The official said the upgrading of the airport, which started in 2018, is among the agency and the national government’s top priorities in Mindanao. He said the initiative is part of the government’s efforts to bring more progress and economic opportunities in Mindanao, which “suffered from long years of neglect in terms of development.” Tugade said they endeavored to implement these projects despite the challenges posed by the continuing coronavirus disease 2019 (Covid-19) pandemic to pursue their goal of giving a “comfortable and convenient life” to Filipinos. “After the pandemic, we want all these developments in place and ready to benefit the people,” he said. In a video message, President Rodrigo Duterte commended the DOTr, the local government, and concerned stakeholders for completing the projects at the city airport amid the Covid-19 pandemic. He said the city has “gone a long way” in terms of the development of its air connectivity and airport facilities. “The rehabilitation and expansion of the airport passenger terminal building, among others, will truly boost General Santos City’s role as an agro-industrial and eco-tourism hub,” the President said. City Mayor Ronnel Rivera lauded the national government for helping the city realize its dream of having an international-standard airport. Aside from the expanded passenger terminal building, the airport is now capable of accommodating bigger aircraft like Boeing 737 and 747, as well as Airbus A330, A340, and A350. “(What) we are seeing now is a result of multisectoral commitment and dedication in various stages of the airport development, which includes coordination of several initiatives, preparation of the airport master plan, operations, and marketing,” he said. The mayor said the local government will continue to engage with prospective investors and airlines for the opening of more flights to and from the airport and the development of adjacent areas. He cited the proposed establishment of an aerotropolis or growth area centered on the city airport and its surrounding areas. “We are opening a wide array of opportunities, not only on the improvement of our infrastructure facilities but also in terms of investments that will generate more economic opportunities for the city and the entire region (Soccsksargen),” he said. Aside from the inauguration of the airport projects, Tugade also led the unveiling of completed initiatives at the Makar port here. The DOTr said it includes the construction of the Port Operations Building and other vital facilities, which includes a parking area, covered court, port manager’s quarter or Day Care Center, and drainage system. “The improved port of Makar will now offer safer, comfortable, and a more convenient port experience to passengers, while ensuring a faster turnaround for vessels, cargo trucks, and other ancillary service providers,” it said. Article courtesy of the Philippine News Agency
Philippine Resources - June 09, 2021
Terminal 2 of Clark International Airport to Open in July
Department of Transportation (DOTr) Secretary Art Tugade led a recent inspection of the New Passenger Terminal Building (PTB) of Clark International Airport (CRK) in Pampanga. The inspection conducted is part of the preparation for the upcoming opening of the new CRK Terminal. With Luzon International Premiere Airport Development (FLIPAD) Corporation President Bi Yong Chungunco, personally circulated by Sec. Tugade inside the new terminal to see construction progress. Secretary Tugade is also with DOTr Undersecretary for Railways Timothy John Batan, to discuss the layout of the map route alignment for the North-South Commuter Railway Extension (NSCREx) project that will connect to CRK underground station. On July 2021, the new airport terminal for domestic operations is set to be launched, which will be followed by the opening of international operations in September 2021. It's estimated that it will be up to 12.2 million passengers who can service the new terminal will be open and full scale operations, triple the number compared to the current 4.2 million passengers it serves every year (before the pandemic). This project will help a lot in the long term economic growth of the country, tourism growth, especially in providing employment and other opportunities for our countrymen. In fact, more than 1,600 workers have also been given the opportunity to be part of the project in the midst of the pandemic and it is expected that the number of jobs will be increased by the time the new terminal of Clark International Airport project is finished. "You wait and see a real 'world class' terminal. It's coming up, it's coming up in Clark. Thanks to LIPAD, the men and women of Clark International Airport are really very good," galak na pahayag ni Secretary Tugade. DOTr Assistant Secretary for Aviation and Airports Jim Melo, Civil Aviation Authority of the Philippines (CAAP) Chief of Staff and Airport Projects Team Head Atty. Danjun Lucas, and other representatives from FLIPAD Corp. Article Courtesy of the Department of Transport
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Philippine Resources - August 05, 2022
NICKEL ASIA CORPORATION ANNOUNCES P3.83B NET INCOME FOR H1 2022, UP 41% YoY
Photo Credit: Arrow Creatives Nickel Asia Corporation, the Philippines’ largest producer of lateritic nickel ore, reported a 41-percent increase in attributable net income for the first semester this year. Based on unaudited financial and operating results for the six-month period ended June 30, 2022, attributable net income increased to P3.83 billion from P2.73 billion while earnings before interest, tax, depreciation, and amortization (EBITDA) increased by 19 percent to P6.33 billion from P5.32 billion the year prior. Despite lower ore volume sold during the period, revenues increased by 7 percent to P11.78 billion from P11.01 billion last year, owed largely to higher nickel ore prices and favorable exchange rates. NAC’s four operating mines sold a combined 6.95 million wet metric tons (WMT) of nickel ore during the first half of the year, down 16 percent from 8.30 million WMT in the same period last year. The drop in sales volume was almost in direct proportion to unrealized workable days caused by inclement weather that adversely affected the Company’s mining operations during the period. The weighted average nickel ore sales price over the first half of year 2022 rose by 18 percent to $30.03 per WMT against $25.54 per WMT in the same period last year. The Company also realized P52.56 per US dollar from these nickel ore sales, a 9-percent increase from P48.25 last year. Breaking down the ore sales, the Company exported 3.12 million WMT of saprolite and limonite ore at the average price of $42.05 per WMT during the six-month period compared to 4.55 million WMT at $37.62 per WMT in the same period last year. Likewise, the Company delivered 3.83 million WMT of limonite ore to the Coral Bay and Taganito high-pressure acid leach (HPAL) plants, the prices of which are linked to the London Metal Exchange (LME) and realized an average price of $12.52 per pound of payable nickel. This compares to 3.74 million WMT at $7.92 per pound of payable nickel in 2021. Expressed in US dollar per WMT, the average price for the deliveries to the HPAL plants were $20.23 and $10.85 in the first half of 2022 and 2021, respectively. “The first half of 2022 was not without its challenges especially for our mining operations, brought about by weather conditions at our mine sites, particularly in Surigao, and continuing lockdowns in China, our major market,” said Martin Antonio G. Zamora, President and CEO. "However, the higher LME nickel price and stronger US dollar tempered the impact on our revenues.” Owing to the higher LME nickel price during the period, NAC also recognized gains from its equity share in investments in the two HPAL plants in the combined amount of P1.09 billion against P244.1 million year-on-year. The stronger US dollar further enabled NAC to log a 353-percent hike in net foreign exchange gains from its foreign currency-denominated net financial assets to P863.5 million from P190.6 million the year prior. Total operating cash costs decreased by 2 percent year-on-year to P5.19 billion from P5.32 billion last year. On a per-WMT sold basis, total operating cash costs increased to P747 per WMT compared to P641 per WMT in 2021. For the Company’s renewable energy business, its subsidiary, Emerging Power, Inc. (EPI) energized in June 2022 another 38-megawatt (MW) solar farm in Subic, Zambales, bringing total capacity on this site to 100MW. For 2022, the Subic plant has been operating at an 18- 19% plant efficiency factor with 90% of generation contracted under power sales agreements. EPI has realized an average tariff of P4.65 per kilowatt hour. EPI has another 100MW service contract for the Subic site and will commence construction of a 68-MW farm in August. Completion is expected by the third quarter of next year. EPI was also chosen by Shell Overseas Investments B.V. to be its exclusive local partner in a solar, onshore wind, and battery storage joint venture that aims to contribute up to 3GW into the Philippines’ renewable capacity. NAC is evaluating a range of financing alternatives including accessing global debt capital markets to raise EPI’s share of the equity required for an initial 1GW target by 2028, among other uses. The Company’s strong financial position will allow it to be opportunistic in evaluating funding options that meet the primary objective of maintaining a flexible low-cost capital structure. “We remain confident that our mining and renewable energy businesses provide a solid foundation on which to realize the OneNAC Vision’s twin objectives, which is to become the premier ESG investment in the country and to be counted among the Top 25 PSE-listed companies in terms of market capitalization by 2025,” said Zamora. Article courtesy of the Philippine Stock Exchange
Philippine Resources - August 04, 2022
Further shallow copper mineralisation identified at MCB
Figure 3. Cross section of drill hole MCB-039 relative to the interpreted geology and significant assay results. We (Celsius Resources) are pleased to announce we have received further shallow and high-grade copper assay results from the ongoing drilling program at our flagship MCB copper-gold project, held under our Philippine subsidiary Makilala Mining Company, Inc. (“MMCI”). The results continue to identify new positions of shallow mineralisation which are in line with other recent drilling results from holes MCB-036, MCB-037 and MCB-038 (see CLA announcements dated 13 December 2021, 23 May 2022 and 4 July 2022 respectively) confirming the presence of an extensive shallow higher-grade position. The results from MCB-039 were designed to further expand the size of the shallow higher-grade copper zones which are considered to have an important positive impact on early mining options at MCB. The current drill hole in progress (MCB-040) is similarly designed to further expand the higher-grade copper mineralisation leading to potential improvements to the economics of the already positive Scoping Study at MCB as reported by Celsius on 1 December 2021. “The results from MCB are continuing to grow the size of the shallow higher-grade copper zones,” said Country Operations Director, Peter Hume. “We are getting much better definition now on the various high-grade zones, which are important for the optimisation of the MCB mine plan. We can see many good high-grade intersections coming together to expand on the earlier understanding of these high-grade zones. Where we get multiple high-grade zones staked on top of each other, we can achieve outstanding results, as recently announced from hole MCB-038 which intersected 611.4m @ 1.39% copper and 0.75g/t gold from 32.5m.” RESULTS FROM MCB-039 Drill hole MCB-039 was drilled to further confirm the interpretation that further shallow high-grade positions exist as a relatively flat body extending into the surrounding host rocks (see Figures 2 and 3). This drill hole was more specifically targeted to fill a gap in the drilling information where there was previously defined lower grade copper mineralisation. The results from MCB-039 have confirmed the further extensions to the higher-grade copper mineralisation as part of a series of relatively flat lying, high-grade zones which are extending away from vertically orientated feeder structures which are all closely related to an intrusive Tonalite rock (Figure 3). Figure 2. Location of MCB-039 drill hole relative to recent and historical diamond drilling at MCB. A large broader envelope of copper mineralisation at a lower cut-off grade at approximately 0.2% copper also continues to be better defined, highlighting the very large scale of the copper-gold mineralisation at the MCB deposit. Table 1: Significant intersections from drill holes MCB-039. Article courtesy of Celsius Resources. Full press release can be found HERE
Philippine Resources - August 04, 2022
Diokno banks on mining for sustained economic recovery, expansion
Photo credit: PNA - Finance Secretary Benjamin Diokno Finance Secretary Benjamin Diokno said the mining industry is a potential source of sustained economic growth as he underscored the benefit of mobilizing investments for mine development. “The mining industry holds the greatest potential to be a key driver in our economic recovery and long-term growth, especially now that world metal prices are high. The Philippines, after all, is one of the world’s most richly endowed countries in terms of mineral resources,” he said Wednesday at the listing of Philex Mining Corporation’s (Philex) common shares in the Philippine Stock Exchange (PSE). Philex is mobilizing investments for the development of its Silangan underground copper-gold mine in Surigao del Norte. In a disclosure to the PSE, the company said it is offering a maximum of 842 million common shares at the rate of one offer share for every 5.8674 shares owned for PHP3.15 each to raise a total of PHP2.652 billion new equity. The stocks rights offering (SRO) period started on July 12, 2022 and ended July 25, 2022. The Silangan project, considered one of the biggest copper-gold mines in the country, is planned to be mined in two phases. The first phase has a mineable ore reserve of 81 million metric tonnes which will be mined for 22 years at a rate of 4 million tonnes per year. The mine is targeted to commence commercial operations in the first quarter of 2025. Diokno said Philex’ SRO listing demonstrates the mining industry’s confidence in the country’s promising economic growth prospects. He said the offering means more jobs will be created, local economies will be reinvigorated, and additional revenues will be contributed to the government. The Department of Finance (DOF) estimates that the project will generate around PHP8.5 billion in excise taxes alone for its entire mine life. Diokno said the listing sends a strong signal to the mining industry that the country's capital markets are viable instruments for fast tracking the development of large mining projects. He said the Marcos administration is committed to continue creating an enabling environment for mining activities to flourish in the country as he looks forward to similar listings in the future. “We recognize that apart from boosting local development, mining is a strong magnet for investments that can propel our economy into a higher growth trajectory,” he added. Diokno said the government expects the mining industry to strictly adhere to responsible and sustainable mining practices. He said the mining industry should strike a balance between protecting the environment, uplifting local communities, and supporting the government’s socioeconomic agenda. “This is a non-negotiable condition so we can guarantee the sustainability of the industry and the strong economic growth of its host communities,” he said. Article courtesy of the Philippine News Agency
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