St. Augustine Gold and Copper Ltd. chief operating officer Michael Regino has said they are currently in talks with possible foreign investors to secure funding for the King-king Copper-Gold Project in Davao de Oro.
In an interview at the sidelines of the 2023 Mining Philippines International Conference and Exhibition at the Edsa Shangri-la in Mandaluyong City on Tuesday, Regino said the initial investment needed for the project was initially estimated at USD2 billion.
This is, however, based on the preliminary feasibility study (PFS) released, he said.
"What we're doing right now is we are having the 2013 PFS updated and hopefully it will be ready by early of next year. The ones we contracted to update the PFS said it might be ready by January so hopefully with that we will be able to see the revised figures and based on current prices, revenues, and cost," said Regino.
Regino said the foreign investors "are just waiting for the PFS to be completed."
"For projects of this size, you will definitely need big money so you will need a partner, you need a big investor," he said.
According to Regino, King-king's estimated production over its 23-year mine life is 3.1 billion pounds of copper, 5 million ounces of gold and most probably nearly 10 million ounces of silver.
He said the updated PFS will provide the company a better view of the updated prices, cost, and the viability of the entire project.
Regino added that he does not expect a huge increase in the needed investments.
"In the USD2 billion dollar project we were supposed to put up a USD300 million coal power plant. Because when we did a study back in 2013, there's a deficit of power in Mindanao," he said adding that local power providers could easily provide the requirement.
"So there's no need to put up one. But there might be increases in some other expenses. The project study will be more accurate," he said.
Regino said once investments are secured, it would take up to four years before commercial operations start. By Anna Leah Gonzales
Article courtesy of the Philippine News Agency
