Philex Mining Corp. may seal a deal with foreign investors as early as next year to help fund its $1-billion Silangan copper-gold project in the southern Philippines, Chairman Manuel V. Pangilinan said during the company’s annual general meeting on June 26.
The mining giant, which has a market capitalization of PHP 38.4 billion ($678 million), is banking on investor confidence once the mine under its subsidiary, Silangan Mindanao Mining Co. Inc., nears commercial operations.
Targeted to begin operations by March 2026, Silangan is considered one of the country’s “big three” mining projects. However, Pangilinan warned that fabrication issues and global supply chain constraints could delay the project. "We will advise the public if there are delays to that schedule,” he said.
Philex has already poured $240 million into the Silangan project and plans to raise an additional $760 million through a combination of debt and equity, according to President and CEO Eulalio Austin Jr.
The company is open to foreign partners acquiring up to 40% of the project or coming in as lenders. As of 2024, Philex has secured about $170 million in loans from local banks.
Silangan’s processing plant is now 60% complete, while its tailings storage facility is 65% done and expected to be finished by the fourth quarter of 2025. Construction of the remaining infrastructure is underway at an “accelerated pace,” Austin said, citing favorable market conditions and strong government backing.
“It is imperative that Silangan be ushered into production on schedule to take advantage of high metal prices,” he added. “Otherwise, we will miss the train.”
The mine, which spans 16,620 hectares in Surigao del Norte, includes the Boyongan and Bayugo ore bodies. Phase 1 of development focuses on the Boyongan deposit, which has a projected mine life of 28 years, based on 81 million tons of mineable reserves with average grades of 0.67% copper and 1.13 grams per ton of gold.
Once operational, Silangan will initially process 2,000 tons per day, a modest output compared to the 18,000 tons produced by Philex’s Padcal mine in Benguet. But the company plans to gradually scale up Silangan’s capacity once new funds come in.
Pangilinan emphasized the project’s strategic importance amid the global push for critical minerals that support climate-resilient technologies and clean energy. “If you’re an investor, where will you go? Of course, there’s the new one — and with high-grade ore,” he said, referring to Silangan.
While he hinted earlier this year that the group had found a potential foreign partner, Pangilinan declined to confirm whether a deal had been finalized. He said Philex would retain majority control over the project, with a minority stake likely going to the incoming investor.
Philex continues to operate the Padcal mine in northern Luzon, which remains productive but is expected to wind down operations by 2028.
