Philex Mining Corp. (Philex) is considering further extending the operation of its underground mine in Padcal, potentially overlapping with the start of the commercial production at its Silangan mine in 2025.
A decision to extend Padcal’s mine life beyond 2024 will depend on the study of the remaining mineable reserve, favorable price of copper and gold, as well as the cost of producing the metals moving forward and obtaining the required government permits, Philex said in a statement.
Padcal, where copper and gold have been extracted starting 1958, is scheduled to cease operation by the end of 2024 after several extensions of its mine life.
Philex will begin the development of a starter mine in Silangan this year. The copper and gold mine will start commercial operation by early 2025, limiting any major impact on Philex’s income flow even if Padcal ceases operation as scheduled in 2024, it said.
An overlap in Padcal and Silangan’s operation could further bolster Philex’s income stream.
Eulalio B. Austin Jr., president and CEO of Philex said studies are ongoing.
“The extension of Padcal’s operation will be dependent on the study of the remaining mineable reserve, favorable price of copper and gold, as well as cost of producing the metals moving forward and obtaining the required government permits. If prices hold on to the levels where they are now, which we consider high, then there is a possibility of extension,” he said.
Philex has secured all regulatory approvals for Silangan, including the nod of the local government units, indigenous people, and the Department of Environment and Natural Resources. The Mineral Production Sharing Agreement, which was scheduled to expire in 2024, had also been extended by the full 25-year term or up to 2049.
An initial investment of $224 million is needed to develop a starter mine that will produce around 2,000 tons of ore per day. Production, under the current development plan, will be ramped up to 12,000 tons a day or 4 million tons a year by the 12th year.
Over its 28-year-mine life, Philex estimated total investment, including spending to operate and maintain the mine, will reach $1.5 billion. It is expected to generate thousands of jobs, particularly in Surigao del Norte towns of Placer, Tubod, Tagana-an, and Sison, and contribute billions of pesos in taxes to both the LGUs and the national government.
Image credits: www.philexmining.com.ph