Philex Mining Corp. is optimistic it can further improve its income stream with the possible further extension of the operations of its Padcal underground mine in Benguet hand in hand with the start of the commercial production at Silangan mine in Mindanao by 2025.
Philex Mining said in a statement the ultimate decision to extend Padcal’s mine life beyond 2024 will depend on the findings of a study of the remaining mineable reserve, favorable price of copper and gold as well as the cost of producing metals and obtaining required government permits.
“Studies are ongoing… If prices hold on to the levels where they are now, which we consider high, then there is a possibility of (an) extension,” said Eulalio Austin Jr., Philex Mining president and chief executive officer, in a statement.
Extraction of copper and gold in the Padcal mine first started in 1958. The mine is scheduled to cease operation by the end of 2024 after several extensions of its mine life.
Philex Mining will begin the development of a starter gold and copper mine in Silangan this year with commercial operations to start by early 2025 yet.
This limit the company’s income potential especially if the operations of Padcal mine is not extended beyond 2024.
At present, Padcal mine is Philex Mining’s sole operating asset.
With just Pascal in operspite this, Philex said will limit any major impact to income flow even if Padcal mine stops operation as scheduled in 2024.
Philex Mining earlier said it has secured all regulatory approvals for Silangan, including those from local government units, indigenous people and the Department of Environment and Natural Resources with its mineral production sharing agreement originally scheduled to expire in 2024 had been extended 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 that will be ramped up to 12,000 tons per day by the 12th year of its operation.
However, over the 28-year mine life of Silangan, Philex Mining estimated that total investment including spending to operate and maintain the mine will reach $1.5 billion.
