Philex Mining Corp. will come up with a shortlist of possible partners for its Silangan mine venture in Surigao del Norte before the year ends.
Eulalio Austin Jr., Philex president and chief executive officer, said the project which will produce large-scale high grade copper-gold will require an initial capital expenditure of $750 million.
“There are indications already but we still don’t know if we could raise 40 percent of the $750 million… We’ve appointed JP Morgan for over a month now to become our financial (investors). We are targeting that by early December, more or less, we have an idea who are the prospective investors. (By) March or April, there would be finalization of contracts,” Austin told reporters on the sidelines of the Mining Philippines 2019 Conference last week.
Austin said the project would need sustaining capex once it starts producing ores.
Austin said due to the existing ban on open pit mining, the project will utilize underground sublevel cave mining.
Austin said Philex is looking at early development works towards the end of first half of 2020. These involve infrastructure, roadworks, opening of the portal, initial construction of the tailing ponds and other environmental controls.
Silangan mine is designed with an output of four million tons per day and will likely start production of ore by July 2022.