Tuesday, April 22, 2008 Philex extends life by 3 years By Jane Cadalig
HIGH metal prices in the world market is the reason why the country's top producer of copper extended its lifetime by three years allowing it more time to explore other possible areas in the country.
Philex Mining Corporation president Ernesto Villaluna said the company is extending its operations up to 2014. Before the sudden increase in metal prices in 2005 the company was only expected to last until 2011.
Greg Aratas, Philex legal department chief, said the high price of metals in the world market frees the firm of over extracting ore. "Because we don't need as much ore to dig up to meet the daily costs of operations, Philex can extend by three more years its expected life expectancy," he said.
The increase in demand for metals worldwide is credited to the industrialization of China, the world's most populated country. When China opened its doors to international trade, and the subsequent increase in the purchasing power of ordinary Chinese, there has been a boom in most industries, which demand all kinds of metals.
The largest market for automobiles today is in China, while electronic gadgets also enjoin a surge in sales. Automobiles need iron while electronic equipment requires gold, copper, and other precious metals.
Aside from this, the weakening of the dollar has propped up prices of the gold and other valuable metals in the world.
Philex, whose main production is copper and like any other mining company, is enjoying the benefits from the rise in the prices of both gold and copper.
The prevailing price for a pound of copper is US$3.50 while gold is pegged at US$900 per ounce.
Philex's copper production for the first three months of this year reached more than 17 million pounds while its gold production was 35,480 ounces.
The extension of its life expectancy will also benefit its workers. "Instead of terminating the services of majority of our miners and other workers, they can expect three more years employment in Philex," Aratas added.
He said the extension also gives the company more time to explore other areas in the Cordillera, particularly Benguet, where copper deposits could be mined commercially.
Philex is also conducting explorations in other parts of the country including Negros, Zamboanga and Surigao, Villaluna said.
