Although the Philippines is the fifth most resource-rich country in the world, it is home to some of the world’s biggest under-exploited deposits of gold and copper. It also benefits from one of the most liberal mining regimes in Southeast Asia, with the Mining Act of 1995 allowing for 100 per cent foreign-equity participation through Financial and Technical Assistance Agreements (FTAAs) with local miners.

In addition, the Filipino government has in recent years sought to promote foreign mining investment by providing various tax and non-tax incentives and has established the Mineral Development Council to assist foreign investors in expediting access to mining projects.

As a result, Filipino mining investment has steadily increased, with the Filipino Chamber of Mines estimating US$1.55 billion of mining investment in 2008 and US$2.76 billion in 2009, up from US$350 million in 2007. The Chamber, the Department of Environment and Natural Resources and the Mines and Geosciences Bureau predict the contribution of mining exports to the total export figures of the Philippines will continue to increase year-on-year over at least the next three to five years.

Mankayan Project

Value Building Track Record

Copper(CU)% Gold(AU) Contained Copper
Contained Gold
 Indicated  221.6  0.49  0.52  1.10  3.7
 Inferred  36.2  0.44  0.48  0.20  0.6

Snowden: JORC Compliant resource upgrade (as at July 2009)

  • Project return estimated (US$3.00/lb, Cu US$1,250/oz Au):
    • post-tax NPV of approximately US$739 million at an 8% discount rate
    • post-tax IRR of 21%
    • post-tax net cashflow of approximately US$3.7 billion
  • 20 million tonnes (“Mt”) per annum, block caving operation over an estimated 28 year mine life
  • Total capital investment cost of approximately US$1 billion over the duration of the project at 20 Mta and over 28 year mine life
  • US$17.31 costs per ore tonne, including all royalties, taxes, capital costs, equipment ownership, operating and processing costs and administrative and technical services costs

2014 Mine Model Longitudinal Section