Silangan will take the place of Padcal operations is projected to close by 2022. We should bring in that mine (Silangan) before Padcal ceases operations.

BAGUIO CITY — Pangilinan-led Philex Mining Corp., the country’s largest gold producer, on Thursday said they may have to move the timetable of the construction of the $2-billion Silangan Mine project if they fail to raise the funds needed to start development.

“Supposedly, in our time table, we need the money in first half of 2020 that’s why we need to talk to our investors because as much as possible, we want to raise it in 2020,” Philex president and CEO Eulalio Austin told reporters at the sidelines of the 66th Annual National Mine Safety and Environment Conference.

Philex is currently raising around 40 percent or $350 million from investors to jumpstart the Silangan copper and gold project via a sub-level cave mining method.

“For sure (there may be a delay) because I need to raise $350 million as initial money. The $750 million is the total cost of the project. Our purpose is to raise $350-M as equity and the balance of $400-M can be raised through loans,” he said.

However, Austin said preparatory work may be delayed if they fail to secure the needed funds by the first half of 2020.

Philex Mining›s financial advisors are presently looking into companies that already have an investment in mining so that during due diligence, it would be easier to work with them.

Last August, Philex announced JPMorgan as its partner for equity investment and Japan’s Mizuho for project financing.

“There are some investors telling us that the project is too small. There are big players in the industry who said that it’s not within their required numbers. (Also), the current climate (is that) government is lukewarm to the mining industry,” Austin said.

He said the company is open to partner with any local or foreign investor because their priority is to start the Silangan Mine project.

“Silangan will take the place of Padcal operations is projected to close by 2022. We should bring in that mine (Silangan) before Padcal ceases operations,” Austin stressed.

Apart from the availability of funds, Austin also cited reasons that could affect the project timeline.

“The construction (of the project) might be delayed because, in Surigao (del Norte), there are only two seasons, wet and very wet. Therefore, your progress… you will not start during the dry season, the (possibilities) are that early works will be delayed,” he said.

Dubbed as one of three big-ticket mining projects, Austin said the Silangan is a large-scale, high-grade, copper-and-gold development in Surigao del Norte, Mindanao.