Philex's Silangan Mindanao Mining Completes $170-M Loan For Surigao Project

Silangan Mindanao Mining Co. Inc. (SMMCI), a wholly-owned subsidiary of Philex Mining Corporation, has completed the $170 million financing loan needed to develop the Silangan mine project in Surigao del Norte province.

Philex has signed the Deed of Accession for an additional US$70 million with the member banks that syndicated the credit facility to complete the total loan facility of US$170 million. I Photo: Philex Mining Corporation

Philex disclosed to the Philippine Stock Exchange (SEC) that they have signed the Deed of Accession for an additional US$70 million with the member banks that syndicated the credit facility to complete the total loan facility of US$170 million.

This amount is required to bring the Silangan Project into commercial operation by the first quarter of 2025. Manuel V. Pangilinan, Chairman of Philex Corporation, emphasized, “Silangan will be the next big thing in the mining industry.”

“There is excitement both in the public and private sector about its much-anticipated opening, but we will continue to build awareness and interest in this project to attract new investors and lenders so we can accelerate its ramp-up. The conditions for this right now are favorable, and we hope that this can be sustained throughout the year,” he added.

The company revealed that the underground tunneling works have reached 354 meters out of the 552 meters where the production levels of the Boyongan ore body will be located.

The initial works at the tailings storage facilities have started while the tendering process for the various packages of the process plant is ongoing, with the packages for the long lead items needed for the process plant already awarded to various global suppliers.

Pangilinan declared, “We shall continue pursuing our other business development activities to ride on the current trend towards green metals technology. We hope to complete the evaluation of our nickel tenement in Zambales and pursue other possible M&A prospects.”

For his part, Eulalio Austin, Jr., Philex President, and CEO, shared, “For Silangan, since our initial capex funding is already in place, we will complete the main decline to the ore body and start the driving of production lines that would serve as sources for initial ore production. The construction of the processing plant and tailings storage facility, as well as other surface infrastructures, will commence this year.”

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