MANILA – Canadian miner TVI Pacific Inc. said that it remains confident in the Philippine government and the local mining industry, as the company geared toward the development of its Balabag gold-silver project in Zamboanga del Sur province.
Clifford James, TVI Pacific chairman and chief executive officer, said that the recent lifting of the two-year moratorium on new mining application sent positive signals to both local and foreign investors that the Philippine government intends not only to reorganize the industry but to also revitalize it.
“We are also confident that the government will be consistent in its implementation of the law,” James said in a statement.
He said that a testament to this is TVI’s strong corporate presence in the country through its local affiliate and its faith in the proven operational capability of its management team, which is almost entirely Filipino.
TVI Pacific, through its local operating affiliate TVI Resource Development Philippines Inc. (Tvird), has operated its Canatuan copper-zinc mine since 2004.
James said that this year, as it winds-up operations on its initial ore body, the company also realized potential discoveries—additional mineralized prospects in nearby Malusok, which can potentially extend its mine life.
The executive said that it also set to implement the development of its Balabag gold-silver project in Zamboanga del Sur, pending the government’s issuance of its environment compliance certificate and on which it projects some 50,000 gold ounces a year beginning in 2014.
“This development is fortified by a nonbinding term sheet with Metrobank for a $20 million term loan facility coupled by a $3-million letter of credit,” he said.
Joint venture projects with Mindoro Resources Ltd. and Minerals Production Sharing Agreement holder, Minimax Mineral Exploration Corp. are also expected to come on-stream beginning in the second half of the year.
“These projects are geared towards the production of direct shipping ores high iron laterite, limestone and pyrite as well as the establishment of a nickel processing plant in Agusan del Norte by 2015,” James said.
Plant construction is valued at less than $100 million. In all of the joint venture projects, Tvird reserves the option to assume a majority 60-percent interest and will act as operator.
On the other hand, James also said that TVI Pacific, through its relationship with Foyson Resources Ltd., will also pursue the development of its Papua New Guinea assets, focusing primarily on Amazon Bay as a very large potential resource, particularly mineral sands containing iron, vanadium and titanium.
TVI also has interests in copper, moly, gold porphyry and silver through its share ownership position in Foyson.
Earlier, TVI Pacific announced full-year net revenues of $77.1 million in 2012 generated through the company’s sale of copper and zinc concentrates from its Canatuan operations, of which net income before tax is $6 million. The 2012 revenue was affected by a lower average copper price of $3.60.
“After taxes, net income stands at $5.3 million, up by 53.9 percent from the previous year,” James said. (James Konstantin Galvez)
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