big japan firms eye rp mining projects

AT LEAST eight big Japanese companies and financial institutions are planning to cash in on the Philippines' booming mining sector, particularly in the copper and nickel sectors, according to government and private sector officials.

The companies include Pan Pacific Copper Co., Mitsubishi Corp., Sojitz Corp., Sumitomo Metal Mining Co., and Marubeni Corp., said Chambers of Mines of the Philippines president Benjamin Philip Romualdez.

Financial groups like Mizuho Corporate Bank, Mitsui Bank and even the Japan Bank for International Cooperation have also expressed interest to participate in mining ventures by providing debt or equity to viable projects, he added.

The head of the mining chamber said the Japanese companies would finalize their invest ment plans in the Philippines within the year.

Romualdez and Trade Secretary Juan Santos led a Philippine team that conducted a mining conference in Tokyo last week.

The Philippines estimated that its unexplored mineral wealth could reach about $1 trillion. The government wants local and foreign mining firms to pump about $6 billion into 23 priority projects over the next six years.

"Judging from the reaction of the people we met with, there is a growing interest among Japanese investors to put money into our mining industry," Santos said.

Romualdez said Pan Pacific, Japan's biggest metal company, has already put in $15 million to expand Philex Mining's interest in Benguet. Pan Pacific is a joint venture of Nippon Mining and Metals and Mitsui Metal.

"This company is very interested in copper projects, being the largest copper buyer in Japan. They would like to move very quickly on mining projects and are interested in participating from the exploratory all the way to offtake agreements," said Romualdez, who is also president and CEO of Benguet Corp.

Mitsubishi Corp., being the largest trading company in Japan, would like its subsidiary Pacific Metals to invest in nickel ventures in the Philippines.

Romualdez said the nickel ore that Mitsubishi was buying from Rio Tuba in Palawan could be exhausted in three years. "They want to expand outside of Palawan."

Sojitz, a partner of Coral Bay Nickel Corp., is also looking at new nickel projects. Romualdez said Sumitomo Metal, which was also in Coral Bay, was also considering more investments.

Marubeni Corp., he said, was interested in copper projects.

"Demand for copper and nickel is growing and our advantage is that we are very close to Japan as compared to South America where they source some of their requirements," Romualdez said.

He added that other mining ventures were also moving forward. Toledo Corp., for instance, is holding a roadshow in Paris next week to raise $171 million for its Philippine mining projects.

Masbate Gold is also raising $63 million while Tampacan is also tapping the London market for $30 million in funding.

Aside from Japan, the Philippines is actively courting other foreign investors to develop the country's vast mineral resources.

please do your own research.