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Philippines Expects $7 Billion in Mining Investment (Update4)
March 23 (Bloomberg) -- Anglo American Plc and Shanghai Baosteel Group are among companies that may spend $7 billion on mines in the Philippines after the Supreme Court eased investment rules, Mining Secretary Michael Defensor said.

``There has been tremendous interest from investors,'' Defensor said today in an interview in Singapore. ``We will be able to get $7 billion in foreign direct investment,'' he said, without saying when the spending will take place.

Mining companies such as Anglo American are spending more as rising Chinese demand drove up copper prices to a record this month, while nickel reached a five month high. The Philippines, whose 4.84 trillion pesos ($89 billion) economy was Asia's 13th largest last year, expects mining to account for 15 percent of gross domestic product within five years from 1.6 percent in 2003, Defensor said.

The Philippine stock market's mining index has gained 51 percent since Dec. 1, when the Supreme Court ruled that overseas companies could invest in the ``large-scale exploration, development and utilization'' of mining and energy resources.

The court said a copper and gold mine operated by Indophil Resources NL was legal, affirming a law that allows overseas investors to skirt a constitutional ban on owning the country's mining companies.

``Many private companies in Manila were able to negotiate and have some commitments from companies from Australia, Canada and all over the world'' since the court ruling, Defensor said. The court ruled that international companies could invest in the ``large-scale exploration, development and utilization'' of mining and energy resources in the country.

Overseas miners are holding talks about investing in 60 projects, and a further 30 projects are at an ``exploratory stage,'' Defensor said. Companies in talks include London-based Anglo American, the world's second-largest mining company, Shanghai-based Baosteel and Canada's Ivanhoe Mines Ltd., he said.

Nickel Project

Shanghai Baosteel is considering building a $1 billion nickel project in the Philippines with China's Jinchuan Group, Yu Zhonghai, director of the international business development department at Shanghai Baosteel, said in an interview this month.

The company hasn't completed a feasibility study on the Philippine project, Yu said.

Shanghai Baosteel and Jinchuan plan to buy a nickel mine in the Philippines that halted operations in 1986, China Business News reported in February. The mine halted output because of technical problems and high energy costs, and would need production upgrades costing as much as $1 billion before resuming operations, the report said.

Ivanhoe Mines may invest in projects operated by Lepanto Consolidated Mining Co., the Philippines' biggest mining company.

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