siana in context of philippines developments

I copy the editorial to the Asian Miner out today (9 March), a Newsletter that gets very good coverage in the Asian region, including China! It refers specifically to RED 5 and the Siana gold development:

"Yolanda Torrisi
Managing editor
The ASIA Miner

Editor's Comment
Philippines investment heads north


With plenty of optimism in the mining industry, greater demand for resources led by China and stronger metal prices, the Philippines looks certain to benefit in 2010 from an increase in mining investment.

A 2004 Supreme Court ruling in the Philippines allowed foreign ownership of local ventures which has seen investment in mining increase annually, although the 2009 figure fell just short of the $650 million target.

The countrys Mines and Geosciences Bureau has forecast mining investment of $1.428 billion this year and there are indications that this is achievable. It also expects investments will more than double in 2011 to $3.416 billion, rising slightly to $3.855 billion in 2012 and tapering off to $1.944 billion in 2013.

The bureau believes high demand and the upturn in metal prices will encourage miners to start commercial operations or increase output. The forecasts have come from the number of projects that are set to enter operational phase following years of exploration and feasibility studies.

Japans Sumitomo Metal Mining is expected to invest $800 million this year for a $2.257 billion nickel processing plant in Surigao del Norte while Sagittarius Mines, a partnership between Xstrata Copper and Indophil Resources, is expected to spend $93 million to complete the feasibility study of the $5.2-billion Tampakan copper and gold project in South Cotabato.

Another major investment will come from Australias Red 5, which is forecast to invest $65.9 million to start commercial operations of the Siana gold mine in Surigao del Norte.

Chamber of Mines of the Philippines executive vice president Nelia C Halcon believes the bureaus forecasts are attainable as does Chalre Associates chairman and The ASIA Miner columnist Richard Mills. He says, Certainly, as metal prices increase, more people are encouraged to invest. [High prices] will remain for the next year or two.

In supporting the reasons for the expected increase, Nelia Halcon says, There is an increasing demand from China and India because they are continuously developing cities and infrastructure.

Richard Mills concurs, saying: There is so much construction of infrastructure [and] that increases the demand for metals.

Its good to get that ongoing positive publicity that will only increase as Siana moves closer to production!