Mining Profits...Investing In Industrial Metals

Prices of copper and gold will be stable and may even improve in the next 10 years, a top executive of an international corporate financing institution in General Santos recently said.

"Demand for copper will be on the upward. Times are certainly good for (the industry in) the next 10 years," said Mark Tyler head of the mining resources of Nedbank Captial Corporate Finance during a press conference here in General Santos City.Tyler arrived in the city together with ministers and technical consultants from African countries and they visited the Sagittarius Mines Inc. mineral development site in nearby Tampakan town of South Cotabato.

He added that the prevailing prices of copper and gold in the international market augur well for the Philippine mining industry.

Last week, prices of copper hit $3.40 per ounce while gold was well over $450 per ounce.

Even at the price of copper at $2 per ounce, Tyler added, the local mining industry could still generate enough profit.

"Especially if these are of world quality as in the case of Tampakan," the foreign executive said.

Prices of copper dropped to an all time low of US$0.17 in the late 80s, forcing several mining industries to collapse, among them Atlas Consolidated Mining Corporation, then the largest copper mine in Asia.

Based on the briefing given to the visiting African dignitaries and foreign financing institution, Tyler said the Tampakan copper and gold project could generate "well over US$2 billion" in revenues.

The Tampakan gold and copper project is owned by Sagittarius Mines Inc. through a financial technical assistance agreement (FTAA).

Sagittarius Mines Inc. is 40 percent owned by Indophil Resources Inc.

According to the 2004 annual report of Sagittarius, there are approximately 6.8 million tons of copper metal and 8.7 million ounces of gold in a 300-square kilometer project area.

The mineral resource is estimated to be worth US$23 billion, the annual report stressed.

However, the latest report indicated that copper and gold deposits in the area could breach the two billion ton mark.

The Tampakan project is reportedly the second largest in Southeast Asia.

Sagittarius is now winding up its pre-feasibility studies.

Company sources said actually exploration activities could start before 2010. of copper and gold will be stable and may even improve in the next 10 years, a top executive of an international corporate financing institution in General Santos recently said.

"Demand for copper will be on the upward. Times are certainly good for (the industry in) the next 10 years," said Mark Tyler head of the mining resources of Nedbank Captial Corporate Finance during a press conference here in General Santos City.