Philippine Mining Projs Have Potential To Get $15 Billion Invest -Executive

Mining investments will continue to rise and may reach $15 billion in a few years as Philippine projects continue to attract investors, an industry executive said Tuesday.

Investments will continue to pour in amid signs of recovery from the global economic downturn and improving metal prices, said Philip Benjamin Romualdez, president of the Chamber of Mines.

"In a downturn, people turn to quality. If you have a high quality project then investor interest will be high. Projects that are robust will enjoy investor confidence," Romualdez told reporters on the sidelines of a mining conference.

Romualdez said the development of Xstrata PLC's (XTA.LN) Tampakan project alone could generate up to $5.2 billion in investment; the copper-gold project is located in the south.

Japan's Sumitomo Metal Mining Co. (5713.TO) will lead the construction of a $1.3 billion nickel processing plant in Taganito, also in the south.

On Tuesday, the OceanaGold Corp. (OGC.AU) chairman said the company may begin developing the Didipio copper gold project in the north even without a strategic partner.

"We've always been looking for a strategic partner but because of the (higher) price of gold and better and more successful operations in New Zealand, the (plan to look for)strategic partner is not as urgent. We will be able to do it (on our own)," Jose Leviste said.

OceanaGold suspended work at Didipio in the middle of 2007 as project costs rose to $320 million from an initial estimate of $155 million, prompting the company to seek a joint venture partner. Talks with potential partners haven't progressed.

Intex Resources ASA (ITX.OS) remains keen on developing a $2.4 billion nickel processing project in Mindoro, an island province south of Manila.

Company president Erlend Grimstad said a definitive feasibility study on the project is expected to be ready by the end of the year.

Intex is planning to build a facility that will use both high pressure acid leaching and atmospheric leaching technologies to produce 50,000 metric tons of nickel a year. The mine's life is estimated at 50 years.

With these ongoing projects, Romualdez remains hopeful the country will continue to attract mining investments, especially as financial markets recover.

"I'm still optimistic that investments are going to happen. A $15 billion (estimate) is easy and achievable," Romualdez said.

Mining investments since 2004, when the government launched a program to revive the mining industry, have so far reached $2.1 billion.

-By Rhea Sandique-Carlos, Dow Jones Newswires; 632-848-5051; rhea.sandique-carlos@dowjones.com

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