High prices of mining commodities perk up country's mining sector

Balita Pinoy
MANILA, March 2


Forecasts by mining authorities that the prevailing high prices of mining commodities could continue until 2010 or even 2016 bodes well not only for the mining sector but also for the whole country, according to Press Secretary Press Secretary Ignacio R. Bunye.

The growth of the mining “industry will surely allow ordinary Filipinos to benefit, not just through employment in mining companies amid the surrounding communities, but by investing in, and profiting from, mining stocks,” he said in his column "The View from the Palace."

Bunye was commenting on the outcome of the highly successful lecture series, "Going Public and Building Confidence – How to Undertake an IPO," in Makati City last Friday.

The eighth in a series of lectures on the mining industry organized by the Chamber of Mines of the Philippnes and the Philippine Stock Exchange (PSE) over the last few months at the Intercontinental Ballroom in Makati City, the lectures drew various prominent businessmen, mining professionals, service providers, investment bankers and mining company executives.

The forum attendees were “undoubtedly encouraged by the forecasts of the speakers from UBS AG that today’s high prices for mining commodities can be expected to continue until 2010, or even 2016 if the demand from China continues,” Bunye said.

He noted that investors in the “mining industry are among the most appreciative of the fertile ground for investment that the President (Gloria Macapagal Arroyo) has worked hard to achieve.”

The Palace official pointed out that also in Manila last week was a mining mission organized by Austrade, which included visits outside Metro Manila.

“Members of the (Austrade) delegation who have been traveling here for a number of years have had a chance to compare the ‘wait and see attitude’ of many companies from just a few years ago back to their ‘gung ho’ attitude about the Philippines today,” Bunye said.

“We certainly should not let them down by continuing to streamline procedures in the government bureacracy, ensuring consistency in policies, and providing stability in leadership,” he added.

The government foresees investments in the mining sector to exceed US$ 10 billion by 2011.

This year alone, investments in the sector is expected to reach US$ 892 million, and surge further to US$ 1.4 billion in 2009.

China’s demand for mining commodities, which is expected to grow by about 10 percent, is fueling a mining boom in the country which has huge mineral resources waiting to be tapped. (PNA)