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Southeast Asia

Apr 8, 2005

China to invest in Philippines' mining sector

SURIGAO CITY - A multi-billion dollar Chinese mining firm will invest more than US$1 billion in the Philippines for the revival of the Surigao del Norte mining industry.

Chi Juan Non-Ferrous Metals Corporation, one of the biggest nickel mining firms in China, has said it will operate an estimated 144-million ton nickel deposit found on Nonoc Island in northeastern Mindanao.

Some 10,000 local workers are needed for the rehabilitation and reconstruction of the 5,825 hectare nickel mining project.

In line with this development, President Gloria Macapagal-Arroyo directed Environment and Natural Resources Secretary Michael Defensor to develop a loan restructuring scheme with the Department of Finance for the $320 million sell-out of the Philippine Nickel Corporation (PHILNICO) to the Chinese mining conglomerate.

In 1986, PHILNICO declared bankruptcy and was forced to shut down its operations due to the drop in nickel prices on the world market.

After review the Philippines' huge potential for nickel deposits and the increasing demand for raw materials needed to feed China's growing steel industry, the Chinese mining firm decided to operate the nickle mining project on Nonoc.

Surigao del Norte Governor Robert Lyndon Barbers lauded President Arroyo's subsequent decision to revive the mining industry in the province.

On top of Chi Juan's investments, three other foreign mining companies will pour $500 million into other mining concession in the province.

Barbers said some 4,000-5,000 new jobs will become available to local workers in the province and nearby areas with the revival of mining activities.

Secretary Cerge Remonde, head of the government's Media Group, said President Arroyo's efforts to revive the mining industry is part of her 10-point agenda for job-generation and economic development.

"As we open the industry, we also make sure that environment is protected, indigenous people and affected sectors are consulted to assure smooth implementation of laws protecting [the] ecosystem," Remonde said.

Surigao City Mayor Alfonso Casurra said the revival of the mining industry in the province, particularly that of Nonoc Island, will bring in much needed revenue to the city aside from employment benefits.

(Asia Pulse/PNA)

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