The English-speaking island republic of the Philippines is home to more than 100 million people. It has a growing economy, with a GDP that increased by over 7% in 2010, compared to 10.3% in China, 3.1% in Canada and 2.7% in Australia in the same year.(1)
The Philippines’ top trading partners and close neighbours include China, Japan and South Korea. These countries are some of the world’s largest consumers of metals, providing mining companies with excellent partnership opportunities for both direct investment and mine product off-take.
The islands of Philippines are located in the active tectonic region of the Pacific “Rim of Fire”. The 1200 kilometre Philippine Rift Fault structure and the local subduction zone is a major source of volcanism and mineralization. This has endowed the country with many mineral deposits and several world-class gold and base metal mines, and provides islands like Mindinao with excellent opportunities for additional mineral exploration and development. Notable deposits proximal to Cadan’s projects on Mindinao include: Kingking (5 billion lb Cu, 10.3 million oz Au), Dilwalwal (10 million oz Au) and CoO (2.5 million oz Au).
In 2011 the Philippines produced over 21,000kg of gold and silver and nearly 123,000 dry metric tonnes of copper concentrate (~68 million lbs of copper metal equivalent). (2)
The Philippine Mining Act of 1995 allows 100% foreign ownership of mining assets, and the permitting process is well defined. Foreign companies may only hold 40% of the land title however, and therefore companies such as Cadan form partnerships with local companies in order to secure the land tenure.
The Mining Act is progressive legislation that requires mining companies to adhere to modern global best-practice standards in environmental management, and ensure that mining projects are advanced in ways that are sustainable with the host communities.
(1) The World Factbook, www.cia.gov/library/publications/the-world-factbook/index.html
(2) Mines and Geosciences Bureau (Philippines), www.mgb.gov.ph