Financing for mining projects in the country will likely be more scarce this year as investors and lenders tighten up on credit and capital buildup due to the global economic downturn, the International Finance Corp. said.
“Financing for the mining sector this year would be hard to come by, particularly for junior mining companies which are still in the exploratory or non-producing stage,” said Karsten Fuelster, IFC’s senior investment officer for Southeast Asia Business Development.
In a speech yesterday at the Mining Financing Forum hosted by the Chamber of Mines at the Hotel Intercontinental Manila, Fuelster, however, qualified that for projects with high quality assets, financing would still be forthcoming but maybe not in the traditional form of equity infusion and borrowings.
Instead, financing may likely be in the form of joint ventures, off-take agreements and even possible mergers and acquisitions, the IFC official said.
Fuelster cited countries such as China, India and Brazil which keen on offering off-take agreements for future resources which they would still need for their growing economies.
As such mining companies could secure funding from off-take agreements to fund their operations.
Mergers and acquisitions, Fuelster said, “will be the theme of 2009, ” pointing out that companies with good assets may choose to team up with other companies that have a good management team or those that may have the equipment and technical expertise.
In attracting much needed financing, though, Fuelster stressed, projects which have strong political support and good quality assets are more likely to get funding.
In fact, Fuelster warned, that “many will not survive” unless they are able to find funding.
Chamber of Mines president Philip Romualdez, on the other hand, said he is still optimistic on the prospects for the junior mining firms which, he pointed out, “are good at living on shoe string budgets.”
“They will manage to survive,” he said. –Marianne V. Go, Philippine Star
September 18 –
International Equal Pay Day
“Increase wages now,
more than other cost items.
For widespread, practical equality!”
Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the recommendations of the 2021 ILO Commission of Inquiry
against serious violations of protocols of
Forced Labour and Freedom of Association.
Accept the National Unity Government (NUG)
of Myanmar. Reject Military!
#WearMask #WashHands
#Report Corruption #SearchPosts #TakePicturesVideos
September –
5 Sept – Intl Day of Charity
7 Sept – Intl Day of Clean Air for Blue Skies
8 Sept – International Literacy Day
12 Sept – United Nations Day for South-South Cooperation
15 Sept – International Day of Democracy
16 Sept – International Day for the Preservation of the Ozone Layer
17 Sept – World Patient Safety Day
18 Sept – International Equal Pay Day
21 Sept – International Day of Peace
26 Sept – International Day for the Total Elimination of Nuclear Weapons
27 Sept – World Tourism Day
28 Sept – International Day for Universal Access to Information
29 Sept – International Day of Awareness of Food Loss and Waste
30 Sept – World Maritime Day
Monthly Observances:
Health, Safety and Sanitation Month
National Clean-up Month
Civil Service Month
National Peace Consciousness Month
Social Security Month
Rule of Law Month
National Teachers’ Month (Sept 5-Oct 4)
Weekly Observances:
Sept 17 – 23:
World Clean and Green Week
Week 2: Education Week
Week 4: Medicine Week
Last Week: National Family Week
Daily Observances:
Third Saturday:
International Coastal Clean-up Day
Third Monday: World Health Day
Last Friday: National Maritime Day
Sept 8: National Literacy Day
Sept 15: Philippine Medicine Day
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