RP reduces mining investment target to $600 million

MANILA, Philippines – The Philippines has slashed its investment target for the mining sector this year to just over $600 million from an earlier goal of up to $1 billion with slow initial inflows, a senior government official said on Tuesday.

Investments reached only $11.16 million in the first three months of 2009, less than two percent of a revised full-year target of $628.88 million, government data obtained by Reuters showed.

A senior official, who asked not to be named as he was not authorised to speak to the media, confirmed that this year’s investment goal had been cut from the previous $1 billion.

In January, Horacio Ramos, director of the mines and geosciences bureau, said mining investments were expected to hit between $800 million and $1 billion this year.

Many mining companies are on a wait-and-see stance with the global demand outlook for metals still unclear.

But Ramos said on Tuesday he remained bullish about the outlook for investments in Philippine mining with the recent recovery in metal prices, including gold and copper.

“As long as the policy environment remains supportive, investments will continue,” he told reporters.

Actual investments into the Southeast Asian nation’s mining sector reached $577.25 million in 2008, also short of the government’s target of up to $1 billion for that year and lower than the previous year’s $679.65 million.–Philippine Star