Fueling #Philippines #Mining Investments – A Senior Banker’s View
During Day 1 of Asia Mining Congress 2012’s Philippines session saw by Mr. Jose Isidro Camacho, Managing Director and Vice Chairman, Credit Suisse Asia Pacific speaking on the Philippines mining industry, touching base on the macroeconomic outlook, the mining sector overview and recent investments in the Philippines mining sector.
Mr. Camacho first covered the macroeconomic outlook of Philippines mentioning that the Philippines have been charting positive GDP growth rates in recent years. Similarly, Mr. Camacho commented on the macroeconomic stability of Philippines saying that the Philippines economy enjoys very little volatility, being extremely stable in times of slow economic growth. However, during good economic times, the Philippines economy is unlikely to post large gains but rather consistent and slightly above average growth.
With that being said, a few local old and emerging conglomerates have started to invest in small and large sale projects that have spilled into the mining sector. An example of such is San Miguel providing the momentum for further development of the economy.
However, Mr. Camacho went on to mention that despite the Philippines being one of the richest countries in mineral resources with 9 mil ha in material mining land, the largest in Southeast Asia, the industry is still relatively small despite the government trying to develop the mining industry since 2004.
In conclusion, Mr. Camacho highlighted there has been a US$3.8bn investment in the mining industry and within the next 3 years, this amount is forecasted to quadruple. With the macroeconomic environment in Philippines being very stable, investing in the mining industry will definitely bring about profits in the long run. However, the Philippines have just been back in business and if the government and industry can work quickly in terms of mining policies, the industry is definitely emerging.
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