First Pacific still keen on other mining firms

Written by Miguel R. Camus / Reporter

Monday, 10 May 2010 18:32

HONG KONG-BASED conglomerate First Pacific Co. Ltd. continues to discuss with the group of Felipe Yap for its various mining assets after gaining effective control of the country’s top gold and copper producer Philex Mining Corp. early this year. In an interview last week, First Pacific chief executive officer Manuel V. Pangilian said talks are continuing with Yap who controls listed firms Manila Mining Corp.  and Lepanto Consolidated Mining Co. Pangilinan said the group also remains  interested in Lepanto subsidiary Far Southeast Gold Resources, Inc. which has mining assets in Benguet province. This, even as Lepanto presently courts  two “serious” foreign operators for Far Southeast Gold. “We know [Lepanto] is talking to other groups. We are still interested with Far Southeast and Manila Mining,” noted Pangilinan. First Pacific has already completed due diligence on Lepanto although a deal has yet to materialize.   “We are value investors and we would like to invest at the right price. Maybe that’s what is taking some time,” Pangilinan added. Last month, Lepanto president and chief operating officer Bryan Yap said two foreign operators, which are major listed firms abroad, are mulling an investment in Far Southeast Gold. Yap said Lepanto could make an announcement by the first half of the year, while adding the firm would like to “retain at least 40 percent in Far Southeast.” The said project is still in the pre-operating stage and is considered a top-priority mining project by the government. Pangilinan said earlier First Pacific group also wants to create economies of scale with Manila Mining and Lepanto mines with its own assets in Philex. These include Philex’s gold mine prospects in Bayugo and Boyongan in Northern Mindanao, which are expected to replace the company’s premier Padcal mine in Benguet, which is seen to exhaust gold, copper and silver reserves in seven years. First Pacific and its local subsidiaries have been snapping up Philex shares over the past two years bringing its present ownership to about 46.6 percent.