Aluminum Corp. of China, commonly known as Chinalco, is exploring a substantial investment in the Philippines’ largest gold and copper mine, the Tampakan project, Bloomberg reported citing sources.
The move forms part of Chinalco’s strategy to strengthen its global presence.
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Sources privy to the development suggest that Chinalco is eyeing an approximately $2bn stake in Indophil Resources Phils., the owner of Sagittarius Mines, which is the developer of the Tampakan project.
Located on the southern island of Mindanao, the Tampakan project has faced significant delays since its discovery 30 years ago.
Previous stakeholder Glencore withdrew in 2015 amid escalating regulatory concerns, including an open-pit mining restriction in the Philippines that ended in 2021.
During its 17-year lifespan, the mine is projected to have an annual average yield of 375,000t of copper and 360,000oz of gold.
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By GlobalDataThe Sy family, one of the wealthiest in the Philippines, holds a majority interest in the Tampakan project.
Targeted for 2026, the project’s commencement would establish it as the country’s largest mine, according to Bloomberg.
Chinalco’s potential investment could bring much-needed financial stability and possibly secure a portion of the mine’s future output, according to one source.
However, discussions are still in progress, and there is no certainty that a deal will materialise.
The project may also attract interest from other companies within the industry.
Additionally, geopolitical tensions between China and the Philippines, particularly over territorial disputes in the South China Sea, could pose challenges to the deal.
Chinalco, the largest Chinese state-run aluminium producer, has a portfolio of mining investments spanning from Guinea to Peru.
This potential investment aligns with the actions of other Chinese companies such as Zijin Mining Group, which have been seeking global assets, especially in essential industrial metals, to meet growing demand.
This trend reflects the broader industry’s race to expand copper production in anticipation of increased demand for the metal, which is crucial for energy transition.
