Philex jumps 6 percent on mine reopening
Shares in Philex Mining Corp., the Philippines' largest miner, jumped to their highest in nearly three weeks after the government allowed the company to resume operation of its shuttered Padcal gold-copper mine.
Philex rose as much as 6.3 percent in early trade, helping lift the main share index, which gained 0.7 percent.
The volume of Philex shares traded in the first 30 minutes of the session surged to more than 3 million, about half of the stock's 30-day average trading volume.
The Mines and Geosciences Bureau (MGB) on Tuesday allowed Philex to resume Padcal's operations but only for a period of four months to implement its mine rehabilitation plan. The company's main mine has been shut since August last year after strong typhoons caused tailings leaks.
The MGB's decision comes days after Philex paid the government P1 billion ($25 million) in fines for the tailings pond leaks.
Some of the mine wastes had flown to a river in northern Philippines, but government and Philex geologists have declared the leaks to be non-toxic.