MANILA, Philippines - The estimated value of minerals produced by Philex Mining Corp. rose 20% during the first 8 months of 2010.

Based on the firm’s disclosures to the Philippine Stock Exchange, production from January to August amounted to P7.42 billion compared to P6.2 billion in the same period last year, owing to increased tonnage, better ore grades and higher metal prices.

Philex produced 6.01 million dry metric tons, up 11% from last year's 5.43 million DMT.

In August alone, the company's production was valued at P1.3 billion, a 63% jump from P796 million in the same month of 2009.

Philex President Ernesto Villaluna Jr. said the Padcal mine delivered 847,751 DMT of ore last month, resulting in 5,936 DMT of concentrates.

The concentrates contained 71.94 grams of gold per DMT, 25.65% copper, and 71.34 grams of silver per DMT. This yielded 13,738 ounces of gold, 3.36 pounds of copper, and 13,615 ounces of silver.

Provisional metal prices were at $1,240 per ounce of gold, $3.34 per pound of copper, and $18.87 per ounce of silver. At the exchange rate of P45.179 to $1.00, Philex produced in August P769 million worth of gold, P506 million copper, and P12 million silver.

“We are confident that the second half of the year will be boosted by higher metal prices and better-quality ore which we are already mining now, as well as by the continuing greater contribution from our energy operations,” said Philex chairman Manuel Pangilinan.

For the medium term, Philex is counting on strong prospects of its Silangan project, which Pangilinan said was driving full steam ahead.

“We aim to start the development phase of this mine by next year. Silangan will play a key role in building a bright future for Philex.”

The Silangan copper-gold mine in Surigao del Sur Province is estimated to hold much higher resources than Philex’s Padcal mine, which has been in operation for half a century.

As part of the company’s long-term growth strategy, Villaluna said Philex is constantly looking at all investment opportunities and projects that it may be able to enter into.

He said these include the $5.2-billion Tampakan mining project, although Philex is also considering other mining projects in the Philippines and abroad.