Philex Mining Corp. plans to immediately double the ore production of its Silangan project once it begins operations next year, capitalizing on the upward trajectory of gold prices.

Philex Chairman Manuel V. Pangilinan announced that the Silangan gold and copper mine will commence commercial operations in the first quarter of 2026, with its first metal output expected by the end of March.

The mine, located in Surigao del Norte, will produce gold bars and copper cathodes. As first phase of the project, mining activities will focus on the mineral-rich Boyongan ore body.

Under its mining plan, ore production at Silangan would be set at 2,000 tons annually for five years.

In the sixth year, the mining and processing rate will increase to 4,000 tons per day or around 1.3 million tons per year.

Pangilinan said the company is wasting no time in ramping up capacity from 2,000 to 4,000 tons, with the necessary investment totaling $160 million.

“I told Philex in our board meeting, I think we should move fast to double production,” the business titan said in a chance interview.

“I think the country needs that kind of production and exports to augment economic growth,” he added.

Instead of tapping an outsider investor, Philex plans to borrow $100 million to initiate the capacity expansion.

The remaining $60 million is intended to be raised through a rights issue, an offering that allows existing shareholders to purchase additional shares.

Major shareholders First Pacific Co. Ltd. and the Social Security System (SSS)—together holding about 65 percent of the Silangan project through Philex’s subsidiary Silangan Mining Mindanao Co. Inc.—are expected to support the fundraising.

Pangilinan said this would leave roughly $20 million to be raised from the public.

“I think we can get it done. That's priority because the country needs more exports,” he said.

Pangilinan added that interest in the project would be strong, especially due to higher prices of gold.

In the first nine months of the year, Philex reported that realized gold prices averaged $2,874 per ounce, surpassing $2,115 per ounce in the same period in 2024.

Realized copper prices, however, are lower in the reference period at an average of $4.23 per pound, down from $4.52 per pound last year.

Once the $160-million funding is secured, Pangilinan expects the Silangan mine to expand from 2,000 tons per day to 4,000 tons per day in just under 18 months, compared to the original plan set for the sixth year of operations.

As outlined in the project briefer, the plan is to expand production to 8,000 tons per day by the ninth year.

The maximum capacity will be 12,000 tons per day or four million tons per year, scheduled for the 12th year of operations.

The ore body has a mineable reserve of 81 million metric tons (MT), expected to be mined for 22 years.

Last month, Philex President and Chief Executive Officer (CEO) Eulalio Austin Jr. indicated that the company would tap investors to fast-track the expansion to full capacity.

Austin said foreign and local investors have already signaled interest, but no deal has been reached so far.

Under this potential deal, Philex would maintain majority control in the mine, with future investors assuming a minority stake.

First Pacific, a Hong Kong-based investment holding firm also led by Pangilinan, earlier cited Philex’s Silangan project as a major revenue driver due to the surge in gold prices.