Listed mining firm OceanaGold (Philippines) Inc. (OGP) is keen on acquiring smaller mining projects in the country, banking on the investment appeal of the Philippines’ mineral-rich resources and a more welcoming regulatory environment.

OGP Chairman of the Board Brian Martin said the company is considering bolt-on acquisitions, or the purchase of a smaller company, to further bolster its gold and copper production.

“For the right opportunity, would we consider bolting on a smaller project or an exploration-stage asset? Absolutely,” he said in a virtual investor conference last week.

Martin said this plan would likely be a long-term target given the limited number of production-ready mining assets in the country.

In the short term, OGP is intent on finding another massive ore body, similar to its Didipio mine, within its permit area of around 7,000 hectares (ha).

The mining firm is spending $5 million this year for exploration activities across its financial or technical assistance agreement (FTAA) area that surrounds the gold and copper mine.

It currently has three mining prospects in the area that could soon operate as an offset extension to Didipio mine, which straddles the provinces of Nueva Vizcaya and Quirino.

Martin said there is strong potential that another ore body is nearby, as mineral deposits usually form in clusters.

“We’re keeping our ears open and eyes open to look at new opportunities. You know, if we feel like they create value for our shareholders, then absolutely, we would pursue something,” he said.

Last year, OGP joined the Philippine Stock Exchange’s (PSE) roster of listed companies, becoming the first miner with an FTAA to do so.

Under the FTAA, the government and OGP share the net revenue from Didipio mine on a 60-40 basis, with the former receiving 60 percent, less the taxes and fees already paid.

This arrangement is based on the principle that the government should receive a fair economic return for the country’s natural resources, while OGP is entitled to a reasonable return on its investments.

Based on OGP’s latest financial report, the government’s share in revenues by the end of the third quarter reached $97.9 million, up 64 percent from $59.6 million in the same period last year.

Martin expects higher remittances next year, especially as the upward trend in gold prices shows no signs of slowing. Gold prices in the first nine months averaged around $3,234 per ounce compared to $2,366 per ounce last year.

“It really shows that this FTAA structure works,” he said.

Martin added that strong government support for the mining industry is keeping investors interested in the country, reflected in its high ranking in an annual survey of mining jurisdictions.

The Philippines ranked 16th out of 82 jurisdictions in terms of investment attractiveness under Fraser Institute’s 2024 Annual Survey of Mining Companies.

“The Philippines is an incredibly mineral-rich country and has a tremendous opportunity to continue developing mineral deposits. So we think this ranking is very much a testament to some of the things you're seeing in the country in support of the mining industry,” said Martin.

“We definitely see a lot of foreign capital coming in now to look for opportunities in the Philippines,” he added.

The government recently introduced measures to ease the permitting process for mining applications and foster a more equitable fiscal framework for large-scale mining operations, among others.