"We will continue to promote mining consistent with that of the Malacanang pronouncement that there is no ban on mining activities in the country," said Trade and Industry Undersecretary Elmer C. Hernandez, also BoI managing head.

In saying this, Hernandez also said that mining interest in the country by foreign and local investors still remain very strong despite the negative reports generated from the Rapu Rapu mine incident.

"The interest in mining is still very much alive," he said.

Hernandez cited the eagerness of some Chinese firms to invest in existing mining concessions because of the shortage of nickel, iron and ore globally that even the supply of scrap metal is becoming scarce.

For instance, Hernandez said the two Chinese partners of Philnico Industrial Corp. (Philnico) — Jin Chuan Shanghai Non-Ferrous Metals Corp., China’s largest mine and refinery producing nickel, copper and platinum metals, and Shanghai Bao Steel Group Corp., one of the world’s largest steel companies, have remained committed to operate and rehabilitate the idled nickel processing plant of Philnico.

Jin Chuan, China’s largest nickel mine and refinery producer, has even expressed willingness to pay the $ 300 million indebtedness of the Philnico over a period of time.

The Philnico plant is subject to a rehabilitation program to adopt a new technology of high pressure acid leach (HPAL) which entails an investment of $ 1 billion.

Philnico is a nickel processing plant in Nonoc island in Surigao City. It started operation in 1975 but ceased operation in 1986 due to technical problems.

The project was an Asset Privatization Trustheld asset before the signing of the purchase agreement between APT and Philnico. Philnico is now chaired by Evaristo Narvaez.

APT has since then evolved into a new name as Privatization and Management Office.

The rehabilitation of Philnico was among the $ 1.5 billion worth of projects signed during the visit of Chinese President Hu Jintao in the country.

Based on the signed MoU, the Philnico would be redeveloped into a large-scale nickel and cobalt mining and processing.

Once fully rehabilitated, the project is expected to potentially export around $ 400 million, provide direct and indirect employment to 5,000 individuals.

Aside from the Chinese, Hernandez said the Japanese are also pursuing mining interests in the country.

Hernandez said the government is now pursuing a more focused investment program by promoting a mining project on a per project basis.

This means that only those that have clean papers and ready to accept foreign investors would be promoted.

There are a total of 23 mining projects that have been identified as ready for development and 36 on exploration stages.