TVI Resource Development Philippines - Mining Outlook - issue 3

SPEARHEADING THE FILIPINO RESOURCES SECTOR

TVI RESOURCE DEVELOPMENT PHILIPPINES INC. ASIA PACIFIC

E X PA N D I N G A DIVERSE PORTFOLIO With an impressive repertoire of projects, TVI Resource Development Philippines Inc. puts the country’s mining sector on the map. Chairman, Clifford M. James, tells us more Writer: Lucy Pilgrim | Project Manager: Eddie Clinton

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n 2022, the Marcos Government in the Philippines announced plans to greatly develop the country’s mining industry, as part of a nationwide initiative to grow the economy in the wake of the COVID-19 pandemic.

Subsequently, TVI Resource Development Philippines Inc. (TVIRD) is taking advantage of the current revitalisation, as the national mining sector is placed under a new spotlight.

As no stranger to great success, the company has been a trailblazer in the Philippines’ mining industry on numerous occasions. Namely, TVIRD was the first foreign invested Filipino entity to be licensed under the Mining Act of 1995. Similarly, it was the earliest company to reach production stage on its maiden project, conclude 2 | Mining Outlook Issue 3

operations, and commence final rehabilitation under the same law, as the Canatuan mine completed its initial gold and silver production in 2007 and subsequent copper and zinc processing operations in 2014.

AN EXPANSIVE PORTFOLIO Following the success of its initial undertaking, the company has evolved in leaps and bounds, bringing three mining projects to operations in a period of just 10 years. And so goes the origin story of TVIRD. After the exploration and development in Canatuan, TVIRD diligently commenced its gold and silver operations in the Province of Zamboanga del Norte on the Philippine Island of Mindanao in

2004. Subsequently, copper and zinc processing were carried out on the same project four years later, which elevated TVIRD to become a leading mining entity.

Succeeding the conclusion of the Canatuan project in 2014, TVIRD initiated the Agata Nickel Laterite Project (Agata) on the Eastern side of Mindanao in the Province of Agusan del Norte, thus capping its first full decade of operations.

“This was the company’s first foray into nickel, which established TVIRD as a steady supplier of raw material for the world’s largest stainless steel producers,” opens TVIRD’s Chairman, Clifford M. James. “Agata has also contributed significantly to the Philippines’ leadership in raw

BIRD’S EYE VIEW. TVIRD’s field office and processing plant sit at the crest of Balabag Hill, which provides a good vantage point for monitoring its mining operations and progressive rehabilitation as well as a proper slope for directing effluents to its tailings impoundment and storage facility down below.

nickel exports in the past decade,” he continues proudly.

These exports come in the form of nickel direct shipping ore (DSO), which are sourced from Agata in two varieties. The first is limonite, which holds a lower nickel content and approximately 46 to 49 percent iron.

This is supplied as raw material to lowgrade nickel pig iron (NPI) factories and used as a blending material by carbon steel plants. Agata DSO also exists in the form of saprolite, which

Operations personnel at TVIRD’s Balabag Project pour molten material from a crucible to form gold-silver dore bars made of 95 percent silver and five percent gold. The company conducts regular shipments via helicopter from its mine site in Zamboanga del Sur to Cebu where the cargo is then exported to direct markets in Asia, Oceania and Europe.

contains 1.2-1.5 percent nickel and is supplied to medium-grade NPI factories. Consequently, mining for nickel contributes to the production of stainless steel as a highly sought after material.

The company’s fourth project oversaw two operations the Balabag Gold and Silver Mine, which currently produces doré bars that contain on average five percent gold and 95 percent silver. These are then exported to direct markets in the form of refineries, spanning Asia, Oceania, and Europe.

Moreover, TVIRD has recently shown its acquisitional strength, as the company obtained the Siana Gold Project (Siana) from Red 5 Limited in Australia. Although the project’s initial Mining Outlook Issue 3 | 3

TVI RESOURCE DEVELOPMENT PHILIPPINES INC. ASIA PACIFIC

At the heart of Siana is Its state of the art Outotec mill facility, which was commissioned at a capital cost of $54 million and can process 1.1 million tonnes of ore per year. This makes the gold mine a technology leader and presents the opportunity of becoming a regional processing hub in the future.

TVIRD’S UPCOMING PROJECTS: The Pan de Azucar (PdA) pyrite project in Iloilo, which was acquired some time ago, is being prepared for expanded exploration and will soon be a DSO operation, producing high-grade, clean pyrite DSO, and eventually concentrates.

Additionally, the Mabilo CopperGold Project in the Bicol Region, which was acquired early last year, will soon be another operating mine. It has a shallow, flat-lying high-grade oxide deposit that can be accessed through open pit mining at a relatively low cost.

This part of the deposit has strong overall economics with a nominal start-up cost and a high internal rate of return. Consequently, the project can potentially supply the raw material for producing sulfuric acid which is needed in nickel processing for electric vehicle (EV) battery applications.

With this portfolio of mines and projects, TVIRD has set its course for the future towards growth and rapid expansion.

production of gold doré – following its soft launch earlier this year – is being sent to the Central Bank of the Philippines, it is targeted to hit commercial operations by early next year, whereby it will be exporting primarily to direct markets in the region.

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The expansive project is expected to produce approximately 140,000 ounces (oz) of gold across its threeyear open pit stage. Subsequently, an even higher volume is expected for the succeeding nine-year underground stage.

The company eagerly anticipates Siana’s forthcoming commercial operations. “Siana will be a game-changer in the Surigao mining region. Its state of the art Outotec mill facility was commissioned at a capital cost of $54 million and can process 1.1 million tonnes of ore per year. This makes Siana a technology leader and presents the opportunity of becoming a processing hub in the future,” James tells us.

Siana’s six Carbon in Leach (CIL) tanks, estimated at five storeys high, facilitate the adsorption of gold onto activated carbon particles. Each tank has a capacity of 1,400 cubic metres and operates continuously alongside the company’s Outotec mill facility.

MAINTAINING A BALANCE As Chairman, James firmly believes that “gold is never boring, to say the least.” This is most aptly demonstrated by the commissioning of the Balabag Gold mine in 2021, at the height of the COVID-19 pandemic when gold prices were on the lower side. This year, however, the company has experienced prices upward of $2,000 per troy oz, a great step away from the 2021 prices.

TVI RESOURCE DEVELOPMENT PHILIPPINES INC. ASIA PACIFIC

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TVI RESOURCE DEVELOPMENT PHILIPPINES INC. ASIA PACIFIC

MINING OUTLOOK: COULD YOU TELL US MORE ABOUT ANY KEY INVESTMENTS OR ACQUISITIONS THAT YOU FEEL ARE IMPORTANT TO THE COMPANY? Clifford M. James, Chairman: “We understand that TVIRD’s precious metals are commodities that will forever have trading value, but we are also cognizant of the fact that nickel and copper will continue to be vital to the world’s energy transition.

Evidently, TVIRD’s operations weather spikes and dips that inversely correlate to the movement of the US dollar and global market, but this is a challenge that the company has become an expert at managing.

“Over the years, TVIRD has learned to maintain the critical balance of running efficient operations on the ground whilst navigating the movements of major global commodities like gold,” affirms James.

To add to this, TVIRD consistently plans for the diversification of the metals it produces.

“Copper has always been a significant component in our growth story and will be for some time. Nickel, with its associated iron, has also been a major section of our growth. Thus, both copper and nickel have been good commodity balances for the gold and silver we have produced,” he comments.

TVIRD is additionally proud to say that its founding Canatuan site is five times ‘greener’ in terms of forest density than before it initiated the project. For example, more than 400,000 trees were planted during 6 | Mining Outlook Issue 3

Gold dore bars from TVIRD’s Siana mine contain over 10 times more gold that of its Balabag counterpart. On a good run, Siana’s dore may reach upward of 60 percent gold. As Siana is currently gearing-up for commercial operations in 2024, it is also selling its initial production of gold dore to the Philippine Central Bank.

“As the Agata nickel/iron mine is nearing completion, TVIRD is exploring other nickel prospects in order to play an active role in the global shift to EVs. It is also set to develop its copper asset, hopefully in time for the pending boom for this commodity.

“The world is currently in a copper

its operations while another 140,000 cash crop plants are presently being planted as part of its final rehabilitation. Most significantly, due to TVIRD’s environmental initiative, the potential for carbon sequestration after rehabilitation will be nearly 10 times greater than pre-mining conditions.

“Environmental responsibility runs deep in the TVIRD Group. This level of commitment is underscored by the company’s progressive rehabilitation activities during the operation stage, which are aligned to the final rehabilitation plan, final land use, and livelihood programme for the communities in preparation for the end of mine life.”

This is highlighted by the three Presidential Mineral Industry Environment Awards presented to TVIRD’s Agata project, as well as an ASEAN Mineral Award, marking

shortage, despite the strong production of countries like Chile and Peru. There are a number of Philippine projects poised to mine and develop copper plants in the near future and TVIRD will definitely be a part of this.

“We are likewise excited about the forthcoming operations of our Pan de Azucar pyrite project and its potential for EV battery applications.”

the company’s first international recognition.

A HELPING HAND Over the years, TVIRD has provided invaluable support to the communities in which its mines are

A panoramic view of the main copper-zinc mine pit in TVIRD’s Canatuan Project at the start of its final rehabilitation. Canatuan will be the first mine to conclude its final rehabilitation under the Philippine Mining Law, leaving the area five times “greener” in terms of forest density – compared to before TVIRD operated in the area.

situated. In the case of Canatuan, TVIRD is honoured to have supported 10 schools with a capacity of 4,000 students at the height of the mine’s operation. Similarly, the company maintained a road network of 140 kilometres (km) that linked together many nearby municipalities with the rest of the Zamboanga Peninsula, efficiently mobilising people and much-needed goods.

Visitors in Canatuan are always in awe of the company’s tailings storage and impoundment facility. At 34 hectares wide and 120 metres deep, the TSF – which was used during the company’s copper and zinc mining operations – is a structural beauty in itself. Surrounded by lush and cool Mt. Canatuan, it looks like a lake with clear water, and the presence of the Philippine Wild Ducks makes the man-made lake even more interesting.

“You could say that we have been like a surrogate government agency that helps augment social services and infrastructure for the local communities,” James explains.

The Agata project likewise has a strong influence on local community programmes, most notably the Community Royalty Development Plan – a common roadmap for progress that it shares with the Indigenous Mamanwa Tribe. Its main rehabilitation focus is geared toward transforming the mine into an ecotourism and agroforestry hub for future generations.

“We provide a sustainable livelihood for the communities that will effectively transition the local economy from mining back to agriculture,” he states.

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Responsive education is one of TVIRD’s main pillars of development that is directly aligned with the UN’s Millennium Development Goals.

In the case of Canatuan, TVIRD supported 10 schools with close to 4,000 students at the height of its operations.

TVIRD operated a lying-in clinic in Canatuan that served communities in the immediate area. On a yearly basis, the clinic would receive 14,000 consultations and admissions, most notably from its indigenous hosts, the Subanon Tribe.

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TVIRD’s Agata Nickel Laterite Project is now in its ninth year of operations and has exported 380 shipments to the company’s direct markets in Asia to date. Each shipment consists of an average of 53,000 tonnes of cargo that are supplied to the world’s largest nickel pig iron and stainless steel plants.

FINDING SANCTUARY. Philippine ducks (Anas Luzonica), though not classified as “endangered”, are a vulnerable indigenous species that found sanctuary in TVIRD’s tailings dam. At its peak, close to 20 percent of the total population of these waterbirds may have been in Canatuan.

TVI RESOURCE DEVELOPMENT PHILIPPINES INC. ASIA PACIFIC

Agata’s Community Royalty Development Plan is the company’s common roadmap for progress that it shares with its host indigenous Mamanwa Tribe. Its final rehabilitation is also geared towards transforming the mine into an Ecotourism and Agroforestry hub for the future, thus providing a sustainable livelihood for the communities that will effectively transition the local economy from mining back to agriculture.

Agata’s ridge to reef approach harmonises the interconnectivity of its entire ecosystem. From upland reforestation and rehabilitation, to safeguarding its adopted marine sanctuary on the shores of Tubay, the company takes pride in the community’s sense ownership in maintaining a sustainable natural environment. The communities have always been its first line of defense.

The Agata Causeway and loading operations run like clockwork 24/7.

The company conducts over 2,600 truck trips for every shipload of nickel ore that are exported almost weekly for the past nine years. In a good month, Agata exports around seven shiploads of nickel ore.

POSITIVE OUTLOOK TVIRD has much to look forward to as it forecasts substantial growth in the upcoming year. Whilst the highly successful Agata mine is on its final leg, its nickel operations remain as active as ever. Moreover, its two operating gold mines in Zambaonga and Surigao are quickly progressing and gearing-up for higher production rates. This rests on a consistent undercurrent of further exploration potential in the immediate periphery

of both the Balabag and Siana mine sites.

There will also be greater advancements in the Pan de Acuzar and Mabilo copper-gold projects, as its pyrite asset will be essential to the world of steel and nickel-metal hybrid (Ni) battery value chains while copper will be essential to the global energy transition.

Ultimately, through its vast multitude of projects, TVIRD is going above and beyond in becoming an

industry leader for Philippine mining, as its tenacity for acquisition and production growth is unmatched by competitors in the sector.

TVI RESOURCE DEVELOPMENT PHILIPPINES INC. Tel: +63 2 7728-8491 inquiries@tvird.com.ph www.tvird.com.ph Mining Outlook Issue 3 | 9

SPEARHEADING THE FILIPINO RESOURCES SECTOR

TVI RESOURCE DEVELOPMENT PHILIPPINES INC. 22F BDO Equitable Bank Tower 8751 Paseo de Roxas, Salcedo Village, Makati 1226 Tel: +63 2 7728-8491 inquiries@tvird.com.ph www.tvird.com.ph

PRODUCED BY MINING OUTLOOK MAGAZINE