Aluminum Corporation of China Limited (SEHK:2600) is considering investing in what is set to be the Philippines? largest gold and copper mine as part of its efforts to boost its global footprint, according to people familiar with the matter. The state-run Chinese company known as Chinalco may acquire a stake worth around $2 billion in Indophil Resources Phils.
Inc., which owns Sagittarius Mines Inc., the people said, asking not to be identified because discussions are private. Sagittarius Mines is the developer of the Tampakan project in the southern island of Mindanao. The Sy family - among the Philippines?
richest clans - is the majority shareholder in the Tampakan project, the people said. Once production begins, a target currently set for 2026, it will be the largest mine in the Philippines. An investment from Chinalco would help provide financial stability to the project and it would possibly purchase some of the mine?s output, one of the people said.
Considerations are ongoing and the companies may still decide against pursuing a deal, the people said, adding that the project could also draw interest from other industry players. Geopolitical concerns represent another hurdle given recent tensions between China and the Philippines over territorial claims in the South China Sea. Chinalco, China?s largest state-owned aluminum producer, has investments in various mines from Guinea to Peru to secure raw material for the world?s biggest commodity consuming nation.
Other Chinese companies including Zijin Mining Group Co. have been searching for assets globally for the past decade or so, eyeing core industrial metals including copper, a campaign that has occasionally triggered local resistance. A spokesperson for Sagittarius Mines declined to comment.
A representative for Chinalco and officials at Indophil didn?t immediately respond to phone calls and emails seeking comment. When asked about a potential deal, a representative for the Sy family said ?it is all rumors".