Australia's WMC plans expansion drive
Australia's WMC plans expansion drive
MANILA (Reuter): Western Mining Corp. (WMC) of Australia will launch a multi-billion dollar expansion drive targeting the Philippines, Indonesia and Central Asia as prime development areas in Asia, a senior official said yesterday.
Christopher Leptos, WMC's general manager for corporate development, told Reuters in an interview that its tie-up with the giant Alcoa of the United States "is a major gateway for offshore expansion."
"With Alcoa there are opportunities being looked at from South America through to India and right around the world," he said, adding that funds for expansion would reach several billion dollars in the coming years.
"WMC Limited has now embarked on a global expansion strategy. Currently, we're looking at about 25 percent of our assets offshore and I wouldn't be surprised to see that number significantly higher," he added.
WMC owns 40 percent of Alcoa Worldwide Alumina and Chemicals (AWA), which was set up last February in a joint venture with Alcoa controlling the rest of the firm. AWA is now the world's largest producer of alumina and bauxite.
While 60 percent of the exploration budget of Western Mining used to be devoted last year to looking for prospects in Australia, WMC has decided to shift emphasis.
Leptos said 60 percent of the exploration budget would go into exploring for sites outside the country. Exact figures were not immediately available.
In Asia the creation of a free trade area in the Association of Southeast Asian Nations (ASEAN) would open up opportunities for WMC in the region. ASEAN links Indonesia, the Philippines, Singapore, Malaysia, Thailand, Vietnam and Brunei.
Indonesia
"Indonesia is high up on the list of prospects. I have to come back to the Philippines as top of the list in this part of the world," he said, adding there were also "significant" exploration opportunities in ex-Soviet Central Asia.
"In the last four-five years, the Philippines has gone from being the basket case of Asia to being one of the predominant areas of mineral opportunities," he explained.
Robust economic growth, approval of a new mining law allowing investors to remit 100 percent of their earnings, reduction of excise taxes to 2.0 percent from 5.0 percent, and political stability, has sparked renewed interest in mining ventures in the Philippines.
Leptos declined to identify specific areas in Central Asia which would be ideal for development. But he said countries with a mining history would be premier targets.
Western is currently exploring a site on Mindanao island in the Philippines. But full evaluation of the area and possible development may be up to five years away, mining officials said.
The Australian company is exploring up to four other areas around the Philippines for possible copper and gold prospects.
"The opportunities for WMC are largely overseas. WMC has for many years been a major mining company in Western Australia, (and) was the major mining company in Southern Australia. The time has now come for some global expansion," Leptos said.