Global financial services giant JP Morgan yesterday expressed interest in financing more mining projects in the Philippines.

"In the context of prospectivity for gold, copper and nickel, we see a bright future for the industry in this country," Ivor Orchard, JP Morgan Securities (Asia Pacific) Ltd. Managing Director for Energy and Natural Resources, told reporters in a news conference yesterday. "There has never been any doubt that the Philippines is among the most prospective [sic] country in the world."

Mr. Orchard said it is particularly looking at financing more copper projects. JP Morgan has been involved in the Xstrata-Indophil-Sagittarius Tampakan Copper-Gold venture.

Australia and London-listed Australian mining company BHP Billiton, the world's largest nickel producer, earlier said it will invest as much as $1.5 billion in a nickel project in the Philippines.

Canada-based nickel and cobalt refiner CVMR recently set up its Philippine office and formed local subsidiaries to establish mining claims in Palawan, Samar and other potential areas. The Canadian mining giant also plans to build a processing plant.

Sumitomo is currently in partnership with local Rio Tuba Nickel Mining Corp. for the operation of the Coral Bay Project, a High-Pressure Acid Leach nickel processing plant in southern Palawan, the first in the country. Currently producing 10,000 tons of nickel and 750 tons of cobalt concentrate per year, it is undertaking an expansion program that will double its capacity by 2008.

CITIC of China has also set up its local unit and is now involved in mining operations in Dinagat, Siargao Island. Jinchuan is currently negotiating with possible local partners for joint exploration and mine development.

Mr. Orchard said he thinks the legal and environmental framework is sufficient to attract more foreign investors. "What we just need are encouragements. There is clarity of the environmental framework, taxes to be paid and the legal system and it seems to us that the government is committed in supporting the mining industry," he said.

For his part, Environment Secretary Angelo T. Reyes said the interest of JP Morgan in the country is a manifestation of the attractiveness of the country's mining policy. "We have posted the sign 'open for business,' we have set the proper legal framework, the proper environment to attract investors to go to mining. Major foreign mining firms, investment bankers and banks recognize this, so they are here," he said in the news conference.

Mr. Reyes said mining could help provide employment, development, and additional income both to the country and host communities, but he insisted that only responsible and sustainable mining that will not prejudice the environment and the people are welcome in the country.