Wednesday, June 15, 2011

Tampakan investors stick to mining schedule despite ban

Business World Online
Posted on June 15, 2011 11:04:49 AM | BREAKING NEWS

SYDNEY -- Investors in the $5.9-billion Tampakan copper-gold project will keep their schedule of starting mine development next year and commercial operations by 2016 despite delays caused by a local ordinance banning open-pit mining.
Andrew Pickford, general manager for the Tampakan project of main shareholder Xstrata Copper, said at the sidelines of the Philippines-Australia Business Council meeting Tuesday night his firm expects the Aquino administration to resolve the issue ahead of a decision by the mining consortium on the project next year.

At the forum in Westin Sydney hotel, hosted by the business council and Xstrata Copper, Trade Secretary Gregory L. Domingo said President Benigno S. Aquino III had vowed to directly tackle the Tampakan dispute.

Last year, South Cotabato passed a new environmental code banning open-pit mining. On Tuesday, Sagitarrius Mines, Inc. (SMI) the consortium behind the Tampakan copper-gold project, began forwarding to local officials an environment 
impact study said to be the key to overturning the mining ban covering the site.

Mr. Pickford said consultations would take 3-6 months, after which SMI would lodge an application to get an environmental compliance certificate. SMI hopes to get a declaration of mining feasibility from the national government after that, he said.

The Tampakan issue will be raised by businessmen in a dialogue with Australian and Philippines officials as part of a ministerial meeting in Canberra today, he added.

Indophil Resources NL, which holds a 37.5% stake in the mine, said it would stay put in the meantime, after San Miguel Corp. decided to let go of an exclusive period to launch a takeover bid.

"We have raised funds up to 2012. Indophil is there to maintain its position in the project," said Gavan Collery, vice-president at Indophil Resources.

The $5.9-billion Tampakan copper-gold project, said to cover the largest undeveloped copper- gold deposit in Southeast Asia, has been described as having the potential to be the largest mine in the Philippines and the fifth-largest copper mine in the world by 2016.

It is likewise projected to add 1% to gross domestic product yearly after 2016. --
Felipe F. Salvosa II

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