Xstrata wants ‘dialogue’

Manila Standard Today

Xstrata Plc, the biggest exporter of coal for power stations, said it is seeking “dialogue” in the Philippines over plans by the governor of South Cotabato to ban open-pit mining as early as the end of March.

Xstrata and Indophil Resources NL plan to use the method for their $5.2-billion Tampakan copper and gold project in the province. An ordinance banning open-pit mining in the region was signed Thursday, Governor Arthur Pingol said in an interview.

“The Tampakan project is not immediately impacted by the South Cotabato Environment Code, which includes a ban on open-pit mining methods,” Xstrata said in an e-mailed response to questions. “However, we continue to monitor this issue closely. We are hopeful that through continued dialogue and engagement with all parties involved there will be a timely resolution.”

Tampakan is the largest untapped gold and copper deposit in southeast Asia and the biggest single foreign investment in the country, according to Xstrata and Indophil. Xstrata has been in talks with provincial officials on the ban, which was signed by then Governor Daisy Fuentes in June, just before her term ended.

The mine is estimated to produce an average 340,000 metric tons of copper and 350,000 ounces of gold a year for two decades from 2016. Sagittarius Mines Inc., the companies’ joint venture running the project, says its studies show open-pit mining is the safest and only economic method, given the region’s geology.

Some members of the South Cotabato provincial board, meanwhile, will appeal the ordinance and seek the deletion of a clause that prohibits open-pit mining in the province.

“The ban is still there. Concerned members of the board will file the motion,” Sagittarius Mines manager for corporate communications John Arnaldo said in response to a text message query.

“We continue to monitor this issue closely and engage with all stakeholders regarding the proposed development of the project,” he said.

Arnaldo said that the company was encouraged by the special hearings conducted recently by the provincial board to consider a review of the environment code in response to petitions from host communities, local government units and other key stakeholders.Bloomberg, Othel V. Campos