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MONDAY, 16 MAY 2011 19:56 MANUEL T. CAYON / REPORTER
DAVAO CITY—Sagittarius Mines Inc. (SMI) has set its eyes on a multibillion-dollar massive construction phase of its power plant, port facilities and filter plant in preparation for its target operation in 2016, which it claimed would be the Philippines’ biggest direct-foreign investment so far.
John Arnaldo, SMI corporate communications manager, told a regular Monday press conference at the SM City here that the company is working on three environment compliance certificates for its coal-fired power plant to energize its operation, its port facility and filter plant, and the transmission network to cover its area that spans the common boundary areas of four provinces in the south-central part of Mindanao.
SMI has allocated $5.9 billion for its entire operation, surpassing the record set by Pilipinas Shell in its Malampaya gas field in Luzon, he said.
The single biggest allocation would go to the construction of a 500-megawatt (MW) power plant fed by coal and would be established in the Davao del Sur town of Malalag, which SMI would also develop into its transshipment port.
The power plant would eat $900 million, and its capacity would be 100 MW more than the estimated power requirement of the mining operation that would cover villages in Tampakan in South Cotabato, Columbio in Sultan Kudarat, Kiblawan in Davao del Sur and Malungon in Sarangani.
The filter plant for its coal-fired plant would be also put up in Malalag, where SMI would also construct a jetty to allow cargo ships to dock and unload the copper and gold ores and products from the mines.
The transmission lines would emanate from its Malalag power plant to the rest of the facilities and work stations inside its concession of about 9,600 hectares.
Arnaldo said it has not been discussed yet on what the company or the government would propose on its excess generation capacity.
“If we have to proceed according to plan, the construction should start by late 2012, to allow us at least four years to construct the power plant, which is the normal construction time frame for generation plants,” he said.
“That is why this year is a critical year for the company to accomplish the government requirement of complying with the ECC,” he said. “That is why we need the endorsement of the four provinces, the 11 barangays and the 10 tribal groups. We need the support of all the stakeholders and our investors.”
Although the South Cotabato provincial board has passed its Environment Code that prohibits, among others, open-pit mining, Arnaldo said a move to study it again was welcome. “Gov. Arthur Pingoy has already asked us to furnish him the copy of our Environment Impact Assessment [EIA] for his own evaluation.”
The EIA was a requirement in securing the ECC. Arnaldo said SMI would still furnish all the local governments and groups to secure their support, including the Free and Prior Informed Consent from the tribal communities.
“We will start to go around yet to seek their support and approval,” he said.
In the case of the tribal communities, he said he was optimistic due to the increasingly nonviolent reactions of the tribes from the bloody opposition they put up against the Australian-owned Western Mining Corp. from whom SMI took over the concession.
However, the company sustained a setback when a B’laan group ambushed a convoy of workers employed by a construction company contracting work for SMI on March 25 in remote sitio Datal Biao, barangay Danlag of Tampakan. Three died and one was injured in the ambush.
The SMI has talked with the tribal elders and leaders to address their demand while asking the latter to assure them of their support for the project.
The SMI has also put up a field office in Kiblawan, indicating the company’s increasing confidence of its operation.
The Tampakan project was estimated to have the largest yet untapped copper-and-gold deposit in Asia. SMI said its concession could yield an average annual production of 370,000 metric tons and 360,000 ounces of copper and gold, respectively. The deposit could support operation for the next 17 years.
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