So the verdicts out. Its no go for Xstrata Plc and Indophil Resources in
continuing with open pit mining method on the $5.9 billion copper-gold Tampakan
project, potentially slowing its development as the biggest untapped deposit in
Southeast Asia. Slated to begin commercial production by 2016, the Tampakan
project is now put on hold because the Department of Environment and Natural
Resources (DENR) has issued a notice to reject its application of an Environment
Clearance Certificate (ECC). DENR Secretary Ramon Paje said last month he would
not allow the issuance of an ECC for the project until a local ban on open-pit
mining in South Cotabato in southern Philippines was lifted. In response,
Xstrata Plcs Philippine unit has said that it is "extremely disappointed".
Sagittarius Mines Inc, the operator for the Tampakan project is rooting for an
appeal. In an email statement, Sagittarius President said that the rejection
contradicts the national government's view that "national laws which permit
open-pit mining methods should take precedence over conflicting provincial
ordinances." He also added, "This lack of consistency by the national
government poses a very real threat to investment confidence in the
Philippines." The Tampakan mine, which shall be the largest foreign direct
investment in the Philippines, is projected to produce 340,000 metric tons of
copper and 350,000 ounces of gold annually from 2016 into 2036. Unless the
government fixes its policy problems, this ban could potentially dampen
investment funds in the mining industry to develop the countrys estimated $1
trillion in mineral resources. Sagittarius Mines GM, Mr Mark Williams, DENR
Secretary Ramon Paje and Mr Steve De Kruijff, COO of Xstrata Copper will all be
speaking at the Asia Mining Congress 2012. It will be interesting to get
insights and perspectives from all three parties. Do not miss out on this rare
opportunity to mingle with the whos who in the industry. Download the programme
brochure here. Now its your chance to network even before the Congress. Join the
Mining Nuggets on Facebook and connect with mining professionals and investors.
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