Xstrata to Appeal Against Denial on Tampakan Mine #Xstratacopper, #tampakanmine, #Sagittariusmines

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min2664 So the verdict’s out. It’s 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 Plc’s 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 country’s 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 who’s who in the industry. Download the programme brochure here. Now it’s your chance to network even before the Congress. Join the Mining Nuggets on Facebook and connect with mining professionals and investors.