Australia's junior explorers - The ASIA Miner

Philippines
Policy review provides hope for Tampakan
INDOPHIL Resources believes a systematic
review of mining policy by the Philippine Government
provides some light at the end of
the tunnel for the T ampakan Copper-Gold
Project. The project is owned by Sagittarius
Mines, a joint venture company with Xstrata
Copper and Indophil as major shareholders.
Development at the project that is estimated
to contain 15 million tonnes of copper and almost
18 million ounces of gold, was hampered
by a provincial government ban on open pit mining
in South Cotabato, the province in which
Tampakan is located, that took ef fect in October
2010. As well as impacting the companies
involved, the ban has had an adverse
effect on investor confidence in the Philippines.
Indophil’s chairman Gavan Collery says the
company was comforted at the time the mining
ban was announced by assurances from
the Philippine Government that such a ban
was illegal - that it was contrary to national
law - but it is still in place. “To add further uncertainty,
in early 2012 the Of fice of the Secretary
of the Department of Envir onment
and Natural Resour ces (DENR) r eturned
Tampakan’s application for appr oval of the
Environmental Impact Statement for the mine
area. This approval, known locally as an Environmental
Compliance Certificate or an
ECC, was conditionally denied and made
subject to resolution of the open pit ban.”
An appeal by Xstrata to reconsider the ECC
has recently been tur ned down with the
DENR re-stating that the matter is dependent
on the resolution of the conflict between national
mining policy and the envir onmental
code in South Cotabato.
Gavan Collery says the framework of the
Gold Fields boosts Far South East interest
GOLD Fields intends to incr ease its interest
in the Far South East Gold Project on Luzon
to up to 60% as part of a strategy to diversify
risk away fr om South Africa. An initial r esource
estimate for the pr oject is expected
during the second half of this year at which
time a pre-feasibility study will be started. An
indicative timeline shows that a mine could
be constructed during 2015-16.
Gold Fields has a strategy to have 5 million
ounces of gold either in pr oduction or under
12 | ASIA Miner |July/August 2012
The Tampakan project of Sagittarius Mines is in southern Mindanao. Major Sagittarius stakeholders are Xstrata
Copper and Indophil Resources.
mining policy review is understood to be contained
within six points, covering sustainable
development; best practice and governance;
protection of the environment; primacy of national
law; sharing of benefits; and sound mining
sector management.
“This framework – save for implying ‘restoration
of investor confidence’ – is the basis
for the type of responsible practice that one
would care to see applied in any jurisdiction
in the world. The framework is one that we
support, and one that we will continue to advocate
within the industry and within all levels
of government. Hopefully, its carriage and adoption
will see the mining industry in the Philippines
contributing to a sound economic
future; a future that can in part be underpinned
by development of Tampakan.
“While being understandably cautious
development by 2015, with South Africa making
up 40% of that, contributing 2 million ounces.
It plans to have 1 million ounces fr om
each of the three regions in which it operates
- West Africa, South America and Australasia.
The company is buying up to 60% of the
Far South East pr oject from the existing
owners for a total payment of $340 million. In
September 2010 it reached an agreement to
buy the stake from Lepanto Consolidated Mining,
the 60% owner of Far South East, and
based on past experiences, it appears that
mining policy in the Philippines is coming of
age, and will be based on sound process and
system. A robust and invigorated national mining
policy will deliver nation-building benefit
to the people of the Philippines and r eward
those who embark on the considerable risk
of minerals exploration and development.”
He says, “Re-affirmation and enforcement of
the issue of primacy of national laws over local
government ordinances, such as the ban on
open pit mining in South Cotabato, is critical to
any decision to proceed with the near-$6 billion
development of Tampakan. The mor e than
US$400 million already invested on the Tampakan
study programs, legislated government
payments, community development and related
project expenditure is a clear demonstration
of the joint venturers’ commitment.”
Liberty Express Assets, the 40% holder . In
March this year, Gold Fields brought forward
a payment of $110 million to raise its stake to
40% in the project. The early exercise of the
option to buy the Liberty stake does not afect
the option to buy a further 20% stake for $110
million from Lepanto, which will r emain Gold
Fields’ partner in the project.
Gold Fields plans to mine an unexploited
ore body below a mine that is near the end
of its life.