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Released February 06, 2014 | MANILA, PHILLIPINES
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Researched by Industrial Info Resources (Sugar Land, Texas)--Mining giant Glencore Xstrata plc (LSE:GLEN) (Baar, Switzerland) will pull out of the $5.9 billion Tampakan copper-gold project in the Philippines, according to its joint venture partner, Indophil Resources NL (IRN:ASX) (Melbourne, Australia).
Indophil Resources said in its latest quarterly report that Glencore Xstrata will divest its stake in Tampakan, under the joint venture company Sagittarius Mines Incorporated (SMI) (Makati, Philippines), to help Glencore's merger with Xstrata, which received the green light from the Chinese government.
The Ministry of Commerce of the People's Republic of China (MOFCOM) is requiring Glencore to sell down copper stakes as a condition for approving the takeover to avoid creating a possible monopoly in the copper industry.
Glencore Xstrata plans to sell its interests in the $5.4 billion Las Bambas copper mine in Peru and the $1.8 billion Frieda River deposit in Papua New Guinea.
Indophil Resources said that no formal divestment process has commenced. With Glencore Xstrata out from the venture, the company has an option to divest its interest from Tampakan or secure full ownership of SMI and continue building the long-delayed project.
The Tampakan project, located in the province of South Cotabato, is due to start commercial production in 2019, but has faced a long string of setbacks ranging from a provincial ban on open-pit mining down to friction among affected communities.
SMI responded to the holdups by pulling back its annual budget to $33 million from $54 million last year, resulting in the layoff of about 1,000 workers.
Indophil Resources, via SMI, owns a 37.5% stake in the Tampakan Project, while Glencore Xstrata holds the balance. It is said to be the largest mining development in the country and is expected to produce about 375,000 tons of copper and 360,000 ounces of gold annually over a 17-year period.
View Plant Profile - 1059479 3024137 1080980 1056826
View Project Report - 300124185 94800119 300124182 300030555 71300164 300080766 87400014 300146289
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Indophil Resources said in its latest quarterly report that Glencore Xstrata will divest its stake in Tampakan, under the joint venture company Sagittarius Mines Incorporated (SMI) (Makati, Philippines), to help Glencore's merger with Xstrata, which received the green light from the Chinese government.
The Ministry of Commerce of the People's Republic of China (MOFCOM) is requiring Glencore to sell down copper stakes as a condition for approving the takeover to avoid creating a possible monopoly in the copper industry.
Glencore Xstrata plans to sell its interests in the $5.4 billion Las Bambas copper mine in Peru and the $1.8 billion Frieda River deposit in Papua New Guinea.
Indophil Resources said that no formal divestment process has commenced. With Glencore Xstrata out from the venture, the company has an option to divest its interest from Tampakan or secure full ownership of SMI and continue building the long-delayed project.
The Tampakan project, located in the province of South Cotabato, is due to start commercial production in 2019, but has faced a long string of setbacks ranging from a provincial ban on open-pit mining down to friction among affected communities.
SMI responded to the holdups by pulling back its annual budget to $33 million from $54 million last year, resulting in the layoff of about 1,000 workers.
Indophil Resources, via SMI, owns a 37.5% stake in the Tampakan Project, while Glencore Xstrata holds the balance. It is said to be the largest mining development in the country and is expected to produce about 375,000 tons of copper and 360,000 ounces of gold annually over a 17-year period.
View Plant Profile - 1059479 3024137 1080980 1056826
View Project Report - 300124185 94800119 300124182 300030555 71300164 300080766 87400014 300146289
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
