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Released October 25, 2012 | MANILA, PHILIPPINES
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Researched by Industrial Info Resources (Manila, Philippines)--The $5.9 billion Tampakan project, owned by Sagittarius Mines Incorporated (Makati, Philippines), may not begin operations as scheduled in 2016, after the government decided Wednesday to indefinitely hold the issuance of environmental clearance certificates (ECCs).
Environment Secretary Ramon Paje said the ECCs for the project would only be considered if congress has finalized new laws on mining reform, which would increase mining taxes and improve environmental safeguards.
However, current public reception toward the project is not to Sagittarius' favor. The legislation is losing traction due to heated discussions with stakeholders that deemed the project an environmental hazard.
"We cannot commit, of course, because we do not have control over Congress," Paje told reporters when asked if the government could ensure a new law that rationalizes the revenue-sharing scheme between the government and the mining firm will be passed in time for the Tampakan project to proceed.
The Department of Environment and Natural Resources has not issued environmental clearance sought by Sagittarius, a subsidiary of Swiss global miner Xstrata plc (Zug, Switzerland), for the project, since the provincial ban on open-pit mining took effect in 2010.
The firm, also part-owned by Australian miner Indophil Resources NL (Melbourne, Australia), had wanted to secure an ECC early this year, but the government declined, delaying the date of its construction.
Sagittarius originally planned to begin building Tampakan next year, and it was expected to take up to three years to build.
The Tampakan project is said to have the world's largest untapped copper and gold deposits, with the mine estimated to yield an average of 375,000 tonnes per annum of copper and 360,000 ounces per annum of gold in concentrate over the 17-year period of mining and ore production.
But despite bright prospects and investments pegged at about $350 million, a ban from local authorities on the planned open pit mining method has been seen as its major stumbling block.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, 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.
Environment Secretary Ramon Paje said the ECCs for the project would only be considered if congress has finalized new laws on mining reform, which would increase mining taxes and improve environmental safeguards.
However, current public reception toward the project is not to Sagittarius' favor. The legislation is losing traction due to heated discussions with stakeholders that deemed the project an environmental hazard.
"We cannot commit, of course, because we do not have control over Congress," Paje told reporters when asked if the government could ensure a new law that rationalizes the revenue-sharing scheme between the government and the mining firm will be passed in time for the Tampakan project to proceed.
The Department of Environment and Natural Resources has not issued environmental clearance sought by Sagittarius, a subsidiary of Swiss global miner Xstrata plc (Zug, Switzerland), for the project, since the provincial ban on open-pit mining took effect in 2010.
The firm, also part-owned by Australian miner Indophil Resources NL (Melbourne, Australia), had wanted to secure an ECC early this year, but the government declined, delaying the date of its construction.
Sagittarius originally planned to begin building Tampakan next year, and it was expected to take up to three years to build.
The Tampakan project is said to have the world's largest untapped copper and gold deposits, with the mine estimated to yield an average of 375,000 tonnes per annum of copper and 360,000 ounces per annum of gold in concentrate over the 17-year period of mining and ore production.
But despite bright prospects and investments pegged at about $350 million, a ban from local authorities on the planned open pit mining method has been seen as its major stumbling block.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, 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.
