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DAVAO, Philippines – The local contractor for the $5.9 billion Tampakan copper-gold project on Wednesday said the South Cotabato provincial government ban on open-pit mining would be addressed once President Benigno Aquino III signs his new mining policy.
During the launch of the 2011 Tampakan Project Sustainability Report here, Mark Williams, general manager of Sagittarius Mines Inc., said President Aquino’s recent statement that the “new mining policy will allow the Tampakan project to proceed” was encouraging.
“We believe, based on the statement of the President, that it allows and significantly helps the project to proceed,” said Williams, adding that SMI is awaiting the new national mining policy before proceeding with the construction phase of the project.
He said the company expects to secure an environmental compliance certificate from the Department of Environment and Natural Resources within the year.
Even with the President’s statement, SMI remains in discussions with various stakeholders, particularly the DENR and South Cotabato provincial government, for the lifting of the ban on open-pit mining, Williams said.
“We will continue to engage with them for the approval of the ECC, which includes the environmental impact assessments for the power station, port facility, filter plant, concentrate pipeline and power transmission lines needed to support the operation of the Tampakan project,” he said.
SMI, the Philippine unit of Xstrata Plc, earlier announced that it will commence with the construction work by yearend and start operations by 2016.
DENR earlier refused to issue an ECC to the Tampakan project until the proponents resolve issues raised by the South Cotabato provincial government.
Environment Secretary Ramon Paje said the company has to identify the mining technology to be used in the project before securing an ECC.
South Cotabato Governor Arthur Pingoy Jr. said an ordinance has to be proposed and approved by the provincial board for the ban to be overturned.
The Tampakan mine has 2.4 billion metric tons of deposits that contains 13.5 million metric tons of copper and 15.8 million ounces of gold at 0.3 percent cutoff grade.
The project is expected to contribute P134 billion to the Philippine economy a year, translating to a one percent increase in the country’s gross domestic product over a 20-year period.
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