SMI continues to lay groundwork for Tampakan

TAMPAKAN, South Cotabato, Philippines — Sagittarius Mines Inc. (SMI) continues to lay the groundwork for the projected 2016 mining operations in Tampakan, even as it awaits the approval from the Department of Environment and Natural Resources (DENR) of three Environmental Compliance Certificates (ECCs); secures the Free and Prior Informed Consent (FPIC) of the Indigenous People’s group; gets the favorable endorsement of the Local Government Units of South Cotabato, Sultan Kudarat, Sarangani and Davao del Sur, and lastly the approval of SMI’s own shareholders.

In a visit to SMI’s Barangay Liberty core farm in Tampakan and its General Santos office, corporate communications manager John Arnaldo assured that SMI remains on track with it work program for its Tampakan copper-gold mine operation.

The DENR, Arnaldo said, is still reviewing the feasibility study SMI submitted in 2010 and is currently in the consultation, design and approvals phase.

Representatives of Blaan IP group – the tribe which were the first settlers of the Tampakan mine site—have already indicated a more favorable view of the potential $5.9 billion project.

However, in talk with some representatives of the tribe led by one of its chieftains Juanito Malid, the Blaan continues to have some reservations and concerns, one of which is continued employment for members of the tribe.

Monetary compensation continues to be negotiated as well as resolution of environmental concerns.

SMI, however, has assured the affected IP communities that that there would be approximately 8000 jobs created during the construction phase that is targeted to start by 2012.

The construction phase will include the construction of roads, a conveyor belt to transfer the ore to  a concentrator.

Furthermore, SMI also plans to construct a $900 million power plant and port in Malalag, Davao del Sur.

SMI estimates that it will spend $800 million on Philippine goods and service during the construction phase and another $900 million over the operations phase.

To date, SMI has contributed P1.3 billion to the Philippine economy and has invested P135 million in 2010 alone for community programs from which 15,000 benefitted from improved delivery of basic health services; 19,000 students benefitted from educational support and 2,000 households benefitted from livelihood and enterprise development programs.

A portion of its community assistance also went towards a multisectoral reforestation program with over 500,000 seedlings planted since 2005.

The Tampakan copper-gold project is estimated to generate a revenue stream to the Philippine economy of P1.85 trillion or $375 billion over the life of the mine.