Open pit mining ban key to SMC decision

MANILA, Philippines - The resolution of the open pit mining ban in South Cotabato is key to the possible entry of diversifying conglomerate San Miguel Corp. in the $5.9-billion Tampakan copper-gold project.

Indophil Resources NL, in its quarterly report, expressed its continuing optimism that the open pit mining ban issue would be resolved “amicably and in a timely manner”, as it also revealed that it remains in discussions with San Miguel for a stake in the Tampakan project.

Swiss-based Xstrata controls a 62.5 percent share in Tampakan, while Indophil has a 37.5 percent stake.

Indophil admitted that while it and San Miguel agreed to terminate their exclusivity agreement, they remain in “ongoing discussions”.

However, Indophil said that it is also in “separate informal discussions with other interested parties.”

Indophil stressed that it has “a range of options in play” including “an advanced option of maintaining a direct and active interest in the development of the world-class Tampakan deposit.”

Indophil’s optimism in the resolution of the open pit mining ban threatening the Tampakan project is buoyed by the recent assurances of the Philippine government regarding the project.

Indophil cited the fact that President Aquino has called for a compromise on the South Cotabato government’s proposed ban of open pit mining in the province, in which   the   Tampakan deposit is located.

Thus, Indophil chief executive officer and managing director Richard Laufmann said they “remain confident that the open pit issue will be resolved amicably and in a timely manner.”