MANILA, Philippines - San Miguel Corp. (SMC) said it is keeping its options open with respect to its minority interest in Indophil Resources NL, which owns part of the $5.9-billion Tampakan gold and copper project in South Cotabato.
“We will probably keep our options open. We may sell or keep it,” said Ramon S. Ang, president of the food-to-infrastructure conglomerate.
SMC holds a 10.1-percent stake in Indophil Resources. It bought the stake in October in a deal worth $40 million.
Just recently, Alcantara-led Alsons Power Holdings Corp. raised to nearly 20 percent its stake in Indophil.
The Tampakan mine, operated by Philippine-based Sagittarius Mines Inc., is believed to contain one of the biggest untapped copper resources in Southeast Asia and is among the most attractive undeveloped long-life, large-scale and low-cost copper deposits in the world.
Indophil owns 37.5 percent in the project while Swiss-firm Xstrata Copper, the world’s fourth largest copper producer, holds the majority 62.5 percent.
The Tampakan project is said to contain a 2.4 billion ton mineral resource with an estimated 13.9 million tons of copper and 16.2 million ounces of gold. First production is targeted in 2016 with a total of 375,000 tons of copper and 360,000 ounces of gold per year expected in the initial mini-life of 17 years.
To date, more than $300 million has been spent on exploration and development at Tampakan. Its direct contribution to the Philippine economy is estimated at $37 billion, with an estimated $8 billion being paid in taxes and royalties.
SMC gained a foothold in the mining business with a deal to acquire 100 percent of Daguma Agro Minerals Inc., a coal mining firm with operations in South Cotabato.
From then, it has acquired two other mines – Sultan Energy Philippines Corp. and Bonanza Energy Resources Inc. –which are capable of powering coal-fired facilities that can generate 750 megawatts over the next 25 years.
SMC had bought the three coal mines in South Cotabato last year to help provide fuel sources for its planned coal-fired power plants in Mindanao. The construction of the power facilities are in line with the conglomerate’s proposed 3,000-MW power portfolio, which it plans to implement over the next six years.