SMI plans next move if bid for Tampakan permit denied anew

SINGAPORE – Sagittarius Mines Inc. (SMI), the firm behind the Tampakan copper-gold project in Mindanao is studying actions it can take in the event its appeal for an environmental permit is denied by the government even as it remains hopeful that the permit would be granted, an official said.

Speaking at the 8th Asia Mining Congress held here, SMI general manager Mark Williams said that while the firm is optimistic that it can secure an environmental compliance certificate (ECC) for the Tampakan project, it also sees the need to assess what actions can be taken if its appeal for that permit would be denied.

“We believe we will be successful if the appeal process is followed,” Williams said adding that “should it (appeal) not be successful, SMI would need to reconsider its options.”

He said the firm is hopeful it would get the ECC for the project given the comprehensive work on the environmental impact assessment (EIA) for the project.

“Our EIA is one of the most comprehensive piece of work undertaken in the Philippines for it took several years of consultations and has taken international specialists in the Philippines. We followed the regulations and based on that we believe we will be successful,” he said.

He said that while the government may have denied the application for an ECC for the Tampakan project in January, SMI is confident the appeals process would look closely at the EIA.

“There needs to be good grounds for denial and using a local ordinance which goes against stated policy of the government, we don’t see that as a fair justification,” he said.

He said that as SMI is awaiting the decision of its appeal for an ECC for the project, it is studying its options in case the appeal is denied.

He said one option the firm is looking at is to take the appeal to the Office of the President by writing to him and stating the reasons why the application for an ECC should not be rejected.

SMI filed its appeal on the government’s decision to deny the ECC for the Tampakan project on Jan. 27.

SMI had said it was disappointed for the decision did not take into account the merits of the EIA.

Environment and Natural Resources Secretary Ramon Paje had said earlier the Tampakan project which would be using an open-pit mining method, could not be given an ECC while a ban on open-pit mining is in place in South Cotabato.

An ECC certifies that a project will not lead to unacceptable impacts to the environment. It is one of the requirements to secure a permit to operate the mine.

Williams said that as the firm is awaiting the decision on its appeal and would still need to get other requirements such as local government endorsement, indigenous peoples consent and shareholder approval, it is hard to say at this point if an earlier announced plan of starting construction of facilities at the project site in the second-half of the year would be followed.

“The approvals process we are going through is very extensive... Until we finish this approval process, it is difficult to say and talk about the timeline,” he said.

He said that SMI remains committed in pursuing the project but would need the support of key stakeholders such as the national and local governments and the community.

“The sooner we can get this (Tampakan) into operation, the sooner the benefits like taxes will flow and make Southern Mindanao an attractive investment destination,” he added.

The Tampakan project which spans the provinces of South Cotabato,Sarangani, Sultan Kudarat and Davao del Sur is said to likely contain 15 million tons of copper and 17.9 million ounces of gold.

The project has an estimated capital requirement of $5.9 billion and is scheduled to start commercial operations in 2016.

The project is likewise expected to add one percent to the country’s gross domestic product per year after 2016.