SMI keeps options open

MANILA, Philippines - Sagittarius Mines Inc. (SMI), the firm behind the Tampakan copper-gold project in Mindanao is keeping open the option to bring its appeal for an environment permit to the Office of the President after its appeal was rejected by the Environment department.

“After the appeal is denied by the DENR (Department of Environment and Natural Resources), we can bring the appeal to the Office of the President,” John Arnaldo, SMI external communications and media relations manager told reporters yesterday.

“That option is always open,” he said further.

He said though that the firm has yet to receive a copy of the DENR’s decision denying its appeal for the environmental compliance certificate (ECC) for the Tampakan project.

“We don’t have notice as of yet or any copy of it... regarding our appeal for the denial of the ECC. We are waiting for that official advice and after we’ve received that advice, I would be most happy to inform on what our next steps would be,” he said.

Mark Williams, SMI general manager for operations and external affairs said earlier the firm would take the appeal to the Office of the President if it would be denied by the DENR.

Mines and Geosciences Bureau director Leo Jasareno said late last week that the Environment department has denied SMI’s appeal on its ECC application as the ordinance which bans open-pit mining is still in place in South Cotabato.

“The issue of constitutionality of the provincial ordinance does not fall within the power of this office to decide. Its validity and legality therefore, shall be respected until the same is declared unconstitutional by the appropriate authority,” the DENR said in its order dated May 22 denying SMI’s appeal.

SMI filed an appeal on the government’s decision which rejected the ECC application for the Tampakan project in January.

The DENR denied the ECC application for the Tampakan project as it noted the open-pit mining method cannot be used while a ban on such method is in place in South Cotabato.

The $5.9-billion Tampakan project spans the provinces of South Cotabato, Sarangani, Sultan Kudarat and Davao del Sur.

The mine is said to contain five million tons of copper and 17.9 million ounces of gold and is scheduled to start commercial operations in 2016, if necessary permits for the project will be secured within this year.

The Tampakan project is also expected to add one percent to the country’s gross domestic product yearly after 2016.

SMI is maintaining its projection that the Tampakan copper-gold project will have an annual average contribution of one percent to the country’s gross domestic product (GDP) over the 20 year life span of the mine.

Tax revenues to be remitted to the national government is estimated to reach P250 billion over the lifespan of the project. Taxes and royalty revenues to be remitted to the local government and communities are expected to reach P96 billion over the life of the mine.

Arnaldo said the estimation was made on the assumption that income tax holiday is not provided.

Arnaldo said SMI has registered with the Board of Investments (BOI) for the provision of income tax holiday within six years of operations.

“All of the projections are based on the assumption that we are not given income tax holiday. And its too early to see what it will be like five to six years from now,” he said.