King King plant to open by 2016

MANILA, Philippines - The operators of the King King copper-gold project in Compostela Valley are optimistic that the company would be able to commission the mine between 2015 and 2016.

The copper-gold project in Compostela Valley is one of the largest underdeveloped copper-gold projects in the world. It is one of the priority projects of the Mines and Geosciences Bureau (MGB).

In the first five years of operation, the open-pit mine is expected to produce 395,000 ounces of gold and 267 million pounds of copper. This will gradually decrease as the mine ages.

Drilling in the production site is currently in the advanced stage with 297 drill holes. Future drilling will focus on new targets outside the King King deposit area.

“We’re refining the schedule and we would be announcing a more definite date (for the commencement of operations). We are encouraged by the project,” Clyde Gillespie, director of Environmental Permitting of Canadian miner St. Augustine Gold and Copper Limited old reporters during a mining luncheon held in Makati Friday afternoon.

St. Augustine would be operating the mine through its local partner Nationwide Development Corp. (NADECOR).

The operators submitted to the Department of Environment and Natural Resource its Environmental Impact Study (EIS) and the Declaration of Mine Project and Feasibility last year.

In the next 12 months, the company aims to secure the Environmental Compliance Certificate (ECC) and Free Prior and Informed Consent (FPIC) of indigenous peoples residing near the mine area.

Gillespie said the project will have an initial capitalization of $2 billion.

Once the mine is commissioned, it will employ 1,700. During the construction phase, it will have 5,900 employees.

The company has not yet signed an off take agreement with a commodity trader but is considering to transport the concentrates produced in the mine to smelters in China, Japan, and Germany.

NADECOR president Conrado Calalang said the company is looking at other copper and gold rich tenements in Mindanao.

St. Augustine, meanwhile, intends to focus on the development of the King King project.