MGB says no delay in SMI-Tampakan operations

MANILA, Philippines - The Mines and Geosciences Bureau (MGB), which is reviewing the revised work plan of Sagittarius Mines Inc. (SMI) for its Tampakan copper-gold project, said there would be no significant changes in the timetable for the commencement of operations of the mine.

“We are still evaluating the revised work program submitted to us… in the timetable, it looks like there is no big change,” MGB director Leo Jasareno told reporters yesterday.

SMI on Monday announced that it is cutting down expenditure in the tenement as it struggles to complete the requirement for government approval of the project.

The revised work plan and budget would trim the company’s 1,060- strong workforce by 85 percent. To be laid off are 300 regular and project employees and 620 contract workers.

Expenditure in the project would be reduced to $1 million per month compared to $4 million per month under the current work plan.

The $5.9 billion copper-gold project in South Cotabato is expected to commence commercial operations in 2019, with construction of the mine beginning in 2015.

SMI officials said that with the challenges experienced by the company in securing the permits to begin operations, it would be difficult to determine the specific timetable for the commencement of operations.

“Until these challenges are resolved, it is not possible to determine when commercial production could commence,” said SMI spokesman John Arnaldo.

Arnaldo also said that an updated capital cost estimate for the project “will be determined ahead of the final investment decision that will be made once all necessary approvals are obtained from government and community.”

The company said it is seeking clarification with the national government through the Mining Industry Coordinating Council (MICC), on the approvals process from all government levels.

Company vice president Justin Hillier said SMI will also “enhance collaboration” with the MICC to resolve key issues confronting the project such as the continued imposition of an open-pit mining ban in South Cotabato and difficulties in obtaining the consent of the communities that would be affected by operations.

The company’s revised work plan has been submitted to the MGB for approval.

“We are still evaluating the revised work program submitted to us…In the timetable, it looks like there is no big change,” Jasareno told reporters yesterday.

He said that should the company reduce expenditure in the tenement, it should still conform to the minimum work requirements in its work plan such as the continuing maintenance of the community and their social activities while awaiting the approval of their declaration of mining project feasibility (DMPF), a document containing an assessment on the commercial viability of deposits.