Indophil to pursue dual listing

MANILA, Philippines - Australian miner Indophil Resources NL is keen on pursuing a dual listing at the local bourse should it gain greater control of Sagittarius Mines, Inc. (SMI), the contractor of the proposed $5.9-billion Tamakan copper-gold project in Mindanao.

In its 2013 annual report, Indophil reiterated its earlier pronouncement of interest to acquire 100 ownership of SMI.

“With a committed Philippine investor base, Indophil is well-placed to proceed alone or in partnership to unlock the inherent value in Tampakan. Our plan to obtain a dual stock exchange listing in the
Philippines would be back on the table. Indophil is firmly of the view that the Tampakan Project must be wholly-embraced locally for it to proceed,” said the company in the report.

“With approximately 30 percent of our listed shares now owned in the Philippines, Indophil has invested significantly in our in-country partnerships, alliances and relationships, and is well positioned to expedite the next phase of the Tampakan development,” it added. Commodities giant Glencore Xstrata holds a 62.5 percent interest in SMI while Indophil holds a 37.5 percent stake.

Indophil is now setting its sights on acquiring Glencore’s share in the project, having the right of first refusal should Glencore divest its stake.

Last year, Glencore has expressed interest in unloading its stake in the project in line with its preference not to develop greenfield projects.

Glencore Xstrata is also pressured by Chinese anti-trust authorities to lose its grip on copper supply by divesting its stake in some of its copper mines in exchange for the approval of the merger of Glencore International Plc and Xtrata Plc.

The Chinese Ministry of Commerce (Mofcom) approved the merger last year after Glencore Xstrata agreed to sell its Las Bambas copper project in Peru by September 2014 and included the Tampakan project as among the other projects that may be sold.

Should the sale not push through, the Chinese government can demand the sale of Glencore’s Xstrata’s holdings in other developments including the Tampakan project.

Indophil spokesman Gavan Collery earlier said the company is still in discussions with Glencore Xstrata on the direction it wants to take on the project and that the possible acquisition of its stake in SMI
would commence after the sale of the Las Bambas mine.

He said Indophil  would also take into consideration any progress on the permitting process for the project before pursuing a potential
stake purchase.