Tampakan miner expects favorable decision on ECC

MANILA, Philippines – Despite the perceived uncertainty in the business environment for mining firms due to the government’s newly released policies and rules, Sagittarius Mines Inc. (SMI) is still intent on pursuing the $5.9 billion copper-gold project in Tampakan, South Cotabato.

On Thursday, September 20, SMI General Manager for External Affairs Mark Williams told reporters that the mining firm expects this month a favorable decision from Malacañang on its long delayed environmental permit that would allow it to start commercial operations.

In an interview at the sidelines of the last day of Mining Conference 2012, SMI general manager said Malacanang is expected to release this month a response to its appeal for the provision of an Environment Compliance Certificate (ECC), a key document that will enable it to proceed with the construction phase of the mine.

The ECC guarantees that that a project will not cause damage to the environment.

The company filed an appeal on June 29 before the Office of the President and was asked to submit its arguments on or before July 29.

There is a time period for that (ECC), which is due in September. We have conducted the most extensive environmental impact study and assessment here in the Philippines, we have followed the process, we have followed the procedures that has been stated by the DENR and logic wil prevail that the ECC will be granted immediately,” Williams said at the sidelines of the third day of the 2012 Mining Conference.

(For a blow-by-blow account of the 2012 Mining Conference in Manila, click here.)

Along with business partner Swiss global miner Xstrata Inc, SMI has already finished exploration activities and met other requirements. The ECC is one of the last hurdle before it could push through mining operations at one of the world’s largest undeveloped copper mine. 

Hope in new mining policy

Williams said that despite the uncertainties in the local mining industry, SMI is determined to commission the mine.

“This project has made good progress despite issues. We are working through those issues….We are focusing on the approvals process,” he said.

He said that by next year, SMI will also commence with activities for the obtaining of Full Prior Informed Consent from indigenous communities in the region.

In his speech, Williams said the issue on local ordinances has been the main drag in the Tampakan project. However, SMI believes that the new mining policy embodied in Executive Order No. 79 effectively addressed industry concerns on the primacy of national laws over local ordinances.

Initially, SMI aimed to begin construction in Tampakan this 2012 and start operations by 2016. However, the local open-pit mining ban imposed in South Cotabato has prevented the company from obtaining its ECC.

“We are particularly encouraged that the natl mining policy, EO No. 79 recognizes the primacy of national laws over local ordinances. What we will require now is the immediate and efficient implementation of the executive order. We know that this will address the concerns of primacy of national laws that has hindered the progress of the project to date,” Williams said.

SMI requuires three ECCs for the construction of the mine itself, a power facility in Malalag Bay, Davao del Sur, and the transmission line that will run from the power facility in Malalag port to the mine site.

Once the project commences, Tampakan Copper-Gold project will become the largest mining project in the Philippines and could be considered one of the biggest in the world.

It will be able to contribute as much as 1 percent of the country’s Gross Domestic Product (GDP) and 10.4% of Gross Regional Domestic Product (GRDP) for Regions XI and XII every year for 20 years.

The project will also be able to provide an additional boost to the government’s revenues by paying as much as $5 billion in taxes and duties as well as royalties in excess of $300 million for indigenous communities and barangays. – Rappler.com

Read the Blog on the 2012 Mining Conference for a blow-by-blow account of issues being discussed.

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