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Manila, 14 June 2011
Sagittarius Mines, Inc (SMI) announces the commencement of a new round of stakeholder consultation in relation to its proposed Tampakan copper-gold mining operation in southern Mindanao.
SMI will present its Environmental Impact Statement (EIS) to stakeholders over the next 12 weeks for their feedback before formally submitting the document to the Philippine Government later this year as part of the regulatory approval process for the proposed mine.
During this time SMI will consult with more than 1,200 stakeholders through approximately 50 briefing sessions followed by four public meetings in the provinces of South Cotabato, Davao del Sur, Sarangani, and Sultan Kudarat.
This latest round of stakeholder consultation is a follow-up to SMI’s previous engagement activities held between September and December 2009 when stakeholder input was sought for the development of the proposed mine plan and EIS through a series of small, private consultation meetings and four public scoping meetings.
The EIS has been prepared by Filipino specialists and international experts and identifies the potential environmental and social impacts of the proposed mining operation and details SMI’s comprehensive mitigation strategies.
SMI President, Peter Forrestal said the completion of the EIS marked a significant milestone for the Tampakan project.
“We take our environmental and social responsibilities very seriously and, in line with Philippine government regulation, we have consulted extensively with our host communities and other key stakeholders over the past two years regarding our plans for the project.
“Their feedback, together with the results of our environmental impact assessment studies, has been incorporated into our project designs and management plans which have been developed in accordance with leading environmental and industry practices.
“We now look forward to sharing these plans with our stakeholders and receiving further feedback in order to finalise the EIS for formal submission to the Philippine government later this year.
“If approved, we believe that this Project will be a blueprint for ethical modern mineral development in the Philippines and represents an unprecedented opportunity for the Philippines to benefit from its natural resources,” he said.
Separate environmental impact assessment studies for related off-site infrastructure, including a port facility, power station, transmission lines and concentrate pipeline, are currently underway and are expected to be completed in 2012.
Subject to all necessary community, government and shareholder approvals, SMI anticipates that the Tampakan project could commence production in 2016.
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SMI Contact:
John B. Arnaldo
Corporate Communications Manager
Sagittarius Mines, Inc.
Mobile: (+63 928) 550-3847
SMI Media Care Hotline
Mobile: (+63 918) 864-4685
Notes to editors:
ABOUT THE TAMPAKAN PROJECT
The Tampakan Copper-Gold Project is located on the southern Philippine island of Mindanao, approximately 65 kilometres north of General Santos City. The Project is situated on the boundaries of four provinces: South Cotabato, Sarangani, Sultan Kudarat and Davao del Sur, and represents one of the largest undeveloped copper-gold deposits in the Southeast Asia-Western Pacific region.
The Tampakan Project is a 2.4 billion metric ton deposit, containing 13.5 million metric tons of copper and 15.8 million ounces of gold at a 0.3% cut-off grade. In 2010, the Project employed approximately 372 employees and rotational shift work for a further 1,185 contractors.
The Project is operated by Philippine-based affiliate Sagittarius Mines, Incorporated (SMI), whose 40% controlling equity is a joint venture among Xstrata Copper (62.5%) and Indophil Resources NL (37.5%). The 60% non-controlling equity shareholders of SMI are the Tampakan Mining Corporation and Southcot Mining Corporation (known as the Tampakan Group of Companies).
SMI submitted the Mining Project Feasibility Study for the Tampakan Project to the Philippine government in April 2010 and is progressing with the Mine and Off-site Infrastructure Environmental Impact Assessments (EIAs). SMI expects to submit the Mine Environmental Impact Assessment (EIS) to the government by the second half of 2011.
Subject to all necessary community, government and shareholder approvals, SMI estimates that production from the $5.9 billion Tampakan Project could commence by 2016. If developed, it is estimated that the Project would contribute an average of PhP134 billion (USD2.8 billion) to Philippine GDP; an equivalent of 1% annual increase to the Philippine GDP over the life of the Project.
ABOUT XSTRATA COPPER
Xstrata Copper is the fourth largest global copper producer with attributable mined production in 2010 of 913,500 tonnes of copper in cathodes and concentrates. The company is also one of the world’s largest producers of smelter and refined copper, including from third party materials.
Headquartered in Brisbane, Xstrata Copper is one of the commodity business units within the major global diversified mining group Xstrata plc. Its mining and metallurgical operations and development projects span eight countries: Argentina, Australia, Canada, Chile, Peru, the Philippines, Papua New Guinea and the USA. Its operations and projects are administered through a regional divisional management structure, which ensures that critical decisions are taken close to the related businesses. It also has a recycling business (Xstrata Recycling) with plants in the United States and offices in Canada and Asia.