Indophil confident open pit mining ban issue over soon

By Marianne V. Go (The Philippine Star) Updated August 08, 2011 12:00 AM Comments (0)

MANILA, Philippines - Indophil Resources NL, Xstrata’s minority partner in the $5.9- billion Tampakan copper-gold project in Tampakan, South Cotabato, is optimistic that the open pit mining ban that is causing uncertainty over the Tampakan project will be resolved by the end of the year.

In an interview at the sidelines of the Philippine Mining Club meeting Friday, Aug. 5, at the MakatiShangrila, Gavan Collery, vice president of Indophil Resources, expressed optimism that the open pit mining ban imposed by the local government of South Cotabato would finally be resolved by the end of this year as assured by Local Government Secretary Jesse Robredo.

According to Collery, Indophil is awaiting two milestones—specifically the clearance of the open pit mining ban by the end of the year and by next year the “commitment to pursue” the Tampakan development.

Collery elaborated that “commitment to pursue, it is the term we use, which of course is the process undertaken by the partners who are of course, Xstrata, Indophil and the government of the Philippines.”

Indophil, Collery reiterated, “is here to stay,” having already raised around $175 million to ensure its continued participation in the Tampakan project.

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Collery added that Indophil has for the time being “closed its data room” to any interested investor.

According to Collery, “we closed the data room and we had not been opening the door to any further confidentiality agreements. The reason for this is because Indophil has made a commitment to maintain a direct and active role in the Tampakan project because - one it is world class; two, we have a world class partner in Xstrata; three, we’re there… today, acting as the contractor to the government of the Philippines and the people of the Philippines, and four, and this goes back to the first point I made, we are making progress. We are getting closer to some big milestones.”

An exclusivity agreement with SMC lapsed although there were talks that SMC remained interested.

Indophil had previously been in talks with potential investors, including diversifying conglomerate San Miguel Corp., about unloading its stake in the Tampakan project.