Tampakan mines investments reach P4.7B in 5 yrs

SOUTH COTABATO, Philippines — Investors have spent about P4.7 billion to develop the Tampakan copper and gold project here since its launch about five years ago, despite stiff opposition from the local Catholic Church hierarchy and environment groups, a company report obtained on Monday showed. The project, which straddles the towns of Columbio in Sultan Kudarat and Kiblawan in Davao del Sur, is being implemented by Sagittarius Mines, Inc., which is owned by foreign companies. Swiss miner Xstrata Copper owns 62.5% stake of the Tampakan project and most of the remaining interest by Australian company Indophil Resources NL. Gerardo P. Laviste, Sagittarius project manager, said investments have amounted to $100.4 million since taking over the project from Western Mining Corp., or an average expenditure of P940 million yearly. Then going by the name of Tampakan Mineral Resources Corp, the project started on January 17, 2004. A company report submitted to the Central Mindanao office of the Mines and Geosciences Bureau showed that, of the P4.7-billion investment: * bulk went to cover administrative costs at P1.56 billion; * P1.28 billion to finance exploration; * P980 million to mine and infrastructure development or construction; * P331.8 million as payment to affected indigenous communities and social projects for them; and * P 221.6 million to taxes, fees and royalties to the government. Sagittarius acquired the rights to the mines site after then Environment Secretary Heherson T. Alvarez ordered in December 2001 the transfer of the financial and technical assistance agreement (FTAA) from Western Mining Corp. An FTAA certificate gives a holder exclusive rights to conduct mineral exploration in a contract area, which in the case of Sagittarius is FTAA 02-95-XI. Despite the massive investments of Sagittarius at this stage of exploration, it has drawn the ire of local Catholic priests and environment groups who have claimed that the project has not resulted in net benefits for host communities. Peaceful opposition to the Tampakan mining project took a new twist when the New People’s Army attacked the firm’s base camp in January last year. The communist rebels, who have since warned the company of future attacks, burned facilities worth at least P12 million. — Romer S. Sarmiento, BusinessWorld