Name and Location
Tampakan copper/gold project, southern Mindanao, the Philippines.
Client
Xstrata Copper acquired 62.5% of the controlling interest in the Tampakan project in 2007, and assumed management control through its Philippines-based affiliate, Sagittarius Mines Incorporated (SMI).
The other partners in the project include Indophil Resources (37.5%).
Project Description
The Tampakan deposit represents one of the largest undeveloped copper/gold deposits in South-East Asia. The current project borders on four provinces – South Cotabato, Sultan Kudarat, Sarangani and Davao Del Sur.
The project is a 2.94-billion ton deposit, containing 15-million tons of copper and 17.6-million ounces of gold at a 0.2% cutoff grade.
The prefeasibility study into the development of the project outlined a potential 20-year mining operation based on an average copper production of 340 000 t/y and gold production of 350 000 oz/y and mill recovery rates of 83% to 90% for copper and 60% to 80% for gold, with a copper concentrate grade of 37% to 34%.
Value
The initial stage-one capital outlay for the project is estimated at $5.9-billion, including provision for associated infrastructure.
Duration
The project has been delayed to 2019. The project was originally expected to start production by 2016.
Latest Developments
In December 2012, SMI provided the Philippine government’s Mining Industry Coordinating council with an updated project development plan, outlining the potential for commercial production to start in 2019.
In a press statement the company said: “Given strong local community support, if local government endorsement and final approvals of the national government are forthcoming, then, subject to an investment decision by SMI’s shareholders, construction could potentially commence in 2015, enabling commercial production in 2019.”
The project has experienced several challenges since Sagittarius Mining submitted its mine project feasibility study. These have included restrictions on field activities, resulting from security issues in the project area; the need to reconsider preferred power supply options for the project; the ongoing uncertainty created by a provincial ordinance that is in conflict with national law; and the denial of the Mine Environmental Compliance Certificate by the Philippine Department of Environment and Natural Resources, which is currently under appeal to the Office of the President.
Key Contracts and Suppliers
Bechtel (lead engineer for the feasibility study).
On Budget and on Time?
The project has been delayed until 2019.
Contact Details for Project Information
Sagittarius Mines corporate communications manager John Arnaldo, cell +63 928 550 3847.
Xstrata Copper corporate communications manager Emily Russell, tel +44 1865 510 918 or email erussell@xstratacopper.cl.