Name and Location
Tampakan copper/gold project, southern Mindanao, the Philippines.

Client
The project is operated by Philippine-based affiliate Sagittarius Mines Incorporated (SMI), whose 40% controlling equity is a joint venture between Glencore Xstrata (62.5%) and 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-tonne deposit, containing 15-million tonnes of copper and 17.6-million ounces of gold at a 0.2% cutoff grade.

The prefeasibility study on the development of the project outlined a potential 20-year mining operation, based on an average copper production of 375 000 t/y and gold production of 360 000 oz/y over a 17-year mine life.

Net Present Value/Internal Rate of Return
Not stated.

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
Indophil Resources has reported that a final agreement might be signed in mid-July, enabling it to take control of the long-delayed Tampakan project from Glencore.

Indophil, previously listed in Australia until its takeover this year by the Philippines' Alsons Group, will be able to start planning its next steps for the project once the agreement is signed, Indophil spokesperson Gavan Collery has said.
Glencore announced the sale of its 62.5% interest in Tampakan operator Sagittarius Mines in June without providing details.

Glencore previously indicated that it was reviewing the Tampakan project along with other greenfield projects elsewhere.

Key Contracts and Suppliers
Bechtel (lead engineer for the feasibility study).

On Budget and on Time?
Tampakan has been stalled by a provincial ban on openpit mining in place since 2010.

Contact Details for Project Information
SMI, tel +63 83 2271043, fax +63 83 2271045 or email info@smi.com.ph.