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 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
Glencore has confirmed the completion of the sale of its 62.5% interest in the Tampakan copper/gold project.

Glencore in June flagged a sales agreement with project partner Indophil Resources over its share of the $5.9-billion Tamapakan project. The agreement consolidated the ownership of the project, with Indophil now holding full ownership of the project.

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

On Budget and on Time?
The project has faced significant development difficulties after the South Cotabato provincial government imposed a ban on openpit mining in 2010, in response to pressures from antimining and anti-foreign-investment groups.

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