Monday, May 12, 2008 Mining firm spends P780M for 2007 operations
TAMPAKAN, South Cotabato -- Foreign-backed Sagittarius Mines Inc. spent a total of P780 million last year as it advances exploration activities straddling three Mindanao provinces, the company said in its first sustainability report Sun.Star obtained on Thursday.
Mark Williams, Sagittarius general manager, noted the bright prospects of the Tampakan copper and gold project under the management control of global mining player Xstrata Copper.
"[The company] is committed to developing a financially successful project that improves the social and economic prosperity of the region for future generations," he said.
The sustainability report breaks down the Tampakan project's contribution last year to the Mindanao economy as follows:
* An annual wages bill of at least P113 million. The company employs 446 people and another 325 workers on a weekly rotational shift;
* P512 million was spent on purchasing regional goods and service, of which 16.2 percent went to local suppliers within the project area consisting of the towns of Tampakan in South Cotabato, Columbio in Sultan Kudarat and Kiblawan in Davao del Sur;
* P101 million paid to government in taxes and charges and P4 million also for taxes on local councils.
* P27 million in power and fuel charges;
* P23 million for community partnerships, sponsorships or donations.
In 2006, Indophil Resources NL, now a junior partner to the Tampakan project, spent Au$27 million or P1.08 billion, at present exchange rate, for the pre-feasibility study.
Williams said based on 24,700 meters of drilling, the mineral resources in the project development site stands at 2.2 billion tons, up 10 percent from the last estimates issued in April 2006.
"Tapping this resource has the potential to unlock significant employment and economic development opportunities for the region," he added.
Commercial operations for the Tampakan project, which is stiffly opposed by various groups including the Catholic Church, are expected late 2012.
Junior partner Indophil, an Australian firm, said recently it will play a direct participation at the onset of commercial operations.
Richard Laufmann, Indophil managing director and chief executive officer, stressed the Australian Stock Exchange-listed firm is also bullish over the Tampakan copper and gold project.
"We [Indophil] will have direct participation in the late 2012 start-up of one of the largest and most significant copper-gold projects in the world today," Laufmann told their investors in the quarterly report for the three months to March 2008.
Williams said the proponents' priority this year includes strengthening security measures following the New Year's Day attack by the New People's Army on the exploration base camp in the town of Tampakan.
At least P12 million worth of facilities have been burned by the communist rebels in the daring assault that caught the company and the military by surprise.
For 2008, Sagittarius also targets the completion of the extended pre-feasibility study and to commence its environmental and social impact assessment study. (BSS)
