Friday, August 08, 2008 S. Cotabato mine project feasibility due for completion
KORONADAL CITY -- The extended pre-feasibility study (XPFS) for the Tampakan copper and gold project is due for completion in November, a junior partner said in its latest quarterly report.
Indophil Resources NL, in its three months report ending in June 2008 released last week, said that Xstrata Copper has advised that the technical studies for the Tampakan project will be finished by the end of November.
"These studies cover infrastructure, mining and processing, [and] waste and water studies," Indophil said.
Xstrata is managing the Tampakan project through a 62.5 percent stake in the venture pursued under Philippine affiliate Sagittarius Mines Inc., the holder of a Financial and Technical Assistance Agreement (FTAA) approved by the government.
An FTAA allows foreign companies to own 100 percent stake in mining operations in the country.
Indophil now holds a 34.23 percent interest with the remaining 3.27 percent soon to be acquired through an agreement with Filipino partner Alsons Corp.
Alsons earlier yielded its 5 percent stake to Indophil and will be fully realized as key milestones in the Tampakan project, which is staunchly opposed by the local Catholic Church and environmentalists.
Indophil completed the pre-feasibility study of the Tampakan project in 2006 at a Au$27 million but Xstrata decided to extend the study when it assumed management control in March last year.
"Strategic planning studies have commenced to examine a range of options, taking into consideration the findings of the XPFS work program. A project master schedule and layout plan is being compiled," the latest quarterly report of Indophil said.
Concentrator design has commenced, using an international engineering company, it added.
Xstrata is also finalizing infrastructure studies on power generation and transmission, port facilities, transport logistics, site access roads, permanent camp and resettlement village layouts, Indophil revealed.
A scope for the Environmental and Social Impact Assessment, including the community consultation process and approval pathway, continues to be developed by Xstrata, the Australian miner said.
Company sources said the extended pre-feasibility study is being simultaneously conducted together with the main feasibility study.
The Tampakan project, based on initial company studies, potentially contains 11.6 million tons of copper and 14.6 million ounces of gold at a 0.3 copper cut-off grade. It is said to be the largest undeveloped copper deposit in Southeast Asia. (BSS)
