PHILIPPINES Case Study 02 Location: Tampakan, Mindanao (South Cotobato) Event: The Tampakan project, touted as the largest known undeveloped copper-gold minefield in Southeast Asia, was restricted by the open-pit mining ban imposed on South Cotabato since 2010. A report by Indophil conceded that the Tampakan project, located in the troubled southern island of Mindanao, had run into problems, chiefly the provincial governments ban on open-pit mining which delayed the start of development. The mine would be the Philippines largest ever foreign investment but it has faced opposition from church, community and environmental groups. The project would require numerous other government and community permits to be obtained. Bishops, led by new Cardinal and Cotabato Archbishop Orlando Quevedo wrote a letter to President Benigno Aquino III, noting that while mining can contribute to the economy, the project by global miner Xstrata Plc’s Philippines unit may harm the local community and environment. Church leaders also stressed their opposition to the project is based on “moral grounds,” being against the integrity of God’s creation as well as the destruction of almost 4,000 hectares of land. The aim of extracting 13.5 million metric tons of copper and 15.8 million ounces of gold, could theoretically provide P134 billion to the economy each year. The government eventually issued an environmental compliance certificate to Sagittarius, a unit of Xstrata, in February 2013, despite appeals by various sectors to halt the project. Marbel Bishop Dinualdo Gutierrez claimed Aquino ignored a petition of more than 100,000 people to scrap the mining project. In August, 2013, Glencore Xstrata said it was laying off nearly all workers at the Tampakan project amid continued delays, although Indophil said in its quarterly report that the company and its local partners remain optimistic that the pathways for the development of Tampakan will be cleared. Glencore Xstrata owns 62.5 percent and Indophil owns 37.5 percent of a joint venture that holds a 40-percent controlling stake in Sagittarius Mines, Inc., which operates the Tampakan project. Companies affected: Indophil, Glencore Xstrata, Sagittarius Mines, Inc. [Munden Project New Report 2014]
Posted on: Thu, 30 Oct 2014 17:35:00 +0000