DIGOS CITY—Xstrata’s Sagittarius Mines Inc. (SMI) has moved forward anew, its third time to do so, its projected year for full commercial operation, citing “various challenges, including security and conflicting laws” as among the reasons.
In a statement sent to the Inquirer on Wednesday, SMI president Peter Forrestal said the mining company has submitted an updated development plan for the $5.9-billion Tampakan Copper-Gold project with 2019 as the potential start of commercial production.
Earlier this year, even as it was awaiting decision on its application for environmental compliance certificate (ECC), a document that would be a step closer to full mining production, SMI said it estimated that actual mining operations could start in 2016.
Then the Department of Environment and Natural Resources’ denial of the application came and SMI announced in August it was pushing forward the estimated full commercial operation to 2018.
Aside from the rejection of its ECC application, SMI—also partly owned by Australia’s Indophil Resources, in which San Miguel Corp. has a 10-percent stake—said the delay was also brought about by changes in the location of some of its facilities.
“Our project has experienced a number of challenges, particularly in the past months,” John Arnaldo, SMI corporate communications officer, had said.
Forrestal said SMI was not thinking of backing out of the project amid the problems it has been encountering, including the passage of a ban on open-pit mining—the very method that the company had planned to use—by the South Cotabato provincial board.
SMI has challenged the ban, citing its alleged conflict with the 1995 mining law and is awaiting Malacañang’s decision on the issue.
Forrestal said SMI continues to draw courage from the results of its consultations with tribal people in the area. Orlando B. Dinoy, Inquirer Mindanao