Foreign groups keen on $5.2-billion Tampakan copper-gold project

MANILA, Philippines – Australian mining giant BHP Billiton, Brazilian iron ore giant Vale and eight to 10 Chinese sovereign funds may all be trying to get involved in what may be the biggest foreign investment of $5.2 billion in the Philippine mining sector – the potentially rich Tampakan copper-gold project in South Cotabato, Mindanao.

Indophil Resources NL chief executive officer and managing director Richard Laufmann gave this observation in an exclusive interview with The STAR.

Laufmann said he heard that BHP and Vale have been trying to buy into Xstrata, one of Indophil’s partners in Tampakan along with Alsons Corp. and the Tampakan Group of Companies.

According to Laufmann, “all are trying to take over one another to get the project.” He said the Tampakan copper-gold project is special because it is the biggest copper ore mine found since the 1970s.

Tampakan has an estimated 2.2 billion tons in mineral resources containing an estimated 12.8 million tons of copper and 15.2 million ounces of gold.

It has an estimated mine life of 20 to 40 years, Laufmann said, with a possible extension of another 20 years.

Big mining companies like BHP and Vale, 12 Laufmann said, are always looking for potentially-rich projects and are prepared to take over rival firms which may control prized projects.

Aside from BHP and Vale, Laufmann said, at least eight Chinese sovereign funds continue to express interest in participating in the Tampakan project.

An investment of around $5.2 billion, Laufmann said, is expected to be invested in the project for major infrastructure works for the mine site, roads, port, power plant and transmission line and other vital infrastructure for the project.

A final feasibility study is still to be awarded to one of two project consultants in the next two weeks.