Sagittarius Mines upset over ban on open pit mining methods

MANILA, Philippines - Sagittarius Mines Inc. (SMI) said it is upset with the decision by the South Cotabato provincial government to approve the South Cotabato Environment Code, a provincial ordinance that includes a ban on the use of open pit mining methods in the province.

In a statement, SMI general manager Mark Williams said the decision is “a disappointing outcome given the significant stakeholder support shown for the Tampakan project during the public scoping meetings held late last year, and the recent formal recognition of the project by the Regional Minerals Development Councils of Regions XI and XII as the flagship project for their respective regions.”

“SMI has undertaken extensive technical studies, led by international specialists in mining and engineering, to assess potential mining methods for the Tampakan deposit. These studies identified open pit mining as the safest and only economic extraction method, given the configuration of the deposit and the geo-logy of the region,” Williams said.

He reiterated that “SMI undertook an extensive program of stakeholder briefings as well as four public scoping meetings during the fourth quarter of 2009 as part of the Tampakan project’s environmental and social impact assessment (ESIA) process.

“At these forums, SMI presented the proposed mine plan for the Tampakan deposit including details on the final area, mining method, mine facilities and processes, potential benefits and impacts of the mine as well as an outline of the ESIA process and timeline.

“As detailed at these forums, SMI expects to complete the ESIA and supporting technical studies in the fourth quarter of 2010,” Williams stressed.

He further assured that SMI has consistently stated that these studies will be made available to stakeholders following their completion and submission as part of SMI’s application for an environmental compliance certificate for the Tampakan project.

 “SMI remains committed to the principles of sustainable development endorsed by the Code and believes open pit mining methods are entirely compatible with these principles,” he said.

However, Wiiliams said they “remain concerned regarding the Code’s potential impact on the Tampakan project and will continue to monitor this issue closely and consider our available options.”

SMI is 40 percent controlled by a joint venture among Australian mining grant Xstrata copper (62.5 percent ), Indophil Resources (34.2 percent) and Alsons Corp. (3.33 percent). The 60-percent non-controlling equity shareholders are Tampakan Mining Corp. and Southeast Mining Corp.

The Tampakan project, approximately 65 kilometers north of Gen. Santos City, represents one of the largest undeveloped copper-gold deposits in the Southeast Asia-Western Pacific region.