MANILA, Philippines - Sagittarius Mines Inc. (SMI) would like to present the benefits of the Tampakan copper-gold project to the economy and the government to President Aquino during its visit to Malacañang.
SMI is scheduling a Malacañang presentation but the company has not been given a schedule yet, Board of Investments (BOI) managing head Cristino L. Panlilio told reporters.
“This is a very good project. I am for responsible mining,” Panlilio who is also Trade undersecretary, said.
According to Panlilio, SMI is inviting the BOI when they make their presentation to the Office of the President. During this meeting, he said the firm will highlight their future contribution to the economy in the form of taxes, duties and franchise fee.
Based on the study of SMI, in the 25-year period of operations assuming a gross revenue of $45 billion, the firm will be able to remit $6.92 billion to the government. This represents 15.2% of the company’s revenue.
For instance the 30% tax on the earnings before interest and tax of the Tampakan project will be able to yield $2.77 billion for the government while the dividends withholding tax is already $1.79 billion
The Tampakan copper-gold project is located on the southern Philippine island of Mindanao, approximately 65 kilometers north of General Santos City.
The project is situated on the boundaries of four provinces: South Cotabato, Sarangani, Sultan Kudarat and Davao del Sur, and represents one of the largest undeveloped copper-gold deposits in the Southeast Asia-Western Pacific region.
The Tampakan project is expected to contain a 2.4-billion metric ton deposit, containing 13.5 million metric tons of copper and 15.8 million ounces of gold at a 0.3% cut-off grade.
SMI submitted the mining project feasibility study for the Tampakan project to the Philippine government in April 2010 and is progressing with the Mine and Off-site Infrastructure Environmental Impact Assessments (EIAs). SMI expects to submit the Mine Environmental Impact Assessment (EIS) to the government by the second half of 2011.
Subject to all necessary community, government and shareholder approvals, SMI estimates that production from the $5.9 billion Tampakan project could commence by 2016. If developed, it is estimated that the project would contribute an average of P134 billion to the country’s GDP.