xstrata not worried??

Link

http://www.phongpo.com/2010/06/11/xstrata-unaffected-by-the-ban-on-5-2-bln-philippine-project/

Xstrata unaffected by the ban on $ 5.2 bln Philippine project
JUNE 11, 2010 POSTED IN NEWS
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MANILA A unit of global miner Xstrata (XTA.L) on Friday vowed to continue public discussions on technical studies and $ 5,200,000,000 copper-gold project in the southern Philippines, despite the risk of a ban the company. Manila has ambitious plans for the mining of the current moribund state to attract billions of dollars to lure foreign investment for development, but analysts warn of the ban would be an important test case of its policy to prove, and such moves derailed.
The Tampakan mine, as the largest undeveloped copper in Southeast Asia-gold prospect, was opposed by local residents, who feared for the open pit mining methods used by Xstratas Philippine affiliate Sagittarius Mines Inc., a major river irrigates farms pollute. My production is set to start in 2016.
We will continue our commitments and with which trials, said John Arnaldo, Sagittarius Mines spokesman.
Of course, our shareholders are concerned, he told Reuters. We respect, whatever the decision of the provincial board and the governor could have and we will one step at a time.
Xstrata could continue its pre-development work on mine because the restriction is not to take effect, the Agency of Mines and Geosciences Bureau (MGB) said.
The agency also said it may ban the court as a last resort issue, adding the measure of investment in the mining sector hamper.
On Wednesday, the Legislative Council of South Cotabato province in the south of the Philippines passed a law banning open pit mining due to environmental concerns, a step that directly affects the Tampakan Xstrata mine project the worlds fourth largest copper producer. [ID: nSGE6590LL]
Provincial Governor Daisy Avance Fuentes told Reuters, that she was likely to approve the measure because of its broad local support, adding the ban in force before the local officials to resign on June 30.
Legal road
The government would use all means to occupants all necessary safety and environmental safeguards would be in place around the Tampakan mine, MGB Director Edwin Domingo said. He added that Manila was hopeful the new local government takeover by the end of June it would reconsider the ban and change.
There is still the legal process, because we sincerely believe that national laws are superior to local law. As much as possible, we do not want to go into that corner, Domingo told Reuters on Friday.
We would rather to exercise and to maximize all available efforts to really continue to discuss with stakeholders their various issues and problems.
This is a negative impact on our future investors. Many of our copper and gold deposits can be economically and technically developed only through open pit mining.
Analysts criticized the local government action, says that contrary to the Philippines policy and national interests.
It is very bad, said Peter Wallace, head of investment consulting firm Wallace Business Forum, told Reuters. The imposition of a restriction, it is shortsighted.
You can write because Xstrata in mining has a long way and is now well known in the mining community, he said. People in that area. What is happening here is an indicator of the acceptability of other companies coming as well. So its an important test case.
Xstrata has completed a feasibility study of Tampakan, with an estimated resource of 2.2 billion tons with 12.8 million tons of copper and 15.2 million ounces of gold on a by 0.3 percent copper cut-off grade is.
Other analysts say that the Philippine measure other countries quickly in the same way too strict measures to protect the environment.
Indo Phil Australia Resources NL (IRN.AX) has a 34 percent stake in the venture Tampakan. The mine, discovered in 1991, never left the drawing board because he was dogged by environmental woes, communist uprisings and political instability.