firstly, shouldnt the company have made an announcement regarding the attack? i though it would have been appropriate to inform shareholders. Initially i htought they didnt have enough time to gather the facts from xstrata but the fact that the following article is already available with repair costs suggests otherwise. anyway, probably a good thing since it minimised panic selling.
www.kitcometals.com
Xstrata plc`s Philippine unit, Sagittarius Mines Inc will proceed with the Tampakan project, Southeast Asia`s largest undeveloped copper resource, after suffering damage worth US$290,000 in a New Year`s Day attack by communist rebels.
"The buildings burnt can easily be replaced," Rolando Doria, Sagittarius`s government affairs superintendent, said by phone on Friday. "Sagittarius Mines remains committed to pursuing the project."
The government plans to boost security around mines after the pre-dawn assault by the armed wing of the Communist Party of the Philippines as it attempts to attract as much as US$6.7 billion in investment into mining.
The Asian country is rich in metals, including copper, nickel and gold, which may be worth US$1 trillion.
The New People`s Army destroyed a building used by geologists and workers` living quarters, Doria said. Tampakan, which also contains gold, is 50 km (31 miles) north of General Santos City on Mindanao Island.
Doria declined to comment on whether Sagittarius would seek the military`s help in improving security.
Ernesto Torres, an army spokesman, said yesterday more soldiers may be deployed if requested by mining companies threatened by the New People`s Army.
"Among other factors, the resumption of operations will strongly consider the local community`s support to improve security," Gerardo Laviste, Sagittarius`s resident manager, said in a company statement dated January 3. The statement listed the estimate of the damage, which it said was preliminary.
The New People`s Army has vowed to strike at overseas mining companies operating in the Philippines, accusing them of plundering national resources.
The January 1 attack was intended to punish Zug, Switzerland-based Xstrata, according to a January 2 statement from the Communist Party of the Philippines. Xstrata owns 62.5% of Tampakan.
IRN Price at posting:
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