10 July 2012ACN 076 318 173PHILIPPINE GOVERNMENT DELIVERSNEW...

10 July 2012
ACN 076 318 173
PHILIPPINE GOVERNMENT DELIVERS
NEW MINING POLICY
Indophil Resources advises its shareholders that the Philippine Government has issued a new and
long-awaited Mining Policy in the form of an Executive Order under the authority of the President, His
Excellency Benigno S. Aquino III.
The new Executive Order, based on a broadly-communicated six-point Mining Policy, addresses 22
agenda items which include a detailed direction requiring local government ordinances to be brought
into line with the Philippine Constitution and national laws.
This conformity issue is of considerable importance to Indophil, its shareholders and the Tampakan
Copper-Gold Project, in which Indophil holds a 37.5% interest under a Financial and Technical
Assistance Agreement (FTAA) with the Philippine Government.
The new Executive Order in part says: “The Department of Interior and Local Government and the
LGUs (Local Government Units) are hereby directed to ensure that the exercise of the latter’s powers
and functions is consistent with and conform to the regulations, decisions and policies already
promulgated and taken by the National Government relating to the conservation, management,
development and proper utilization of the State’s mineral resources . . .”
In 2010, and under pressure from anti-mining and anti-foreign investment lobby groups, the province of
South Cotabato in which the Tampakan deposit is located, adopted a local ordinance that purports to
ban open pit mining. The most environmentally-friendly and economical method of mining the
Tampakan deposit is by open pit mining, a form of mining method permitted under Philippine national
law. The issuance of the new Executive Order should be a catalyst to removing the open pit mining ban
in South Cotabato.
Indophil’s CEO, Richard Laufmann, has welcomed the new Mining Policy and the National
Government’s commitment implied in the section of the Executive Order that directs LGUs to conform to
national law.
“Indophil commends the National Government for confirming the primacy of Philippine national mining
law. This directive is a valuable step on the path to achieving the necessary approvals for the
Tampakan Project from both the national and provincial governments,” Mr Laufmann said.
“The Tampakan Project study process has been comprehensive and world-class. It has involved
extensive community and government consultation, addressed the technical, environmental and
community concerns, and detailed the many benefits for stakeholders.”
Mr Laufmann went on to say: “The issuing of this Executive Order is a strong sign that the Philippines
welcomes those who advocate responsible mining. This initiative, led by President Aquino, will be
appreciated by those seeking to invest in the future of the Philippines.”
Despite a direction that existing mining contracts and agreements shall be subjected to possible
renegotiation if mutually acceptable to government and the contractor, international investors are
expected to welcome the Philippine Government’s reaffirmation that existing agreements, contracts,
rights and obligations will be honoured.
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“Indophil looks forward to working with the Aquino Administration to follow through on this new Mining
Policy and delivering a development-friendly investment environment; one that will allow us, our
partners and other companies to do business successfully, while at the same time contributing to the
growth of the Philippine economy and the Government’s fight against poverty,” Mr Laufmann added.