"Friday, May 29, 2009 | MANILA, PHILIPPINES
Corporate News
Sagittarius Mines, Tampakan town reach deal
GENERAL SANTOS — Foreign-backed Sagittarius Mines, Inc. has reached a four-year deal with the local government of Tampakan, South Cotabato, effectively ending a ban imposed by town officials on the miner’s operations.
The municipal council had passed a resolution imposing a moratorium on the mining operations of Sagittarius, which is exploring huge copper and gold deposits.
Tampakan acting Vice-Mayor Relly A. Leysa told reporters the firm and the local government finally fixed early this week a revised municipal principal agreement that was supposed to be finished last year.
"The major point of that final principal agreement between the firm and Tampakan is the creation of an oversight committee, which shall monitor the responsibilities of both parties," he said.
Sagittarius Mines is also doubling the annual community development commitment fund to the local government to P4 million from just P2 million, Mr. Leysa said.
On top of the commitment fund, the local government is proposing another development fund that the miner and the local government will jointly supervise, the official said, without disclosing the figure.
With the signing of the principal agreement, Mr. Leysa said the resolution barring the firm from operating in the town is considered void.
The acting vice-mayor earlier said the town council ordered the moratorium since Sagittarius Mines did not give due attention to the review and approval of the principal agreement.
The new agreement also establishes two important mechanisms: the committees on land use compensation and crop damage, Mr. Leysa said.
The committees will determine the landowners qualified for remuneration as a result of the company’s operation, the official explained.
Sagittarius Mines, which is largely owned by Xstrata Copper with Australian firm Indophil Resources NL as junior partner, announced last month it would likely use the open-pit mining method in extracting minerals.
The Catholic Church is opposing the Tampakan copper and gold project, which also straddles the towns of Columbio in Sultan Kudarat and Kiblawan in Davao del Sur.
Sagittarius Mines has separate principal agreements with these towns and with the host villages and tribal communities within the mine’s development site.
John B. Arnaldo, Sagittarius Mines spokesman, said the Tampakan agreement, which was signed last Tuesday, will be renewed or assessed every four years. "This is part of our commitment toward the sustainable development of the community. The updated agreement encourages active local government participation and intervention in pursuing the sustainable development of Tampakan," Mr. Arnaldo said.
Based on its extended pre-feasibility study, Sagittarius aims to go into commercial stream by 2016, with capital expenditures reaching at least $5.2 billion.
The Tampakan project contains 12.8 million metric tons of copper and 15.2 million ounces of gold. — Romer S. Sarmiento"
http://www.bworldonline.com/BW052909/content.php?id=048
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