Investors Eye Tampakan Copper-Gold Project

BHP Billiton, Vale and eight to 10 Chinese sovereign funds may all be trying to get involved in what may be the biggest foreign investment—reportedly $5.2 billion— in the Philippine mining sector, the potentially rich Tampakan copper-gold project in South Cotabato, Mindanao.

Indophil Resources NL CEO and Managing Director Richard Laufmann said he heard that BHP and Vale have been trying to buy into Xstrata, one of Indophil’s partners in Tampakan along with Alsons Corp. and the Tampakan Group of companies.

Tampakan has an estimated 2.2 billion mt of mineral resources containing an estimated 12.8 million mt of copper and 15.2 million oz of gold. It has an estimated mine life of 20 to 40 years, Laufmann said, with a possible extension of another 20 years.

Big mining companies like BHP and Vale, Laufmann said, are always looking for potentially rich projects and are prepared to take over rival firms that may control prized projects.

About $5.2 billion, Laufmann said, is expected to be invested in the project for major infrastructure works for the mine site, roads, port, power plant and transmission line and other vital infrastructure for the project.

As featured in Womp 2009 Vol 04 - www.womp-int.com