Sagittarius Mines Inc., which operates the Philippines-based Tampakan copper-gold mine on behalf of Xstrata plc (LSE:XTA) and two other shareholders, announced that it is delaying the start of production at the mine by three years. Production is now expected to begin in 2019.
Peter Forrestal, president of Sagittarius, commented:
We are now focussed on formalising the consent of the indigenous people, consulting with the community on resettlement plans and, following elections in May 2013, seeking formal local government endorsement for the Project.
The Project has experienced a number of challenges since we submitted our Mine Project Feasibility Study. These have included restrictions on field activities resulting from security issues in the Project area; the need to reconsider our preferred power supply options for the Project; the on-going uncertainty created by a provincial ordinance that is in conflict with national law, and the denial of the Mine Environmental Compliance Certificate by the Philippine Department of Environment and Natural Resources, which is currently under appeal to the Office of the President.