http://business.inquirer.net/money/columns/view/20100606-274250/Is-mining-growth-inclusive

NO FREE LUNCH

No Free Lunch : Is mining growth inclusive?

http://www.businessweek.com/news/2010-06-17/philippine-new-governor-to-review-planned-open-pit-mining-ban.html

Philippine New Governor to Review Planned Open-Pit Mining Ban

June 17, 2010, 5:09 AM EDT

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By Cecilia Yap

June 17 (Bloomberg) -- Arthur Pinggoy, the incoming governor of Philippines’ South Cotobato, said he will review a proposed ban on open-pit mining by the government, potentially alleviating concerns about Xstrata Plc’s copper and gold project.

Local rulings can’t supersede national law which doesn’t prohibit open-pit mining, Pinggoy said in an interview today by phone. The current governor, Daisy Fuentes, has until June 30 to approve the ban before Pinggoy takes over.

Xstrata, the majority owner of the Tampakan deposit, said last week open-pit mining is the safest and only economic method for mining at the project. The mine, estimated to cost more than $5 billion, will be the largest foreign direct investment in the Philippines.

“We have to review the ordinance” and my legal consultants are looking into it, said Pinggoy.

Fuentes couldn’t immediately be reached for comment on her mobile phone. Her government this month passed an environment code that included a proposed ban on the use of open-pit mining in the province.

The nation’s Mines and Geosciences Bureau has said it will ask provincial officers to reconsider the proposal.

“It’s definitely a concern,” John Arnaldo, a spokesman for Xstrata’s local unit Sagittarius Mines Inc. said today in an interview. “We continue to engage in dialogue with stakeholders. We’re monitoring developments.”

The proposal adds “uncertainties” to the project, Zijin Mining Group Co. said June 11. Zijin, China’s largest gold producer, is awaiting Chinese regulatory approval to buy Australia’s Indophil Resources NL, which owns a stake in the Tampakan project.

The project will produce an average of 340,000 metric tons of copper and 350,000 ounces of gold annually for 20 years, Indophil said last year, citing a study by Xstrata.

--Editors: Tan Hwee Ann, Andrew Hobbs

To contact the reporter on this story: Cecilia Yap in Manila at This e-mail address is being protected from spambots. You need JavaScript enabled to view it To contact the editor responsible for this story: Andrew Hobbs at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .