Sagittarius Mines Inc., the firm behind the proposed $5.9-billion Tampakan copper-gold project in South Cotabato, is urging the government to ensure that the proposed mining reforms will create a suitable trade climate to boost investors’ confidence.
In a forum held on Wednesday, SMI general manager Mark Williams said the proposed mining reforms should be able to promote consistency in government policies and must honor and uphold existing mining contracts so as not to dampen the investment climate.
Williams declined to comment on the specific mining reforms under a draft executive order that was earlier reported in the Inquirer, saying only that SMI has yet to formally receive a copy as there may be “more than one” draft EO being circulated.
The proposed reforms, according to Williams, must ensure that local ordinances will not overturn national policies.
He explained that in the case of SMI, the mining firm was not granted an environmental compliance certificate (ECC) due to a ban on open pit mining spelled out in an ordinance issued by the provincial government of South Cotabato.
According to an international expert on resource economics, the Tampakan project may be a “potential game changer for the Philippines,” as it will bring huge economic benefits that are not often seen in mining projects.
With a $5.9-billion investment pledge, the Tampakan mining project is expected to contribute an additional average of 1 percent a year to the Philippine gross domestic product (GDP) over a 20-year period—the mine’s life expectancy, said David Pearce, executive director at the University Centre for International Economics.
Government revenues, through a variety of taxes and charges, are estimated to reach P307 billion over the 20-year mine life. Royalty payments and contributions to local indigenous groups alone are estimated to reach P39.8 billion.
Roughly 10,000 workers may be hired during the peak of the construction phase while direct employment opportunities for about 2000 workers are expected during the operations phase.