The company behind what is set to be the Philippines鈥 largest gold and copper mine is searching for a strategic partner, its chief executive said, as it pushes back its production timeline.
Sagittarius Mines Inc. is developing the Tampakan project on its own, but is 鈥渓ooking for a strategic partner鈥 that can offer 鈥渕odern technology,鈥 Chief Executive Officer Roy Deveraturda said in a text message on Wednesday. 鈥淚 believe many companies are interested.鈥
Bloomberg News reported last year that Aluminum Corp. of China was considering to acquire a stake worth around $2 billion in Indophil Resources Phils. Inc., which owns Sagittarius. Mr. Deveraturda said he has no information when asked about the state-run Chinese company鈥檚 interest, adding he鈥檚 focused on developing the mine that鈥檚 under construction.
Tampakan is set to be the Philippines鈥 biggest mine when it starts production in 2028, later than a previous target of 2026. The mine, located in the southern Mindanao island, has been estimated to produce an average of 375,000 tons of copper and 360,000 ounces of gold in concentrate annually over a 17-year period.
The project has been stalled for years after being discovered three decades ago, with Glencore Plc exiting in 2015 and as regulatory concerns mounted, including a Philippine ban on open-pit mining that was lifted in 2021.
President Ferdinand Marcos Jr., who assumed office in 2022, has sought to revitalize the nation鈥檚 mining industry. Last month, he signed a new taxation law that the industry said could spur investments.
鈥淭he wealth from our soil should translate into schools for our children, hospitals for families, and roads that link people with opportunities鈥 he said at a mining conference on Wednesday.
Unlike its other resource-rich neighbors, only a fraction of the 9 million hectares identified by the Philippine government as having high mineral reserves is being mined. But efforts are underway to open more to investors.
The government may start auctioning off mining assets next month 鈥渟o that we can select not only the best offer for the government, but also the best companies that will operate (them),鈥 Environment Undersecretary Carlos Primo David told reporters. – Bloomberg
