SYDNEY, Australia - Trade Secretary Gregory Domingo said President Benigno Aquino III will take charge of clearing the way for Xstrata Plc and Indophil Resources NL's almost $6-billion Tampakan gold and copper project in southern Mindanao to proceed after it was stalled by a provincial ordinance against open-pit mining.
"I heard the president say he will personally handle it," Domingo said in speech at a Sydney dinner organized by the Australia-Philippines Business Council. Domingo and Foreign Affairs Secretary Albert del Rosario will be in Canberra on Wednesday for talks with their Australian counterparts and businessmen.
"This issue erodes investor confidence," Andrew Pickford, Xstrata's general manager for the project, told reporters at the event. Still, he said he was "confident"’ the project will obtain all necessary approvals and proceed to the development stage by the end of next year, starting with the Environmental Impact Statement if it is released Tuesday. After discussing this with stakeholders, it will seek an environmental compliance certificate from the Environmental Management Bureau and then a Declaration of Mining feasibility from the Department of Environment and Natural Resources and the president, he said.
"We're working with the local government and national government," he said.
Tampakan would be the biggest single investment in the country's history, according to the government. Allowing it to proceed won't only boost foreign direct investment, one of the lowest in Southeast Asia, but may also mitigate the Philippines' reputation for so-called regulatory risk, or the failure to uphold contracts and the law. Zug, Switzerland-based Xstrata is one of the world’s largest miners. Aside from pursuing the Tampakan project, Melbourne-based Indophil has claims in other parts of the Philippines.
On whether San Miguel Corp. may still buy Indophil after letting its exclusive option to do so lapse, Indophil Vice President Gavan Collery said: "We've got more than sufficient funds to meet our share of the partnership. We’re hell-bent on maintaining direct and active interest in the project through the commitment stage and on to development."
San Miguel last year bought 10% of Indophil and the 2 parties agreed to exclusive talks regarding a sale of the whole of Indophil.
Meanwhile, Domingo said the government is on track to start bidding out infrastructure contracts next month.
The government last year said it would bid out around 10 contracts this year.
Its failure to start has raised concern that the government will bid out fewer projects than it said it would through the end of Aquino's term in 2016.
Last month, Transportation Secretary Jose "Ping" de Jesus quit amid speculation Aquino wasn't satisfied with his work. Both denied that was the reason.
This month, the government said the plan – known as the public-private partnership program – isn't the "end-all and be-all" of the government’s economic blueprint.
"It has taken us a little longer than expected," Domingo said. By next month "you’ll see projects pushed out the door," he added. He said these would be in a "pipeline" and be pushed out for bids one by one.
"The President has accomplished a lot in twelve months," he said. The results are "not yet evident" but will be so in the next six to 18 months, Domingo said.
