Mining giant Glencore-Xstrata is preparing to offload its holding in the South Cotabato, Philippine-based Tampakan copper-gold mine, according to Glencore's minority partner Indophil Resources NL. The latter confirmed the stake sale in a report submitted to the Australian Stock Exchange, according to Rappler.
Indophil chief Richard Lauffman said in the 4th quarter 2013 report: "Glencore-Xstrata has informed Indophil of its preference to divest its stakes in Tampakan. This is consistent with Glencore's preference not to develop greenfield projects."
Lauffman added that the transaction is still being discussed and that the said stake has not yet been formally divested, the report said.
With a 62.5% stake, Glencore-Xstrata controls Tampakan project operator Sagittarius Mines Inc (SMI). Indophil holds the remaining 37.5% interest in the project, the report detailed.
Tampakan could be the largest single foreign direct investment in the Asian country. However, the project has encountered delays due to regulatory problems. Since 2010, South Cotabato has enforced a ban on open-pit mining, which is the method to be used in the said mine, the report explained.
Earlier, SMI announced that it would begin its commercial operations in 2019, but this is likely to be postponed again, Rappler reported.
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