PHL govt wary of profit-sharing scheme with Sagittarius on Tampakan

The Philippine government is concern that it may get its rightful share in mining revenues from the Tampakan project in South Cotabato if project proponent Sagittarius Mines Inc. will insist on implementing the windfall revenue sharing scheme. Bureau of Mines and Geosciences director Leo Jasareno said on Wednesday that Sagittarius Mines is insisting on a fiscal regime that puts the Philippine government at a disadvantage. In a windfall scheme, the mining firm gets to keep the profit until after the amount reaches a certain level before the national government can collect its share. GMA News Online talked to Sagittarius Mines, and an official with the company’s external communications department said the company will issue a statement on the matter at the appropriate time. “Their lawyers think they have a legal basis to push for that scheme. The excess profit or what we call windfall revenue sharing has been superseded by the 50-50 percent sharing on mining revenues under the financial and technical assistance agreement," said Jasareno. “Whether the government will get bigger or smaller share, that’s beside the point. What we want is for them to recognize and adhere to the new regulation," he added. “The government gets small if not token revenues from the windfall scheme. How can we defend the project if we are not entitled to the profit? It will only reinforce the thinking that we are selling the national patrimony. The (Environment) Secretary has to act on this," Jasareno said. The Sangguniang Panlalawigan of South Cotabato has agreed to review the open pit mine clause under the provincial environmental ordinance after Sagittarius Mines formally filed a petition to review the ban on open pit mining. The Tampakan Project is a 2.4 billion metric ton deposit, containing and estimated 13.5 million metric tons of copper and 15.8 million ounces of gold at a 0.3 percent cut-off grade. It is operated by Philippine-based affiliate Sagittarius Mines. It’s 40 percent controlling equity is a joint venture between Australia’s Xstrata Copper and Indophil Resources NL. The 60 percent non-controlling equity shareholders include the Tampakan Mining Corp. and Southcot Mining Corp. — VS, GMA News