Indophil may sign final agreement to take control of Glencore’s $5.9bn Tampakan project

1 July 2015 (Last Updated July 1st, 2015 18:30)

Australian mining company Indophil Resources is considering signing a final agreement by the middle this month to take over the $5.9bn Tampakan copper-gold project in the Philippines from Glencore.

Australian mining company Indophil Resources is considering signing a final agreement by the middle this month to take over the $5.9bn Tampakan copper-gold project in the Philippines from Glencore.

Last week, Glencore executed a share sale agreement with an affiliate of Indophil to dispose its entire remaining interest in the project.

In January, a Glencore subsidiary sold its shares in Indophil to Alsons Prime Investments as part of a scheme of arrangement in Australia.

Indophil holds a 37.5% interest in the class A shares of Sagittarius Mines (SMI) and owns Tampakan.

"There are a number of conditions, notifications and actions that must take place before the anticipated mid-July formal signing of the agreement."

Indophil Resources spokesman Gavan Collery told Reuters: "There are a number of conditions, notifications and actions that must take place before the anticipated mid-July formal signing of the agreement."

Glencore previously announced its plans to review the Tampakan project along with other greenfield projects.

Operated by SMI, the Tampakan project is a 2.94 billion tonne deposit and contains 15 million tonnes of copper and 17.6 million ounces of gold at a 0.2% cut-off grade.

Following a project feasibility study that was completed in 2010 and submitted to the national government, it was found that the project is both technically and financially viable.

Plans were in place to begin commercial production from the project in 2019, but were delayed due to setbacks ranging from a provincial ban on open-pit mining.