The Tampakan Project is one of the largest undeveloped copper-gold deposits in South East Asia and has the potential to significantly enhance the economic and social development of the Philippines and the Mindanao region.

Sagittarius Mines, Inc. (SMI) is committed to advancing the Tampakan Project in line with leading environmental and industry best practices and in partnership with our stakeholders.

SMI is committed to extensive, open and transparent public consultation with all project stakeholders. Commencing in November 2009, we will hold a series of public consultation meetings regarding the proposed mine plan as part of the Environmental Impact Assessment (EIA) process.

SMI takes its environmental and social responsibilities very seriously and feedback from our stakeholders together with the results of our specialist studies will be incorporated into our project designs and planning.

Answers to some of the most commonly asked questions about the Tampakan Project EIA can be found below.

Water

Local communities rely on the river systems for their livelihoods. How will you ensure the Tampakan Project will not pollute or take water from the river systems?

SMI understand that water quality and security are important issues for local communities and many of our other stakeholders. Our project planning is focused on maintaining the long-term beneficial and equitable use of water resources in the project area.

As part of the extended pre-feasibility phase, we have undertaken extensive baseline monitoring studies to assess water quality, surface and groundwater flow, aquatic biology and rainfall in the region.

We are currently undertaking further specialist studies on water management as part of the project’s EIA.

The results of all these studies will be used to refine SMI’s engineering designs and water management plan to ensure downstream water supplies will not be adversely affected by any proposed development of the Tampakan Project.

The water management plan is being developed based on extensive risk assessments and in the context of both climate change and water stress.

Open Pit

I’ve heard open pit mining can be harmful to the environment. Why has SMI chosen this methodology for the Tampakan Project?

SMI undertook extensive technical studies, lead by international specialists in mining and engineering, to assess potential mining methods for the Tampakan deposit.

These studies identified open pit mining as the most appropriate, economic and safe extraction method given the location of the deposit and the geology of the region.

Further specialist studies in key areas such as soil and land use, ground and surface water, terrestrial and freshwater biology, and site rehabilitation are being undertaken as part of the Tampakan Project’s EIA.

The results of these studies will be used to refine SMI’s environmental management plan to avoid, minimise and mitigate potential impacts of any proposed operation.

Mine Waste Management

What measures are SMI taking to ensure local communities and the environment are not adversely affected by waste from the Tampakan Project?

SMI undertook extensive technical, geological and environmental studies to assess potential waste management options for the Tampakan Project.

We are currently undertaking further specialist studies in relation to waste management as part of the project’s Feasibility Study. The results of these studies will be used to refine SMI’s waste management plan to ensure local communities and the environment will not be adversely affected by any proposed development of the Tampakan Project.

The waste management plan is being developed based on extensive risk assessments and in the context of regional weather patterns and geological conditions.

Resettlement

Will people be resettled and what are SMI’s plans for them?

SMI’s policy is to avoid the need for resettlement wherever possible, however where resettlement is required, we will adhere to national laws and international best practices including World Bank and the International Finance Corporation (IFC) guidelines.

SMI is also committed to securing Free and Prior Informed Consent (FPIC) from the indigenous peoples (IPs) prior to any resettlement taking place.

We will partner with the appropriate provincial governments through the Provincial Development Council (PDC) and the United Nation Human Settlements Programme (UN-HABITAT) in the planning and implementation of SMI’s resettlement program for the communities living within the project area.

The proposed final area for the Tampakan Copper-Gold Project covers approximately 9,460 hectares within the municipalities of Tampakan, Kiblawan, Columbio, and Malungon.

Free and Prior Informed Consent (FPIC)

Will SMI be seeking FPIC for the development of the Tampakan Project?

SMI will seek Free and Prior Informed Consent (FPIC) from the indigenous peoples (IPs) prior to any resettlement taking place.

We will also partner with the appropriate provincial governments through the Provincial Development Council (PDC) and the United Nation Human Settlements Programme (UN-HABITAT) in the planning and implementation of SMI’s resettlement program for the communities living within the project area.

SMI will undertake the FPIC process in accordance with the Philippine Indigenous Peoples Rights Act and in-line with international best practices including World Bank and the International Finance Corporation (IFC) guidelines.

Human Rights & Security

Is it true that SMI has been relying on government forces to protect its assets?

SMI has adopted the Voluntary Principles on Security and Human Rights (VPSHR) and our major funding shareholder, Xstrata, is a signatory to the UN Global Compact.

SMI supports a multi-stakeholder approach to improving security conditions in the Tampakan project area in which the community’s participation and support, as well as the national, local and provincial governments all play important roles.

SMI does not engage public security personnel to protect our workforce or assets.
We employ a licensed, private security service provider and we work closely with them to ensure all security personnel deployed to safeguard our people and assets have received appropriate human rights training.

We believe our strong reputation for community engagement and social responsibility and our demonstrated commitment to working with local authorities and communities will enable us to continue to build constructive relationships with our stakeholders, minimise risk, and secure an ongoing license to operate.

The safety and security of our employees and contractors is our priority and we will continue to work with the host communities, our security service provider, and the local authorities to promote peace and order in the region.

Distribution of Economic Benefits

How will the economic benefits be determined and will local communities receive their fair share?

SMI will continue to consult with national, regional and local governments, local communities and indigenous peoples regarding the distribution of economic benefits in accordance with the Philippine Mining Act and sustainable development best practices.

Although still in the exploration phase, the Tampakan Project already delivers significant benefits to the host municipalities and surrounding communities in terms of employment, purchase of goods and services, taxes and other charges and community development projects.

In 2008, the Tampakan project contributed PhP 1.2 billion to the Mindanao and Philippine economies and created direct employment for more than 200 people and provided rotational shift work for a further 1,055 local people.

SMI continues to support community and social development programs in the areas of health, education, capacity building, livelihood and skills development, and last year invested PhP 65 million on these initiatives.

Food Security

Mindanao is considered to be the food basket of the Philippines. Will the mine take over lands that would otherwise be used for farming?

The land required for the proposed development of the Tampakan Project is not suitable for large-scale crop or livestock farming.

SMI supports local farmers in the region through its partnership with the Tampakan Farmers Federation, which represents over 3,000 farmers, and through our investment in community food security and livelihood programs.