smi- tampakan: investing in a sustainable future
DESCRIPTION
SMI: Investing in a Sustainable FutureOne of the largest undeveloped copper-gold deposits in Southeast Asia•Potential to become the largest mine in the Philippines and the fifth largest copper mine in the world•Capital investment for mine and related infrastructure in excess of USD5B•20+ years mine lifeTRANSCRIPT
SMI: Investing in a Sustainable Future
Mining Philippines 201016 September 2010
Mark Williams
General Manager
The Tampakan Copper-Gold Project
• One of the largest undeveloped copper-gold deposits in Southeast Asia
• Potential to become the largest mine in the Philippines and the fifth largest copper mine in the world
• Capital investment for mine and related infrastructure in excess of USD5B
• 20+ years mine life
Proposed Project Location
Current Progress: ESIA
Milestones 2009 2010 2011
Mine ESIA
Power station, port and filter plant ESIA
Concentrate pipeline,electricity transmission system and access roads ESIA
GDP impact of the Tampakan Copper-Gold Project
• Revenue stream to the Philippine economy is estimated at USD40 billion over the life of the mine
• Potential to increase the country’s gross domestic product (GDP) by an average of 1% per year for 25 years
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034
% o
f P
hilip
pine
s G
DP
Other (tax)
Other VA
Mining VA
Investment
Data Source: Centre for International Economics, July 2010 (Based on MPFS assumptions of April 2010)
Opportunities for Business and Employment
• Potential to create 10,000 jobs during the construction, and over 2,000 when the mine starts to operate
• USD5.8 billion in taxes and duties would be remitted to the Philippine government
• USD881 million to be spent on goods and services -- in the Philippines alone -- during the construction period
• USD892 million to be spent on Philippines goods and services over the initial operations phase
49%
21%
19%
4%7%
Local
Wages
Catering
Limestone
Contractors
Maintenance
and Others
Breakdown of economic opportunities
Opportunities and Challenges
• Passage of the South Cotabato Environment Code with a ban on open pit mining methods in the province remains a major concern
• SMI values the continuing stakeholder support to SMI and the Project
• RDC XII’s declaration of Tampakan as flagship mining project of the region
• South Cotabato IP Community
• Host communities
Opportunities and Challenges
• Stakeholders’ better understanding of the project and how it may affect their lives
• Timely resolution on the opposing views regarding open pit mining methods through a continuing open and transparent engagement and dialogue with all parties concerned
• Heightened communication and engagement activities to enable stakeholders arrive at an informed decision on the Project
Foundations for Investment
• Public-Private Partnership Policy of the Government
• Six priority areas pinpointed by NEDA to spur growth and development:
• housing
• mining
• electronics
• business process outsourcing
• tourism
• agri-business
• 2010-2014 Philippine Investments Promotion Plan (PIPP) drawn up by the Department of Trade and Industry focuses on eight key sectors included Mining
Moving Forward
• Submission of ESIA for proposed mining operation in 1H 2011
• Finalization of ESIAs for supporting infrastructure and facilities in 2H 2011
• Securing Free and Prior Informed Consent from host Indigenous communities
• Community consultations for resettlement
Our Commitment to Sustainable Development
• We balance social, environmental and economic considerations in how we manage our business
• In 2009, SMI contributed more than PHP 1.3 billion to the Philippine economy and invested more than PHP 79 million on community development initiatives
• SMI publicly reports on its SD performance
• SD reports published annual and preparedin accordance with the Global Reporting Initiative (GRI) guidelines
Thank You