Reuters reported that the governor of a southern Philippine province that imposed a ban on open pit mining threatening the country's largest mineral prospect said a review of the ban was possible but there is slim chance it would be overturned.

Public consultations on the ban that could jeopardize global miner Xstrata Plc's USD 5.9 billion Tampakan copper gold project were held last month to help the provincial board decide whether a review of the controversial mining code was necessary. But Xstrata's local affiliate, Sagittarius Mines Inc needs to convince the provincial government that the project will not harm the environment.

Mr Arthur Pingoy governor of South Cotabato said that "It will be up to the provincial board whether to review it. While I was among those who proposed a review and believe that the code should be fine-tuned, I belong to the minority."

Mr Pingoy said that he would likely sign this week the draft rules and regulations covering the imposition of the ban which was passed by local legislators in June last year. Local residents and most members of the provincial legislative board oppose open pit mining, fearing that the method to be used in the Tampakan copper and gold project will pollute a major river irrigating farms. The project cost was revised from an earlier estimate of USD 5.2 billion after the proponents included the construction of a power facility to support the mine.

He said that production at Tampakan is scheduled to start in 2016 with the largest undeveloped copper gold prospect in Southeast Asia estimated to contain 13.5 million tonnes of copper and 15.8 million ounces of gold at a 0.3% cut off grade.

Mr Pingoy said that Sagittarius could proceed with its pre mining activities despite the ban. When they start open pit mining that's when we will intervene.

(Sourced from Reuters)