Xstrata Plc warned it may delay the start of production at its USD 5.9 billion Tampakan copper and gold project in the southern Philippines as a result of regulatory and security concerns.

Until now, Sagittarius Mines has said it was confident it would be able to start production in 2016 despite being denied permission to start building the mine which is believed to contain one of the world's biggest copper and gold deposits.

The firm had wanted to obtain environmental clearance early this year but the government refused, meaning mine construction expected to take 2 to 3 years is unlikely to start in 2013 as planned.

The mine is estimated to contain 15 million tonnes of copper and 17.6 million ounces of gold. It is the biggest of several mining projects expected to bring in up to USD 12 billion in new investments to the Philippines in the next five years.

Mr John Arnaldo spokesman of Sagittarius said that "Our project has experienced a number of challenges, particularly in the past twelve months. Until we have addressed these challenges and obtained the necessary approvals from the government and community, it is difficult to nominate a definitive production date."

Source - Reuters

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