Tampakan costs rise for Xstrata
Filed under: Mine - Tampakan, Mineral - Copper, Mineral - Gold, Operator - Indophil Resources NL, Region 12 - South Cotabato
Indophil Resources NL has increased its cost estimate for the Tampakan copper-gold project by 40% to US$1.4 billion, while Xstrata plc has announced that it will fund further exploration work at the site.
Earlier this year, Indophil managing director Tony Robbins said the project would likely cost over US$1 billion - although he admitted that the exact cost would not be known until a pre-feasibility study had been carried out. That study was completed last month.
Separately at Tampakan, Xstrata has decided to fund further exploration work before deciding whether to take up a buy-in option which would entitle it to 62.5% of the project.
Xstrata has until the end of December 2007 to make a decision on whether to proceed with the option, which would require it to pay A$50-60 million, depending on if it exercises the option this year or next year.
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