Tampakan is region Philipines government plans copper-gold mine exploration project. But in this region there is a policy prohibiting exploration process of mine endangering area around location of mine.

“We have a law to enforce the law, it can’t be superseded by a local ordinance,” said Environment Secretary Jose Atienza, referring to a pending resolution by the provincial government of South Cotabato, where Tampakan is located, which calls for a ban on open-pit mining.

“We’re with them on their environmental concern, but the national government cannot be prevented from promoting an industry that would help the national economy. I’m confident that we’ll be able to settle this,” said Atienza, adding the department was willing to discuss the issue with the local officials concerned.

The Philippines said Thursday it would allow Swiss miner Xstrata PLC (XTA.LN) undertake open-pit mining at its Tampakan copper-gold project despite a proposed local legislation banning the method.

The proposal to ban open-pit mining in the province forms part of South Cotabato’s provincial environmental code.

Initial studies have shown Xstrata is likely to use open-pit mining to extract deposits, said an official of the Mines and Geosciences Bureau.

“The type or method of mining is dictated by the deposit, not by the company’s choice. In the case of Tampakan, the initial research indicates open-pit mining,” said the official, declining to be named.

Xstrata owns 62.5% of Tampakan, which is currently at an extended pre-feasibility stage.

A pre-feasibility study, completed in September 2006, confirmed the project was a 2 billion-metric ton resource containing 11.6 million tons of copper and 14.6 million ounces of gold at a 0.3% copper cutoff grade.

The development cost of the Tampakan project is estimated to reach up to $2 billion. It is expected to have a mine life of around 50 years.

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