About The Project

Exploration for minerals in the King-king area of Pantukan town has been ongoing since the early 1970s, and the area has experienced significant unauthorized small-scale mining since the early 1980s. Since then, a variety of studies and drilling activities have confirmed the presence of a gold-rich porphyry copper deposit that is among the largest in the Philippines.

Located in the King-king barangay of Pantukan town, the project is 90 kilometers/55 miles east of Davao City on the island of Mindanao. The King-king Copper-Gold Project is part of a Mineral Production Sharing Agreement (MPSA) between the Philippine government and Nationwide Development Corporation (NADECOR), based in Manila. St. Augustine Copper-Gold Ltd (SAGCL), based in Spokane, Washington, USA, is managing the technical aspects of the project. SAGCL is responsible for the overall development and operation of the King-king Copper-Gold Project as they earn increasing ownership in the project through expenditures associated with the completion of a feasibility study.

If approved, estimates show the mine could produce some 100,000 tonnes per year of copper and 500,000 ounces per year of gold.

Proposed Operations

• Preparing the mine site
• Open-pit mining of ore and development rock
• Crushing of ore and on-site storage of development rock
• Conveying ore from crusher to concentrator
• Producing copper and gold concentrate, and development rock tailings
• Transporting tailings via pipeline to a storage impoundment
• Dewatering and storing copper concentrate, as well as semi-pure gold, to await shipment to smelter

Proposed Facilities

• Open-pit mine, including excavators, mechanical shovels, haul trucks and crusher
• Mill and concentrator
• Development rock storage facilities
• Dry stack tailings facility
• Port facilities to transport concentrate and import supplies
• Power station and transmission lines
• Transport systems (conveyor belts and pipelines) to move ore and concentrate
• Water & wastewater treatment facilities
• Heap leach pad facility

Frequently Asked Questions

• What is the King-king Copper-Gold Project?
  The King-king Copper-Gold Project (KCGP) is being developed under a technical services agreement between U.S.-based St. Augustine Gold & Copper Ltd. (SAGCL) and Nationwide Development Corporation (NADECOR) of the Philippines. SAGCL is completing a feasibility study for the Project. The KCGP technical services agreement was formed to develop the King-king gold/copper deposit, one of the largest deposits of its kind in the Philippines. The project is located in the southwestern Compostela Valley, about 50 miles/80 kilometers from Davao City, Mindanao.
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• How is the technical services agreement structured?
  The King-king Copper-Gold Project is part of a Mineral Production Sharing Agreement (MPSA) between the Philippine government and Nadecor, based in Manila. St. Augustine Copper-Gold Ltd., based in Spokane, Washington, USA, is managing the technical aspects of the project. SAGCL is responsible for the overall development and operation of the King-king Copper-Gold Project as they earn increasing ownership in the project through expenditures associated with the completion of a feasibility study.
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• Nadecor started out as a logging company, not as a mining company. What will be Nadecor's role in the project?
  Nadecor brings valuable national experience and local knowledge to the King-king Copper-Gold Project. Combined with the international experience and technical knowledge of St. Augustine Gold and Copper, this joint venture is well-positioned to develop the King-king deposit in a timely, cost-effective, professional and sustainable manner. While St. Augustine is the managing company for the Project, Nadecor will be very involved in the community relations aspects of the Project.
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• Many of the SAGC and KCGP managers have worked on controversial mining projects all over the world, including in neighboring Indonesia. How will the Project benefit from this experience?
  The technical and managerial expertise of our senior management team is second to none. Many of them have worked on projects that are technically, socially and environmentally difficult in very challenging parts of the world. This experience—and the lessons they have learned—means they are well-placed to manage the development of the King-king Copper-Gold Project to the highest social, environmental and economic standards.
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• King-king Copper-Gold is a new company, with no track record in the Philippines. How can we be assured you'll do what you say?
  We know that we will be judged on our actions, not our words. KCGP has already demonstrated a commitment to this community. We have hired more than 200 employees, 95% of whom are indigenous peoples and local residents. Since the beginning of this year, we have met with the communities around the project site to get their input into the project, hear their concerns and understand their expectations. We have implemented medical outreach clinics, community guide programs, scholarship programs and reforestation projects. We intend to take this “watch-what-we-do” not just “listen-to-what-we-say” approach during the entire mine development process. We will do this through a series of communication channels, including regular community briefings, radio programs and our website. Close

• What are the company's obligations under the Philippines Mining Act of 1995?
  As part of the feasibility study process, KCGP is documenting and assessing the physical and social environment in and around the project site, as required by the Philippines Mining Act of 1995. This work consists of conducting an environmental and social baseline study, a Philippine Environmental Impact Statement (EIS) and an International Social and Environmental Impact Assessment (I-SEIA). The EIS is required under Philippine environmental regulation and will support KCGP’s application for an Environmental Compliance Certificate (ECC). The Project must have an ECC before it can go into production. Once the ECC is approved KCGP will seek approval on a Social Development and Management Plan (SDMP) to be used throughout the life of the mine.
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• What is KCGP's position on facilitation payments and bribery?
  KCGP does not and will not pay facilitation payments or bribes. The benefits of this project will flow to local communities and to local, regional and national government in the Philippines—not to individuals. Also, the KCGP is committed to complying with international performance standards of the International Finance Corporation (IFC), the Equator Principles and the International Council on Mining and Metals (ICMM), which forbid paying bribes or facilitation payments.
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• What is a feasibility study?
  A feasibility study is preliminary work conducted before the real work of a project begins. The purpose of the feasibility study is to evaluate the likelihood of the project's success and to determine whether or not the project should be advanced to the final engineering and construction stage. During the feasibility study phase, a company evaluates all the technical, economic, environmental and social factors of the proposed mining project to determine whether the mineral resource can be mined in a responsible and sustainable manner.
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• What kinds of studies are you conducting?
  King-king Copper-Gold’s feasibility work includes environmental studies, community consultation, geotechnical drilling and further detailed analysis. We are confirming earlier studies of the size and quality of the ore body through an extensive drilling program. We are also assessing the current state of the environment throughout the Project impact area. This involves significant efforts to test and document water quality, weather patterns, soil stability and other environmental factors. We are also documenting flora and fauna on the site and determining the effect that other activities, principally unauthorized small-scale mining, had and continue to have on the environment. Chief among these is the tremendous amount of silt, mercury and cyanide deposited into the Kingking and Lahi rivers and their tributaries, and from there into the Gulf of Davao.
  
  Creating an environmental baseline will provide us with information we need to develop the mine and associated facilities in an environmental responsible manner, and to create programs to reclaim degraded areas.
  
  The initial draft of the EIS was provided to MGB in Feb 2012 and the Declaration of Mine Project Feasibility was provided to MGB in May 2012.
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• What will you do with the information?
  The feasibility study is key to deciding whether we can develop the King-king Copper-Gold Project in a technically sound and economically, socially and environmentally responsible way. This baseline data will provide us the information we need for the Philippine Environmental Impact Statement (EIS) and an International Social and Environmental Impact Assessment (I-SEIA). The EIS is required under Philippine environmental regulations and will support the Project’s application for an Environmental Compliance Certificate (ECC). The ECC is needed before the Project can go into production. The I-SEIA is being prepared consistent with the World Bank/International Finance Corporation’s Performance Standards and the derivative Equator Principles, which have been adopted by international banks for environmental and social review of project financing proposals.
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• When will you decide when if you're going to build the mine?
  We are in the process of completing the feasibility study and securing all government approvals. We hope to complete this work and make a decision by the third quarter 2014.
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• What facilities will you build (e.g. mine, concentrator, power plant, port, roads)?
  Preparing the mine site:
  • Open-pit mining of ore and development rock
  • Crushing of ore and on-site storage of development rock
  • Conveying ore from crusher to concentrator
  • Producing copper and gold concentrate, and development rock tailings
  • Transporting tailings via pipeline to a storage impoundment
  • Dewatering and storing copper concentrate, as well as semi-pure gold to await
      shipment to smelter
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• Where will you dispose of the tailings?
  We are considering constructing a dry stack tailings facility. While plans are still tentative, we prefer the dry stack technology because it reduces the area required to store the tailings, utilizes buttresses rather than a dam that impounds the tailings and minimizes potential impacts to water quality. Additionally, the community would benefit from a productive agricultural area at the end of mine life. This said, as part of our Environmental Impact Statement, we are studying all options for tailings disposal. We will continue to give you regular updates on our plans and get your input.
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• What happens to the mine at closure?
  Closure planning is part of our mine planning process. We consider a number of technical, environmental, social and economic factors in our closure plan, including post-mining land use that will benefit the community, management strategies to protect water quality and sustainable livelihoods that will continue to support the local communities long after the mine ceases to produce gold and copper. But we can’t plan for closure without community input. We will meet with local government and community leaders on an ongoing basis to understand their expectations today and after closure and incorporate those considerations into our business plan.
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• You say you're committed to sustainable development, yet you're considering a coal-fired power plant for the mine operations. Why can't you use hydro power or natural gas?
  As part of the feasibility study, KCGP is looking at all power options, including some renewable sources. We have not yet committed to building a coal-fired power plant. We have committed to world-class environmental practices and to keeping the community informed of our plans. Whatever power source we use will be as energy-efficient as possible. We will continue to meet with the community to keep the community informed and gather input on our plans.
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• How do you engage communities on these issues?
  We have organized what we call Technical Working Groups (TWGs). These groups include leaders from all the communities in the mine impact area. We look to the TWGs to give us feedback and input on our mine plans.
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• Where will you get water for the mine?
  Potential sources of water for mining and processing include wells near the mine area, or from the King-king River. Again, these decisions will be based on the outcome of our environmental baseline studies. Whichever water source we use will be managed in an environmentally responsible and sustainable manner.
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• Won't mining operations contaminate our drinking water?
  The baseline studies will give us the information we need to understand the quality and quantity of water available for use. We plan numerous monitoring wells in and around the operation as well as additional safeguards to protect water quality. In the unlikely event our operations do affect the water quality, we will fix it. This is the way we do business.
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• Will you clean up the King-king River to its condition before small-scale mining degraded the water?
  Development of the King-king Copper-Gold Project will improve the King-king River water quality, but it cannot make it pristine. More than two decades of small-scale mining activity upstream has contaminated the river with bacteria and heavy metals, degraded vegetation in the area and eroded areas along the river. A modern large-scale mine development will reduce mining activities over the next few years. This will help reduce contamination and help control sediment flows in the river. In order for the river to see a measurable improvement small scale miners must join the King-king Gold and Copper Project’s efforts to improve water quality in the King-king River.
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• Are there plants or animal species threatened by the mine development?
  KCGP is in the midst of completing a comprehensive biological study of the entire mining area. Previous studies show that the mine area is covered by sparse tropical rainforest left over from past commercial logging operations. Old growth trees are mostly gone and large areas of the denuded slopes have been cleared, cultivated and planted with corn and other crops.
  
  As far as wildlife, early studies conducted by previous mining companies in the early 1990s identify only one endangered species—the Philippine Hornbill. According to local residents, wild boars, monkeys, deer and wildcats once inhabited the area, but this information is more than 15 years old. We will update the vegetation and wildlife profile of the mine area through the environmental baseline studies now underway.
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• Will unauthorized miners on the King-king tenement be required to leave the area?
  Several thousand small-scale miners are estimated to be working on the steep slopes around Pantukan. Small-scale miners, living and working on these slopes without authorization, can pose a serious risk to themselves and their families. Despite repeated warnings about the significant dangers, they continue to mine for gold to provide a livelihood for their families. The King-king Copper-Gold Project is very aware of the issues surrounding small-scale mining in the King-king mining area and is working closely with government agencies, community organizations and the miners themselves to explore and implement solutions to this dangerous and unsustainable practice. We will continue to work closely with small scale miners in the impact area to find a solution that is both socially acceptable and protective of the environment.
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• Will you find jobs for the relocated small-scale miners and build them new homes?
  It is simply not practical to commit to training and employing every one of the thousands of the unauthorized miners currently living and working on the mine tenement. We will, however, develop, implement and communicate training and development programs for small-scale miners and local residents, in collaboration with local government units and non-governmental organizations.
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• How many jobs will be available for the local community? Are you committing to hiring a certain percentage of your employees from the indigenous and local communities?
  We have already hired more than 200 employees from the indigenous and local communities since January 2011. We anticipate hiring 4,000 to 6,000 more during construction of the mine. During operation we anticipate employing about 2,000 people. The project will encourage local hiring of the operation workforce and utilize TESDA training programs for the development of the required skills.
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• Has KCGP made any public, formal commitments to the government? To the community? If so, what are they?
  In addition to its public commitment to adhere to international levels of social, environmental and economic performance, KCGP has committed to training and hiring bona fide Mansaka tribe members commensurate with their qualifications and fitness. The company has also committed to building a Tribal Hall, providing a service vehicle, medical and dental assistance, priority development project assistance and educational assistance for the indigenous community. As far as other commitments, we will continue to consult with local residents in the coming months to help define those commitments and make sure they are consistent with community needs and expectations.
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• Do you provide all your employees and consultants with training before they go on site and appropriate personal protective equipment (PPE) when they are on site?
  KCGP’s goal is to ensure that every employee returns home safe and healthy from their workplace every day. All employees, contractors, consultants and visitors are required to go through safety training before they visit the site. The training includes reviewing and identifying potential hazards related to areas such as weather, equipment, transportation and security. All employees, contractors, consultants and visitors site are required to wear appropriate PPE when on site.
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• Unauthorized miners continue to operate on the Project's tenement. What are you doing to either protect their safety or find them safer employment?
  The small-scale miners have been living and working on the tenement for nearly two decades. Change in work practices and safety behavior is gradual. As mine development progresses, we will be working within these communities on safety initiatives and practices, as well as education and training programs for alternative means of employment.
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• What are you doing in the local community to promote health and safety?
  In partnership with local government, health officials, small-scale miners and the Mansaka tribal association, KCGP organized and implemented two highly successful medical outreach clinics. Each clinic provided care to more than 150 individuals, including immunizing dozens of infants and small children against disease. We are planning more of these clinics, as well as safety outreach workshops for local residents. KCGP has also provided emergency medical training and an ambulance for use in the Pantukan community.
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• Opponents of large-scale foreign mine companies say you're going to take all the profits from the mineral resource and send it overseas. Is that true?
  No, that is not true. We have already employed more than 200 local residents and contracted with numerous local vendors and suppliers during the feasibility phase of the project. These numbers will increase significantly as the project moves into construction. In addition, providing jobs for local residents means increasing the demand for local goods and services. We are also making a significant investment in helping to improve many aspects of the local community, including health care, housing and education, and we are committed to paying all taxes and fees required of us.
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• Mining opponents say your large-scale mine development will result in environmental degradation and the abuse of rights of indigenous people. How do you respond to those allegations?
  King-king Copper-Gold understands that mine development can be controversial in many areas around the globe. Because the very nature of natural resource development and operation can have a profound effect on the environment and local communities, mining companies are often lightning rods for environmental activists and human rights protestors. The situation in the Philippines is no different. Environmental and human rights NGOs have a history of attacking the reputation of foreign mining companies to stop company progress.
  
  KCGP has conducted early and extensive community consultation. The team has met extensively with representatives of King-king and other barangays within Pantukan, with leaders of the Pantukan municipality, and with the Compostela Valley provincial government. They have conducted extensive public consultations, advanced formal scoping procedures with the national regulators, including the Mines and Geoscience Bureau (MGB) and the Environmental Management Bureau (EMB). They have initiated discussions with small scale miners in the area and advanced discussions with indigenous community representatives.
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