Xstrata increases stake in Indophil

Xstrata has announced that it has increased its stake in Indophil Resources to 19.99%, via its Xstrata Queensland Limited subsidiary.

Indophil Resources is an Australian-listed copper exploration company which holds an interest in the Tampakan copper deposit in the southern Philippines.

The project is 62.5% owned by Xstrata Copper while Indophil owns 34.2%, plus a right to acquire a further 3.3%.

The Tampakan deposit was discovered in 1991 and holds 11.6 million tonnes of copper and 14.6 million ounces of gold.

Its development has so far been hindered by environmental, political and legal problems.

Xstrata acquired the additional 17.8% stake in Indophil from Lion Selection Limited, for $69 million.

The group had made a 100% offer for the company but this expired at the end of August when Indophil’s board recommended an alternative bid by the Stanhill Consortium.

The chief executive of Xstrata’s copper division, Charlie Sartain, says the move will provide his company with greater influence over the future ownership of Indophil.