Indophil expects mid-July deal with Glencore on $5.9 bln Philippine mine

MANILA, July 1 (Reuters) - Indophil Resources said a final agreement may be signed in the middle of July allowing it to take control of the long-delayed $5.9 billion Tampakan copper-gold project in the Philippines from Glencore Plc (Xetra: A1JAGV - news) .

Indophil, previously listed in Australia until its takeover this year by the Philippines' Alsons Group, would be able to start planning its next steps for the project once the agreement was signed, spokesman Gavan Collery said.

"There are a number of conditions, notifications and actions that must take place before the anticipated mid-July formal signing of the agreement," he said in an email.

Commodity trader Glencore announced the sale of its 62.5 percent interest in Tampakan operator Sagittarius Mines Inc last week without providing details.

Glencore had previously flagged it was reviewing the Tampakan project along with other greenfield projects elsewhere.

Tampakan, one of the biggest undeveloped copper-gold mines in Southeast Asia and previously touted as the largest foreign direct investment in the Philippines, has been stalled by a provincial ban on open-pit mining in place since 2010.

Leo Jasareno, director of the Mines and Geoscience Bureau (MGB), said the government welcomed Indophil's interest "to move the project forward" and said Glencore's exit had nothing to do with domestic policy issues.

The MGB's support for the project, at the same time as a local mining ban is in place, highlights conflicting policies that have hampered development and foreign investment in the country's untapped mineral resources worth $1.4 trillion based on recent industry estimates.

There are also pending bills in Congress seeking to hike mining taxes and royalties that are already among the highest in the world. (Reporting by Erik dela Cruz; Editing by Ed Davies)