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Xstrata mine in second attack
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22 July 2008
The suspected communist group burned a drill rig and police are investigating, Xstrata's partner Indophil says. No one was injured.
The project, South-east Asia's largest untapped copper deposit, has 2.2 billion tons of mineral resources containing 12.8 million tons of copper and 15.2 million ounces of gold and may produce 194,000 tons of copper and 213,000 ounces of gold annually over 25 years.
The rebels, probably from the New People's Army, "tried to extort money from the owners of the mine, but they declined to pay the so-called revolutionary tax", Armand Rico, a military spokesman, said.
The Xstrata-Indophil Resources mine was the target of a similar attack in January.
Indophil has rejected an A$540 million (£262.4 million) offer from Xstrata, that owns 62.5% of the project, as too low.
Indophil says it is confident that the London-listed Xstrata will improve its bid.
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