Rebels attack Xstrata gold mine

Communist rebels have attacked a $2 billion copper and gold mine owned by Xstrata in the Philippines.

The incident occurred on January 1st at the mine in Tampakan, which is currently under development.

According to Bloomberg, the Tampakan is home to some 15.2 million ounces of gold. Xstrata's other growth projects are located in Las Bambas in Peru, El Morro in Chile, El Pachon in Argentina and Frieda River in Papua New Guinea.

The attackers said they were protesting against the exploitation of the country's resources by foreign companies. A similar incident occurred in the Phillipines last year when a mine owned by Australia-based CGA Mining was targeted.

"This is really a setback to efforts to lure investments," Astro del Castillo, managing director of First Grade Holdings, told Bloomberg.

"Companies may reassess their investments or somehow try to stay on the sidelines and wait to see what the government will do."