Lafayette Mining Limited, a listed Australian company, is developing a polymetallic Project on the island of Rapu Rapu, located to the east of southern Luzon in the Philippines. The Rapu Rapu Project is based on the Ungay deposit, which has proven and probable reserves of 6.0 million tonnes of 2.5 g/t Au, 28 g/t Ag, 1.2 per cent Cu and 2.1 per cent Zn. The Project will produce copper and zinc concentrates from a sulphide flotation plant as well as dore from a CIL gold plant. Average annual metal production over the projected six-year mine life is 9800 tonnes of copper, 14 000 tonnes of zinc, 50 000 ounces of gold and 590 000 ounces of silver. Despite a rich mineral endowment and long mining history, there have not been any significant new mine developments in the Philippines since the early-1990s. The investment climate has been affected by legal challenges to the 1995 mining code, civil unrest in parts of the country, the impeachment of the previous President and community concerns about the industry's environmental performance. As a consequence, the Rapu Rapu Project is viewed as a test case - within both the country and the international mining industry - on whether minerals investment in the Philippines is an acceptable business proposition from a risk perspective. Lafayette has faced formidable challenges in managing the development risks of the Project. The major risk areas of the Project for which the company developed strategies include: regulatory, environmental and approvals issues, technical evaluation, project development, social and community issues, land acquisition, and financial and marketing issues. This paper describes the risk management strategies successfully pursued by the company, and which have the Project on track to commence construction in 2003. Dealing with each of the areas in turn, Lafayette sought to develop strategies which either effectively neutralised, minimised or otherwise addressed the key risks most likely to be experienced.