QUEZON CITY, Philippines (UCAN) --
A priest in Albay province, southeast of Manila, blames a mining operation for fatal landslides and possibly toxic spills during a recent typhoon, but a company lawyer rejects the allegations.
On Dec. 11, Father Felino Bugauisan told UCA News his parish had buried 13 adults and children, including the unborn child of a pregnant woman among the victims. He said they were killed on Nov. 30 afternoon, at the height of Typhoon Durian, when floodwaters rose, and mud and boulders from an area near the mine site on Rapu-Rapu Island wreaked havoc on two nearby villages.
Father Bugauisan, of the Society of Our Lady of the Trinity, serves as assistant parish priest at St. Joseph the Worker Parish on Rapu-Rapu, about 365 kilometers southeast of Manila, where Lafayette Mining Incorporated, a joint Australian and Philippine venture, runs a metal-mining operation.
His parish is among the 46 that belong to Legazpi diocese, which covers Albay, where 93 percent of 1.21 million people are Catholics. The priest was in the Manila area in early December to follow up a court petition for a temporary restraining order to stop mining activities on Rapu-Rapu, east of the mainland part of Albay and Sorsogon province.
The Lafayette mining site is near the villages of Malobago and Tinopan. A landslide engulfed houses in Malobago after a retaining wall on the Lafayette site collapsed during the typhoon, according to Legazpi priests.
Father Bugauisan said Merildo David, who was rescued from the landslide, suffered leg and arm injuries. David's daughter and two nieces died after being trapped in debris that buried his house.
Radio reports reaching Legazpi City said that at least 24 people might have been trapped in landslides, according to Father Paulo Barandon, who heads relief operations for the diocese. He spoke with UCA News on Dec. 11 from Legazpi City, 335 kilometers southeast of Manila.
Lafayette mining structures also were damaged by the storm, Father Bugauisan reported. He said water from holding ponds in some parts of the site overflowed during heavy rain, and he is concerned that some of the pools holding toxic mine tailings may have collapsed. He also spoke of damage the mine waste brought to the port facility below the open-pit mine.
In the priest's view, Lafayette's "constant dynamite blasting, denudation of the mountainous cover and open-pit type mining operations exacerbated" the impact of Typhoon Durian. "Rapu-Rapu is in a typhoon belt and the open-pit mining they use will always end in disaster," he maintained.
In May a commission the government set up with Bishop Arturo Bastes of Sorsogon as its head recommended closing the mine until Lafayette developed "new technology" that could guarantee safer operations.
President Gloria Macapagal-Arroyo had created the commission to investigate two Lafayette tailings spills that caused health problems and a massive fish kill as a result of two spills on Oct. 11 and 31, 2005.
However, in June the environment department allowed Lafayette to resume operations on a test basis after it paid a 10.7-million- peso (US$ 214,000) fine. The test permit was then extended.
In Manila, Lafayette spokesman Bayani Agabin, a lawyer, told UCA News Lafayette shut down operations after Typhoon Durian while restoring electricity and buildings destroyed by typhoon winds. However, he insisted there was no environmental damage at the mine site.
"Let me stress the damage is to the physical plant, and there is no recorded damage to the environment," the lawyer stated.
He said he was unaware of any claims made by Father Bugauisan related to typhoon damage but added that if the priest says the landslides were caused by Lafayette's operations, then the claim has no basis.
According to Agabin, "The area where the landslides occurred is two kilometers and two ridges away from the mine site." He also said Lafayette rescuers "were the first to respond and pulled out two buried victims."
As of Dec. 14, the National Disaster Coordinating Council reported 579 people killed and 608 missing from Typhoon Durian. All search operations for people buried in mudslides ended that day. In the Bicol peninsula, where Albay is located, some 165,484 homes were reported destroyed and 208,573 damaged.
Sunday, December 17, 2006
Thursday, December 07, 2006
By Conrado R. Banal III, Inquirer –
http://business. inq7.net/ money/columns/ view_article. php?article_ id=36819
December 7, 2006 issue of the Philippine Daily Inquirer....
ALL RIGHT, so they say that our untapped mineral resources (i.e. still under the ground) could be worth P2-P3 trillion, easily.
And what are we doing? For one, we are making headway in the mining industry by having no clear policy on 1) the mining business itself, and 2) how to mitigate its effects on the environment.
Almost 10 years ago, sure, Congress passed the Mining Code. But in no time at all, the code was questioned before the Supreme Court.
After a couple of years, the Supreme Court upheld its constitutionality.
This rejuvenated the mining industry somehow, and investors started coming in. And so that's the end of the story? Not quite!
Last Tuesday, we reported on another decision of the Supreme Court that might yet again dampen interest in the industry.
We quoted University of the Philippines (UP) law professor Harry L. Roque, director of the Institute of International Legal Studies of the UP Law Center, who talked about the case of Apex Mining vs. Southeast Mindanao Gold Mining Corp. The Supreme Court decided in favor of Apex Mining. Roque said the decision was alarming investors again.
That's because, in effect, a division of the Supreme Court ruled that the law prohibited the transfer of "mineral rights." Roque believes that the ruling was against established jurisprudence that mineral rights were property rights (i.e., you can transfer them).
I thought Roque made an important point. And that is, the Supreme Court en banc, and not just a division of the Court, should decide on such a big case.
To think, the new ruling even overturned other earlier rulings of the Supreme Court on cases involving the mining industry. Hmm.
Now, word in the mining industry has it that the Supreme Court is rushing the case. For instance, the Supreme Court scheduled the promulgation of its decision for Dec. 6, which was yesterday, although the Office of the Solicitor General had asked for an extension to file its comment, which should have scheduled the promulgation on Dec. 20.
Know what? Somebody is retiring from the Supreme Court very soon. And that somebody happens to chair the division that made the ruling.
http://business. inq7.net/ money/columns/ view_article. php?article_ id=36819
December 7, 2006 issue of the Philippine Daily Inquirer....
ALL RIGHT, so they say that our untapped mineral resources (i.e. still under the ground) could be worth P2-P3 trillion, easily.
And what are we doing? For one, we are making headway in the mining industry by having no clear policy on 1) the mining business itself, and 2) how to mitigate its effects on the environment.
Almost 10 years ago, sure, Congress passed the Mining Code. But in no time at all, the code was questioned before the Supreme Court.
After a couple of years, the Supreme Court upheld its constitutionality.
This rejuvenated the mining industry somehow, and investors started coming in. And so that's the end of the story? Not quite!
Last Tuesday, we reported on another decision of the Supreme Court that might yet again dampen interest in the industry.
We quoted University of the Philippines (UP) law professor Harry L. Roque, director of the Institute of International Legal Studies of the UP Law Center, who talked about the case of Apex Mining vs. Southeast Mindanao Gold Mining Corp. The Supreme Court decided in favor of Apex Mining. Roque said the decision was alarming investors again.
That's because, in effect, a division of the Supreme Court ruled that the law prohibited the transfer of "mineral rights." Roque believes that the ruling was against established jurisprudence that mineral rights were property rights (i.e., you can transfer them).
I thought Roque made an important point. And that is, the Supreme Court en banc, and not just a division of the Court, should decide on such a big case.
To think, the new ruling even overturned other earlier rulings of the Supreme Court on cases involving the mining industry. Hmm.
Now, word in the mining industry has it that the Supreme Court is rushing the case. For instance, the Supreme Court scheduled the promulgation of its decision for Dec. 6, which was yesterday, although the Office of the Solicitor General had asked for an extension to file its comment, which should have scheduled the promulgation on Dec. 20.
Know what? Somebody is retiring from the Supreme Court very soon. And that somebody happens to chair the division that made the ruling.
Tuesday, December 05, 2006
Dear or no dear
By Conrado R. Banal III, Inquirer
http://business. inq7.net/ money/columns/ view_article. php?article_ id=36399
Published on page B2 of the December 5, 2006 issue of the
Philippine Daily Inquirer
And now, the not-so-dear news: The Supreme Court just ruled that the transfer of "mineral rights" is unconstitutional (i.e., NOT okay), and it is already alarming investors.
The bad news came from University of the Philippines (UP) professor Harry L. Roque, director of the Institute of International Legal Studies of the UP Law Center, in a UP-sponsored forum.
To Roque, the ruling will dampen interest in mining. So what else is new, prof?
In another case, you see, the same Supreme Court said the government scheme called financial and technical assistance agreements (FTAA), allowing foreign investments in existing mines, is constitutional (i.e., OKAY).
But then came the Supreme Court ruling on Apex Mining vs. Southeast Mining Gold Mining Corp., declaring the transfer of "mineral rights" as unconstitutional.
Based on established jurisprudence, according to Roque, "mineral rights" are property rights and, thus, may be transferred.
And so what went wrong? Roque theorizes that the Supreme Court mistakenly equated "mining permit" with "mineral rights."
In fact, the Supreme Court had another earlier ruling that said "mining rights," but not permits to mine, could be assigned.
Because of possible mix-ups in the future, Roque fears that the latest Supreme Court ruling could ruin the mining industry.
To think, only a division of the Supreme Court made the ruling.
Roque suggests that if it is such a big issue, something that in fact can make or break this country, the Supreme Court en banc should make the ruling.
Hmm. I don't know, but does it mean that the ruling could have been . well, "cooked?"
http://business. inq7.net/ money/columns/ view_article. php?article_ id=36399
Published on page B2 of the December 5, 2006 issue of the
Philippine Daily Inquirer
And now, the not-so-dear news: The Supreme Court just ruled that the transfer of "mineral rights" is unconstitutional (i.e., NOT okay), and it is already alarming investors.
The bad news came from University of the Philippines (UP) professor Harry L. Roque, director of the Institute of International Legal Studies of the UP Law Center, in a UP-sponsored forum.
To Roque, the ruling will dampen interest in mining. So what else is new, prof?
In another case, you see, the same Supreme Court said the government scheme called financial and technical assistance agreements (FTAA), allowing foreign investments in existing mines, is constitutional (i.e., OKAY).
But then came the Supreme Court ruling on Apex Mining vs. Southeast Mining Gold Mining Corp., declaring the transfer of "mineral rights" as unconstitutional.
Based on established jurisprudence, according to Roque, "mineral rights" are property rights and, thus, may be transferred.
And so what went wrong? Roque theorizes that the Supreme Court mistakenly equated "mining permit" with "mineral rights."
In fact, the Supreme Court had another earlier ruling that said "mining rights," but not permits to mine, could be assigned.
Because of possible mix-ups in the future, Roque fears that the latest Supreme Court ruling could ruin the mining industry.
To think, only a division of the Supreme Court made the ruling.
Roque suggests that if it is such a big issue, something that in fact can make or break this country, the Supreme Court en banc should make the ruling.
Hmm. I don't know, but does it mean that the ruling could have been . well, "cooked?"
Monday, December 04, 2006
Didipio mine project gets A-M loan
By MELODY M. AGUIBA,
http://www.mb. com.ph/BSNS20061 20481422. html
4th December 2006
The Didipio copper-gold project is drawing down this week A million from an ANZ-arranged syndicated loan as it also anticipates A0-million multi-financial instrument deal with a New York-operating international financier. All set to be constructed as the first large-scale mine in Region 2, the Didipio project is nearly complete with all financing requirements totaling to A0 million.
"The forty million Australian dollars, we’ll get that next week. For the 170 million Australian dollars, we’ve had offers from financial institutions in New York, Toronto, London, and Australia," said Stephen Orr, chief executive officer of New Zealand-based Oceana Gold Ltd. (OGL), in an interview during a certificate of merger signing. The A million was syndicated by ANZ Investment Bank together with the Commonwealth Bank of Australia. The on-going negotiation with several equity institutions which may be finalized in two weeks will involve either a convertible bond or a highyield debt or a combination. OGL, New Zealand’s biggest gold producer, is extra bullish about the prospect of mining in the Philippines both in geologic potential and government policies.
"In terms of geologic prospectivity, it’s one of the best in the world in undeveloped ore deposit particularly copper gold porphyry. In terms of government support, we’ve gotten absolutely positive government support through every department we’ve spoken to from the president down," Orr said President Gloria Macapagal Arroyo, who was present at the merger signing of OGL with Australia’s Climax Mining, said the Didipio project along with five other Australia-New Zealand mining projects is among the foreign investments the Philippines had been expecting to host. The copper-gold project in Nueva Vizcaya-Quirino holds a Financial and Technical Assistance Agreement (FTAA) which needs approval of the Office of the President. OGL finds its acquisition of the project strategic not only with its vision in geographic expansion but also in extending its environmental practice outside of New Zealand.
"To us our acquisition of Didipio is transformational. We have a strategy to be a consolidator in the Pcific Rim, and this is our first step. And one of the things we’re looking forward to is in New Zealand, we operate in the highest environmental standard. We want to operate in the Philippines in the same standard," he said. OGL is spending A to A million in exploration for the Philippines as it anticipates more discoveries here. It is separately spending A to A million in exploration in New Zealand.
"Part of our financing was to raise money for exploration. We believe that within one year, we’ll be able to announce a new discovery in the Philippines. That’s how prospective we believe it is. Don’t be surprised to see us drilling in northern Surigao. It will be one of our big focuses. We’re quite optimistic," he said. With the Didipio acquisition, OGL is raising its ability to produce gold from 180,000 ounces to 300,000 ounces as the project is set to be constructed early 2007.
"We acquired a largescale orebody in the Philippines that gave us geopolitical diversity which we didn’t have before and gave us additional revenue sources other than gold because Didipio has copper," he said. While some exploration and mining executives have downgraded the country’s mining environment in a Fraser Institute survey, OGL believes much of a project’s success lies internally in corporate management.
"The Philippines is not any worse than any other place in the world. Companies who have vested interests have to promote their interest to convince the government. And we work very hard to do that and the government has been very supportive," said Orr. The OGL buyout into Didipio also enabled entry of Brazil’s SCRCOR which owns seven percent of OGL and Ospraie Management of New York which holds 11 percent interest. The Didipio project is believed to be the beginning of a string of discoveries in this area. The company has identified new prospects here including the True Blue and the D’Fox which may extend the life of this single mine over many years.
http://www.mb. com.ph/BSNS20061 20481422. html
4th December 2006
The Didipio copper-gold project is drawing down this week A million from an ANZ-arranged syndicated loan as it also anticipates A0-million multi-financial instrument deal with a New York-operating international financier. All set to be constructed as the first large-scale mine in Region 2, the Didipio project is nearly complete with all financing requirements totaling to A0 million.
"The forty million Australian dollars, we’ll get that next week. For the 170 million Australian dollars, we’ve had offers from financial institutions in New York, Toronto, London, and Australia," said Stephen Orr, chief executive officer of New Zealand-based Oceana Gold Ltd. (OGL), in an interview during a certificate of merger signing. The A million was syndicated by ANZ Investment Bank together with the Commonwealth Bank of Australia. The on-going negotiation with several equity institutions which may be finalized in two weeks will involve either a convertible bond or a highyield debt or a combination. OGL, New Zealand’s biggest gold producer, is extra bullish about the prospect of mining in the Philippines both in geologic potential and government policies.
"In terms of geologic prospectivity, it’s one of the best in the world in undeveloped ore deposit particularly copper gold porphyry. In terms of government support, we’ve gotten absolutely positive government support through every department we’ve spoken to from the president down," Orr said President Gloria Macapagal Arroyo, who was present at the merger signing of OGL with Australia’s Climax Mining, said the Didipio project along with five other Australia-New Zealand mining projects is among the foreign investments the Philippines had been expecting to host. The copper-gold project in Nueva Vizcaya-Quirino holds a Financial and Technical Assistance Agreement (FTAA) which needs approval of the Office of the President. OGL finds its acquisition of the project strategic not only with its vision in geographic expansion but also in extending its environmental practice outside of New Zealand.
"To us our acquisition of Didipio is transformational. We have a strategy to be a consolidator in the Pcific Rim, and this is our first step. And one of the things we’re looking forward to is in New Zealand, we operate in the highest environmental standard. We want to operate in the Philippines in the same standard," he said. OGL is spending A to A million in exploration for the Philippines as it anticipates more discoveries here. It is separately spending A to A million in exploration in New Zealand.
"Part of our financing was to raise money for exploration. We believe that within one year, we’ll be able to announce a new discovery in the Philippines. That’s how prospective we believe it is. Don’t be surprised to see us drilling in northern Surigao. It will be one of our big focuses. We’re quite optimistic," he said. With the Didipio acquisition, OGL is raising its ability to produce gold from 180,000 ounces to 300,000 ounces as the project is set to be constructed early 2007.
"We acquired a largescale orebody in the Philippines that gave us geopolitical diversity which we didn’t have before and gave us additional revenue sources other than gold because Didipio has copper," he said. While some exploration and mining executives have downgraded the country’s mining environment in a Fraser Institute survey, OGL believes much of a project’s success lies internally in corporate management.
"The Philippines is not any worse than any other place in the world. Companies who have vested interests have to promote their interest to convince the government. And we work very hard to do that and the government has been very supportive," said Orr. The OGL buyout into Didipio also enabled entry of Brazil’s SCRCOR which owns seven percent of OGL and Ospraie Management of New York which holds 11 percent interest. The Didipio project is believed to be the beginning of a string of discoveries in this area. The company has identified new prospects here including the True Blue and the D’Fox which may extend the life of this single mine over many years.
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