Unconscionable Mining Contract

PRESS RELEASE
15 May 2008

Unconscionable Mining Contract

The monetary benefits of mining investments and operations in the Philippines is now being questioned as the provincial government of Nueva Viscaya has taken a bold step to stop OceanaGold mining company from its earth moving operations in Didipio for failing to pay Twenty Five Million Pesos (P25,000,000) in local taxes.

Contrary to what Secretary Atienza of the DENR has been promoting, the promised income from the mining project seems to be a mere pipe dream. That the local government of Nueva Viscaya needs to resort to legal action to collect taxes appears to be a red light signaling the great possibility that the Philippines will not benefit at all from this mining project.

The Legal Rights and Natural Resources Center (LRC-KsK/FoE Phils) has always maintained that the DENR crafted a seriously flawed mining fiscal regime (DAO 07-12). Under this department order, the state’s revenue collection from a Financial or Technical Assistance Agreement (FTAA) is limited to (1) the contractor's corporate income tax, (2) excise tax, (3) special allowance, (4) withholding tax due from the contractor's foreign stockholders arising from dividend or interest payments to the said foreign stockholder in case of a foreign national and (5) all such other taxes, duties and fees as provided for under existing laws.

The enumerated items merely represent the “inherent” and legal right of the state to collect taxes from businesses, in exercise of its taxation and police power. These are the very same taxes collected in other types of businesses operating in the country, not necessarily involved in the exploitation and destruction of the country’s national wealth.

What has not been explicitly spelled out in the DENR policy is the nation’s share in the profits of mining operations. If the DENR equates the above tax items to represent the governments share, it sadly miscomprehends the meaning of governmental share in the exploitation of the national patrimony.

Our position and understanding is that an FTAA is a corporate undertaking done by the state in partnership with a private mining corporation and a foreign capitalist for that matter. Had it been the state that operated the mining operations, it would benefit from the profits wholesale.
Entering into a business venture, it is simply logical that the state should partake in the profits of that business venture aside from exercising its regulatory functions such as taxation.

The more questionable provision is that government’s share in the FTAA shall commence only after the FTAA contractor has fully recovered its pre-operating expenses, exploration, and development expenditures and other expenditures that may be added as part of. A case is now pending in the Supreme Court to question the unconscionable FTAA contract and its unconstitutionality.

The flawed fiscal regime is further highlighted in the case of Lafayette’s mining project in the Bikol region. The government received less than one percent of the PhP 3.6 billion worth of minerals extracted in 3 years of operation. The company has now stopped its operations.
What makes matters worse is that the natural destruction accompanying mining operations place communities at risk of severe hunger and intensified disasters. The OceanaGold Project has converted the fertile rice lands in Didipio into its mining operations and runs the risk of contaminating water sources in the agricultural provinces of Nueva Vizcaya, Cagayan Valley, Isabela and Central Luzon together with the other two pending large-scale mining projects also in the same province – Royalco Phils. in Barangay Pao and FCF-MTL Metals in Barangay Runrunno.

Nueva Viscaya hosts 3 watershed areas - 2 proclaimed: Dupax Watershed Reservation (Proclamation 720) covering 425 hectares, and the Casecnan River Watershed in Dupax del Norte and Dupax del Sur, (Proclamation 136) covering 85,519 hectares , and 1 unproclaimed: Magat River watershed. These watershed areas serve approximately a total population of 400,000 including neighboring provinces such as Cagayan Valley, Isabela and northern parts of central Luzon. At least two of these watershed areas are in proximity to the mining site.

It is elementary that if these watershed areas are compromised due to contamination of the water, it will greatly affect the agriculture production in the said provinces that will contribute more to the worsening situation of our food production.

OceanaGold’s open pit mining method and tailings dam for mine waste disposal will be susceptible to seepage and collapse that will greatly affect the rivers and waters in the province. Ironically, DENR Secretary Atienza himself identified the province of Nueva Viscaya as part of the typhoon belt area.

The negative impacts of mining projects in the Philippines outweigh its envisioned benefits. You cannot find any single mining operation in the Philippines that has brought progress to local communities, only a devastated environment, and an impoverished community. The people of Marinduque can tell us their experience; Marcopper mining operations has inundated two major rivers in their province. Mayor Hagedorn of Puerto Princesa has taken the position against mining operations for clearly understanding the negative impacts.
With the recent developments, the biased positioning of Secretary Atienza for OceanaGolds operations is a complete disregard of the sentiments of the people in the province and the local communities who have been opposing the project for the adverse impacts directly felt by them. How arrogant can Secretary Atienza be in saying "they can barricade all they want".

For further questions and inquiries please contact us at +63 2 926-4409, +63 2 434-4079, +63 917-548-1674 (Ronald/Campaigns/Paralegal) or visit us at 87B Madasalin St., Teachers Village, Diliman, Quezon City.

We are Hiring

Legal Rigths and Natural Resources Center, Inc. a reputable Non-Governmental Organization is seeking qualified candidates for the following positions:

Legal Coordinator (Ref: LC-NO)
Communications and Networking Officer (Ref: CNO-NO)
Lawyer who will be based in Cagayan de Oro City (Ref:RC-CdO)
Paralegal who will be based in Davao City (Ref: LPL-DvO)

We are seeking individuals with experience of working in the area of indigenous peoples, human rights and/or development and with keen understanding of the social and environmental impacts of development projects, and legal and policy environment in the Philippines. Experience in networking and coordination, policy research, and advocacy work and also of working with grassroots communities will be an advantage.

You will have a commitment to working in partnership with our stakeholders in various contexts.

The posts will require travel to communities in Luzon and Mindanao.
Applicants are requested to send their CV with an application letter to lrcksk@lrcksk.org.

For more information or details, you may send your inquiries to the same address.

DIDIPIO GOLD-COPPER PROJECT: FAR FROM A DONE DEAL

URGENT ALERT
26 March 2008

DIDIPIO GOLD-COPPER PROJECT: FAR FROM A DONE DEAL
(Demolition of houses in Didipio continues)

Blood spilled on Black Saturday

Residents now fear for their lives as one community member (Emilio Pumihic) was shot and hospitalised when he tried together with other neighbours to prevent a team of demolition crew from demolishing the house of Samuel Bidang who was then taking a nap inside. Accounts from witnesses said that Pumihic was restrained by two security personnel of OceanaGold and was then shot from behind by another security guard (Whitney Dongiahon). (related article available at-http://newsinfo.inquirer.net/inquirerheadlines/regions/view/20080324-126059/Shooting-mars-Lent-in-mining-village).

Emilio Pumihic is a descendant of Juan Pumihic, the first Barangay Captain of Didipio and also one of the first families to settle in Didipio.

In another act to intimidate anti-mining officials and residents, OceanaGold and its cohorts in Didipio harassed Councilor Eduardo Ananayo at 10 o’clock in the evening also on Black Saturday. After attending a meeting in Sitio Dinauyan he was accosted by SPO4 Noel Valdez and brought to the Community Relations Office of OceanaGold without any valid reason t do so, SPO4 Valdez is a member of the Provincial Philippine National Police assigned in Didipio supposedly to keep peace and order in the community. Councilor Ananayo in his affidavit stated that he was slapped on the face by SPO4 Valdez when he introduced himself as one of the baranggay officials in Didipio.

These unfortunate events happened on Black Saturday (where Catholics all over the world observes a week of lent to reflect on the sacrifices and crucifixion of Jesus Christ). The people of Didipio last 17 March sought Bishop Villena’s intervention to ask OceanaGold not to resume demolition activities during the holy week in respect for the people in Didipio who wanted to reflect, pray and celebrate Jesus Christ’s salvation of mankind. The people of Didipio relayed this message through Sr. Eden Orlino, SPC of the Diocesan Social Action Commission who then responded to bring this request to the Bishop.

Sr. Eden’s appeal to the mining company thru Arnel Arrojo, Site Development manager of OceanaGold was not seriously considered since what happened on Black Saturday even Mr. Arrojo gave his word to Sr. Eden that they will accept the request of the people of Didipio to observe a peaceful holy week without any demolition activity. Much worse, 200 more demolition crew arrived on the same day and a shooting incident.

Bishop of Bayombong condemns OceanaGold

Bishop Ramon Villena of the Diocese of Bayombong declared OceanaGold’s acts in demolishing the houses of Indigenous Peoples in Didipio and the shooting of Emilio Pumihic as ‘atrocious’ and ‘monstrous’. He also add that it was made even worse by the mining company’s attempt to cover up for its human rights violations. (related article available at http://newsinfo.inquirer.net/breakingnews/regions/view/20080325-126399/Stop-Vizcaya-mining-bishop-asks-GMA).

Ramoncito Gozar, vice-president for communications and external affairs of OceanaGold on the other hand downplayed the shooting incident and tried to discredit and put the blame on the victim by saying that Emilio Pumihic was drunk at the time and tried to engage the security forces of OceanaGold. Police officials in Didipio, however, find Gozar’s version of the incident as “incredible”.

Breakdown of Law and Order

The Baranggay Council of Didipio with the present development and incidents now happening in the community is virtually non-existent or incapacitated to protect its constituents in the face of serious human rights violations being perpetrated by OceanaGold. The council has made several appeals to the mining company to settle first with the owners of houses and farmlands before they conduct demolitions activities but it seems this appeal fell on OceanaGold’s calloused and deaf ears.

OceanaGold showed its blatant disrespect to the public authority in Didipio for what they did to Councilor Edwardo Ananayo.

Arrogant mining company

OceanaGold’s order to its contractors to “demolish now, negotiate later” expresses utter disregard for due process of law and is highly insensitive to the well-being of the Indigenous Peoples community living in Didipio, even proudly invoking their so-called rights under the Mining Act of 1995.

We reiterate our call on all justice organisations, human rights and indigenous peoples advocates to extend support and solidarity to the Indigenous Peoples in Didipio. WE ASK YOU TO:

1. Be part of the Fact Finding Mission on 1-4 April 2008 in Didipio, to be spearheaded by LRC-KsK, Philrights, TFDP, Amnesty International, Alyansa Tigil Mina and to be joined by other foreign participants from Piplinks. You may contact LRC-KsK - +632 926 4409, TFDP National Office +632 437 8054, Alyansa Tigil Mina - +632 426 6740, Philrights - +632 433 1714;

2. Help the people of Didipio to defend themselves against the onslaught of OceanaGold and demand for the prosecution of the security guard who shot Emilio Pumihic;

3. Extend financial assistance for the legal defence fund, as the mining company will surely resort to take advantage of its huge resources to take the resisting community to the tedious and very expensive legal cases in courts, as what other mining affected communities are experiencing now and even before;

4. Increase awareness and disseminate information of the real situation in Didipio especially with OceanaGold investors and shareholders.
5. We call on all justice and human rights advocates and organizations to join hands with us in solidarity with the Indigenous Peoples of Didipio in Nueva Viscaya, Philippines. Let us call to IMMEDIATELY INVESTIGATE and ACT on the shooting of Emilio Pumihic and STOP THE VIOLENCE in DIDIPIO! Let us call on OceanaGold mining company to RESPECT Indigenous and Peoples RIGHTS and to abide, observe and practice good business etiquettes and standards. Write URGENT LETTER of CONCERN to the following:


1. H. E. Gloria Macapagal-Arroyo
President of the Republic of the Philippines
Malacanang Palace,
JP Laurel St., San Miguel
Manila Philippines
Tel: +632.564.1451 to 80
Fax:+632.742.1642/929.3968
Cell: +63.919.898.4622 / +63.917.839.8462
Email: corres@op.gov.ph / opnet@ops.gov.ph

2. Hon. Purificacion V. Quisumbing
Chairperson, Philippine Commission on Human Rights
SAAC Blg., UP Complex
Commonwealth Avenue
Diliman, Quezon City,Philippines
Tel: 928.5655/926.6188
Fax: +632.929.0102
Email: drpvq@yahoo.com

3. Sec. Jose L. Atienza Jr
Department of Environment and Natural Resources (DENR)
Central Office, Visayas Avenue
Diliman, 1100, Quezon City, Philippines
Tel: 928.06.91 to 93 loc. 2003, 2008
Email: osec@dem.gov.ph


4. OcenaGold Corporation
a. Australia
Stephen Orr – Chief Executive Officer
Corporate Office
Level 5, 250 Collins Street, Melbourne, Australia
Tel: +61.3.9656.5300
Fax: +61.3.9656.5333

b. Australia
James E. Askew-Chairman
Corporate Office
Level 5, 250 Collins Street, Melbourne, Australia
Tel: +61.3.9656.5300
Fax: +61.3.9656.5333

c. Philippines
Jose P. Leviste
2nd Floor, CJV Building
108 Aguirre Street, Legaspi Village
1229 Makati City, Philippines
Tel: +6.32.8926643
Fax: +6.32.892.8399

Lafayette Mining seeking short-term financing for Rapu-Rapu

http://www.abs-cbnnews.com/storypage.aspx?StoryId=90440

SYDNEY - Australian-listed Lafayette Mining Ltd. said on Thursday it had asked key stakeholders for short-term financial support to ensure the sustainability of its Rapu Rapu mine in the Philippines.

In requesting a temporary halt in the trading of its shares, Lafayette said it was awaiting a response from the stakeholders.

"This support is considered critical to allow the company time to explore its previously announced need to restructure its project debt and hedging obligations with the aim of ensuring the financial sustainability of the Rapu Rapu project," Lafayette said in a statement.

Rapu Rapu, located 350 kilometres (222 miles) southeast of the Philippine capital Manila, was the first foreign-owned mine to open in the country after the Supreme Court in December 2004 upheld a law allowing full foreign ownership of local mining projects.

However, it has been beset by problems, having been forced to close after cyanide spills in October 2005, and was further delayed by typhoon damage in late 2006. - Reuters

GDP grows 7.5% in 2nd quarter, highest in 20 years

http://www.mb.com.ph/BSNS20070831101650.html

By EDU LOPEZ

The Philippine economy, as measured by the gross domestic product (GDP), posted an impressive growth of 7.5 percent in the second quarter of the year, fuelled by industry and services sectors, the highest quarterly growth rate in 20 years.

"It is heartening to note the sustained strong performance of the economy in the second quarter, exceeding the forecasts by both NEDA and private firms," said Socioeconomic Planning Secretary Augusto Santos.

Gross national product (GNP) in the second quarter rose by 8.3 percent. GDP in the first semester of 2007 registered a strong 7.3 percent growth after an updated first quarter growth rate of 7.1 percent.

"The upbeat response of productive sectors further reinforced our macroeconomic fundamentals. While agriculture grew moderately at 3.9 percent, the distinct pick up in industry (8 percent) and services (8.4 percent) boosted the economy," said Santos.

The second quarter growth also reflects the continued stronger demand for labor, pushing the unemployment rate lower to 7.4 percent in the April labor force survey from 8.2 percent the year before.

On the demand-side, growth was stimulated by household and government consumption, which expanded by 6.0 and 13.5 percent, respectively.

Santos said capital formation also grew robustly at 8.2 percent compared to the 1.5 percent growth recorded in the same period last year. Merchandise exports however, slowed down to 5.9 percent from its double digit growth of 21.7 percent in the same period in 2006.

Palay production rose by 4.4 percent which remained healthy on account of increases in area harvested due to better irrigation and policy interventions such as the GMA rice program of the agriculture department. High value crops, fishery and forestry also supported the sector’s growth.

From a lackluster performance last year, the mining and quarrying sector sustained its growth in the first quarter.

Quarrying also got a boost from the surge in construction on account of the property market boom and strong growth in public construction (39.6 percent).

Almost all services subsectors have sustained growth, led by finance (11.8 percent), transportation, communication and storage (9.8 percent), private services (8.6 percent) and trade (8.4 percent).

Santos said the country’s sound macroeconomic fundamentals and strong corporate profits drove up the Philippine Stock Exchange Index (PSEI).

He noted that growth was seen as well in the higher earnings of banks and other financial services providers. Affordable airfares and intensive marketing promotions continued to prop up the air transport sector.

Santos is confident that NEDA’s full year official target of 6.1-6.7 percent GDP growth is quite attainable, notwithstanding some uncertainties.

On the external front, the continued weakness of the US economy and volatile oil prices continue to pose downside risks.

However, the steady economic expansion in Europe and Japan , as well as the fairly strong performance of other Asian economies, are positive developments, Santos said.

On the domestic front, Santos warned that the effects of the prolonged dryspell may drag the performance of agriculture in the second half.

"All these seem to say that the macroeconomic reforms implemented have been effective so far. With this positive development, we cannot afford to be complacent. We have to continually raise the bar to ensure the economy’s solid growth, so that economic gains increasingly benefit the Filipino people," said Santos.

Santos said that the government must push for policies to sustain macroeconomic stability, modernize agriculture and effectively transform it into agribusiness, strengthen small enterprises, expand export markets, protect our environment, and realign the national budget to spend more on social services, particularly education and health.

Asian stocks rally with Wall Street; Malaysia, Philippines enjoy GDP boost

http://www.forbes.com/markets/feeds/afx/2007/08/29/afx4066860.html

08.30.07, 12:54 AM ET

SINGAPORE (Thomson Financial) - A rally on Wall Street overnight on renewed hopes for a US interest rate cut sent Asian stock markets higher Thursday, with stronger-than-expected economic data from Malaysia and the Philippines underpinning gains in those markets.

Federal Reserve Chairman Ben Bernanke said in a letter to a lawmaker that Fed policymakers are 'prepared to act as needed' if the market's turbulence hurts the economy, raising hopes for a rate cut at the Fed's Sept 18 meeting.

The major US indexes rose sharply in a vigorous rebound from the prior-day selloff, although light volumes ahead of the US Labor Day holiday next week left some analysts unconvinced.

'It was roughly the reverse mirror image of Tuesday's 280-point Dow-decline,' said Scott Brown, economist at Raymond James. 'Any news? Not really. Sometimes the market does what it does and turns to the economic data as an excuse -- only in this case, there were no significant data reports.'

Asian markets rose across the board with financial stocks, the key decliners in Wednesday's session, leading the advance. The US is a key market for Asian goods and worry that the meltdown in the housing sector could trigger a recession has weighed on regional markets in recent weeks.

The Nikkei 225 was up 1.3 percent and the broader Topix up 1.1 percent at the close of the morning session.

The mining, shipping and steel sectors were all higher in Tokyo, finding further support in a weaker yen. Technology and the big auto exporters were also in the black.

Honda Motor rose 1.4 percent to 3,740, Toyota Motor gained 0.8 percent to 6,580 and Sony was up 2.1 percent at 5,340.

In Sydney, the S&P/ASX 200 rose 1.2 percent, and the All Ordinaries index rose by the same amount.

Index leader BHP Billiton was up 1.8 percent at 37.72 dollars and Rio Tinto rose 0.8 percent to 90.86 dollars, helped by stronger commodity prices.

Betting companies were the main losers due to concerns about revenue losses because of an outbreak of equine influenza that has shut down horse racing in Australia.

The nation's largest betting company, Tabcorp, was down 2.7 percent at 15.00 dollars while the second largest, Tattersall's, fell 5.5 percent at 4.63 dollars. Tattersall's decline came even as it reported better-than-expected June year earnings.

Financial stocks rose with Macquarie Bank up 1.0 percent at 72.20 dollars and deal making investment firm Babcock & Brown up 2.5 percent at 23.46 dollars.

Data boost

The South Korean Kospi added one percent. The Kospi outperformed during Wednesday's rout after data showing factory output grew much more than expected in July.

'It seems Wall Street's influence on the Seoul bourse is weakening a bit after several weeks of unprecedented volatility and this is a good sign,' said Daewoo Securities analyst Lee Kyung-Soo.

'The fundamentals of the local economy and companies are pretty firm and investors are now appreciating that,' Lee said.

More domestic data are on tap with the service sector output due out Thursday and current account balance scheduled for release on Friday.

Posco was up 2.4 percent at 587,000 won. The world's fourth-largest steelmaker confirmed that it's planning a steel processing plant in Japan with Nissan Trading Co, a unit of Japan's Nissan Motor Co.

In the financial sector, Shinhan was down 0.4 percent at 57,400 won. Woori was up 0.5 percent at 21,200 won.

The Philippines Composite rallied 3.2 percent after the government said GDP rose 7.5 percent in the second quarter from the year earlier, topping the average estimate of economists polled by Thomson IFR for a rise of 6.9 percent.

President Gloria Arroyo said the economy should meet full-year growth targets of 6.1-6.7 percent.

Malaysian GDP released Wednesday showed the economy expanded 5.7 percent in the second quarter, above forecasts for a rise of 5.2 to 5.5 percent. The Kuala Lumpur Composite Index rose one percent.

Elsewhere, the Hang Seng rose 2.3 percent. CNOOC Ltd, China's third-largest oil company, rose 32 cents or 3.6 percent to 9.2 dollars. The company said yesterday its first-half to June net profit fell 10.6 percent from a year ago, to 14.6 billion yuan.

The Singapore Straits Times rose 1.1 percent, with DBS up 1.5 percent. DBS shares have been under water for the past several sessions on concerns about its exposure to collateralized debt obligations, some of which may have exposure to US subprime debt.

The Taiwanese Taiex rose 1.8 percent and the Shanghai Composite added a more modest 0.1 percent.

In Jakarta, the benchmark Composite Index was up 1.7 percent.

ciara.linnane@thomson.com

Investika says production ramp-up at Philippines nickel project continues

http://www.forbes.com/markets/feeds/afx/2007/08/30/afx4067548.html

08.30.07, 7:25 AM ET

LONDON (Thomson Financial) - Investika Ltd said production ramp-up at its Berong nickel project on the island of Palawan, Philippines, to the export target for 2007 is continuing, although it is experiencing some difficulties with equipment availability.

Investika, an investment company in the mining finance industry, said production and shipping is heavily dependent upon weather patterns and rainfall levels, which are expected to increase over the third quarter.

The company reported a first-half pretax loss of 130,050 aud, compared with a profit of 2.22 mln aud last year.

Of the comparative profit, about 3.05 mln aud related to a gain arising from the dilution of its interest in Belitung Zinc Corp PLC from 100 pct to 42.5 pct, the company said.

TFN.newsdesk@thomson.com

Lafayette Mining says seeking short-term financing

http://www.mining-journal.com/Breaking_News.aspx?breaking_news_article_id=3656

Australian-listed Lafayette Mining Ltd said on Thursday it had asked key stakeholders for short-term financial support to ensure the sustainability of its Rapu Rapu mine in the Philippines.

In requesting a temporary halt in the trading of its shares, Lafayette said it was awaiting a response from the stakeholders.

"This support is considered critical to allow the company time to explore its previously announced need to restructure its project debt and hedging obligations with the aim of ensuring the financial sustainability of the Rapu Rapu project," Lafayette said in a statement.

Rapu Rapu, located 350 kilometres (222 miles) southeast of the Philippine capital Manila, was the first foreign-owned mine to open in the country after the Supreme Court in December 2004 upheld a law allowing full foreign ownership of local mining projects.

However, it has been beset by problems, having been forced to close after cyanide spills in October 2005, and was further delayed by typhoon damage in late 2006.

(Reuters August 30)

Army bares NPA threat to attack mine firm

http://newsinfo.inquirer.net/breakingnews/regions/view_article.php?article_id=85618

By Ephraim Aguilar
Southern Luzon Bureau
Last updated 05:41pm (Mla time) 08/30/2007

LEGAZPI CITY, Philippines -- The Philippine Army in Bicol on Thursday said the New People's Army's (NPA) is planning to launch an attack on the Lafayette Philippines Inc. to stop the controversial mining firm’s operations in Rapu-Rapu town.

Colonel Muhammad Nur Askalani, 902nd Infantry Brigade commander based in Villahermosa, Daraga, Albay, said military officers received the information on the alleged attack from civilian sources and other intelligence units on the island where Lafayette operates an open-pit copper and zinc mine.

Earlier, the Communist Party of the Philippines (CCP) criticized President Macapagal-Arroyo's family for its alleged control of the lucrative mining industry and ordered NPA rebels to attack and stop mining operations in the country.

Communist spokesman Gregorio “Ka Roger” Rosal announced a directive from the CPP to stop the operations of mining firms, mostly foreign corporations, in various parts of the country.

Askalani said despite the security threats, authorities are confident the military has enough forces on Rapu-Rapu to prevent any sabotage of the mining firm’s operations.

Lafayette officials expressed alarm over the intelligence report about the supposed attack, saying that it shouldn’t be ignored.

"The rebels could attack anytime," said one official who asked that he not be identified for lack of authority to speak on the matter.

Lafayette representatives snubbed the invitation to a forum organized by the multi-sectoral Save Rapu-Rapu Alliance (Sara) in cooperation with the Albay provincial government on Tuesday.

The forum was designed to discuss the environmental and socio-economic impact of the mining activity in Rapu-Rapu.

Atienza defuses tension in Vizcaya mining site

http://www.abs-cbnnews.com/storypage.aspx?StoryId=90544

http://www.philstar.com/index.php?Nation&p=49&type=2&sec=28&aid=20070830109

By KATHERINE ADRANEDA
The Philippine Star

Environment and Natural Resources Secretary Lito Atienza suspended Thursday the transport of the equipment of an Australian-owned mining company in Kasibu, Nueva Vizcaya amid opposition from tribal folk.

In a verbal order, Atienza barred the transport of drilling tools for Oxiana’s mining exploration in Kasibu town to prevent further hostilities between the anti-mining villagers and the company.

Atienza said he talked to Oxiana officials early Thursday and issued a “formal call” for a status quo or moratorium on the firm’s mining exploration.

“We have to move fast, so we had to call them,” the newly installed DENR chief said. “I told them ‘Let’s not rush into things… let’s talk it out first.’”

Atienza said the moratorium on the transport of Oxiana’s equipment could not be considered as indefinite, but a suspension “until we have ironed out things.”

“To develop an industry that is meant to benefit all... the local government unit and community members should always be part of the whole process,” he said.

Earlier, a local court issued an injunction against the anti-mining villagers, allowing the transport of Oxiana’s equipment to eastern parts of mountainous Kasibu town.

But despite the court injunction, the locals have stood their ground. With Charlie Lagasca

Aussie firm told to stop mining exploration in Vizcaya

http://newsinfo.inquirer.net/breakingnews/regions/view_article.php?article_id=85654

Inquirer
Last updated 09:55pm (Mla time) 08/30/2007

MANILA, Philippines To avert fresh violence, Environment Secretary Joselito Atienza on Thursday ordered an Australian mining firm to stop hauling equipment to its mining exploration site in Kasibu, Nueva Vizcaya.

Scores of tribal folks were hurt Wednesday afternoon after clashing with paramilitary forces who tried to transport heavy equipment past their barricade to the Oxiana Philippines Inc. site.

The paramilitary forces were employed by Oxiana.

“We are calling for a moratorium, a status quo. Let’s not rush into things,” Atienza told reporters. “Let’s hold it, talk things out.”

The secretary also called the Oxiana executives to a dialogue Friday to discuss the tribal folks’ concerns against the mining project, and draw up ways to address these.

“We will admonish them to address the local concerns. It looks like there has been an absence in communication and community relations,” he said. “Concern for the degradation of the environment must be clearly answered by the corporation.”

Tension had been building up in the upland town after the tribal folk barricaded the road leading to the Oxiana Philippines Inc.’s exploration site in Pao Village.

The mining firm, which is exploring gold and copper in the area, has secured a temporary restraining order from the local courts against the barricade.

The villagers, on the other hand, should be open to a dialogue with the mining executives, and be apprised of the benefits of the project, Atienza said

“The local community leaders must understand what’s happening, what are the benefits of hosting a mining operation, and what can they do against the resulting damage to the environment,” he said.

“There have to be assurances in the process so that they’ll be more appreciative of the immediate benefits.”

Atienza praised Nueva Vizcaya Gov. Luisa Lloren Cuaresma for initiating a dialogue between the tribal folks and the mining firm.

“I’m happy because the governor is calling for a meeting. She’s mediating, that’s good,” he said. TJ Burgonio

Scores hurt as residents, militiamen clash at mine site

August 29, 2007

Updated 19:15:01 (Mla time)
Melvin Gascon
Northern Luzon Bureau

http://services.inquirer.net/express/07/08/29/html_output/xmlhtml/20070829-85417-xml.html

BAYOMBONG, Nueva Vizcaya -- Scores of tribal men and women were injured as paramilitary forces clashed with villagers in upland Kasibu town who were manning a barricade to prevent the entry of a mining company in the area Wednesday afternoon.

In a phone interview from the site, Sister Maria Eden Orlino, directress of the church-based Diocesan Social Action Commission here, said the victims, many of them women, sustained bruises and sprains as they were dragged by workers of Oxiana Philippines and members of the Citizens’ Armed Forces Geographical Unit (CAFGU) from the path of a bulldozer that was trying to breach the barricade at 2:30 p.m. Wednesday.

The commotion, Orlino said, was triggered by the refusal of the picketers to clear the muddy mountain road for the passage of the bulldozer, which was to be used to clear the land at OPI's exploration site in Pao village.

The violence was quelled, Orlino said, due to the timely intervention of about 120 policemen deployed to the area for Thursday's implementation of a court order prohibiting the villagers from blocking OPI's equipment.

"It was such a sorry sight to see the protesters, especially the women, ending up with cuts and bruises, and torn clothes. Is this what government really wants to happen to our country?" she said.

An estimated 1,000 residents from six adjoining villages in Kasibu have been guarding the barricade in Paquet village to show their opposition to OPI's planned mining exploration.

The DSAC directress called on provincial officials to immediately intervene and mediate a dialogue among parties involved in the dispute to prevent the possible loss of lives due to the mining controversy.

©2007 www.inquirer.net all rights reserved

Bishop calls for dialogue over Nueva Vizcaya’s mining row

August 27, 2007

Updated 22:21:45 (Mla time)
TJ Burgonio
Inquirer

http://services.inquirer.net/express/07/08/28/html_output/xmlhtml/20070827-85017-xml.html

MANILA, Philippines -- Catholic Bishop Ramon Villena has appealed to indigenous people, a mining firm and environment officials to sit down for a dialogue to break the impasse over a mining project in Kasibu, Nueva Vizcaya.

Tension has been building up in the upland town after the tribal folk barricaded the road leading to the Oxiana Philippines Inc.'s exploration site in Pao Village.

There are fears a clash could break out once the police serves a local court order prohibiting the villagers from further barricading the road.

“I strongly call on the people concerned, the Oxiana Philippines, the MGB (Mines and Geosciences Bureau) and DENR (Department of Environment and Natural Resources), the provincial government and the Kired members to come to a dialogue and listen to one another respecting each other's inherent rights, responsibilities and accountabilities,'' Villena said.

Kired or the Kasibu Inter-tribal Response Toward Ecological Development is composed of residents opposed to the project.

The bishop of the diocese of Bayombong said that Oxiana Philippines has revived exploration activities in Pao without prior consultation, a prerequisite in the Indigenous People's Rights Act.

“The people are against the exploration activities of Oxiana Philippines in the area,'' he said in a statement.

The bishop said that while Oxiana claimed to possess “legal instruments'' that would legitimize their entry to Pao, the indigenous' people's rights could not be ignored.

“But what about the voice of the people? Will we close our ears to their cry and continue with the mining activities in utter disregard of their voice? This is the land of the indigenous peoples,'' he said.

“This land is their life, that's why it is called 'ancestral domain'. This is the land of their forefathers that will be handed down to their children's children.''

Villena said that the land did not belong to the Australian mining firm and accused it of “using investors money to extract minerals until they reach the bottom of the pit.''

“They will just leave the place and the land is gone, green has turned brown and gray, rivers have been silted heavily and worst of all, we are left with divided families, culture is gone, compounded social problems, and a groaning environment,'' he said.

The tribal leaders have vowed to continue blocking the road since it straddles a private land owned by one of those opposing the mining project.

The number of protesters, mostly tribal villagers from Pao, Paquet, Kakidugen, Biyoy, Cataraoan, Camamasi and Dine, has been growing for the past several days, especially in the aftermath of the issuance of the court order.

The villagers, composed of Bugkalot, Kalanguya and Ifugao, have been vocal about their opposition to the mining project, citing hazards to the environment and the population.

They questioned Oxiana's exploration permit issued in 2000.

©2007 www.inquirer.net all rights reserved

1,000 villagers turn back mining firm

By Melvin Gascon Northern Luzon Bureau Last updated 10:04pm (Mla time) 08/25/2007 http://newsinfo.inquirer.net/breakingnews/regions/view_article.php?article_id=84689 BAYOMBONG, NUEVA VIZCAYA—For the second time in six weeks, villagers in upland Kasibu town succeeded on Friday in repulsing a foreign mining firm which was trying to enter the area and conduct exploration activities. About 1,000 villagers forced a company truck to back off, stopping this from moving forward as it reached the barricade site in Paquet village, according to Benito Cudiam, a tribal leader. “It was a hair-raising experience. The people sat in the middle of the road, just waiting for the truck to reach them. They showed the company how determined they were in preventing its entry,” Cudiam said. At about midnight Friday, workers of Oxiana Philippines Inc., (OPI) an Australian firm, decided to turn back instead, when Kasibu Mayor Romeo Tayaban intervened. A rented bulldozer that company workers placed on standby and was supposed to be used for the opening of a new road leading to the exploration site, was never used, the villagers said. As the day’s events unfolded, representatives from Church groups and nongovernment organizations held vigil at the site. “For hours, tension was high in the area. We were so worried about what would happen after negotiations failed,” said Sister Maria Eden Orlino, directress of the Diocesan Social Action Commission. The Inquirer on Saturday sought Joey Nelson Ayson, OPI country director, and Jerrysal Mangaoang, director of the Mines and Geosciences Bureau in Cagayan Valley, but they declined to give any comment. Members of Bugkalot, Ifugao and Kalanguya tribes from Pao, Paquet, Dine, Kakidugen and Cataraoan villages have been preventing the entry of OPI equipment to show their opposition to the company’s planned mining exploration.

Copyright 2007 Northern Luzon Bureau. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Church, NGO leaders move to prevent mining bloodshed

August 25, 2007

Updated 01:27:50 (Mla time)
Melvin Gascon
Inquirer

http://services.inquirer.net/express/07/08/25/html_output/xmlhtml/20070825-84596-xml.html

BAYOMBONG, Nueva Vizcaya—Leaders of the Catholic Church and non-government organizations have stepped into a broiling mining controversy in upland Kasibu town here involving tribal folk who have been blocking the entry of a foreign mining firm into the village.

They have raised concerns over a possible face-off between 1,000 villagers and 50 policemen involving the implementation of a court order that allows the entry of equipment to be used by Oxiana Philippines Inc., an Australian firm.

On Friday, provincial sheriff Voltaire Garcia and Senior Supt. Segundo Duran, provincial police director, travelled to the site to implement the injunction order, which prohibits villagers from further barricading the road leading to the exploration site in Pao Village.

Hear no evil

In a statement, Bishop Ramon Villena assailed Oxiana for refusing to listen to the sentiments of the oppositors who have been barricading the road since July 12.

“Yes, Oxiana claims they have in their possession legal instruments that would legitimize their entry to Pao. But what about the voice of the people? Will we close our ears to their cry and continue with the mining activities in utter disregard of their voice?” Villena said in a statement.

From 300 in the last few days, the number of protesters has grown to about 1,000, mostly tribal villagers from Pao, Paquet, Kakidugen, Biyoy, Cataraoan, Camamasi and Dine who continued to guard the barricade after learning of the court’s issuance of an injunction order.

Their leaders, who asked not to be named for fear of being cited in contempt of the court, said they would continue to block the road because it traverses a private land, the owner of which was opposed to mining.

Contempt fear

“If it becomes necessary that we will go back to our headhunting practices, then so be it,” a Bugkalot chieftain said in the dialect.

The villagers, composed of Bugkalot, Kalanguya and Ifugao, have been opposing the entry of Oxiana, citing possible hazards that its operations would bring to their environment.

They have also been questioning Oxiana’s exploration permit issued in 2000, the period of which was extended without consultation with the affected local communities.

The Inquirer tried but failed to reach for comment Joey Nelson Ayson, Oxiana country manager, and Lourdes Dolinen, liaison officer. They did not respond to requests for interview sent through their mobile phones.

Environment NGOs, including Alyansa Tigil Mina and Kalikasan People’s Network for the Environment (PNE), also joined the bishop’s call for government agencies to pave the way for a peaceful settlement of the standoff in Pao.

Tribal rights

“We call on government to heed the call of indigenous communities living in the area to respect their beliefs, culture and way of life,” said Merly Calubaquib, provincial manager of the Philippine Rural Reconstruction Movement.

“Oxiana is riding roughshod over the residents because government is turning a blind eye on the IP’s legitimate grievances,” she said.

But as the company, with the help of government, showed determination to enter the area through force, villagers continued to fortify their positions, sources said.

Lucas Buay, an Ifugao and chair of the Council of Leaders of the Kasibu Inter-tribal Response Towards Ecological Development (Kired), said two barricades have been set up in Paquet Village.

©2007 www.inquirer.net all rights reserved

Puerto Princesa rejects mining projects

By Redempto AndaSouthern Luzon Bureau
Last updated 03:59am (Mla time) 08/23/2007

http://newsinfo.inquirer.net/inquirerheadlines/regions/view_article.php?article_id=84166

PUERTO PRINCESA CITY – The ongoing nickel ore rush in southern Palawan may have attracted all sorts of mining investors big and small, dubious and legit.

But the roads leading to the reddish brown soil that Palawan’s landscape is famous for just ended at the entrance to Puerto Princesa City, the province’s capital and host to wide areas of high grade nickel ore.

On Aug. 21, Mayor Edward S. Hagedorn declared that he will not approve any of the pending mining applications in the city at least during the remainder of his three-year term.

At the same time, he called for the filing of a resolution in the city council that will declare a 25-year moratorium on mining in Puerto Princesa City.

“If the mining companies can show me a place with intact forest cover and where people have become wealthy and healthy after a massive mining operation, I might change my mind,” Hagedorn told the Inquirer.

Hagedorn was reacting to questions on how the city government will respond to reported offers for assistance of major mining companies eyeing to put up nickel ore mining operations in Puerto Princesa City.“The ugly sight of the denuded forests of Sta. Lourdes and the mercury mine tailings that were dumped along Honda Bay only strengthens my resolve to oppose mining operations here in Puerto Princesa,” he added.

Hagedorn explained that the recent conversion of Puerto Princesa City into a highly urbanized charter city allowed it to be administratively independent of the provincial government and gave them the power to deny with finality all small-scale permit applications previously approved by the Provincial Mining and Regulatory Board (PMRB).

Small-scale mining permits are awarded by the PMRB.

In the case of Palawan, it is being utilized by big mining companies to start up large-scale mining operations, ostensibly because it is easier to acquire compared to large-scale permits given by the Department of Environment and Natural Resources.

Hagedorn’s announcement effectively turned down reported overtures from several major mining companies, including Atlas Consolidated Nickel Mining Corp., whose subsidiary, Berong Nickel Mining Corp., is eyeing to set up operations near Ulugan Bay overlooking the St. Paul’s Subterranean River National Park.

Nickel deposits are located on the western coast of the city.

Individuals have also been granted by the PMRB mining claims over nickel areas around Barangays Napsan and Bacungan.

Tourism and agriculture

Instead of jumping into the southern Palawan bandwagon where all municipalities embraced mining investors with open arms, Hagedorn said they have mapped out “a strategic plan to boost our tourism and agriculture sectors.”

“In line with our sustainable development vision, we can only promote two major industries—tourism and agriculture. That is why we are allocating more funds to enhance our tourism program,” Hagedorn said.

City tourism officer Melinda San Juan Mohammad said they were investing on a plan designed with the assistance of the Asian Institute of Management to boost the city’s tourism receipts by at least 30 percent over the next three years “as a short term goal.”

“Our target is to develop ecotourism as a major economic activity. We aim to increase tourism receipts by at least 30 percent and yet maintain a low volume of tourist traffic,” Mohammad said.

From an annual tourist arrival average of 150,000, Mohammad said they were conducting promotional activities to attract 650,000 tourists in the next three years.

She explained that their plan will be boosted by the ongoing upgrading of the Puerto Princesa City Airport into a full-fledged international airport.

Mohammad also noted the potential of newly discovered attractions in the city, including whale shark and dolphin-watching tours.

“Our whale sharks and dolphins are getting very good media attention. We expect this attraction to really get lots of visitors,” she added.

City agriculturist Melissa Macasaet also said their development plans have focused on increasing the current productivity of the sector and the promotion of export crops such as cacao and cashew.

“Our main goal is to address poverty and reduce its incidence,” Macasaet said.
She said they were also promoting the planting of oil palm in open areas of Puerto Princesa City to popularize the industry.

Copyright 2007 Southern Luzon Bureau. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Mining firm's injunction bid granted

http://www.mb.com.ph/archive_pages.php?url=
http://www.mb.com.ph/issues/2007/08/12/PROV20070812100119.html

By CEASAR M. PERANTE

BAYOMBONG, Nueva Vizcaya – A regional trial court (RTC) here granted last Thursday a petition for preliminary injunction sought by a mining firm conducting exploration activities at mineralrich villages in upland Kasibu town, this province.

The injunction, in effect, prevented anti-mining protesters from blocking the entry of mining equipment to their area.

Judge Godofredo Naui of RTC Branch 37 here granted the petition for preliminary injunction sought by Oxiana Philippines Inc., a subsidiary of an Australian mining firm after the anti-mining group failed to show any justifiable reason for its move to stop the exploration in the villages of Pao and Kakiduguen, Kasibu.

In his four-page order dated Aug. 9, 2007, Naui stated there appeared to be "sufficient evidence to show that plaintiff (Oxiana) has a right to undertake any and all works granted under Exploration Permit II-000014, and that the acts against which the injunction is sought are violations of such right. On the other hand, defendants have utterly failed to present any authority or legal ground for them to perform the threatened acts (of blocking the road to the exploration site)."

Oxiana Philippines, a subsidiary of Royalco Ltd. which bought it from Oxiana Mining Ltd., had earlier sought a temporary restraining order (TRO) to prevent the oppositors from blocking the road to the exploration site.

Despite court order, anti-mining residents in the area led by some village officials and several outsiders, who apparently disregarded the TRO, persistently blocked the entry of exploration equipment consisting of six-by-six trucks carrying exploration rigs and company's mining exploration personnel.

Since the issuance of the TRO, and even before its issuance, the anti-mining group blocked the road leading to the exploration site in Barangay Pao whose village head, Mariano Maddela, is one of those opposing the national government-approved exploration project.

Earlier, tribal elders and other members of the Bugkalot group in the project's primary impact zone had approved the project in a consultation meeting hosted by the National Commission on Indigenous Peoples (NCIP), which later upheld the validity of the results.

The mining firm earlier filed a case against 21 of the anti-mining leaders, including Maddela; Alejo Tuguinay, barangay chairman of Kakiduguen; Manuel Binuya, barangay chairman of Dine; and Felimon Blanco, barangay chairman of Pacquet, all in Kasibu town.

The Oxiana Philippines is conducting exploration in Pao and Kakiduguen and a nearby barangay to determine the commercial viability of mining the gold, copper and other mineral deposits.

Aside from allowing some national government-backed exploration activities conducted by foreign mining firms through their local subsidiaries, Nueva Vizcaya is also host to the ongoing multimillion-dollar Didipio gold-copper project of Oceana Gold Philippines, also in Kasibu town, and the Runruno Project operated by MTL Philippines in the nearby Quezon town.

"Nueva Vizcaya, as a mining capital in the making, could be one of the richest provinces in the Philippines in the near future," said Cagayan Valley Mines and Geosciences Bureau Director Jerrysal Mangaoang.

Managaoang said Oxiana Philippines had been given a permit by the MGB to conduct exploration activities after the company had entered into an agreement with the Bugkalots.

In its request for a TRO, Oxiana presented to the court an exploration permit issued by the government. The permit allows it to operate such types of activities for 20 months starting on June 30, 2007 and ending on February 27, 2008.

Nueva Vizcaya villagers keep up fight vs mining firms

By Melvin Gascon

Inquirer
Last updated 09:58pm (Mla time) 08/08/2007

KASIBU, Nueva Vizcaya—Officials and residents of this upland town decried the unabated intrusion of foreign companies trying to conduct large-scale mining explorations in remote villages here.

Mayor Romeo Tayaban said two Australian mining firms continued to explore mining prospects in their villages despite the stiff opposition from residents, composed of various tribal communities.

“Our town used to be peaceful and quiet, despite the economic difficulties. Look at what is happening to us now. It is all because of these mining companies,” he said.

Tayaban said his villagers were struggling to fight off three mining projects by Oxiana Philippines Inc. (OPI) and OceanaGold Philippines Inc.

Since July 12, tribal men have been guarding a barricade on a mountain road that leads to Barangay Pao to prevent OPI’s entry.

Twenty-two men, three of whom are Bugkalot and Ifugao village chiefs, are facing cases filed by OPI representatives at the regional trial court in Bayombong town for setting up the road block.

In Papaya Village, residents were protesting the entry of equipment to be used by OceanaGold for its exploration, fearing possible destruction of the watershed forest there. Water from the watershed irrigates the vegetable gardens and citrus plantations in the area.

In Didipio Village, eight farmers were charged by environment officials with illegal occupancy of forest lands after they rejected OceanaGold’s offer to pay for their occupational rights.

Didipio Village is the site of OceanaGold’s proposed gold-copper project, with about 90 hectares of its 375-hectare production area occupied by Kalanguya, Ibaloi and Ifugao farmers.

Tayaban said the people of Kasibu have long been aware of the economic gains that the mining project is expected to generate for them, but insist on planting fruit trees and vegetables.

Kasibu is considered the citrus capital of the country, with an annual output of about 10 million kilograms of oranges from an estimated 20,000 hectares of citrus plantations.

Ramoncito Gozar, Oceana-Gold’s associate director for communications and external affairs, said mining projects in the town would benefit the country.

“[The mayor] should realize that [the Didipio venture] is a government project for the good of the majority,” he said.

“He doesn’t like mining, but (OceanaGold) is a contractor of the Philippine government,” Gozar said.

Lourdes Dolinen, an official of the OPI, could not be reached for comment.

Piñol urges gov't to go slow on mining

Tuesday, August 07, 2007

http://www.sunstar.com.ph/static/gen/2007/08/07/bus/pi.ol.urges.gov.t.to.go.slow.on.mining.html

A PROMINENT government official in Central Mindanao, a region hosting various mining ventures, has called on the National Government to temper its aggressive promotion of the country's mineral resources, especially to foreigners.

Former North Cotabato governor and now the province's Vice Gov. Emmanuel Piñol chided Malacanang's attitude of pushing for more mining operations in the country, fearing "it will only aggravate the real threat of global warming."

"For the National Government to talk of starting efforts to arrest global warming but at the same time push for massive mining operations in many parts of the country is simply ironic," Piñol said in a recent statement.

Piñol instead suggested that the Philippine government give more focus to a well-planned and environmentally friendly agriculture to ensure the country's sustainable growth and at the same time contribute to the worldwide effort to combat global warming.

He asserted that history has proven that mining operations have greatly damaged the environment and have very little impact on rural development since rich multinational companies are the main beneficiaries.

"To talk of mining as the seeming hope for national economic salvation of the Philippines is to ignore the fact that nowhere is there a mining area in the country where people ended up prosperous after the mining operations," Piñol said.

In his nine-year term as governor of North Cotabato, Piñol has maintained the "No Mining" policy in the province emphasizing that "I am not willing to see my province's mountains ripped apart in search of a few kilos of gold or copper."

Instead, he said these mountains would be more useful for the people if these were planted to crops like rubber, oil palm or coconut.

Central Mindanao plays host to mining ventures, among them the copper and gold project of Sagittarius Mines, Inc. based in Tampakan, South Cotabato.

Piñol, who decided to slide down to vice governor to give way to his former vice governor, Jesus N. Sacdalan, who was elected governor last May, presided over the rapid transformation of North Cotabato from being one of the poorest provinces of the Philippines in 1998 to its current 29th rank among the top 30 provinces, according to the National Statistics Coordination Board (NSCB).

The economic turn-around of North Cotabato, which was once a battlefield for communist and secessionist groups and government troops, is attributed to what Piñol called "sustainable and market-oriented agriculture."

Under his leadership, areas for rubber, oil palm, coconut and bananas expanded through the province's Plant Now Pay Later program where farmers are given seedling loans payable upon the start of harvest.