Sunday, April 15, 2007 Lepanto spends over P1-M social dev't fund for host communities By Jane Cadalig
THE LEPANTO Consolidated Mining Company has doled out over P1-million for the development of its host communities in Mankayan, Benguet, in the last three months of 2006.
A report from the Environment Section of the DENR-Mines and Geo-sciences Bureau, however, said the company has not implemented all the activities as stated in its five-year social development program.
The report failed to identify specifics of the projects that were not implemented and advised the company to be sincere enough in complying with its social obligations to enhance better working relationships with the mining communities.
Bulk of the mining firm's expenditure from its Social Development and Management Program (SDMP) Fund for the last quarter last year was spent on infrastructure projects.
These included the purchase of materials for the construction and improvement of pavements, waterworks, and educational buildings, which amounted to P1,006,865.39.
Other programs included education, health and assistance to livelihood for the communities.
Lepanto's P1,181,309.20 SDMP spending accounted to 1.16 percent of its direct milling and mining cost, which amounted to P102,162,147.
Mining companies are required by law to allocate at least one percent of their direct mining and milling cost as social obligations to host communities.
Companies that do not implement their SDMP are fined P5,000 for the first offense and another P5,000 plus suspension of their operations for the second offense.
