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Sunday, November 27, 2005
Diwalwal operation to be under gov't
SPECULATIONS are not true that foreign businesses would come in and become major shareholders of investments in mining industry in the region, said Mines and Geosciences Bureau head for Southern Mindanao Engineer Edilberto Arreza.
Arreza is also the head of project monitoring and coordinating center of the mining and environment task group.
During Friday's Kapihan sa PIA, Arreza said, Diwalwal would be under the full operation of the government through the Natural Resources and Mining Development Corporation (NRMDC) and convert it to a world class mining area.
He said because the government at this point in time do not have the necessary resources, there is a plan to field IPOs in the market to generate the corresponding fund.
Arreza said it needs about $25 million or P1.2 billion for project development.
Negotiations are ongoing to buy out the "big 3" in Diwalwal namely the Blucor group, Helica group, and JB Mining even as he said that he has no idea how much is the investment of the three groups.
"I think the negotiation would give positive result considering that mining activities in Diwalwal is already very difficult with excavation already reaching the 575 meters down," Arreza said.
He said the NRMDC during its exploration was able to block a sizeable reserve of gold and based on BMG-Southern Mindanao geological research, it is about 78.7 tons of gold ore with a grade of 8.3 grams per ton.
The estimated current price of gold in the market now is at $570 per ounce.
He said per agreement, NRMDC would continue its exploration and that out of the 10 drillings, about six drill holes were already complete.
NRMDC, he said, is also task to come up with mineral processing plant and would also set aside area for small-scale mining.
He added NRMDC would also tap small scale miners in the event that it goes full blast in its operation as there are lots of work available.
Arreza, meanwhile, said that after the October 26 disaster that hit the Sunshine Tunnel, the Department of Environment and Natural Resources ordered the prohibition of bringing in explosives inside the tunnels.
Lieutenant Colonel Hernando Caraig, Jr., chief of the Army's 28th Infantry Battalion based in Diwalwal, said the military deployed personnel at the entrance of portals to see to it that explosives are not brought into the tunnels.
Except for the Sunshine Tunnel that was ordered to temporary stop its operation, the other tunnels of small-scale miners continue to operate.
There are about 34 productive tunnels in Diwalwal. (PIA)
For Bisaya stories from Davao. Click here. (November 27, 2005 issue)
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