Friday, May 16, 2008 Aussie mining firm operations in Davao Oriental nixed
ANOTHER mining firm in Southern Mindanao is in the hot seat as leaders of a tribal group have vowed to stop its operations in the area.
The Australian mining company, BHP Billiton, was condemned by members of the Mandaya Tribal Council of Macambol in Mati City, Davao Oriental after the mining firm allegedly committed five grave offenses as it started its operation for the Pujada Bay Nickel Project.
Such opposition was expressed through a council resolution signed by the leader of the tribal group, Rufino Mapinogos, on April 11, 2008.
In a statement, Mapinogos said the construction of the fence on the occupied lots of the tribal group, the entry and exit of the mining firm in the ancestral domain without proper consultation and consent, the disrespect of the territory of the tribe, and the disregard of a temporary restraining order issued by the court on the mining operations are among alleged violations committed by the mining firm.
"Our objective is to have smooth operation in our area. We do not want intruders to come inside our ancestral domain without giving due respect to our rights and privileges as stated in the Ipra Law," Mapinogos said in the statement.
The tribal chieftain also said that they would prefer the locally based mining firm, Asiaticus Management Corp. (Amcor), to start its mining operation for the Pujada Bay Nickel Project.
For its part, Amcor has already asked the intervention of the Department of Environment and Natural Resources (DENR) in its fight to rescind the joint venture agreement with BHP Billiton, which they accused to have been involved in "mine banking".
Mine banking is the action wherein a company is laying claim on as many mining sites as possible that it can explore and eventually operate later.
In a letter dated April 4, 2008, and addressed to Environment Secretary Joselito L. Atienza, Ruben C. Tan, vice president of Amcor, said if his company would not rescind its venture with the foreign group, they could only start the actual operation by 2019, considering that their partnership was the least priority of the latter.
"We could not wait for that very long duration of time. We want to start now," Tan said.
The two companies signed a memorandum of understanding in 2000 in Australia and the joint venture agreement in 2002 in Singapore.
After the signing, the BHP Billiton reportedly promised that in five years time they would start mine production and build $1.5 million melting plant as it would spend around $85-million for the exploration.
"Rescinding the contract with BHP Billiton was decided after years of frustration and disappointment considering the years we gave our trust and efforts to make the joint venture succeed," Tan said.
He said their partner even allegedly "took absolute control of the project, particularly by making the time table for the exploration and mining activities, infusion and utilization of funds and other important management decisions subject to its sole whim, in violation of the Philippine Constitution and existing laws".
Tan claimed the track record of the BHP Billiton in the country is not even impressive considering that it even held its nickel project in Surigao del Sur "without development". (CPM with PR)
