Wednesday, October 15, 2008 Ledesma: Mining for precious metals By Jun Ledesma Sunbursts
WE HAVE been told every now and then that mining industry will be our economic lifesaver. I am sure that with the looming global economic meltdown, we are going to hear more of this motherhood statement. Even as I agree that we have vast resources of precious minerals in the bowels of our earth, I am not about to buy that guarantee. Billions worth of gold had been dug from the mountain ranges of Diwalwal but except for a few who made it to the millionaires row, the lumads and those who go down the tunnels to dig up nuggets of glittering gold are still miserable.
But nothing stops the peoples quest for gold and other metals that are quite abundant in our region. Recently the air lanes and local newspapers have dedicated some time and space about the controversy surrounding the failed partnership between Amcor and BHP Billiton. There are clashes of opinions but none seems to be the winner. In the melee the other vital issue of environment appears to have been forgotten.
Let's rewind a bit here. Some years back, the Mines and Geo-science Bureau granted Mineral Production Sharing Agreements to seven corporations under the holding company Amcor (Asiaticus Mining Corporation) to explore and mine the nickel deposits in the barangays of Macambol and Cabuaya all belonging to the City of Mati.
In 2002, the National Commission of Indigenous Peoples (NCIP) issued a Free Prior Informed Consent certificate to AMCOR after the indigenous communities in Macambol and Cabuaya have agreed to allow the former to do mining activities in the barangays. The contracts were signed by Datu Rufino Mapinogas of Macambol and Datu Rogelio Limente of Cabuaya. The mining claims covered 9,500 and 500 hectares, respectively.
NCIP Commissioner Felicito Masagnay recalled that as far back as 2002, Amcor signed up with Australian company BHP Billiton, reputed to be the one of the biggest mining firms in the world to explore and exploit the nickel deposits. He said the partnership turned sour because the Australian partner failed to start with the mining activities despite the fact that six years had already elapsed and yet they are still in the "exploration" stage.
The indigenous communities were restive because of the delay and Amcor is not happy with what appears to be a "mine-banking" strategy being employed by BHP Billiton.
Mine banking is a term used in the mining industry in a situation where exploitation is intentionally delayed because the company is actively engaged in mining activities elsewhere. Exploitation also starts only when the market condition suits the interest of the mining firm.
Unhappy with the stagnant operations agreement, Amcor went to court to rescind its joint venture agreement with BHP-Billiton. Amcor won its case but the former is not sitting down. I suspect that both sides are exploiting the local media instead of the nickel deposits for these days you hear lively debates in the newspapers and in the air lane.
The IPs who stand to have a share of one percent of the proceeds had demanded from Amcor to start operating. Besides, the indigenous communities are looking forward to working in the mining firm. According to Masagnay, he was told that by the first quarter of 2009, the mining activities will begin without the partner.
What I heard from radio commentators is that Datu Limente of Cabuaya prefers BHP Billiton. He forgot that the FPIC which he and the barangay tribal council signed was with Amcor. FPIC is non-transferable unless this is formally taken up with the tribal council and approved by NCIP sitting en banc. Even Commissioner Masagnay cannot come in the way of Amcor and his brother Bonifacio, a sitio leader of Magum, Macambol, who favors BHP-Billiton. The commissioner said contracts must be adhered to and no shortcuts should be made no matter how small or how big is the area. The indigenous community had a 25 years contract with Amcor none with BHP Billiton.
The question is whether Amcor has the resources and the capability to mine? I heard from reliable source that the owners of this firm are involved in another multimillion-peso government controversial deal.
These days, you don't trust names anymore. Lehman Brothers, Iceland, Singapore were names you reckon with not too long ago. Amcor? I don't know it from Adam but we will dig deeper on how far deep it can go mining nickel in the heartland of Mati.
While they are talking of rights and ownerships we do not know how Amcor or BHP Billiton will dispose of the mine's tailings. Will it gorge out to Pujada Bay and out to Davao Gulf? Remember Masara mines? Not this recent landslide, which killed over a dozen riverside dwellers.
Even the media forgot that sometime in the 1970s over 300 mine workers whose living quarters along the river banks were killed when rains and mines tailings broke the dam in the catchment causing massive flash floods that carried the houses and mangled bodies down the rampaging river all the way to the gulf. Let's go gold digging but let us not forget this one.
