Monday, December 04, 2006

Didipio mine project gets A-M loan

By, MELODY M. AGUIBA,

http://www.mb. com.ph/BSNS20061 20481422. html

4th December 2006

The Didipio copper-gold project is drawing down this week A million from an ANZ-arranged syndicated loan as it also anticipates 40-million multi-financial instrument deal with a New York-operating international financier. All set to be constructed as the first large-scale mine in Region 2, the Didipio project is nearly complete with all financing requirements totaling to A0 million.

"The forty million Australian dollars, we’ll get that next week. For the 170 million Australian dollars, we’ve had offers from financial institutions in New York, Toronto, London, and Australia," said Stephen Orr, chief executive officer of New Zealand-based Oceana Gold Ltd. (OGL), in an interview during a certificate of merger signing. The A million was syndicated by ANZ Investment Bank together with the Commonwealth Bank of Australia. The on-going negotiation with several equity institutions which may be finalized in two weeks will involve either a convertible bond or a highyield debt or a combination. OGL, New Zealand’s biggest gold producer, is extra bullish about the prospect of mining in the Philippines both in geologic potential and government policies.

"In terms of geologic prospectivity, it’s one of the best in the world in undeveloped ore deposit particularly copper gold porphyry. In terms of government support, we’ve gotten absolutely positive government support through every department we’ve spoken to from the president down," Orr said President Gloria Macapagal Arroyo, who was present at the merger signing of OGL with Australia’s Climax Mining, said the Didipio project along with five other Australia-New Zealand mining projects is among the foreign investments the Philippines had been expecting to host. The copper-gold project in Nueva Vizcaya-Quirino holds a Financial and Technical Assistance Agreement (FTAA) which needs approval of the Office of the President. OGL finds its acquisition of the project strategic not only with its vision in geographic expansion but also in extending its environmental practice outside of New Zealand.

"To us our acquisition of Didipio is transformational. We have a strategy to be a consolidator in the Pcific Rim, and this is our first step. And one of the things we’re looking forward to is in New Zealand, we operate in the highest environmental standard. We want to operate in the Philippines in the same standard," he said. OGL is spending A to A million in exploration for the Philippines as it anticipates more discoveries here. It is separately spending A to A million in exploration in New Zealand.

"Part of our financing was to raise money for exploration. We believe that within one year, we’ll be able to announce a new discovery in the Philippines. That’s how prospective we believe it is. Don’t be surprised to see us drilling in northern Surigao. It will be one of our big focuses. We’re quite optimistic," he said. With the Didipio acquisition, OGL is raising its ability to produce gold from 180,000 ounces to 300,000 ounces as the project is set to be constructed early 2007.

"We acquired a largescale orebody in the Philippines that gave us geopolitical diversity which we didn’t have before and gave us additional revenue sources other than gold because Didipio has copper," he said. While some exploration and mining executives have downgraded the country’s mining environment in a Fraser Institute survey, OGL believes much of a project’s success lies internally in corporate management.

"The Philippines is not any worse than any other place in the world. Companies who have vested interests have to promote their interest to convince the government. And we work very hard to do that and the government has been very supportive," said Orr. The OGL buyout into Didipio also enabled entry of Brazil’s SCRCOR which owns seven percent of OGL and Ospraie Management of New York which holds 11 percent interest. The Didipio project is believed to be the beginning of a string of discoveries in this area. The company has identified new prospects here including the True Blue and the D’Fox which may extend the life of this single mine over many years.

Sunday, September 24, 2006

Bishop seeks help of Australian church, NGOs vs mining

First posted 04:42pm (Mla time) Sept 24, 2006
By Melvin Gascon
Inquirer

http://news.inq7.net/archive_article/index.php?ver=1&index=1&story_id=22784

BAYOMBONG, Nueva Vizcaya -- Catholic Bishop Ramon Villena has called on the church and civil society groups in Australia to help in the local church's crusade to uphold the rights of indigenous peoples opposing a planned mining project in Kasibu town.

The bishop aired the concern of the Roman Catholic Church in the country over "the breakdown in legal process and good governance" and the "proper protection of local and indigenous rights" in the proposed gold-copper project in Didipio village being pushed by Australasian Philippines Mining Inc. (APMI), an Australian firm.

"The Philippine Catholic bishops seek the active support of Australian bishops, institutions and civil society actors for the protection of democratic processes, local governance and adequate safeguards for the human rights of indigenous peoples, the poor and marginalized," Villena said in a statement.

Since 1994, APMI has been eyeing to undertake large-scale mining activities for gold and copper in Didipio, under a financial and technical assistance agreement (FTAA) it entered into with the Philippine government in 1994.

Villena said he was optimistic that the Australian Bishops' Committee for Justice, Development and Peace (ABCJDP) would live up to is commitment to Third World countries "to help them not to harm the environment."

Tuesday, September 19, 2006

Reyes sees RP mining rebound

First posted 03:59am (Mla time) Sept 19, 2006
By Norman Bordadora
Inquirer

http://news.inq7.net/archive_article/index.php?ver=1&index=1&story_id=21784

Editor's Note: Published on Page A17 of the September 19, 2006 issue of the Philippine Daily Inquirer

THE Philippines is on the way to regaining its stature as one of the top 10 global producers of copper, gold, chromium and nickel, Environment Secretary Angelo Reyes said following the holding of an international mining conference in the country last week.

Reyes made the assessment after the four-day Indaba in the Philippines Mining Conference, which was attended by potential investors who are already operating in mine-rich African states.

“The Philippine government is revitalizing mining not purely for the expected economic benefits but also with due and equal regard for the environment and the communities,” Reyes said.

He invited officials from mining countries to attend the Indaba conference here.

“Come to the Philippines to take a ‘hard look’ at the Philippine mining industry and its prospects,” Reyes said. The country’s untapped mineral resources have been estimated to be worth $1 trillion, he said.

Aside from getting extensive briefings on the laws and regulations governing mining in the Philippines, the participants were informed about tax and other business incentives available to mining investors.

The delegates visited mining locations in the country, such as the copper project in Tampakan in South Cotabato.

Some of them appeared impressed by the country’s mining potential, as well as by the concern over social responsibility displayed by some local mining corporations.

Some of the participants manifested their desire to return to the Philippines.

“We’re comfortable with risks in the Philippines. We’re happy we came here as early as we did or in two years, properties will be very expensive. We anticipate we’re going to be in the forefront of a world-class development in the Philippines,” said Albert Brantley, chief development officer of Oceana Gold Ltd (OGL).

Terry Burgess, Anglo Base Metals (ABM) business development head, said the Philippines had just emerged on top of the world’s most attractive mining investment venues.

“The Philippines is on everybody’s list of countries to look at. There’s still uncertainty about the implementation of mining laws, but there are few countries without risks. There are a lot of countries with great prospects despite risks associated with them,” Burgess said.

ABM is affiliated with Anglo Gold Ashanti and Anglo American, which has a joint venture agreement with Philex’s Boyongan copper-gold discovery and operates in the United Kingdom, Europe, South Africa, and South America.

OGL is set to infuse fresh investments into the $125-million Didipio copper mining project in Quirino, Nueva Vizcaya through a merger with Climax Mining.

Wednesday, September 13, 2006

Move to save Vizcaya mountains, watersheds launched

By Charlie Lagasca
Publication Date: [Wednesday, September 13, 2006]

http://www.philstar.com/philstar/show_content.asp?article=274976

BAYOMBONG, Nueva Vizcaya — Seeking to help preserve the environmental diversity of the forest areas in Cagayan Valley, a multi-sectoral group here launched over the weekend a concerted effort to save the province’s remaining watershed areas.

Called the Palali-Mamparang Mountain Range Conservation Project, the group aims to ensure the biodiversity of the Palali-Mamparang Mountain Range, a section of the Sierra Madre Mountains in Kasibu and Quezon towns, which is also part of the Sierra Madre Biodiversity Corridor.

The Palali-Mamparang Range is one of the eight biodiversity hot spots in the country, according to the newly launched Friends of the Environment for Development and Sustainability (FRENDS).

Besides rampant illegal logging, mining and brushfires, FRENDS also identified the alarming conversion of forest lands and agricultural lands into other uses as one of the leading factors of the continued degradation of the Sierra Madre, which is home to many endemic endangered species.

FRENDS also noted with alarm the rapid loss of forest lands in the various sections of the Sierra Madre, emphasizing that 13 types of forests have been identified to be endemic to the country’s longest mountain systems, four of which are within the Palali-Mamparang ranges.

Earlier reports showed that the forest cover of Nueva Vizcaya and neighboring Quirino province are being diminished by as much as 5,000 hectares every year or 10 hectares daily.

The United States Agency for International Development-(USAID)-assisted Philippine Environmental Governance (EcoGov) in Luzon, is now striving to reduce destructive activities within the forest reserves of the Sierra Madre mountain range.

Quirino’s forest cover has reportedly been reduced by as much as 3,545 hectares in a year or 9.7 hectares daily while its former mother province of Nueva Vizcaya, which still has 51 percent forest cover is continuously reduced at 456 hectares every year or 1.2 hectares daily.

The conservation project, which also intends to rehabilitate and develop the said area, consists of a series of programs and activities intended to preserve and develop the Sierra Madre range, which straddles the municipalities of Quezon and Kasibu towns here.

Monday, August 28, 2006

Troops sent to mine site in Nueva Vizcaya

By Melvin Gascon
Inquirer
Last updated 04:49am (Mla time) 08/28/2006

http://newsinfo.inq7.net/inquirerheadlines/regions/view_article.php?article_id=17570%20-->

Published on Page A23 of the August 28, 2006 issue of the Philippine Daily Inquirer

CABARROGUIS, QUIRINO—Army soldiers and policemen have been sent to a remote village here where a foreign mining company has started road clearing activities to access its planned gold-copper project site near the Nueva Vizcaya-Quirino border.

But while military and police officials gave varying accounts on the purpose of the arrival of troops in Barangay Tucod here, others belied speculations that the deployment was meant to guard the activities of Australasian Philippines Mining Inc. (APMI).

Teams from the Army’s 5th Infantry Division and the police’s provincial mobile group have been stationed in the village for the past two weeks as APMI started road rehabilitation of the 13-km mountain road connecting this town to Barangay Didipio in Kasibu, Nueva Vizcaya.

The roads are being prepared for the expected transport of heavy equipment that APMI would use for its pre-development operations for its $102-million Didipio mining venture, according to Chito Gozar, APMI manager for central liaison.

The company vowed to start operations next month, despite the objection of residents at the site and the rejection of the project by their local governments.

In addition, questions linger as to what province—Nueva Vizcaya or Quirino—actually covers Didipio, and who would benefit from the project’s proceeds as host community.

The project is scheduled to start despite the failure of local officials to resolve questions on the operations of about 300 illegal miners at the planned project site.

Senior Supt. Pedro Cuntapay, Quirino police director, said he has sent troops to Tucod due to the presence of communist rebels in the area.
“There were recent sightings [of insurgents] there and also because Arimco is there,” he said, referring to APMI, formerly Climax Arimco Mining Corp.
But Maj. Victor Tanggawohn, chief of the Army’s civil military operations unit, said the soldiers were deployed as security forces during the visit of Environment Secretary Angelo Reyes.

On Aug. 8, Reyes visited the project site in Didipio to check on the reported illegal mining activities there.

“They have not been recalled since because they are awaiting the arrival of a military official who is expected to visit the area in the coming days,” Tanggawohn said.

Cuntapay and Tanggawohn declined to reveal the size of the troops in Tucod for security reasons.

Gozar said he was not aware of the troop deployment at the project site.
Jerrysal Mangaoang, Cagayan Valley director of the Mines and Geosciences Bureau, and Wilfredo Malvar, provincial environment officer, said the troop deployment was part of pursuit operations against members of a group who robbed the Quirino General High School on Wednesday.
“What we heard was that the robbers escaped to the mountains, so the troops were after them,” Malvar said.

Monday, August 14, 2006

Reyes evasive on controversial mining project in N. Vizcaya

Inquirer
Last updated 06:55am (Mla time) 08/14/2006

Published on page A21 of the August 14, 2006 issue of the Philippine Daily Inquirer

BAYOMBONG, NUEVA VIZCAYA -- Environment Secretary Angelo Reyes on Tuesday evaded questions on the controversy hounding the planned mining project by an Australian firm in Kasibu town.

In a press conference here, Reyes declined to answer reporters’ questions on unresolved issues in the proposed Didipio gold-copper project -- its rejection by tribal communities and the border dispute between Nueva Vizcaya and Quirino provinces.

The Didipio project is being proposed by Australasian Philippine Mining Inc. (APMI), which is among the 23 ventures that the Arroyo administration tagged as priority projects in the mining sector.

Endorsement

Reyes was asked why the government continued to push APMI’s operations despite the company’s failure to obtain the endorsement by local communities, a requirement in its environmental compliance certificate (ECC).

The area was also being contested by Nueva Vizcaya and Quirino, in apparent anticipation of the taxes and other revenues that the host province would get from the planned mining operations.

Local anti-mining advocates lamented Reyes’ hesitation to address the issues, saying it was an indication that he was not aware of the controversies surrounding the project.

“As the highest official of the DENR, everybody expects him to know all these issues. This added to our amazement when a high-ranking DENR official even asked where Didipio is,” said Sr. Maria Eden Orlino, directress of the Diocesan Social Action Commission, a Church-based non-government organization.

Reyes, however, asked APMI board chair Jose Leviste and DENR regional director Clarence Baguilat to answer the reporters’ questions.

Rejected

Leviste said the project had been earlier endorsed by a bloc of village officials, but the decision was overturned by a new set of Didipio officials, most of whom are opposing the operations of the company.

The project’s ECC says it must obtain at least two endorsements from village, town or provincial councils.

Last year, the APMI project was rejected by the barangay council of Didipio and the municipal council of Kasibu.

While admitting that a boundary dispute between Nueva Vizcaya and Quirino has remained an issue, Baguilat said the matter would be left to the two provinces to resolve.

“[Settling boundary disputes] is not part of our work,” he said.
Reyes on Tuesday led the launching of the DENR’s Green Philippine Highways at the Nueva Vizcaya State University here. The project is aimed at re-greening the roadsides of about 2,180 km of the country’s national highways. Melvin Gascon, Inquirer Northern Luzon

Copyright 2006 Inquirer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Saturday, July 29, 2006

DESAMA Case Filing vs. DENR at RTC Bayombong, Nueva Vizcaya


















Photos taken by JP Alipio/LRC Luzon Regional Office


Thursday, July 27, 2006

SC reaffirms constitutionality of Mining Act

http://www.philstar.com/philstar/NEWS200607270414.html
By Katherine Adraneda
The Philippine Star 07/27/2006

The Supreme Court (SC) upheld the constitutionality of the Philippine Mining Act of 1995 when it junked with finality the motion for reconsideration filed by the Didipio Earth Savers’ Multi-Purpose Association Inc. (DESAMA).

In a resolution dated June 14, the high court denied DESAMA’s petition regarding its March 30 decision to uphold the constitutionality of the Mining Act, saying that the basic issues have already been addressed and there is no substantial argument to warrant a modification of its decision.

The high court also denied for lack of merit the motion of another petitioner seeking to intervene in the case.

"We feel that a lot of questions remain unanswered and poses a threat to our rights," said lawyer Francis Joseph Ballesteros, of the Legal Rights and Natural Resources Center (LRC), a group helping DESAMA.

The LRC said the SC’s denial on their petition for intervention is contrary to a decision it previously rendered en banc in the case of the La Bugal B’laan Tribal Association Inc. where it allowed the intervention of the Chamber of Mines.

"We are disappointed, but we respect the SC decision," said lawyer Mary Ann dela Peña, also of LRC.

Nevertheless, the LRC considered the SC resolution as a "victory" because it declared the entry of mining concessionaires into private property as a form of "taking." This declaration, the LRC noted, means that mining firms would not be able to start operating in an area until the owners sell their property for mine use. Citing Article III, Section 9 of the 1987 Constitution, the LRC pointed out that the valid exercise of eminent domain requires "taking for public use and upon payment of just compensation."

The court affirms the first, while the other two requirements (whether it is for public use and whether there was payment of just compensation prior to taking) remained unsettled, the LRC stressed.

"The Philippine Mining Act does not provide for a public purpose for such a taking nor does it provide for the payment of just compensation to affected landowners," the DESAMA argued in its motion for reconsideration.

Climax-Arimco Mining Corp. (CAMC) is reportedly offering only P200 to P250 per square meter for use of land in areas it intends to set up mining operations.

"Not all the owners of property have sold their lands. So, legally speaking, mining operations in Didipio should not proceed yet," Dela Peña said.

The indigenous peoples of Didipio, Nueva Vizcaya vowed to continue to defend their lands against mining firms. The DESAMA, with the assistance of the LRC, also said it would exhaust all measures to assert the people’s land rights and community control of the natural resources in their area.

"We will not stop, we will continue to fight for our lands and livelihood. Ang lupa ay para sa mamamayan, hindi para sa dayuhang minahan (The land is for the people, not for foreign mining firms)," said Peter Duyapat, a leader of DESAMA.

DENR to check on Didipio mercury contamination

Malaya July 27, 2006
BY JOJO DE GUZMAN
http://www.malaya.com.ph/jul27/envi1.html

KASIBU, Nueva Vizcaya – The possibility of mercury contamination of the Didipio River will be investigated by the place of Department of Environment and Natural Resources.

Gov. Luisa Lloren Cuaresma said Environment Secretary Angelo Reyes has agreed to look into illegal small-scale mining in Barangay Didipio and determine whether the activities has harmed communities particulary those who might have been directly exposed to mercury-contaminated water.

Cuaresma said Reyes "will see for himself the mining operation’s adverse consequences on the people and the environment."

Reyes’ planned visit is scheduled within the week or in early August and prompted by persistent reports of continued operations of small-scale miners utilizing deadly substances and unregulated explosives in the indigenous peoples-dominated barangay, which lies in the mountain boundary of Nueva Vizcaya and Quirino.

Last month, findings by the state-run Nueva Vizcaya State University (NVSU) here showed mercury contamination in the blood of some Didipio residents, reportedly as a result of the continued illegal operation of dynamite and chemically induced small-scale mining activities.

Earlier this month, Reyes ordered an investigation on possible mercury contamination.

Reportedly, Didipio’s major rivers – Camgat, Surong and Didipio –major sources of potable water and irrigation in the area, were now contaminated with the poisonous substance.

The NVSU probe team report was confirmed by the National Science Research Institute (NSRI) at the University of the Philippines and St. Luke’s Medical Center, where water and blood samples from the upland area were found positive of mercury contamination.

Even before the findings came out, Cuaresma has already been calling all concerned authorities for the immediate stop of all illegal mining activities in the area following the death of a number of small miners due to suffocation inside the illegally dug-up tunnels. It was also meant to stop indiscriminate blasting activities.


In nearby Quirino province, Gov. Pedro Bacani has expressed fear that the continued illegal mining activities might cause massive erosion or landslides, posing danger to villagers living in the immediate impact zone, especially those in the lowland areas in the Quirino towns of Nagtipunan, Cabarroguis and Aglipay.

Over the years, small-scale miners use mercury to extract gold with the aid of water, which is indiscriminately drained into nearby rivers, Bacani noted.

Penro Apigo, DENR provincial officer, said families in the affected area are facing grave danger. "Delikado talaga ang kanilang kalagayan lalu pa nga’t sa ilog din d’on sila naliligo at kumukuha ng inumin. This is dangerous and hazardous to their health," he said.

Reportedly the human intake of mercury-containing water or fish, accumulated over time, can impair a person’s ability to feel, see, move and taste, and it may even lead to death.

An official from the Australian Philippines Mining, Inc. (APMI), who requested anonymity, said illegal small-scale miners in Didipio use mercury to extract gold from ores. "After grinding the mineral-containing ores, they used mercury to separate the gold. Vaporizing mercury, a metallic liquid, in the heating process is dangerous to health," he said. APMI allocated for social development programs a total of $2.8 million and for environmental programs, $8.6 million.

He added that the Didipio mining project is set to start construction by September this year and begin mineral production one year after.

Employment from the project of APMI, a 100- percent owned Philippine subsidiary of Climax Mining Ltd. of Australia, is seen at 1500 during construction and development, 500 during commercial operation and 3,000 indirect employment created due to the employment multiplier.

Offcials here projected that total government taxes and fees to be collected from APMI will be at $131 million

Wednesday, July 26, 2006

MINING LAW STAYS, WEAKENS COMMUNITY LAND RIGHTS

LRC KSK PRESS RELEASE
For questions and comments, please contact: Mary Ann Dela Peña or Francis Joseph Ballesteros, 0917-3229998 or (02)4344079.

The Didipio Earth Savers’ Multi-Purpose Association, Inc. (DESAMA) is unfazed by the recent ruling of the Supreme Court’s First Division in the case they filed against the DENR Secretary and Climax-Arimco Mining Corp. as they vowed to defend their lands against mining firms.

“Di kami titigil sa paglaban para sa lupa at kabuhayan. Ang lupa ay para sa mamamayan, hindi para sa dayuhang minahan,” stressed Peter Duyapat, leader of the DESAMA, after learning of the Supreme Court’s ruling on July 19.

In the said case, the Court upheld the constitutionality of the Philippine Mining Act even as it declared the entry of mining concessionaires into private property, as a “taking”. Under section 9,Article III of the Constitution, a valid exercise of the eminent domain requires (1) taking for (2) public use and (3) upon payment of just compensation. The court affirms the first while the other two requirements remained unsettled. DESAMA, in its Motion for Reconsideration, argued that the Philippine Mining Act does not provide for a public purpose for such a taking nor does it provide for the payment of just compensation to affected landowners.

Other concerned groups have also filed a petition for intervention on the case, claiming that the taking under Section 76 is a violation of the constitutional right to due process, However, this motion for intervention was also denied in the same ruling.

This is all in contrast to a decision of the Court rendered EN BANC in the case of La Bugal B’laan Tribal Association, Inc. where it allowed the intervention of the Chamber of Mines.“We feel that a lot of questions remain unanswered and poses a threat to our rights.” says Francis Joseph Ballesteros of the Legal Rights and Natural Resources Center, Inc., counsel for DESAMA.

Despite the series of setbacks in the legal arena, DESAMA, together with other communities threatened by the large scale mining corporations as well as advocates for community control of natural resources remain resilient. The community spirit and resistance against the watering down of their rights to land and livelihood seeks out new venues and forms.

Saturday, July 22, 2006

DENR to probe illegal mining

Angelo S. Samonte
Global Pinoy.Com July 22, 2006
http://www.globalpinoy.com/news/news_inside.php?newsnum=2079

The Department of Environment and Natural Resources will look into illegal small-scale mining in Barangay Didipio, Kasibu, Nueva Vizcaya, because of possible mercury contamination of the Didipio River. Environment Secretary Angelo T. Reyes is scheduled to visit Barangay Didipio to determine whether illegal mining has harmed communities, and if mercury has contaminated the river.

“The secretary will see for himself the mining operation’s adverse consequences on the people and the environment,” said Nueva Vizcaya Gov. Luisa Lloren Cuaresma, who invited Reyes.

“Illegal mining is not only threatening the health of our residents but also our rivers and forests.” Penro Apigo, DENR provincial officer, said families in the area face grave danger. “People are in danger because the river is their source of water, particularly drinking water. Mercury is hazardous to their health.”

The intake of mercury-containing water or fish, accumulated over time, can impair a person’s ability to feel, see, move and taste, and may lead to death.

Earlier, the Australasian Philippines Mining Inc., the Philippine subsidiary of Climax Mining Ltd. of Australia, said illegal small-scale miners in Didipio use mercury to extract gold from ores. “After grinding the mineral-containing ores, they used mercury to separate the gold,” the mining firm said, noting that vaporizing mercury, a metallic liquid, is dangerous to human health.

APMI’s Didipio mining project is set to start construction by September this year and begin mineral extraction next year. The company said it expects to create more than 1,500 jobs during construction and development, and a separate 500 jobs when operation starts. The project could also generate additional 3,000 indirect employment as a multiplier effect.

APMI said it would allocate $2.8 million for social development programs and $8.6 million for environmental programs. Total government taxes and fees are projected to be P131 million.

Thursday, July 20, 2006

ax Mining unit raises $18.7M for Philippine project

ClimFirst posted 02:05am (Mla time) July 20, 2006
By Christine A. Gaylican
Inquirer

http://news.inq7.net/archive_article/index.php?ver=1&index=1&story_id=10742

AUSTRALASIAN Philippines Mining Inc., subsidiary of Australia's Climax Mining Ltd., said it had raised $18.7 million for pre-development and start of construction of its mining facility in the northern province of Nueva Vizcaya in September.

It also reported to the Mines and Geosciences Bureau that it had hired ANZ Bank to lead the debt financing for the project.

The company said it needed $81 million to develop the Didipio copper-gold mine, which has an estimated ore resource of 120 million tons containing 0.61 percent copper and 1.6 grams of gold per ton, and a mine life of 15 years.

"Part of the bank requirements is conducting a thorough due-diligence [audit] of the mining project's social, environment and technical reports," the report said.

The Board of Investments in February gave the Didipio project a "pioneer status," which entitles to an income tax holiday of six years, among other incentives.
The company will export all of its output.

The Didipio project is under a financial or technical assistance agreement (FTAA) with the government, which effectively authorizes the Climax Mining unit to have 100-percent equity in the project.

A Supreme Court ruling in December 2004 said an FTAA scheme does not violate the Constitution, which restricts foreign equity in projects that deal with the exploitation of natural resources to 40 percent.

With NQ7.net

Climax Mining unit raises $18.7M for Philippine project

By Christine A. Gaylican
Philippine Daily Inquirer July 20, 2006

http://business.inq7.net/money/topstories/view_article.php?article_id=10742

AUSTRALASIAN Philippines Mining Inc., subsidiary of Australia's Climax Mining Ltd., said it had raised $18.7 million for pre-development and start of construction of its mining facility in the northern province of Nueva Vizcaya in September.

It also reported to the Mines and Geosciences Bureau that it had hired ANZ Bank to lead the debt financing for the project.

The company said it needed $81 million to develop the Didipio copper-gold mine, which has an estimated ore resource of 120 million tons containing 0.61 percent copper and 1.6 grams of gold per ton, and a mine life of 15 years.

"Part of the bank requirements is conducting a thorough due-diligence [audit] of the mining project's social, environment and technical reports," the report said.

The Board of Investments in February gave the Didipio project a "pioneer status," which entitles to an income tax holiday of six years, among other incentives.
The company will export all of its output.

The Didipio project is under a financial or technical assistance agreement (FTAA) with the government, which effectively authorizes the Climax Mining unit to have 100-percent equity in the project.

A Supreme Court ruling in December 2004 said an FTAA scheme does not violate the Constitution, which restricts foreign equity in projects that deal with the exploitation of natural resources to 40 percent.

Tuesday, July 18, 2006

Villagers split by mining talk after 10 years

First posted 02:57am (Mla time) July 18, 2006
By Melvin Gascon
Inquirer

http://news.inq7.net/archive_article/index.php?ver=1&index=1&story_id=10378

Editor's Note: Published on Page A13 of the July 18, 2006 issue of the Philippine Daily Inquirer

BAYOMBONG, NUEVA VIZCAYA—For the first time in more than a decade, residents of a small mining village in upland Kasibu town have agreed to come together to discuss the issues that have divided their community.

The National Commission on Indigenous Peoples on Friday convened villagers opposed to and in favor of a proposed large scale mining project in Barangay Didipio to begin a series of dialogues meant to unite their village.

Victor Calingayan, NCIP provincial director, said that with the dialogues, the villagers would trace the roots of disputes that have escalated since Australasia Philippines Mining Inc. (Apmi) began pushing its planned gold-copper venture there.

“This is the first time that they (the pro- and antimining groups) have come together, talked things over and ate their meals with one another. I am confident that this would be the start of bringing back their unity as a community,” he said.

Apmi’s $102-million gold-copper project aims to process about 4 million ounces of gold and 1.5 billion ounces of copper deposits in Didipio for 14 years.

The proposed project has, however, failed to start operations due to objections of the local communities, led by the Didipio Village council and the Kasibu town council.

Division

Calingayan said they held the dialogue after they noted the growing division among the tribal people of Didipio, composed of Ifugao, Kalanguya, Ibaloi and Bugkalot settlers.

“This mining issue has placed even family members and relatives on opposite sides. So we’re coming in to pacify them, so that the situation would not worsen,” he said.

The dialogue was held using the “ammungan,” or the traditional method of settling disputes among Cordillera tribes, according to Calingayan.

Under this practice, the villagers sat down together, let out their sentiments and discussed issues by themselves, with government leaders as observers.

The forum was held without the usual protagonists—Apmi officials and environment groups—to allow the tribes to talk freely and avoid outside influence, said Marilou Gilo-Abon, president of Nueva Vizcaya State University, host of the event.

Mending bridges

“It is heartening to see them sit together and tell each other things that they have long wanted to say. I call this activity ‘mending bridges’,” said Abon, an adopted tribal member.

At the dialogue, about 80 Didipio villagers exchanged views on the issues. The pro-mining group was led by Pastor Efren Bulawan and some residents hired by Apmi as community relations employees.

The antimining group was led by village chair Antonio Dingcog, council member Peter Duyapat, and the officers of the Didipio Earthsavers Movement Association, a non-government organization.

Villagers split by mining talk after 10 years

By Melvin Gascon
Philippine Daily Inquirer July 18, 2006

BAYOMBONG, NUEVA VIZCAYA—For the first time in more than a decade, residents of a small mining village in upland Kasibu town have agreed to come together to discuss the issues that have divided their community.

The National Commission on Indigenous Peoples on Friday convened villagers opposed to and in favor of a proposed large scale mining project in Barangay Didipio to begin a series of dialogues meant to unite their village.

Victor Calingayan, NCIP provincial director, said that with the dialogues, the villagers would trace the roots of disputes that have escalated since Australasia Philippines Mining Inc. (Apmi) began pushing its planned gold-copper venture there.

“This is the first time that they (the pro- and antimining groups) have come together, talked things over and ate their meals with one another. I am confident that this would be the start of bringing back their unity as a community,” he said.

Apmi’s $102-million gold-copper project aims to process about 4 million ounces of gold and 1.5 billion ounces of copper deposits in Didipio for 14 years.

The proposed project has, however, failed to start operations due to objections of the local communities, led by the Didipio Village council and the Kasibu town council.

Division
Calingayan said they held the dialogue after they noted the growing division among the tribal people of Didipio, composed of Ifugao, Kalanguya, Ibaloi and Bugkalot settlers.

“This mining issue has placed even family members and relatives on opposite sides. So we’re coming in to pacify them, so that the situation would not worsen,” he said.

The dialogue was held using the “ammungan,” or the traditional method of settling disputes among Cordillera tribes, according to Calingayan.

Under this practice, the villagers sat down together, let out their sentiments and discussed issues by themselves, with government leaders as observers.

The forum was held without the usual protagonists—Apmi officials and environment groups—to allow the tribes to talk freely and avoid outside influence, said Marilou Gilo-Abon, president of Nueva Vizcaya State University, host of the event.

Mending bridges
“It is heartening to see them sit together and tell each other things that they have long wanted to say. I call this activity ‘mending bridges’,” said Abon, an adopted tribal member.

At the dialogue, about 80 Didipio villagers exchanged views on the issues. The pro-mining group was led by Pastor Efren Bulawan and some residents hired by Apmi as community relations employees.

The antimining group was led by village chair Antonio Dingcog, council member Peter Duyapat, and the officers of the Didipio Earthsavers Movement Association, a non-government organization.

Saturday, June 24, 2006

Gov’t gave Lafayette P3.5-B tax break

First posted 05:38am (Mla time) June 24, 2006
By Blanche Rivera
Inquirer

http://news.inq7.net/archive_article/index.php?ver=1&index=1&story_id=6393

Editor's Note: Published on page A10 of the June 24, 2006 issue of the Philippine Daily Inquirer
THE government has foregone collecting $63.88 million or P3.57 billion in taxes from Lafayette Philippines Inc. for mining gold and base metals in Albay because of the tax perks given to the Australian firm by the Philippine Economic Zone Authority (Peza).

A report prepared by the Department of Environment and Natural Resources on Lafayette’s operations in Rapu-Rapu, a 5,000-ha island in Albay, showed that the national and local governments could earn $122.69 million or P6.8 billion over six years if no tax incentives had been offered to the firm.

Instead, the government stands to gain only $58.81 million or P3.29 billion during Lafayette’s six-year mine life because of the tax perks enjoyed by Lafayette’s subsidiary Rapu-Rapu Processing Inc. as a locator in a special economic zone.

Peza had declared 41.38 hectares of the 180-ha mine area of Lafayette a special economic zone, exempting the company from paying real estate and other taxes, and requiring it to pay only five percent of the mandated 35 percent corporate income tax.

Environment Secretary Angelo T. Reyes has asked Peza to review the economic zone status of a portion of Rapu-Rapu.The 70-page report that found Lafayette guilty of lapses that caused two mine spills also noted that the tax incentives granted to Lafayette made the sharing scheme “grossly unfavorable to the Philippine government.” The current scheme stands at 24-74 in favor of Lafayette.

Reyes said he would push for 54-46, or the scheme representing a tax perk-free arrangement with Lafayette in favor of the government.Lafayette Mining Ltd. said yesterday it paid a fine of P10.4 million ($195,490) imposed by the government after the two cyanide spills in its mine in October last year.

The company also said it expected to fully comply this week with 15 conditions set by the government before it can start a 30-day test run at its mine on Rapu-Rapu, which was ordered to halt operations after the spills.“We’re definitely hoping that for our own benefit we will be able to start the test run soon,” said Bayani Agabin, a lawyer and vice president at Lafayette’s Philippine unit.

Reyes has said the test run, if successful, will lead to the full reopening of the mine.
The government is pushing a revival of the mining sector to attract foreign investment and reduce poverty but has come under pressure from influential Roman Catholic bishops voicing concerns about the environmental impact.

Lafayette, the first foreign firm to develop and run a mine in the Philippines in almost 40 years, estimates Rapu-Rapu will generate revenues of $350 million per year from annual production of 10,000 tons of copper in concentrates, 14,000 tons of zinc, 50,000 ounces of gold and 600,000 ounces of silver.

A fact-finding committee investigating the spills in October, chaired by Sorsogon Bishop Arturo Bastes, called for the permanent closure of Lafayette’s operations, a moratorium on mining on Rapu-Rapu and a review of the law allowing 100-percent foreign ownership of local mines.

The test run at the Rapu-Rapu mine will involve three stages—a five-day run of the processing plant with water to detect pipe leaks; a nine-day run with ore but without the minerals; and a 15-day run with ore and metals.

Some estimates value the Philippines’ mineral wealth at $1 trillion. But many foreign investors have been discouraged by political turmoil, corruption, insurgencies in the resource-rich south and opposition from bishops and indigenous groups. With an Inquirer wire report

Friday, June 23, 2006

Savants find high mercury in Kasibu

By Abe Almirol
Manila Standard Today June 23, 2006

http://www.manilastandardtoday.com/?page=regions02_june23_2006


BAYOMBONG, Nueva Vizcaya— A study conducted by the Nueva Vizcaya State University showed that the mercury in water samples taken from creeks in Barangay Didipio, Kasibu town are higher than the acceptable level.

NVSU Research director professor Elmer Castaneto, head of the environmental survey, said the mercury levels at the Camgat, Surong, and Didipio creeks were at 0.002 milligram per liter, above the acceptable 0.0001 milligram per liter.

Castaneto did not say the source of the mercury but Didipio is the site of the Dinkidi Hill Gold-Copper Project of the Australasian Philippines Mining Inc. Apmi was formerly known as Climax-Arimco.

“The water in the river is murky. There are a few benthic organisms, such as freshwater fishes, like catfish and macrophytes. Dissolved oxygen is low so plankton count, algae and microorganisms that serve as food fishes, is also low,” Castaneto said.

“Tilapia used to be an immediate source of livelihood. But now, there are no more such fish. Mercury is highly toxic even in small amount,” he added.

Blood samples taken from Didipio residents examined at St. Luke’s Hospital showed above normal mercury content, he said.
“The data are raw, but our study has shown the presence of above normal mercury in blood samples. This is just one study that has to be replicated. But even with this, people should be aware of the danger that mercury is there when there should be none,” said Dr. Marilou Abon, NVSU president.

The water samples have been sent to the University of the Philippines’ National Science Research Institute for verification.
With its highly toxic nature, the government has banned the use of mercury in small scale mining operations. “Mercury is a controlled chemical substance. Government discourages its use. No permit is issued for it,” said Mines and Geosciences Bureau Mining Tenements director Leo Jasareno.

In a press statement released by Chito Gozar, an Apmi official, the company expressed fear that the presence of small scale miners would cause further environmental degradation. Apmi is yet to start mine extraction since the facilities needed are not yet in place. “Small scale mining operations in Didipio is believed to be financed by mining operators from other small scale mining sites in the region. Estimates showed that there may be 17 to 20 ball mills involving 190 people in gold panning now in Didipio, all extensively using mercury,” Gozar said in a statement.

Tuesday, April 25, 2006

Didipio villagers appeal SC ruling on Mining Act

Alecks Pabico
Philippine Center for Investigative Journalism

April 25, 2006

http://www.pcij.org/blog/?p=861

RESIDENTS of Bgy. Didipio in Kasibu, Nueva Vizcaya have availed themselves of one final pleading to urge the Supreme Court to reconsider its
March 30, 2006 decision dismissing their petition to declare the Mining Act of 1995 unconstitutional and the Financial and Technical Assistance Agreement (FTAA) awarded to Climax-Arimco Mining Corp. (CAMC), recently renamed Australasian Philippines Mining Inc., illegal.

Filing a motion for reconsideration yesterday, the Didipio Earth-Savers’ Multi-purpose Association (Desama), whose members are directly affected by the area of operations of the Australian mining firm’s FTAA, contended that the SC ruling erred in delegating the power of eminent domain — the power of the State to forcibly acquire private property for public use — to mining operators.

Desama argued that only the State exercises eminent domain powers except when a private entity is authorized to operate a public utility.

“How could Climax Arimco be given such power when it is a foreign mining corporation whose primary interest is for private gain and not for public benefit?” asked Peter Duyapat Sr. The Desama leader, a member of its board of directors, also criticized the SC ruling for depriving them of their right to decide on what will benefit them the most and at the same time will best sustain the environment.

Desama counsel, Atty. Melizel Asuncion of the
Legal Rights and Natural Resources Center (LRC), also pointed out that the power of eminent domain has restrictive exceptions. Under Section 9, Article III of the Constitution, the valid exercise of the said power, she said, requires the (1) taking of a private property whose purpose must be for (2) public use which should be made (3) upon payment of just compensation.

“The Court’s ruling implies that private property can be taken without just compensation and for private gain,” she said.

In its March 28 decision penned by Associate Justice Minita Chico-Nazario, and promulgated two days later, the Court’s First Division acknowledged that Section 67 of
Republic Act No. 7942, or the Mining Act, is a “taking” provision but that its review of mining laws, particularly Presidential Decree No. 512 passed into law on July 19, 1974 to achieve full and accelerated mineral resources development, showed that such a grant of authority to exercise eminent domain to mining operators is deemed already incorporated in the Mining Act.

The Court also justified that the taking in the case of mining operators is valid because of its public-use character. “Mining is an industry which is of public benefit,” the Court declared, seeing its pivotal role in the economic development of the country as expressed in Presidential Decree No. 463:

WHEREAS, mineral production is a major support o the national economy, and therefore the intensified discovery, exploration, development and wise utilization of the country’s mineral resources are urgently needed for national develoment.
Section 76 states that:


Entry into private lands and concession areas — Subject to prior notification, holders of mining rights shall not be prevented from entry into private lands and concession areas by surface owners, occupants, or concessionaires when conducting mining operations therein:
Provided, That any damage done to the property of the surface owner, occupant, or concessionaire as a consequence of such operations shall be properly compensated as may be provided for in the implementing rules and regulations:
Provided, further, That to guarantee such compensation, the person authorized to conduct mining operation shall, prior thereto, post a bond with the regional director based on the type of properties, the prevailing prices in and around the area where the mining operations are to be conducted, with surety or sureties satisfactory to the regional director.

Desama however is contesting such claim that mining operations will be for the public benefit, noting that the Mining Act “obliges the Philippine government to ensure that mining contractors do not come out of the mining venture poorer thatn when they came in.”

“The law does not provide for the government’s equitable share of the mining contractors’ profit,” argued Asuncion. On top of this, she said, mining contractors enjoy incentives as corporate tax and duty holidays from the Board of Investments. Those holding FTAAs like Climax-Arimco, are allowed to recover their pre-operating and property expenses before giving the government its share in the net revenue, which Asuncion said, are “nothing but levies — taxes, duties and other fees that are not part of the investment return.”

Aside from the “dubious” public benefit, Desama also questioned the lack of a just compensation provision in the mining law to comply with the requirement of the legal exerise of eminent domain. Desama claimed that the SC ruling erred in equating damage compensation to just compensation.

The Court said the Section 76 of the Mining Act and Section 107 of Department Adminstrative Order (DAO) No. 96-40 issued by the Department of Environment and Natural Resources provide for the payment of just compensation.

But what the law and its implementing rules and regulations provide are only damage compensation in actual mining operations and/or the installation of machineries and other mining facilities, said Asuncion. “Just compensation pertains to the full payment of a property taken away from the owner based on its fair market value.”

Desama’s motion likewise questioned why the Supreme Court en banc did not decide on its earlier petition, arguing that Section 4(2), Article VIII of the Constitution provides that an en banc ruling is mandatory in cases where the constitutionality of a law is being challenged.

The Court said there was no need for the Court en banc to to tackle Desama’s case since the First Division did not declare any law or regulation unconstitutional and merely adopted its decision in the La Bugal B’laan v Ramos case reversing its earlier ruling declaring the Mining Act unconstitutional.

Despite being the last pending case before the Supreme Court, the LRC does not deem the motion for reconsideration as a culmination of the Didipio people’s struggle against mining. “The legal avenue is only one of the available paths in support of the struggle not only of the people of Didipio but of thousands of indigenous peoples and their communities throughout the country who are losing their ancestral lands in the face of the government’s aggressive push for mining,” said Jocelyn Villanueva, LRC executive director.

Assailing the government’s assertions of the promised economic benefits from the mining industry, Villanueva claimed that this is just a “myth.” “The Mining Act will only enrich mining operators at the expense of the Filipino people.”

Villanueva added that the LRC supports the call of the Catholic bishops to repeal the Mining Act and is drafting an alternative mining bill as part of its legislative agenda.

The Didipio people’s battle against mining interests in their area has been ongoing since then Pres. Fidel v. Ramos, on behalf of the government, entered into an FTAA with then Arimco Mining Corp (AMC) in June 1994 to mine about 37,000 hectares of land in Nueva Vizcaya and Quirino provinces. A 100-percent Australian-owned mining company at the time the FTAA was signed, AMC subsequently consolidated with Climax Mining Ltd., another Australian mining firm, to form CMAC.

Less than a year later, on March 3, 1995, Ramos signed into law RA 7942 (the Philippine Mining Act).

In September 2001, the villagers filed a demand letter with then DENR Sec. Heherson Alvarez to cancel CAMC’s FTAA. A second demand letter was sent to Gloria MAcapagal Arroyo in June 2002.
On May 6, 2003, Desama filed a petition for prohibition and mandamus, with prayer for a temporary restraining order, before the Supreme Court. The SC en banc resolved to return the case to the First Division, which dismissed Desama’s petition and upheld the constitutionality of the mining law.

Desama has also filed a petition for mandamus before the regional trial Court in Bambang, Nueva Vizcaya to compel the DENR to cancel CAMC’s environmental compliance certificate (ECC) on the grounds that it did not comply with the mandatory requirement of the mining law and the Local Government Code regarding the prior acquisition of consent from local governments concerned.

Both the Sangguniang Barangay (barangay council) of Didipio and Sangguniang Bayan (municipal council) of Kasibu did not endorse CAMC’s mining activities. Only the Sangguniang Panlalawigan (provincial council) has given its endorsement. CAMC has also gotten the approval of the local Sangguniang Kabataan, though it is not recognized as a local government unit.

The Regional Development Council (RDC) likewise rejected CAMC’s ECC application for a certification in October 2000, a decision sustained in a February 2001 special meeting, as the proposed project is located within a critical watershed area.

Monday, April 03, 2006

Philippines Supreme Court upholds legality of foreign mining project

03 April 2006

http://www.channelnewsasia.com/stories
/afp_asiapacific_business/view/201275/1/.html

MANILA : Australia's Climax Mining has won a major legal challenge which has held up a copper-gold mining project in the Philippines for more than 12 years, court officials say.

The high court dismissed a suit by a non-government organisation (NGO) seeking to stop Climax-Arimco Mining Corp. and the environment and natural resources department from proceeding with the Didipio project, according to the court ruling released to the press on Monday.

The NGO, called the Didipio-Earth Savers' Multi-Purpose Association Inc. had asked the court to compel the government to repeal the 1995 Mining Act and declare the department's financial and technical assistance agreement (FTAA) with Arimco illegal.

The court instead ruled there was no basis for the contention that the mining law failed to provide just compensation for privately-owned properties encompassed by the 23,895-hectare project site in the northern province of Nueva Vizcaya.

It said the authority of the government to enter into FTAA agreements with foreign companies which would then manage the mine was already established by a prior Supreme Court ruling in 1997 that upheld the constitutionality of the Mining Law.

The Didipio project was first launched in 1994 but it has not gone past the exploration stage due to the legal challenges.

President Gloria Arroyo earlier this year sought to reassure nervous businessmen in the Philippines that their investments in the resources sector were safe amid an anti-mining campaign by Roman Catholic church leaders.

Arroyo is pinning her hopes on the recent revival of the industry, which expects 2006 turnover of about five billion dollars after being in the doldrums for two decades, to bring jobs and make a dent in widespread poverty.

The government is aiming for 1.5 billion dollars in new mining investments this year and 6.5 billion dollars over the next five years.



Wednesday, March 08, 2006

Didipio Community Files Case Against DENR & Mining Companies

CPCA Brisbane
MARCH 8, 2006
http://cpcabrisbane.org/Kasama/2006/V20n1
/DidipioCommunityFilesCaseAgainstDENR.html

The community of Barangay Didipio, Kasibu Nueva Vizcaya filed a Petition for Mandamus against the Department of Environment and Natural Resources and Climax Arimco Mining Corporation (CAMC), and its transferee Australasian Philippines Mining Incorporated (APMI) to force the agency to cancel the environmental compliance certificate (ECC) issued to Climax Arimco/Australasian Philippines Mining Inc. (CAMC/APMI) and prevent the implementation of an invalid Environmental Compliance Certificate (ECC).

The Environmental Compliance Certificate and the Financial Technical Assistance Agreement (FTAA) issued to CAMC are conditioned on the local government consent requirement under sections 26 & 27 of Republic Act 7160 or the Local Government Code of the Philippines. Under the law, CAMC/APMI should have obtained the consent of the Barangay, Municipal and Provincial councils as precondition to their mining operation. Both the Barangay and Municipal councils have already registered their opposition to the Didipio gold and copper mining project. “Accordingly, the failure to fulfill the local government consent requirement has rendered invalid the ECC of CAMC/APMI and therefore, any mining operation that will be commenced in the area will be illegal”, said Atty. Mary Ann Dela Pena, Regional Lawyer LRC–KSK/Friends of the Earth–Philippines.

On August 8, 2005, the municipal council of Kasibu, Nueva Vizcaya, Philippines resolved NOT TO ENDORSE the Didipio Gold–Copper Mining Project of CAMC/APMI.

Despite demands to DENR and its attached agencies to enforce the Ministerial cancellation of the ECC, no response has been given. Hence, a Petition for Mandamus is being filed to compel the DENR to issue a cancellation of the subject ECC.

This case represents the right of local government units to determine their own development applicable within their boundaries to suit the specific circumstances of their local economic, social and environmental situations, while maintaining consistency with overall regional objectives of sustainable development. It also asserts the local government’s responsibility to prevent any projects which they deem to have potential social and environmental impacts from operating within the areas under their jurisdiction.

“Large Scale Mining in the Philippines has never in its history proven to be a sustainable enterprise. In the past hundred years the country has been host to numerous mine spills and other environmental disasters not to mention the associated social ills mining brings to their host communities”, says J.P. Alipio, Luzon Campaigner LRC–KSK/Friends of the Earth–Philippines

“Caring for the Community — Environmentally Responsible” that’s the spin on Climax Mining’s web site. The Didipio community needs support from concerned Australians. Write to Climax and tell them how they can be a caring and responsible overseas enterprise by complying with the environmental protection laws of the Philippines and respecting the community’s desire to preserve their traditional way of life and keep development control in local hands.