DENR CHIEF TO N. VIZCAYA GOV: COME TO YOUR SENSES
KASIBU, NUEVA VIZCAYA, MAY 9, 2008 (STAR) By Katherine Adraneda - Environment and Natural Resources Secretary Lito Atienza yesterday appealed to Nueva Vizcaya Gov. Luisa Lloren Cuaresma “to come to (your) senses” and give way to the operation of an Australian mining company in Kasibu town.In a press conference, Atienza also warned that Cuaresma might also be “treading on illegal grounds” for leading a barricade against the mining project of Oceana Gold Phils., one of only two mining companies operating in the country that were granted a Financial or Technical Assistance Agreement (FTAA) by the government.
The other FTAA recipient is the Tampakan copper project of Sagittarius Mines Inc. in South Cotabato. There are, however, 50 pending applications for FTAA, Atienza said.
An FTAA is a form of a mining contract between the government and a mining company on large-scale exploration and development of minerals, which adopts a single benefit-sharing scheme where the government (that also represents the community) and the mining contractor share 50-50 from the net mining revenues after the recovery of the capital investment by the contractor.
An FTAA allows up to 100 percent foreign ownership in a mining project.
“We urge the local government (officials) to open up their minds... If they refuse to follow the law, then we will not hesitate to implement the full force of the law on them,” Atienza said.
Atienza stressed that it is important for the government to immediately address the issue hounding the operation of Oceana Gold in order to cushion the possible negative impacts it may give on the country’s mining industry projections in the international scene.
According to Atienza, Oceana Gold is anxious to proceed with the development of its mining area without delay because it wants to complete its work by this year to be able to carry on to the next level of production by next year.
Atienza said Oceana Gold anticipates finishing its construction before the typhoons arrive.
“All the activities being undertaken by Oceana Gold are being done in accordance with its agreement with the government,” Atienza said. “Its operation and activities are legal.”
“(It) looks so much (like it was an) arbitrary and capricious move on the part of the governor (to lead the barricade),” he said.
“They should consider the potential loss if Oceana Gold decides to pull out its investment,” emphasized Atienza, adding that the Australian mining company has committed an initial investment of $180 million.
On Wednesday, Cuaresma led other provincial officials and villagers in barricading the mining project of Oceana Gold after the firm allegedly failed to reach an agreement with the provincial government on the payment of local taxes.
The provincial officials vowed to stay in Didipio village in Kasibu town until the Australian mining firm pays its financial obligations “due the people of Nueva Vizcaya.”
Chief News Editor: Sol Jose Vanzi
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