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  • Now, it’s a ZTE mining deal
     
    By Joel R. San Juan
    Reporter

    A LOCAL mining firm is questioning the government’s understanding agreement with ZTE International Investments Ltd., the investment arm of the ZTE Co. of China, to explore, develop and operate mining areas within the 8,100-hectare Mount Diwalwal gold-rush area in Mindanao.

    In a nine-page urgent manifestation and motion filed before the Supreme Court, Southeast Mindanao Gold Mining Corp. (SEMGMC) reiterated its prayer to refer its case—seeking to reconsider a 2006 decision of the First Division—en banc.

    The Court’s First Division, in its June 23, 2006 decision, gave the government full control and supervision over mining operations in the Agusan-Davao-Surigao Forest Reserve known as the “Diwalwal gold rush area” after it affirmed the cancellation of all exploration permits earlier issued to other private mining firms.

    The decision reversed and set aside the Court of Appeals’ March 13, 2002 decision upholding Marcopper Mining Corp. (MCC)’s Exploration Permit (EP) No. 133 over the subject area.

    The First Division held that Marcopper’s EP has already expired and that its subsequent transfer to its local subsidiary SEMGMC on February 1994 is void. SEMGMC is a domestic corporation alleged to be a 100 percent-owned subsidiary of MMC.

    In its urgent manifestation and motion, SEMGMC through lawyer Cirilo Doronila said the ruling of the First Division paved the way for the government to enter into a memorandum of understanding (MOU) with the ZTE for the exploration, development and operation of Mount Diwalwal.

    Such development, according to SEMGMC, came as a surprise, considering that the status of the mining areas in Mount Diwalwal is still unsettled.

    It noted that the government executed the MOU with ZTE International on July 12, 2006, or just less than three weeks after the SC First Division issued the subject decision.

    It further stressed that the signing of the memorandum with ZTE was made even before the June 23, 2006 decision had attained finality.  The first motion to reconsider the decision was filed in August 2006 or almost a month after the signing of the ZTE agreement.

    SEMGMC’s motion for reconsideration is still pending resolution before the SC.

    The mining firm pointed out that the proximity of the date of the decision and the execution of the MOU is such that the MOU could not have been executed if not for the decision rendered by the First Division.

    “By this manifestation, respondent SEMGMC does not, with all due respect to the Honorable Court, suggest any irregularity. In order, however, to remove any cloud of doubt as to the judiciousness of the Court’s resolution on the constitutional issue of Proclamation 297, SEMGMC respectfully reiterates its prayer that the resolution of its motion for reconsideration be elevated to the Court en banc and be heard on oral argument,” it said.

    Proclamation 297, issued by President Arroyo on November 25, 2002, excluded an  area of 8,100 hectares located in Monkayo, Compostela Valley, and proclaimed the same as mineral reservation.

    “The validity of the MOU executed with the ZTE Corporation, as well as the NBN (national broadband deal), has been the subject of controversy and it would be more prudent that this Honorable Court veer away from any involvement on this matter,” the mining firm added.

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