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    DENR warns Nueva Vizcaya officials about losses
    due to barricaded mines of Oceana Gold Phils.
     
    By Jonathan L. Mayuga
    Correspondent
     

    ENVIRONMENT Secretary Lito Atienza has appealed to local officials of Nueva Vizcaya, led by Gov. Luisa Lloren Cuaresma, to consider the potential loss to the province in terms of various economic benefits on their decision to stop an ongoing mining project in the town of Kasibu.

    “We are appealing to her to come to her senses.  She may be treading on illegal grounds,” Atienza said, referring to the decision of the province’s local officials who led villages in barricading the mines of the Australian mining firm Oceana Gold Philippines in barangay Didipio for its failure to pay taxes and quarrying fees.

    The local officials vowed to keep on barricading the mines until the company pays its alleged financial obligations.

    The Australian mining firm has ignored the cease-and-desist order, which Cuaresma issued against the company last month to pay taxes and quarrying fees.

    The Department of Environment and Natural Resources (DENR) chief warned Nueva Vizcaya officials that exacting taxes such as quarrying fees is illegal because the company, which has been exploring minerals in Kasibu town for more than 10 years now, is not into quarrying. 

    He said merely moving out earth materials from the site for the purpose of building roads and other infrastructure as part of its mining operation is not quarrying.  “In quarrying, materials are sold, which is not the case,” Atienza explained. 

    The company is pushing construction activities as it moves to the production stage next year.  It is now constructing roads in the mines.

    Atienza said he understand the concerns of Oceana considering that it is a publicly listed company which has obligations to its investors.

    The company’s investment in the country, Atienza said, is huge and stopping its operations during its crucial stage might boomerang on both the local and national government, saying the company may eventually decide to pull out its investment.

    “They should consider the potential loss if Oceana decides to pull out its investment,” Atienza said.

    Apparently, Atienza was shaken by the potential negative impact of the move of Nueva Vizcaya officials, saying any sign of weakness or defect in the Philippine Mining Act will affect the country’s mining revitalization program.

    In fact, Atienza said, the disruption of the operation of Oceana may have already affected the country’s minerals production target for the year, particularly gold and copper.

    Oceana is one of only two foreign companies granted with Financial and Technical Assistance Agreement (FTAA) by the DENR, making it a partner of the national government in gold and copper mineral production with a 50-50 share. The other company with FTAA is the Sagitarius Mines, which operates in Tamapakan, South Cotabato.

    Oceana has committed an initial investment of $1.28 billion, which, he said, could help boost the local economy of the province. 

    The company is also expected to pour in P30 billion in national taxes during its first 15 years of operation.

    Atienza said he is now coordinating with concerned local officials, led by the Nueva Vizcaya governor and the members of the provincial board, “to open their minds.”

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