Activists and local government unite against Australian company
Published by MAC on 2008-05-11Environmental activist groups support Nueva Vizcaya officials standing against mining operation of Oceana Gold Philippines Kalikasan PNE Press Release
9th May 2008
"We commend and support the action of Nueva Vizcaya Gov. Luisa Lloren Cuaresma and the Sangguniang Panlalawigan haulting the mining operation of Oceana Gold Philippines in Didipio," Clemente Bautista, National Coordinator of the environmental activist group Kalikasan-PNE said in a statement today.
The Governor together with other provincial officers and villagers led the barricade last Wednesday in the mining site following its failure to reach an agreement with the provincial government on the payment of local taxes.
"Gov. Cuaresma by now has learned how foreign mining companies used treachery and false promises to be allowed in our mineral lands and communities. Evasion of taxes, violations of local laws, and ignoring local government authorities are just some of the violations of mining companies that we documented in the priority mining projects of the Arroyo government," added Bautista
Described to be the Cagayan Valley's first large-scale mining project, the Didipio gold-copper project of New Zealand-owned Oceana Gold is expected to begin its mining operation in 2009 and produce about 120,000 ounces of gold and 15,000 tonnes of concentrate in the first 10 years of operation.
"The provincial government and the people of Nueva Vizcaya may experience what happened to Bicolanos with the Lafayette Mining Project, the government flagship mining project, in Albay province. Lafayette operated in the area amidst strong opposition from the local communities and without social acceptability. Lafayette was able to get exemptions from local taxes in just three years of mining operation. Lafayette was able to extract minerals in the island at estimated worth of Php3.6 billion. In return, the Philippine government just got a measly 0.999% of this amount from the Australian-owned mining company. We think Gov. Cuaresma is witnessing the same kind of scheme with Oceana Gold", Bautista said.
"We asked Gov. Cuaresma to continue her battle for the people of Kasibu and against the mining plunder in her province. The issue of Ocean Gold mining is beyond the issue of taxation but more so, it is an issue of environmental protection, indigenous people's rights, human dignity, and national patrimony. She can join other provincial officials of Capiz, Marinduque, Samar, Northern Samar, Eastern Samar, Mindoro Oriental and North Cotabato who went against the mining project of the national government and declare large-scale mining moratorium in their areas", cited Ester Perez De Tagle, Spokesperson of Defend Patrimony. Defend Patrimony is a multi sectoral alliance opposing mining liberalization policy and projects of the government.
Allan Barnacha, Spokesperson for the local alliance Save the Valley Serve the People Movement in Nueva Vizcaya, said that allowing large-scale mining in Didipio and in surrounding areas would result in ecological devastation since Nueva Vizcaya has established itself as the major producer of both tropical and temperate vegetables in Region 2 and currently derives revenues from vegetables and fruit orchads, especially from citrus fruits.
"We don't see how the mining projects by Oceana in Nueva Vizcaya can possibly translate to a better life for the people. It is only the mineral ores which the foreign mining firms will be extracting from the land and exporting to their own respective countries to be processed and sold back to developing countries. They will not be developing local downstream industries to process these ores and ensure that Filipinos will be benefiting directly from the mineral wealth of the province," added Barnacha
"Our experiences show that the only revenues that we will be getting from these foreign mining firms are from taxes which are subject to many exemptions under the current mining law--and a trickle of local jobs. These will all stop when the mine ceases to operate after a few years. In the end, our people will be left with toxic waste, devastated environment which can no longer be of use for long-term domestic agricultural production.
Reference: Clemente Bautista 09228449787, Ester de Tagle 09176923496, Allan Barnacha 09266915703
CLEMENTE BAUTISTA
National Coordinator
Kalikasan-People's Network for the Environment (Kalikasan-PNE)
No.26 Matulungin St. Bgy, Central, Quezon City, Philippines 1100
Tel. No. +63-2-9248756 Fax No. +63-2-9209099
Email: kalikasan.pne@gmail.com
Website: www.kalikasan.org
Governor to mining execs: Pay taxes or leave Vizcaya
Bingo Cadabona, Manila Bulletin
9th May 2008
BAYOMBONG, Nueva Vizcaya --- Angry, upset and apparently slighted by the seeming disregard by a foreign mining firm of the provincial government's cease and desist order, this province's lady governor told executives of a mining firm to leave the province if they could not pay the taxes and fees being collected from their company.
"If you can't pay, then better get out," irate Gov. Luisa Lloren Cuaresma, told executives of the Australian-owned Oceana Gold Philippines led by Jake Foronda, general manager of the Didipio Gold-Copper Project in Kasibu town, where the firm is conducting mining exploration activity.
Cuaresma, members of the provincial board led by Vice Gov. Jose Gambito and other provincial officials went the other day to Didipio to implement the cease-and-desist order.
It was a move to pressure Oceana Gold executrives and make them pay the taxes and fees which the provincial government is charging for its quarrying activities.
But the mining firm at first stood on its stand and refused to pay fees and taxes, saying the quarrying activities were part and parcel of the development being undertaken by the firm.
Cuaresma's cease-and-desist order to Oceana Gold stemmed from the firm's failure to pay provincial taxes relating to its quarrying activities.
Provincial officials had estimated the amount of the taxes and fees at some P25 million.
"It is only right that the provincial government issue this order against the mining firm. This is an exercise of the provincial government's power provided by the Local Government Code, said Vice Gov. Jose Gambito, who also chairs the 14-member provincial board.
The national government expects to raise some P30 billion in taxes from the Didipio project's 15-year operation, aside from the millions of local taxes and thousands of jobs to be generated.
Gambito said that the provincial board is about to pass a resolution authored by Board Member Tony Dupiano who urged withdrawal of support for the Didipio project.
In 2006, the board endorsed unanimously the project.
Executives of the mining firm led by Foronda met with the provincial officials at the field office of the provincial government's Environment and Natural Resources Office in Didipio. The officials led by Cuaresma went there in full force, accompanied by elements of the Philippine National Police and the provincial security division.
Cuaresma said that her administration is not questioning Oceana Gold's whole mining activity per se, but only the nonpayment of fees for the quarrying activities being conducted by sub-contractor Delta Earth Moving.
Vizcaya gov't stops mining operations over tax
By Melvin Gascon, Northern Luzon Bureau
8th May 2008
BAYOMBONG, Nueva Vizcaya - The provincial government has blocked earth-moving operations by an Australian mining firm for its refusal to pay taxes imposed by the local government.
On Tuesday, a group of about 50 provincial officials, department heads and police and security personnel went to Barangay Didipio in Kasibu town to stop the operations of OceanaGold Philippines Inc. and Delta Corp., a subcontractor of earth-moving activities there.
Lawyer Desiderio Perez, provincial legal officer, said officials, led by Gov. Luisa Cuaresma, have vowed to stay in the area to prevent the company from resuming its activities until it agrees to pay the estimated P30 million business license and quarry fees.
"It is our belief that any agreement between the national government and foreign corporations does not override the power of the [local government] to collect sand and gravel taxes, as a devolved function under the Local Government Code of 1991," Perez said.
OceanaGold has been clearing the area since December last year in preparation for the construction of various facilities for its $117-million mining project. The firm has set the start of production in February 2009.
Work, however, has been hampered by controversies in right-of-way issues as a number of residents refused to leave despite the offer of compensation.
Perez said the province was firm in enforcing the cease-and-desist order (CDO) issued by Cuaresma on April 9 against OceanaGold.
In his April 22 letter to Cuaresma, Environment Secretary Lito Atienza said earth-moving activities by OceanaGold and Delta in Didipio were allowed by the financial and technical assistance agreement granted by the Philippine government, which also exempted it from paying quarry taxes.
The Inquirer, since Tuesday, has been seeking OceanaGold's response but Ramoncito Gozar, the firm's vice president for communications, declined.
A report of a six-member team that would enforce the CDO said OceanaGold and Delta officials refused to honor Cuaresma's order when it was delivered to them in Didipio.
Instead, they vowed to continue the work, citing the instructions of Atienza.
N. Vizcaya board backs gov's position on Aussie mining firm
Tribune
4th May 2008
BAYOMBONG, Nueva Vizcaya -- The provincial board led by Vice Gov. Jose Gambito has expressed support to the position of Gov. Luisa Lloren Cuaresma to issue a "cease and desist" order against an Australian-owned mining firm to stop its quarrying activities in a remote village of a mountainous town in the province.
Gambito said the order issued against Oceana Gold Philippines to stop its quarrying activities in Didipio village, Kasibu town where it is at present engaged in exploration and shifting into construction phase in preparation for eventual commercial operation, was within the prerogatives of the provincial government based on the Local Government Code.
Earlier, Cuaresma ordered the Australian-owned firm to "cease and desist" from conducting quarrying activities in the area until such time that the provincial government allows it to.
Cuaresma's order dated April 9, stemmed from the firm's alleged failure to pay taxes in connection with its quarrying activities.
The order was only implemented the other day after the governor ordered the local Department of Environment and Natural Resources (DENR) Office and the Philippine National Police to serve the order after the firm allegedly refused to accept it.
In defending the governor's move, Gambito said she was correct to stress the right of local government units based on the Local Government Code.
"Actually, we are only questioning the non-remittance of payment for the quarrying activities which were devolved to the provincial government, not the whole mining activity," Gambito said.
Oceana Gold, meanwhile, stressed the so-called quarrying activities being conducted were an integral part of the firm's construction phase, in tune with its eventual shift to becoming the first large-scale commercial mining operations in the region.
Oceana Gold is one of three nationally-sanctioned foreign firms conducting mining exploration activities, the other two are Australia-owned Royalco Philippines and British-owned FCF Minerals Corp.
DENR officials, when sought for comment, said the governor had no right to issue the order.
Ted Boehnert