Socioeconomic Planning Secretary Romulo L. Neri said the discovery of about P50 billion worth of gold reserves in the mine site is enough to hold an initial public offering (IPO). In fact, he said "there is more where it came from."
"There are enough reserves there to do an IPO," Neri stressed.
Neri, who is also National Economic and Development Authority (NEDA) Director General, explained that the government will put up a corporation under the Natural Resources Mining Development Corp. (NRMDC). The new corporation will be in charge of the Mt. Diwalwal exploration and will be the one listed in the stock market.
NRMDC president Artemio Disini said the company has poured in hundreds of millions in Diwalwal for exploration. Neri said he allocated P50 million for the project when he was Budget Secretary, and other government agencies likewise gave money for exploration.
NRMDC is looking at the gold deposits at the Buenas-Tinago and Balite veins, and the gold and copper prospects at the Upper Ulip/Matangad, Mabatas/Higanteng Bato, Pagasa/Paraiso, Simulao and Mapaso/Letter V/Bermuda areas in the mountain.
"We have to jumpstart it and when it is ready for the private sector we will sell it. This way we maximize our privatization value," Neri noted.
Neri said the area of Mt. Diwalwal used to be swarming with armed insurgent groups led by the New Peoples Army (NPA). He said the government has placed a military detachment in the area and it has been peaceful since then.
Another potential problem for the development of Mt. Diwalwal is the existence of small-scale mining cooperatives operating in the area. However, Neri said the issue can be resolved through negotiation. "They are willing to accept portion as shares in the initial investment. It’s a matter of how much they would accept."
Likewise, a legal impediment has been hurdled after the Supreme Court awarded the Mt. Diwalwal mine site to NRMDC; denying the claim of South Eastern Mining Corp. that it is the true owner of the area.