Golden jackpot

It seems Lepanto Consolidated Mining Co. which owns 40 percent of the Far South East (FSE) mine in the Mankayan District of Benguet, has hit the jackpot. According to sources, Goldfields PLC – the second largest gold mining company in the world – would probably exercise its 60-percent buy option for $340 million by March next year. Geological findings on FSE show that it has an updated resource of 12 million ounces of gold and seven billion pounds of copper and once it is developed by Goldfields, it is poised to become the most significant mining operation in the Philippines in a long time. The LC stock, which has been the darling of the PSE for the past year as shown by its high daily value turnover, is expected to reach new heights especially before March 2012. 

Goldfields has confirmed the initial findings of the old Lepanto geologists/engineers. In fact, larger ore deposits of gold and copper have been discovered after more drilling was conducted, with ore also discovered even after Goldfields drillers have reached the end of their capacity to drill any deeper. Goldfields engineers are now doing their initial run on the feasibility study of the deposit.  Not surprisingly, inquiries are being made about the possibility of setting up a pipeline running across several provinces and municipalities from Benguet to La Union. Plans are also being drawn to set up a large mineral processing facility in the area, with confirmation that these are for FSE mine operations. 

Goldfields is going ahead with the feasibility study pending the results of the drilling to decide on final throughput, crunching the numbers to determine the optimum throughput. The upside for Lepanto is not only the FSE deposit.  With the recent acquisition of Crescent Mines, a 500-hectare property owned by Bezant (also by Goldfields), the Mankayan deposit will now be included in the planning process of Goldfields. In case people miss it, the significance of this fact is that the Mankayan deposit is a mere four kilometers away from the FSE mine.  In between the two deposits of FSE and Mankayan lies the FSE footwall said to mirror the deposit.  The FSE footwall has some holes already drilled into it and the grades are similar to FSE. With Goldfields coming into the picture, the FSE footwall will be the next deposit in the pipeline – and one can just imagine the tremendous values it will create for Lepanto.

‘Doppler-ganger’

Filipinos could only look in horror at the devastation wrought by Sendong – tagged as the killer storm even deadlier than Ondoy – with the bodies of unidentified men, women and children piled in a garbage dump in Cagayan de Oro. The cost of damage in terms of agriculture and infrastructure continues to escalate with the effects certain to be felt in the months to come. No doubt illegal logging exacerbated the disaster, but insiders from the National Disaster Risk Reduction and Management Council (NDRRMC) say a big factor was the lack of Doppler radars that could have helped national weather agency Pagasa get “better readings” on the amount of rainfall and other meteorological conditions necessary in assessing the impact on flood-prone areas.

According to sources, Pagasa has been requesting for new radars years before Ondoy hit the country in September 2009. A brand new Doppler costs about P100 million and the weather bureau was requesting for at least five radars at the time – but the procurement was allegedly delayed because certain interested parties reportedly wanted to “cut in” on the deal first before approving the budget. The interested parties are allegedly a couple of legislators – privately dubbed the “Dopplerganger Duo” – whose jurisdictions cover disaster prone provinces. That’s the reason why the purchase never happened, the informants alleged.  

There are only five Doppler radars to cover the whole country, with one of them installed in Mindanao – specifically in Hinatuan in Surigao del Sur. Last month, President Noy approved the release of P425 million to upgrade Pagasa’s weather forecasting facilities, with P150 million to be used for enhancing/upgrading the existing Doppler Radar Network to minimize the economic and social impact of typhoons. Pagasa previously announced the installation of Doppler radars in Cebu, Catanduanes and Aparri with fund assistance from the Japan International Cooperation Agency. However, it will take 18 months to manufacture the equipment since they are not off-the-shelf gadgets.

Derelict

Typically when mistakes are made, nobody wants to admit it with everyone going on a finger-pointing spree. As expected, Cagayan de Oro Mayor Vicente Emano engaged in a verbal tussle with NDRRMC chief Benito Ramos over the timely issuance of warnings. Political enemies of the Mayor are allegedly spreading that he was reportedly playing mahjong at the height of the devastation. Many of the CDO casualties were living in flood-prone, coastal areas – and there is now talk of charging LGUs for being “derelict” in their duties, disregarding geo-hazard maps provided by the DENR and ignoring recommendations to relocate residents years before Sendong struck. Mayor Emano admitted in an interview that informal settlers have been staying in the flood-prone areas prior to his tenure, but they were begging not to be relocated so he “bought” the land for the squatters instead. So, who’s to blame?

“Firm” on the impeachment

Reacting to reports that Iloilo Rep. Niel Tupas Jr. would invite former Ombudsman Simeon Marcelo to assist the House of Representatives prosecution team, the Villaraza Cruz Marcelo and Angangco law firm, popularly known as “The Firm” said in a statement that it will not participate in the impeachment prosecution of Chief Justice Renato Corona. While expressing gratitude “for the House prosecution team’s confidence in the former Ombudsman’s abilities,” The Firm said there are already enough competent volunteers helping, and that it is focused on its current load of cases in the private practice.

***

Spy Bits will be out on a Christmas break next week and will resume January next year. Merry Christmas, everyone!

***

Email: [email protected].