SMI appeals denial of its ECC bid by DENR

MANILA, Philippines - Sagittarius Mines Inc. (SMI) has formally appealed the denial of the Department of Enviroment and Natural Resoures (DENR) of an environmental clearance for its $5.9-billion copper and gold project in Tampakan, South Cotabato.

In a forum on the Tampakan mining project held at the University of Asia and the Pacific (UA&P) yesterday, SMI general manager Mark William said a motion has been filed last Jan. 27 but up to now, it has not yet been resolved.

He said the denial of the issuance of environmental clearance for the project is baseless because the company had complied with the requirements set by the DENR.

SMI also argued in the resolution that the proposed mining project is supported by its host communities.

The DENR in January refused to issue an Environmental Compliance Certificate (ECC) for the mining project until issues with the use of the open pit mining method have been resolved.

Investors have also expresed alarm over the draft executive order from Malacañang that proposes the replacement of the “first-come first-served” system in mining applications with competitive public bidding. The order also declares prime agricultural lands closed to mining activities.

It also proposes the review of all existing mining contracts as well as an increase in royalty shares.

William said the goverment should be cosistent with its mining policies under the law to retain and attract investors.

“We haven’t formally received the executive order...government policy on mining needs to be consistent to create investor confidence. Mining requires a big starting capital and intensive research,” William said.

The proposed Tampakan Mining site covers an area of aproximatey 10,000 hectares between the towns of Tampakan in South Cotabato and Kiblawan in Davao del Sur. If approved, the mine could yield 375,000 tons of copper per annum and 360,000 ounces per annum of gold in concentrate form during a 17-year operating lifespan.

The project also involves the construction of a port and a copper-gold concentrate pieline from the mine site to the port, a filter plant, a 500-MW power station situated at the port site and power transmission lines from the power station to the mine site, as well as access roads to the mine site.

During the forum, economist David Pearce said the Tampakan mining project, one of the largest in the world, has the potential to contribute one percent per year to the country’s gross domestic product.

“It’s still a potential. It has the potential to change the Philippine mining industry,” he said.

Tampakan mayor Leonardo Escobillio Sr. favors the conduct of mining activities in his area, saying SMI has greatly improved the quality of lives of the residents.

“I am not pro-mining, but I am pro-develoment,” said Escobillio, an engineer.

He said SMI, which is still in the exploratory stage, has supported the eduation of the youth in Tampakan, especially those who are taking technical courses.

“We prepare many skilled workers because we want to be able to provide them if the project pushes through,” he said.

He said he and other local officials in the area covered by the mining project will submit a manifesto to Environment Secretary Ramon Paje and Interior Secretary Jesse Robredo to express support for the project.

“We urge the government to reconsider the denial of the ECC,” he said.

Kiblawan vice mayor Marivic Diamante is also pushing for the project, saying it is more difficult to control small scale mining projects.

She said the project, if allowed to push through, would create more jobs and encourage tourism in her town.

She said that since SMI exploration activities in the Kiblawan began, the town’s dependency to internal revenue allotment dropped to 90 percent from 97 percent.

“We are being hyocrites. We know that this is a potential source of wealth, still we don’t want to take advantage of it,” she said.