Portion of Mt. Diwalwal mineral reserve up for bidding

DAVAO CITY – An official of the Philippine Mining Development Corp. (PMDC), the corporate arm of the Department of Environment and Natural Resources that manages the gold mining sites in Mt. Diwalwal, disclosed that a portion of the 8,100-hectare mineral reservation in Monkayo, Compostela Valley is now up for bidding to interested mining investors.

“The bidding process for Mt. Diwalwal has already begun and in fact, we had the invitation to bid published last Sept. 5. Those interested to invest in Mt. Diwalwal could check it,” said PMDC president Oliver Butalid.

Butalid expressed hope that the ongoing bidding process for the Ulip-Paraiso parcel of the Mt. Diwalwal mineral reservation would dismiss speculations that the government has forged a secret deal with the controversial Chinese firm ZTE Corp.

“This (bidding) is the proof that there is no secret deal with any foreign corporation, including ZTE, in Mt. Diwalwal,” said Butalid.

Butalid explained that only 52 percent of the total 8,100 hectares of the mining reserve in Mt. Diwalwal would be open to outside investors.

“The remaining 48 percent of Mt. Diwalwal would be reserved for the existing stakeholders, including small-scale miners, indigenous communities and even the illegal tunnel operators. We will give them an opportunity to become legitimate mining operators for PMDC, although we have to qualify them in that they follow or adhere to our environmental and safety standards,” Butalid added.

Lawyer Harry Roque, a staunch critic of the Arroyo administration, earlier claimed that the government granted mining rights worth over $1 billion to ZTE Corp., which was involved in the controversial $329-million national broadband network contract between the company and the government that was cancelled after the disclosure of alleged bribery and overpricing.

Roque cited a memorandum of understanding (MOU) signed by Trade Secretary Peter Favila with ZTE officials on July 12, 2006, that gave the Chinese firm the right to explore, develop and operate mining rights in Mt. Diwalwal.

He also questioned the special authorization President Arroyo gave to Favila that paved the way for him to sign the MOU with ZTE.

Butalid, however, denied that PMDC had entered into any contract with ZTE for the operations in Mt. Diwalwal. PMDC, formerly known as the Natural Resources and Mining Development Corp. (NRMDC), is the holder of the mining permit in Mt. Diwalwal.

“Where is the contract? Until now, we still have not been formally provided any copy of any contract with ZTE,” Butalid told The STAR.

“With the bidding, we are requiring interested investors to commit or to invest at least $20 million for the next five years in Mt. Diwalwal. The winner of the mining rights would be the company that presents the highest bid, which will be paid to PMDC for the right to operate the mines for 25 years,” he said.

Butalid said the PMDC is not transferring the claim to any portion of Mt. Diwalwal and it would still be government-owned.

“We are very transparent in our dealings with prospective investors in Mt. Diwalwal. As far as Mt. Diwalwal is concerned, there was no such contract signed with ZTE,” he added.

Butalid clarified that three areas of Mt. Diwalwal will be open as mining investment areas (MIA) – the upper Ulip Paraiso, the Victory, and Higanteng Bato parcels.

He said a 729-hectare area, considered to be the most productive portion of Mt. Diwalwal, would remain under PMDC administration.

The PDMC reportedly secured a P500-million loan from the Development Bank of the Philippines to finance the development of the Balite vein of the Victory tunnel project in Mt. Diwalwal, which would be sub-contracted to the mining cooperatives in the area.

The cooperatives, consisting of more than 40,000 small-scale miners in Mt. Diwalwal, have already entered into an agreement with PMDC for the development and exploration of the Victory tunnel.

Entry of foreign firms opposed

Barangay chairman Franco Tito of Mt. Diwalwal said local miners would oppose the entry of foreign mining firms, including ZTE, into the local mining reservation.

Tito warned the government that violence could erupt in the mining community if foreign mining companies take over the mines in Mt. Diwalwal.

He said there are still no indications that ZTE has started mining operations in Mt. Diwalwal.

Butalid said that since he replaced Artemio Disini as PMDC president, there is no indication that ZTE would conduct mining operations in Mt. Diwalwal.

He said Disini did not turn over to him any document involving the ZTE transaction when he took over. “I understand Disini never signed anything. To my knowledge he did not sign anything with ZTE,” he said.

Speculations of the Chinese firm’s interest in Mt. Diwalwal started after President Arroyo accompanied ZTE chairman Hou Weigi and an official of the China Development Bank during a visit to Monkayo, Compostela Valley on July 8, 2006.

Mrs. Arroyo announced ZTE’s plans to put in at least $1 billion in new investments in Compostela Valley, particularly in mining.

“I brought with me the chairman of the ZTE, Hou Weigi, the Chinese corporation with the largest value traded in the Shenzhen Stock Exchange. They are bringing into Compostela Valley $1 billion in new investments,” the President announced during the visit.

Hou and the other Chinese businessman even stayed behind in Monkayo after Mrs. Arroyo went to Cotabato City for a meeting with Cabinet members and the regional development council in the area.

Palace laughs off lawyer’s claim

Malacañang officials laughed off the claims of Roque on the MOU with ZTE Corp. in Mt. Diwalwal.

Press Secretary Jesus Dureza and Trade Secretary Favila accused Roque of being mentally dishonest since he knows fully well that an MOU is not a contract.

Dureza described Roque’s latest actions as “carpet bombing” against the Palace.

“An MOU is not a contract. It’s merely an expression of intention to invest,” Dureza said. “It’s part of a demonizing and demolition job.”

He said Roque is a lawyer and should understand the difference between the intention to invest and agreement or contract.

“He really unleashes issues without presenting evidence and once it comes out he just leaves it alone without presenting proof,” he said.

He said he was waiting for Roque to challenge the constitutionality of the MOU before the courts.

Favila said he is not worried about the controversy, pointing out that in the NBN deal, he presented all documents during the Senate investigation.

“I read in the papers that they will take me to the Ombudsman. By all means, I have no problem with that. I would like to thank the members of (the Senate) committees (who) had brilliant lawyers and they got to understand the issue,” he said.         – With Paolo Romero