Cedric Lee’s firm involved in black sand exploration – MGB

TUGUEGARAO CITY, Philippines – Colossal Mining Corp., one of the firms in which controversial businessman Cedric Lee has a significant stake, took part in pre-exploration activities for black sand along the northern coastline of Cagayan years ago, according to the Mines and Geosciences Bureau (MGB).

But Mario Ancheta, MGB director for Cagayan Valley, said Colossal eventually ceded its right to explore for black sand or magnetite ore in Cagayan to another corporation under a memorandum of agreement in 2011.

Colossal, reportedly the country’s biggest iron sand concessionaire, still maintains a stake in the black sand project here.

Lee is reportedly the firm’s managing director.

Lee, along with several others, is facing charges of serious illegal detention and physical injuries for beating up actor and TV host Vhong Navarro inside a condo unit in Fort Bonifacio in Taguig City last January.

Ancheta said Colossal entered into an MOA with the Cagayan Iron Sand Corp. on March 1, 2011 allowing the latter to explore for black sand inside Colossal’s exploration area in Cagayan.

Ancheta said the MGB regional office received the MOA and other documents for endorsement and approval by the central office on May 28, 2012 and March 11, 2013, respectively.

One of the board members of Colossal is former Philippine National Police deputy director general for administration and now Tuguegarao City Mayor Jefferson Soriano.

Soriano is currently serving a 90-day preventive suspension by the Sandiganbayan for his alleged involvement in the P34-million helicopter scam during the Arroyo administration.

Earlier, the MGB said that all black sand mining activities in Cagayan had been stopped or suspended indefinitely, pending a review of applications, permits and performance of industry players involved.

Ancheta said that the permits of some of the mining firms were revoked after they were found to be extracting black sand within the prohibited 200-meter zone from the shoreline.

“Only those few mining firms with pending or ongoing social services commitments with the local governments were left in the area,” he said.

Black sand commands a lucrative price in foreign markets like China.

Black sand or magnetite is a key component in the manufacture of concrete and steel products, magnets, paint, ink, paper, jewelry and cosmetics.

Meanwhile, the Cagayan Economic Zone Authority belied reports that it is accommodating undocumented or illegally extracted black sand in its freeport in Santa Ana, Cagayan’s northernmost coastal town.

Joyce Jayme, CEZA public affairs chief, said that the freeport does not allow the entry and shipment of goods, including black sand, without clearance from government authorities.

Jayme said there is no way undocumented black sand could pass through the port facilities without being detected by the Bureau of Customs (BOC), the Bureau of Internal Revenue and the MGB.

Permits required for the shipment of black sand are required to have Authority to Load issued by the BOC; Ore Transport Permit from the provincial government and MGB; Mineral Ore Extraction Permit, also from the MGB; Excise Tax clearance from the BIR, and Export Declaration from both BOC and CEZA.