No foreign miners in Diwalwal - DENR-MGB

This is in connection with the so-called ZTE Diwalwal mining deal that has been the subject of the column entitled Gotcha of Mr. Jarius Bondoc in the Philippine STAR issues of September 3, 10, 12, 19, 22, 2008.

In the interest of fairness and truth, please allow us, on behalf of the Department of Environment and Natural Resources (DENR), to state the following facts:

1. As of this date, there is no mining contract entered by the DENR or the Mines and Geosciences Bureau (MGB) with ZTE Inc. or any other foreign mining company for that matter within the 8,100-hectare Diwalwal Mineral Reservation.

Our records also show that ZTE Inc. has not filed a mining application within the Diwalwal Mineral Reservation.

2. The mining and mineral processing operations within the Diwalwal Mineral Reservation are under the management of the Philippine Mining Development Corporation (PMDC), the former Natural Resources Mining and Development Corporation (NRMDC). This mandate of PMDC emanates from DENR Administrative Order No. 2003-38 dated August 18, 2003 and the Memorandum of Agreement executed on November 18, 2003 by and among the DENR, the Natural Resources Development Corporation and PMDC. Under DAO No. 2003-38 and the MOA of November 2003, only PMDC is authorized to enter into an operating contract with qualified mining groups/cooperatives for the purpose of mining and/or processing of ores within the said mineral reservation. PMDC has already subdivided the Diwalwal Mineral Reservation into parcels that are available for bidding by qualified parties. Accordingly, ZTE has not indicated its interest to bid or has won a bid in any portion/parcel in the Diwalwal areas. — HORACIO C. RAMOS, Director, Mines and Geosciences Bureau