MORE NEWS, NUEVA VIZCAYA

Atienza raps Cuaresma: Governor to mining execs: Pay taxes or leave Vizcaya

BAYOMBONG, Nueva Vizcaya — Angry, upset and slighted by the seeming disregard by a foreign mining firm of the provincial government’s cease and desist order, this province’s lady governor told executives of a mining firm to leave the province if they could not pay the taxes and fees being collected from their company.

"If you can’t pay, then better get out," irate Gov. Luisa Lloren Cuaresma, told executives of the Australian-owned Oceana Gold Philippines led by Jake Foronda, general manager of the Didipio Gold-Copper Project in Kasibu town, where the firm is conducting mining exploration activity.

Cuaresma, members of the provincial board led by Vice Gov. Jose Gambito and other provincial officials went the other day to Didipio to implement the cease-and-desist order.

It was a move to pressure Oceana Gold executrives and make them pay the taxes and fees which the provincial government is charging for its quarrying activities.
But the mining firm at first stood on its stand and refused to pay fees and taxes, saying the quarrying activities were part and parcel of the development being undertaken by the firm.

This,as Environment and Natural Resources Secretary Lito Atienza appealed to Cuaresma “to come to (your) senses” and give way to the operation of an Australian mining company in Kasibu town.

In a press conference in Manila, Atienza also warned that Cuaresma might be “treading on illegal grounds” for leading a barricade against the mining project of Oceana Gold Phils., one of only two mining companies operating in the country that were granted a Financial or Technical Assistance Agreement (FTAA) by the government.

Cuaresma’s cease-and-desist order to Oceana Gold stemmed from the firm’s failure to pay provincial taxes relating to its quarrying activities.

Provincial officials had estimated the amount of the taxes and fees at some R25 million.

"It is only right that the provincial government issue this order against the mining firm. This is an exercise of the provincial government’s power provided by the Local Government Code, said Vice Gov. Jose Gambito, who also chairs the 14member provincial board.

The national government expects to raise some R30 billion in taxes from the Didipio project’s 15-year operation, aside from the millions of local taxes and thousands of jobs to be generated.

Gambito said that the provincial board is about to pass a resolution authored by Board Member Tony Dupiano who urged withdrawal of support for the Didipio project.
In 2006, the board endorsed unanimously the project.

Executives of the mining firm led by Foronda met with the provincial officials at the field office of the provincial government’s Environment and Natural Resources Office in Didipio. The officials led by Cuaresma went there in full force, accompanied by elements of the Philippine National Police and the provincial security division.

Cuaresma said that her administration is not questioning Oceana Gold’s whole mining activity per se, but only the nonpayment of fees for the quarrying activities being conducted by sub-contractor Delta Earth Moving.

Aside from Oceana, the other FTAA recipient is the Tampakan copper project of Sagittarius Mines Inc. in South Cotabato. There are, however, 50 pending applications for FTAA, Atienza said.
An FTAA is a form of a mining contract between the government and a mining company on large-scale exploration and development of minerals, which adopts a single benefit-sharing scheme where the government (that also represents the community) and the mining contractor share 50-50 from the net mining revenues after the recovery of the capital investment by the contractor.
An FTAA allows up to 100 percent foreign ownership in a mining project.
“We urge the local government (officials) to open up their minds... If they refuse to follow the law, then we will not hesitate to implement the full force of the law on them,” Atienza said.
Atienza said it is important for the government to immediately address the issue hounding the operation of Oceana Gold in order to cushion the possible negative impacts it may give on the country’s mining industry projections in the international scene.
According to Atienza, Oceana Gold is anxious to proceed with the development of its mining area without delay because it wants to complete its work by this year to be able to carry on to the next level of production by next year.
Atienza said Oceana Gold anticipates finishing its construction before the typhoons arrive.
“All the activities being undertaken by Oceana Gold are being done in accordance with its agreement with the government,” Atienza said. “Its operation and activities are legal.”
“(It) looks so much (like it was an) arbitrary and capricious move on the part of the governor (to lead the barricade),” he said.
“They should consider the potential loss if Oceana Gold decides to pull out its investment,” emphasized Atienza, adding that the Australian mining company has committed an initial investment of $180 million.
On May 7, Cuaresma led other provincial officials and villagers in barricading the mining project of Oceana Gold after the firm allegedly failed to reach an agreement with the provincial government on the payment of local taxes.
The provincial officials vowed to stay in Didipio village in Kasibu town until the Australian mining firm pays its financial obligations “due the people of Nueva Vizcaya.”