Kalinga tribe, mine firm agree on 60-40 sharing scheme

By Peter Balocnit

TABUK, Kalinga – A tribal association and mineral deposit explorer that signed a pact to explore oil within the ancestral domain of the Guilayon tribe here agreed on a 60-40 sharing on net income in favor of the group and the government.

In a production sharing contract signed between the Salibad Miners Association Inc. (SMAI) and the MCC Capital Project Co. Ltd. (MCC ) last month, the SMAI granted the MCC exclusive exploration and development authorization for an initial 25 years to explore mineral deposits within the ancestral domain of the clan.

The SMAI has ancestral domain consisting of 844,000 hectares which are said to be rich in mineral deposits including gold, silver, copper, oil and natural gas.

Under the contract, the United Kingdom-based MCC shall undertake exploration, exploitation and development, processing and marketing of mineral deposits found in the exploration perimeter.

According to the contract signed last Oct. 8, the production benefits resulting from the operation shall be shared between the parties in accordance with applicable local laws and mutual agreement.

MCC, which has a Philippine office at 4961B Arnaiz St., Makati City, also agreed to divest a percentage of its revenues in social housing, clinics, schools, water and sanitation, utilities and related expenses.

During the initial exploration, MCC will undertake seismic survey, drill exploratory wells in accordance with good international industry practices and standards.

The mining company vowed to take necessary actions for the protection of the environment and shall take any reasonable steps in order to ensure all facilities and equipments used for the requirements of the operations are in good working condition during the term of the contract.

It also promised to rehabilitate the mined site upon the completion of each operation.

MCC shall also take all necessary precautions to prevent pollution of the area and observe the provisions of the International Convention on the Prevention of Pollution.

The explorer assured priority employment for the local populace. It will also contribute to training of personnel to allow them access to any position that requires such skill.

In the event that MCC violates its work commitment, the clan has the right to levy a negotiable penalty or rescind the contract exclusivity.