Benguet govt reviews huge mining project proposal

MANKAYAN, Benguet -  The proposed Far Southeast project in this town  and the long-term plans of the mining firm Far Southeast Gold Resources Inc. (FSGRI) are now being studied by the Benguet Provincial Board.

If government finally grants its permits and licenses including affected community’s nod,  the South African mining firm, Goldfields, can now proceed with the exploration of the area.

Earlier, village elders and leaders in Mankayan approved the firm’s Free and Prior Informed Consent (FPIC) and the FSGRI  is now working on securing a  FPIC Memorandum of Agreement with the National Commission of Indigenous Peoples (NCIP), the Mines and Geosciences Bureau and the Mankayan local government unit for final endorsement proceedings.

Goldfields, however, still needs to secure approval for an Exploration Work Program with MGB as well as endorsements from the local government unit to finally approve the conversion to a Foreign and Technical Assistance Agreement (FTAA).

FSGRI through Lepanto Consolidated Minings Corp. applied for an FTAA with the MGB which referred the same to the NCIP for the conduct of FPIC in community. 

Since the FPIC has been approved by the community, FSGRI is closer to have a 60 percent stake in the Far Southeast Project.

The acquisition of an FTAA license allows a foreign corporation to legally own and control a majority stake of large-scale mineral resources in the Philippines and is a contractual condition to the exercise by FSGRI of the Lepanto option.

Goldfields has reportedly allotted  some P235.49 million for the possible exploration work  of the area, which may last for four years. Of the amount, 10 percent (P23.5 million) will automatically be allotted for community development projects.

Community Projects implemented from 2011 to the present include human resource and institution building; enterprise development and networking; access to health services; facilities and professionals support program; assistance to infrastructure development; and support service protection and respect of socio-cultural values.

According to earlier confirmatory drillings, the Far Southeast ore body is located under the Victoria and Teresa Mines currently being operated by LCMC.

If the company goes into exploration phase and finishes it in the allotted time table of four years, another eight years will be dedicated to the construction and development stage of the actual mine area needed for the operation and production stage.  The actual operation and production will go on for 50 years. - Artemio A. Dumlao