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Benguet villagers endorse Philex mining operations

TUBA, Benguet – Indigenous people and cultural communities affected by the on-going operations of Philex Mining Corp. here have endorsed the firm’s continuous operation in a 98-hectare area covered by an application for production sharing agreement (APSA).

This was considered a breakthrough in the deadlock over the company’s bid for free and prior informed consent by the affected indigenous villagers.

The agreement was reached after a series of dialogues between the company and the affected communities.

Engineer Neoman dela Cruz, regional director of the Mines and Geosciences Bureau in the Cordillera, said the consent given by the affected communities to the mining operation is a big boost to the mining industry in the region which, he also said, has greatly contributed to the country’s economic growth.

Under the agreement, Philex will give the indigenous people a royalty fee, the amount of which will be based on its yearly gross output.

It was learned that the royalty fee to be paid to the indigenous people is to be computed on a monthly basis.

Furthermore, the agreement provides that an amount of R60 million in advanced royalty fees in 2008 and 2009 will be given to the beneficiaries.

The advance 2008 royalty payment will be deposited by Philex in a trust account in the name of the indigenous communities, while the advance 2009 royalty payment will be given in the first quarter of next year.

The royalty fees of the indigenous people is to be administered by a committee and is to be spent for the socioeconomic welfare of the affected cultural communities in consonance with the sustainable development of ancestral domain as provided for by the Indigenous Peoples Rights Act.

The firm will also give the indigenous people financial assistance in the amount of P100,000 upon the execution of the agreement.

Lawyer Eduardo Aratas, chief of Philex’s legal division, said that the cooperation of the community and municipal government officials in the promotion of sustainable development especially for the mining industry would surely go a long way in terms of economic development in the tribal communities.

Earlier, Dr. Walter Brown, chairman of the board and chief executive officer of Philex, urged indigenous people and local officials to support the efforts to promote responsible mining in their areas in order to attain significant development that could make a difference in boosting their economic status. -- Dexter See