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Atienza, lady governor at loggerheads over gold-copper project in Vizcaya

SANTIAGO CITY – An executive of OceanaGold Philippines said Wednesday Environment and Natural Resources Secretary Lito Atienza has issued an explicit directive to the mining company to resume full operation despite a cease-and-desist order issued by Nueva Vizcaya Gov. Luisa Lloren Cuaresma.

The operation of the Australian mining firm was stopped by the governor for its alleged failure to pay fees for what she described as "quarrying activities" at the Didipio gold-copper project site.

Ramoncito Gozar, vice president for communications and external affairs of OGPI, said Atienza told company president Patrick Goodfellow he sent last April 22 to Cuaresma a clarification letter stating that the on-going activities at the Didipio gold-copper project are allowed under the Financial and Technical Assistance Agreement No. 001 and are part of the development work on the project.

"We have emphasized that these are not quarrying activities and pursuant to the provisions of the Philippine Mining Act of 1995, an FTAA contractor has the right to extract and remove sand and gravel and other loose materials without need of a permit from the provincial governor," Atienza stated in his letter.

Atienza also told Cuaresma that FTAA No. 001 is valid and existing contract between the Philippine government and OceanaGold, adding that the Didipio gold-copper project is one of the priority mining projects of the national government under its minerals industry revitalization program.

"Assuming without granting that OceanaGold is not paying the tax due, suspending outright the activities concerned for such violation is not the appropriate penalty under the principle of due process," Atienza said.

Atienza said that the governor has exceeded her authority under the Philippine Mining Act of 1995 by issuing the cease-and-desist order.

"The said order is definitely inappropriate, has no legal basis, and, therefore, cannot be recognized by this Department," he said.

The former Manila mayor said OceanaGold has contractual obligations to fulfill under FTAA No.001, particularly the obligation to develop the contract area within a fixed period of time pursuant to the three-year development work program.

"Over and above all legal considerations, we cannot lose sight of the tremendous socio-economic benefits that the Didipio Gold-copper project stands to generate not only for the national government but more so for the local communities," Atienza also said.

The secretary ordered OceanaGold to resume the development work, including earth-moving activities at the Didipio gold-copper project.

He also directed DENR and MGB Region 02, and notified Department of Interior and Local Government, the Philippine National Police, and other agencies composing the Minerals Development Council to ensure that his directive is fully carried out.

"We shall definitely look into the possibility of filing charges at the appropriate forum against the liable officials of the province," Atienza said.

However, Governor Cuaresma reiterated she was not scared by the secretary’s threat to file charges or even the possibility of imprisonment that may come as a result of the enforcement of her cease-and-desist order.

Earlier, MGB Director Horace Ramos instructed OceanaGold to resume development operation.

This came a day after he held a dialogue at the Didipio project with Cuaresma and Vice Gov. Jose Gambito Jr.

But the dialogue proved futile as the lady governor continued to enforce her cease-and-order is valid.

Ramos agreed in principle with Cuaresma and Gambito that because the issue involves national and local laws, it is appropriate to seek the opinion of the Department of Justice.

The other day, Rep. Carlos Padilla went to Cuaresma’s rescue, saying that the DENR secretary is treading on dangerous grounds for issuing a return-towork directive to OceanaGold, while the cease-and-desist is still in place. -- CP