TUBA, Benguet – The management of the Philex Mining corporation here released a total of P142 million to an indigenous peoples group representing partial payment for their royalty over the past two years which will be used for community development and other socio-economic programs for the benefit of communities hosting the large-scale mining operations.
Out of the said amount, P82 million represents the total royalty of the Indigenous peoples Organization of Alang, Pukis, Sabian, Santa Fe, Oliba and Luacan (IPO-APSSOL) last year while P60 million will be the advance payment of the mining company to the organization for its royalty this year.
Under a memorandum of agreement signed between IPO-APSSOL representatives and officials of Philex in January last year, the mining firm is obliged to pay the group a royalty amounting to 1.25 percent of the firm’s annual gross receipts for a period of 25 years.
Lawyer Eduardo Aratas, chief of Philex’s legal division, said host communities will continue to enjoy the benefits and privileges of the extended life of the mine firm, thus, they must intelligently utilize their share from the royalty they are receiving so that they will be able to sustain the development of their communities as well as their sources of livelihood once the firm will close operations.
In a latest pronouncement, Philex disclosed its lifespan is extended for another three years from 2014 to 2017 but appropriate explorations are still being undertaken by the company to look for other potential ore sources within the vicinity of the existing minesite in Padcal so that it could further prolong its operations for the benefits of its over 2,000 employees and the host communities.
The IPO-APSSOL gave its free and prior informed consent for Philex to continue its mining operations within a 98-hectare natural subsidence area within their territorial jurisdiction with the committed substantial assistance from the company with P60 million which is part of the royalty to be paid in advance within the early parts of the year.
The mining operations of Philex is located within the boundary of Tuba and Itogon towns, thus, the royalty of the organization will be distributed for community development and socio-economic projects in the six identified host communities within the jurisdiction of the two local governments.
Philex is one of the biggest copper mining companies nationwide which has ventured in gold production that continues to bring the company to greater heights.
Aratas cited the company will continue to extend appropriate and lawful assistance to host communities of Philex’s mining operations in recognition of the role of the indigenous peoples in the conduct of sound and responsible mining activities and their commitment to support such operations in the coming years.
He added the extended lifespan of the company is because of the convincing global metal prices brought about by the consistent high demand for metals in the world market over the past several years which reinvigorated the local mining industry. -- Dexter A. See
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