Philex denies irregularities in IP consent on in its operation

TUBA, Benguet – Philex Mining Corp. denied irregularities in the procedures that led to issuance of the certification pre-condition in favor of its mining operations, saying it acted in good faith and that everything that transpired in the process of securing the free, prior, and informed consent of the affected indigenous cultural communities and indigenous peoples were within the parameters of the law.

Lawyer Eduardo M. Aratas, chief of Philex’s legal division, said officials of the National Commission on Indigenous Peoples, Mines and Geosciences Bureau-CAR and concerned local government units witnessed the conduct of the series of consultations that led to issuance of the free, prior, and informed consent of the affected indigenous peoples for the company’s mine operation, thus, coming out with conclusions on the alleged irregularities in the adopted procedures would be unfair to those who actually participated in the conduct of the series of consultations leading to the issuance of the FPIC and eventually the certification pre-condition of the NCIP.

He said it was the NCIP that conducted the necessary consultations which led to the identification of the Indigenous Peoples Organization of Alang, Pokis, Santa Fe, Sabiang, Oliba and Loacan (IPO APSSOL) as the legitimate indigenous peoples organization to represent the affected indigenous peoples in the area of operation of the mining company.

“Any issue or concern arising from what we believe was a legitimate process in securing the free and prior and informed consent of the affected indigenous peoples must be subjected to a pure and honest judicial determination,” Aratas said, noting that there are other indigenous cultural communities and indigenous peoples who want to be recognized by the concerned government agencies and the company so that they will also receive their share from the royalty being paid by the company to the group but their areas are located outside the company’s operations.

Because of the free and prior informed consent given by the IPO APSSOL to the company’s Application for Production Sharing Agreement (APSA) No. 102 which is within the affected communities, a memorandum of agreement was signed by the parties, particularly Philex, IPO APSOL and NCIP, sometime in January 2008 with ranking NCIP, MGB and local government as well as company officials as witnesses. The agreement mandates the payment of 1.25 percent royalty fee to the IPO APSSOL from the company’s gross income per annum and that the funds will be used by the group to bankroll the implementation of development projects within the affected communities.

On the other hand, Aratas added the company welcomes the move by NCIP to conduct an audit investigation on the books of IPO APSSOL to ascertain where the royalty payments have been utilized according to its purpose.

Under the agreement, the company will be paying IPO APSSOL 1.25 percent royalty fee based on the company’s gross income annually and that such funds will be used to implement development projects in the affected communities for a period of 25 years.

IPO APSSOL had been receiving the royalty payment from the company over the past four years after the signing of the memorandum of agreement.