From: Teresa Binstock <[EMAIL PROTECTED]> Date: Mon, 28 Feb 2005 08:02:07 -0700 Subject: [NativeNews:enviro] Rebel Land Claims to Test Philippine Mining Revival - Indigeneous Peoples' Rights Act law that took effect in 1997 [Another example of how a nation's debt imposes environmental degradation in the name of "progress". -Teresa]
* * * * Rebel Land Claims to Test Philippine Mining Revival http://www.planetark.com/dailynewsstory.cfm/newsid/29735/story.htm PHILIPPINES: February 28, 2005 MANILA - The gold rush in the Philippines started early this month when foreign investors came to Manila to consider joining in the revival of the mining industry. "We are now open for business," Environment and Natural Resources Secretary Michael Defensor declared at a mining conference attended by 300 delegates, most of them foreigners. The stakes are high. The Philippines, which the government estimates has untapped mineral wealth of $1 trillion, badly needs foreign investment to help cut its $69 billion in debt and reduce chronic budget deficits. But the momentum in opening the mining industry, spurred by a Supreme Court ruling in December allowing 100 percent foreign ownership of projects, faces another stumbling block. Muslim rebels in this mainly Roman Catholic country want a say before foreigners start digging on the southern island of Mindanao, which they consider as their ancestral homeland. "I think the government should be careful on this because it affects the peace talks," Mohaqher Iqbal, a rebel leader told Reuters in an interview. "The exploitation of natural resources in areas where we occupy should benefit the Bangsamoro people." The Moro Islamic Liberation Front, the largest of several Muslim rebel groups, wants the issues of ancestral land, revenue sharing and environmental protection on the negotiating table when peace talks resume in Malaysia in March. Communist rebels, active in 69 of the nation's 79 provinces, have threatened to disable operations of foreign mining firms if they damage the environment during the development of projects the government hopes will revive the sector. In the past, the 8,000-member New People's Army has raided mining and logging companies, destroying equipment over failure to pay "revolutionary war taxes" and causing damage to tribal communities. Under the Indigeneous Peoples' Rights Act law that took effect in 1997, mining firms need to secure consent from tribal groups that will be affected by their projects and also approval from the National Commission of Indigeneous People. "The ancestral domain issue could be a major stumbling block to the development of foreign mining investment," said Erin Prelypchan, director for business intelligence at Pacific Strategies & Assessments, a Manila-based security consultancy. TALKS START Foreign companies have started negotiations with local firms for possible joint ventures in new projects or to revive closed copper and nickel mines. Benguet Corp. and Manila Mining Corp. told the stock exchange they were in talks with foreign firms for possible joint ventures in the development of nickel and copper-gold mines. Atlas Consolidated Mining and Development Corp. said separately it was also in talks with six foreign firms to reopen the shuttered Toledo copper mine on Cebu island in central Philippines. Apex Mining Co. told the stock exchange its major shareholders are in talks with Britain's Crew Gold Corp. for a possible acquisition of up 72 percent stake in the local firm. Benguet told the stock exchange that during an international mining conference earlier this month, 25 memoranda of understanding and letters of intent were signed by foreign investors with local mining firms. The government said foreign firms pledged to invest more than $300 million in Philippine mining projects during the conference. The pledges were in addition to the $1.6 billion in commitments made by Chinese firms during an investment roadshow held by Philippine officials in China in January. Chinese firms that are keen to invest in the Philippine mining industry included Jinchuan Nonferrous Metals Corp, China's top nickel producer. Local firm Philnico Mining and Industrial Corp. said it was in advanced talks with Jinchuan to revive the Nonoc nickel refinery in the southern Philippines for about $1 billion. Manila's mining sub-index had risen nearly 12 percent from its closing on Thursday since the start of the year due to prospects of a mining boom. The peso was quoted late on Thursday at 54.75/54.81 to the dollar from its closing of 56.27 at the end of last year. Traders attributed the strength of the peso partly on hopes of more foreign money flowing into the mining sector. The government said the Philippines is potentially the world's fifth-biggest mineral producer, with an estimated copper ore resources of 1.44 billion tonnes, gold ore at 795 million tonnes and nickel ore at 534 million tonnes as of 2002. The Philippines hopes local and foreign mining firms to pump about $6 billion into 23 priority projects over the next six years. Most of these project sites are in conflict areas along the country's eastern corridor, from Luzon mainland in the north to southern Mindanao island. The Tampacan project, Southeast Asia's biggest undeveloped copper-gold deposits in South Cotabato, covers an areas where both Muslim separatists and communist rebels operate. The Southeast Asian country also said it expects 37 exploration projects worth $92 million each year. TEST Analysts say the success of the liberalisation of the mining industry is a new test to the government of President Gloria Macapagal Arroyo. "The laws opened the doors for the entry of foreign investors in mining. The next step is how government can lure them in and how it will make them stay," Jose Vistan, analyst at AB Capital Securities, said. Besides security risks and possible opposition by environmentalists and tribal groups, foreign firms have to deal with local governments, possibly exposing them to some corrupt politicians. "There is now question that if corruption continues to exist from the local governments, it's going to make it more difficult to sell to foreign mining firms...to invest in the Philippines," Peter Wallace, analyst at a local think-thank said. Wallace said the liberalisation of the local mining industry is a test to Arroyo, who vowed to weed out corruption in government. "We have now one of the brightest economic spots in the country today," Wallace said. "This could change the whole economy of the country not just in mining but the confidence and the money that it would bring in the country if it succeeds." Story by Dolly Aglay and Manny Mogato REUTERS NEWS SERVICE =========+========= FEEDBACK? http://nativenewsonline.org/Guestbook/guestbook.cgi GIVE FOOD: THE HUNGERSITE http://www.thehungersite.com/ Reprinted under Fair Use http://nativenewsonline.org/fairuse.htm =========+========= Tsonkwadiyonrat (We are ONE Spirit) Native News Online a Service of Barefoot Connection ------------------------ Yahoo! Groups Sponsor --------------------~--> Give underprivileged students the materials they need to learn. Bring education to life by funding a specific classroom project. http://us.click.yahoo.com/4F6XtA/_WnJAA/E2hLAA/1dTolB/TM --------------------------------------------------------------------~-> Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/Nat-International/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
