Mine firms blamed for breakup of families, communities in N. Vizcaya

Delegates of an international solidarity mission have scored foreign mining companies operating in Nueva Vizcaya for supposedly causing division among families and residents in the upland communities they have occupied.

The group expressed disgust over how mining companies OceanaGold Philippines, Inc. and Metals Exploration, Inc. have “systematically” destroyed close-knit relationships among clans and villagers, allowing them to enter the areas and carry out their mining activities despite local opposition.

They noted the “great disparity” between claims of the mining companies, which operate two large-scale mining projects in Nueva Vizcaya, on their treatment of the communities and the “reality on the ground”.

This view of the Didipio mine site in Kasibu, Nueva Vizcaya gives villagers a constant reminder of the extent of destruction that the OceanaGold Philippines’ gold-copper project has caused on the mountains and the valley that used to be their main source of livelihood. The damage, however, is not only environmental. Photo by Melvin Gascon

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N. Vizcaya villagers hit Aussie mine firm for ‘broken promises’

KASIBU, Nueva Vizcaya–Village officials and residents of an upland barangay in this town on Wednesday (May 27) expressed opposition to the planned expansion of an ongoing foreign-owned mining project here, saying they felt shortchanged and exploited in the first two years of its operation.

In a dialogue with the Mines and Geosciences Bureau (MGB), villagers of Didipio in Kasibu town said they also “vehemently” oppose the renewal of the 25-year mining license granted to OceanaGold Philippines, Inc., an Australian firm, for its gold-copper project here.

“It is really painful for us to be in this kind of a situation now that we seem to be begging for mercy from (OceanaGold), when we are simply asking it to fulfill the promises it made, which led us to give our support in the past,” said Maria Pugong, one of the elders of the predominantly Ifugao community here.

She appealed to the MGB to step in to stop the alleged “exploitation” of Didipio and its people at the hands of a foreign mining company.

Hundreds of hectares of what used to be rice fields and vegetable farms in Didipio village in Kasibu, Nueva Vizcaya are now buried under toxic mine wastes released by the ongoing gold-copper mining operations of OceanaGold Philippines, Inc., an Australian firm (click image to enlarge). Photo by Melvin Gascon
Hundreds of hectares of what used to be rice fields and vegetable farms in Didipio village in Kasibu, Nueva Vizcaya are now buried under toxic mine wastes released by the ongoing gold-copper mining operations of OceanaGold Philippines, Inc., an Australian firm (click image to enlarge). Photo by Melvin Gascon

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Clock ticking

Mine firm in N. Vizcaya braces for workers’ strike

(Published in the Philippine Daily Inquirer, January 29, 2014)

BAYOMBONG, Nueva Vizcaya—An Australian company operating a gold-copper project in upland Kasibu town in Nueva Vizcaya province has alerted employees about an impending strike by members of a workers’ union over wages.

Brennan Lang, general manager of the Didipio project of OceanaGold Philippines Inc., said employees who are not members of the union would be asked to change their schedule or perform functions in anticipation of the vacuum that would be created by those who would join the picket line.

“All department heads have been tasked with developing contingency plans to maintain operations in the event of a strike,” he said in a memorandum circulated among workers last week.

The work stoppage at OceanaGold Didipio mine loomed after members of Pun-oh-ohaan Hi Kiphodan (Kiphodan) labor union, the only recognized workers’ group of the Didipio project, voted last week to proceed with the strike.

In this 2013 file photo, mine workers at OceanaGold Philippines, Inc.’s gold-copper project in Kasibu, Nueva Vizcaya undergo routine security check before entering the mining site in Didipio village. The company is preparing for a possible strike that will be staged by the workers union as should final attempts at negotiations continue to fail. Photo By Melvin Gascon

Failed negotiations

The Jan. 20 balloting came more than a month after the union filed on Dec. 10 a notice of strike in the Department of Labor and Employment, following failed negotiations.

Lang said workers who do not report for work, regardless of whether they joined the strike, would not receive their wages.

The union has at least 80 members, mostly Didipio residents, out of the 350 workers of OceanaGold.

The impending strike is the latest problem to hit the Didipio mining project, which began commercial production in 2013 amid continuing opposition from the antimining community led by the Catholic Church in Nueva Vizcaya.

The dispute stemmed from disagreements between Kiphodan and OceanaGold over terms of the three-year collective bargaining agreement, mainly provisions on the workers’ compensation and other economic benefits.

P12 vs P32

In previous talks, union members demanded a P32 per day across-the-board wage increase, or about P1,000 a month, but OceanaGold offered an increase of only P12 a day, to go along with other forms of remuneration.

The offers, however, may no longer hold up for the remainder of prolonged negotiations, Lang said in a memo.
“In declaring a bargaining deadlock, the union has effectively rejected this offer and the company cannot guarantee that all or any of the above benefits will be part of any final agreement,” he said.

In a phone interview, Wendy Nicano, Kiphodan union president, said they rejected the company’s offer because it was too meager for today’s living standards.

“We studied [our numbers] carefully and concluded that we really cannot go below P1,000. If the company has reasons for the offer, we too have our own reasons [to reject it],” she said.

Cheaper gold

In his memo, Lang cited the financial distress that the company has been going through as the reason it cannot grant the union’s P1,000 demand in wage increase.

“The company has suffered from a 27-percent decrease in the price of gold over the past year. In order to reduce costs and remain profitable, the company has laid off 40 percent of our exploration department staff in the Philippines, and our New Zealand staff has accepted pay reductions,” he said.

Even OceanaGold’s corporate leaders in Melbourne in Australia have agreed to a 5-percent salary cut earlier this year, Lang said.#

Armed, dangerous

Antimining villagers bare threats from gunmen

KASIBU, Nueva Vizcaya–Residents in an upland mining community here on Thursday denounced the alleged atrocities committed by armed men, who have been securing the ongoing earth-moving activities of a foreign mining company.

The villagers, mostly Ifugaos, called on the Commission on Human Rights to investigate the use of armed men from the Philippine National Police’s provincial mobile group (PMG) to secure the entry of OceanaGold Philippines Inc., an Australian firm, into private lands in the area.

Residents here have been protesting the entry of the firm, which is attempting to conduct large-scale mining for gold and copper in Didipio village despite its failure to obtain the consent of the local community.

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In your face

Tribe leaders tell DENR chief of bribery, fraud by mining firm

BAYOMBONG, Nueva Vizcaya–Local officials and tribal leaders in an upland town here on Wednesday revealed to visiting Environment Secretary Lito Atienza the alleged bribery and deception committed by workers of an Australian company trying to explore their lands.

In a dialogue with Atienza, Kasibu Mayor Romeo Tayaban and six village chiefs disclosed how officials and employees of Oxiana Philippines, Inc. supposedly connived to push the firm’s exploration project in Pao and Kakidugen villages.

“Their common strategy is to call the people to a banquet at the village center, then let them sign an attendance sheet. We later found out that these were used as supporting documents as proof of of the people’s support for the mining project,” he said.

Geologists from the Mines and Geosciences Bureau (MGB) have been entering Kasibu without giving the courtesy to local officials, Tayaban said.

“There were those who came to my office saying they were getting water samples from our rivers for a geologic study. But we were shocked later that they were actually looking for ore-rich sites,” he said.

Village chief Mariano Maddela of Pao said Royalco has allegedly been using a relative as conduit and offer him P180,000 in exchange for his support to the project.

“I just wish that the company stops all these foolishness and go home because as long as I am the village chief, [the company] can never enter our barangay,” he said in the dialect.

Pao occupies the proposed 5,873-hectare exploration site granted to Oxiana, now known as Royalco Resources Limited.

Asked to comment on the allegations, Joey Nelson Ayson, Royalco country manager, said: “That is not true.” He did not elaborate.

Royalco’s permit, issued in 2000 to Oxiana, was extended in July by MGB this year amid allegations that the extension was illegal because the maximum two-year period has already expired.

Tribal leaders blamed the lure of money offered by Royalco to some members of the Bugkalot tribe for creating envy and distrust among their people.

Documents from the National Commission on Indigenous People stated that the company has agreed to pay as much as P4,000 to 14 members of the Bugkalot tribe while 19 others were to get P3,000 a month, both as the firm’s “liaison officers”.

“The company is taking advantage because to our people, P4,000 is already a big amount, so they agreed,” said Lucas Buay, chair of the Kasibu Inter-Tribal Response for Ecological Development, a people’s organization.

Felimon Blanco, village chief of Paquet, said non-Bugkalot tribes were angered by their exclusion from the “sham” consultation process conducted by the NCIP.

He expressed concern that the peace covenant entered into by Bugkalot natives and migrant tribes there, through a blood compact their forefathers did in 1950s, would be annulled if conflicts start to arise among tribes due to the mining controversy.

Tayaban lamented that the mining issue has caused divisiveness among his people, who used to live peacefully despite belonging to various indigenous groups.

“We are now a divided town. Members of the same family, tribe or even neighbors are fighting because they are either pro- or anti-mining,” Tayaban said.

In his response, Atienza said he will order an investigation into the allegations of the tribal leaders.

“If you are saying you were not consulted, I will tell the company to include you in the consultation process. If it’s true that the process was not followed, I will personally make sure that it will be followed this time,” he told the tribal leaders.


Move to oust mining firms gains ground in Vizcaya

BAYOMBONG, Nueva Vizcaya–The campaign against large-scale mining intensified here after the provincial board on Wednesday moved to oust two foreign companies that tried to operate gold-copper mining projects in two upland towns.

In a resolution, the Sangguniang Panlalawigan asked President Gloria Macapagal-Arroyo to stop the exploration activities of MTL Philippines Inc., a British company, following its rejection by residents in Runruno village in Quezon town.

Also on Wednesday, Board Member Edgardo Balgos denounced in a privilege speech the “terrorism” being committed by OceanaGold Philippines Inc. (Ogpi) in its attempt to start its gold-copper project in the village of Didipio in Kasibu town.

In issuing the resolution, the board gave credence to a petition by farmers’ groups opposing the project, fearing a repeat of the 2006 tragedy that killed 13 people and rendered families homeless as mudslides buried houses and farmlands in the village.

“Most of the petitioners who are dependent on agriculture as their primary source of income are alarmed and troubled that their farmlands will be buried in mud, rocks, sand and gravel as what happened during the onslaught of Typhoon ‘Paeng,'” the board said.

It cited the findings of the Mines and Geosciences Bureau (MGB) that declared the vulnerability of the area to flashfloods and mudslides, which may be worsened by ongoing mining activities.

“The provincial planning and development office [also] expounded on the potential social and environmental effects of mining in the province wherein mining claims encroach on settlement and [ancestral domain claim] areas, critical watersheds, protected lands and hazardous areas,” the board said.

Lawyer Nena Santos, MTL counsel, declined to comment on the board resolution. Santos, however, referred the writer to a resolution of the Quezon town council that supposedly denounced the provincial board resolution.

In July, Governor Luisa Cuaresma asked former Environment Secretary Angelo Reyes not to renew MTL’s expired exploration permit, and instead asked the national government’s help to rehabilitate the area.

Reyes, however, renewed the permit before he was transferred to the Department of Energy.


In his speech, Balgos accused Ogpi of violating the six conditions set by the board when it issued its endorsement of the project in 2005. These included road development in the area and jobs for locals.

Because of the unfulfilled conditions, Balgos said: “My message to OceanaGold is this: Leave Didipio. Leave Nueva Vizcaya.”

The company, he said, has promised the board several times that they will improve the roads leading to Didipio.

“But what did they do? They improved the road from the Quirino side,” Balgos, chair of the SP committee on legal affairs, said.

Because of this, according to Balgos, Didipio residents would now rather buy their basic commodities and other needs from markets in Quirino, instead of those in Nueva Vizcaya.

This is because travelling using the newly-improved Quirino route is now easier, faster and cheaper, he said.

The promise of jobs was likewise not fulfilled, Balgos said, because OGPI has been importing miners from Benguet, supposedly because locals lacked the skills.

“How can they say that our people are unskilled when many of them had small mining as their source of livelihood for generations?” the official said.

Balgos also called for an investigation into the alleged illegal entry of OGPI into the nearby village of Papaya, where the company has been starting to conduct exploration without obtaining the consent of local communities.

Ramoncito Gozar, Ogpi vice president for communications and external affairs, on Thursday asked to be given time to respond to Balgos’ statement.


DENR chief gets rebuff over Nueva Vizcaya mining

BAYOMBONG, Nueva Vizcaya, Philippines — A unified call from local officials, church leaders and residents to reject three mining projects in the province greeted the visit here of Environment Secretary Lito Atienza on Wednesday.

Catholic Bishop Ramon Villena, along with tribal folk from upland Kasibu town, asked Atienza to revoke the permit issued to Oxiana Philippines, Inc., an Australian firm, to explore an ore-rich area in Pao village.

Small miners also disclosed the alleged deceit and manipulation allegedly resorted to by workers of OceanaGold Philippines, Inc., also an Australian company, to convince landowners in Didipio in Kasibu to sell their lands to the company.

Provincial board members presented to Atienza a copy of their resolution asking President Gloria Macapagal-Arroyo to stop the exploration activities of British firm MTL Philippines, Inc. in Runruno village in Quezon town.

Atienza was here to dialogue with Villena and tribal leaders from eight upland villages in Kasibu, who have led their people in setting up and maintaining a road blockade since July 2 to prevent the entry of Oxiana, now known as Royalco Resources, Ltd.

He also separately met with local officials and Department of Environment and Natural Resources personnel.

During the dialogue, Atienza admitted he was “overwhelmed by the deluge of complaints and statements rejecting large-scale mining projects here.”

He, however, made a pitch for mining, saying “our country was bestowed with natural resources that must be used for its own development.”

He urged the tribal leaders to look at the “overall picture, and to consider the ways to help uplift the conditions of the greater number of people.”

“Not all countries have these minerals. China may be a big country, but it does not have as rich resources as the Philippines. We are poor, but it’s because we have mismanaged our government, we have mismanaged our resources,” he said.

Atienza cited the experiences of Arab countries, as well as New Zealand and Australia, which supposedly became progressive because of the “wise use” of their natural resources.

He said, however, the tribal leaders raised valid issues that the DENR must look into, including the selective consultation among landowners and the supposed defective conduct of the free, prior and informed consent for projects in areas occupied by tribal groups.

But Villena rebuffed Atienza’s statement that likened the country’s mining resources to those of oil-rich Middle East nations.

“(Let’s) look at Iraq right now. They may have all the oil, but there is no peace there, there’s always violence. So where’s the development?” he said.

Villena, whose diocese covers Nueva Vizcaya and Quirino, said he was “deeply hurt” that the entry of foreign mining projects has divided the people in upland communities, most of them belong to tribes.

“The most expensive social cost of mining is when families are wrecked. Development is good, but it must not only be done for profit, but for the center of development which is human dignity and human life,” he said.

The bishop was led to tears as he recalled how a number of those in the barricade, including women and children, were hurt after Royalco workers dragged them away from the road.

“If one life will be sacrificed because of mining, then this will be the greatest tragedy in Nueva Vizcaya. You cannot take any life for the sake of a foreign investor,” he said.

Citing allegations of corruption among DENR personnel, Villena assailed officials who, he said, were bribed by the company to get their mining permit and be allowed to push through with their mining activities.