Mining firm seeks to nullify Zambo Norte's ordinance

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Mateo's statement came after the Zamboanga del Norte Provincial Board approved an ordinance, which was published in local newspapers last Friday, banning ?€œnew open pit or open cut mines?€ in the province.

Mateo said the company?€™s external counsel believes that the ordinance is unconstitutional and runs counter to the Philippine Mining Act of 1995, which allows the use of open pit mining methods approved by the Mines and Geosciences Bureau (MGB) of the Department of Environment and Natural Resources (DENR).

?€œIt introduces sweeping new provincial regulatory powers over large mining operations, as well as over the process of making applications for new large mining tenements, which is presently vested in the National Government. The ordinance unilaterally impaired duly executed and existing agreements and contracts between TVIRD and the government,?€ Mateo said in a statement Wednesday.

?€œOn top of all these, the Provincial Government ignored the announced policy of the Aquino administration supporting responsible and sustainable mining in the country when it passed this unconstitutional ordinance,?€ Mateo added.

The ordinance also requires the TVIRD ?€œto begin remediation of its operating Canatuan mine in November 2012.?€

TVIRD has a Mineral Production Sharing Agreement (MPSA) with the Government of the Philippines, for whom it acts as a contractor under the Philippine Mining Act of 1995.

Mateo said TVIRD?€™s authority to operate, as conferred on it by the National Government, permits open pit mining methods and its operations have been regularly inspected and approved by the MGB.

The company, Mateo said, is already in its seventh year of operation in Mount Canatuan, Barangay Tabayo, Siocon, Zamboanga del Norte and is considered by many as a ?€œrole model?€ of responsible and environment sensitive mining operations located at the southwestern end of Mindanao.

The TVIRD started its operation in mid-2004, producing gold and silver.

The company started decommissioning its gold and silver project in April 2008 and began construction activities for its copper and zinc production and support facilities, including a warehouse in Sta. Maria Port, Siocon, in June 2008.

The company made its first copper concentrate shipment in March 2009.

Mateo said the TVIRD has been a recipient of numerous awards on environment, safety and labor-friendly policies, and its facilities and plant have also hosted site visits from all over the country, especially from those who sought clarifications on various mining issues.

?€œTVIRD is deeply disturbed by the passage of this ordinance. The company will exhaust all legal remedies to protect and uphold existing rights and contracts not only for the benefit of the company but equally importantly to uphold the rights and sustain the benefits of the indigenous peoples, the host communities, the local government units and other adversely affected stakeholders,?€ Mateo said.

?€œWe will do this even as we continue to engage Zamboanga del Norte officials to seek rectification for this legally infirmed ordinance,?€ he added.

Authors: mining - Yahoo! News Search Results

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