______________

For comments and suggestions:

Email us at feedback@insidemindanao.com

or send us a message thru our MESSAGE TO THE EDITOR portion on our homepage

First Posted on Inside Mindanao (www.insidemindanao.com) on August 3, 2010

Press Release

Surigao del Sur town denies mining company permit
the second time around
By Vicente Iriberri

Cantilan, Surigao del Sur (August 2, 2010) — Mayor Genito B. Guardo of Cantilan denied the application for business permit of Marcventures Mining Development Corporation (MMDC) for the second time around, telling the mining company that it has no legal basis to apply for a business permit.

In his response to the letter of Atty. Noel M. Libres, the mining company's lawyer, Guardo said that "records at the Sanggunian Bayan shows that MMDC acquired its Certificate of Registration as a corporate entity with the Securities and Exchange Commission (SEC) 43 days after the original Mineral Production Sharing Agreement (MPSA) holder, Ventura Timber Corporation (VTC) and MMDC signed the Deed of Assignment transferring mineral rights to MMDC. This puts MMDC's right as an assignee under the cloak of fictitious representation from the very beginning."

"Furthermore, records also show that Mr. Mario G. Vijungco was authorized by the MMDC Board of Directors to represent MMDC in the Deed of Assignment (DA) 13 years after the signing of the Deed of Assignment," Cantilan mayor further said.

Since the transfer of mineral rights to MMDC was void ab initio, to date, VTC holds a cancelled MPSA.

MMDC lawyer, Atty. Noel M. Libres, in his request for reconsideration told the mayor that the LGU's ordinances and resolutions against mining are contrary to the Philippine Mining Act. He further cited Section 17, of RA 7160 otherwise known as an "Act Providing for a Local Government Code of 1991. It provides that the "enforcement of forestry laws, pollution control law, small scale mining law, and other laws on the protection of the environment, shall be pursuant to national policies and subject to the supervision, control and review of the DENR."

Mayor Guardo believes that the LGU has the ultimate mandate over the approval of the proposed mining project. This is elucidated by DENR Memorandum Circular No. 2008–08, dated December 24, 2008, entitled: "Clarification of the Role of LGUs in the Philippine EIS System in Relation to MC 2007-08", particularly, paragraphs 2 and 3 thereof, quoted as follows:

"2. On project implementation approval upon issuance of the ECC or CNC: The issuance of the Environmental Compliance Certificate (ECC) is not an automatic approval of the project. Through the EIA Process critical issues that should be addressed by the various agencies are identified for guidance on environmental considerations of final approving entities.

"3. LGU endorsement in relation to project implementation: Although LGU endorsement of the proposed projects is not mandatory in the processing of the ECC applications, it should be inevitably be required and subsumed under the local government's permitting requirements where the results of the EIA and recommendations in the ECC should be considered along with other factors. It is believed that the LGU has the ultimate mandate over the approval of proposed projects. Hence, the result of the EIA process is an input to the LGU endorsement of proposed projects."

Mayor Guardo, in his bid for the position at the last elections, ran on an anti–mining platform and won over the mining company's sponsored candidate. In a meeting with Baywatch, he told the members, "Since I obviously won on the anti–mining platform, I will stand on that promise."

One of Mayor Guardo's first actions was to inspect the mining site after he received MMDC's business permit application. Accompanied by members of Baywatch, Mayor Guardo and his group saw that the mining company was in full blown operation with three stockyards full of ore that were ready to ship. The Mines and Geosciences Bureau (MGB) authorized MMDC to start its Development Phase even without endorsements from the Cantilan LGU and the Sanggunian Panlalawigan. MGB's OIC Basadre issued the mining company permission to proceed to Development Stage citing company receipt of an Environmental Compliance Certificate (ECC) and endorsements from Brgy. Cabangahan, where the mining site is located, and from then Surigao del Sur Gov. Vicente Pimentel. The law requires two out of three LGU endorsements before it can proceed to the Development Stage. 'The governor is not the Sanggunian Panlalawigan,' said one SP member when an MMDC official told the members in a hearing that they already secured an endorsement from Pimentel.

MMDC has a nickel mining project in Cantilan and is a subsidiary of Marcventures Mineral Holdings (MARC otherwise known as AJO.net) whose stocks are actively traded at the Philippine Stock Exchange.

On August 13, 2010, Cantilan LGU, through the Baywatch, will sponsor a Carac–an Watershed Defense Forum. The forum will gather environmental advocates and legal experts from the national environmental NGOs to help firm–up and strengthen the position of the LGU against mining. The forum will likewise enhance the level of awareness and knowledge of the local community on the new rules of procedure for environmental cases approved by the Supreme Court.

A massive advocacy and signature campaign: "Panalipdan Tubig Kinabuhi: A Renewed Vigor for Citizen's Action" will likewise be facilitated to reinforce and ensure recovery of position of the 43,601 hectares Proclaimed Critical Watershed Area defined under Presidential Proclamation No. 1747 from any resource extractive project, particularly mining.

End