KASIBU, Nueva Vizcaya—The municipal council here has urged the Mines and Geosciences Bureau to order the immediate rehabilitation of the open pit in Barangay Didipio in the mine operated by OceanaGold Philippines Inc.
However, OceanaGold has already told the provincial board it will continue to operate the gold-copper mine after appealing to the Office of the President in the wake of a suspension order issued by the Department of Environment and Natural Resources.
In Resolution No. 018 S-2017, the Sangguniang Bayan of Kasibu asked MGB Regional Director Mario A. Ancheta “to cause appropriate action for OGPI to immediately implement its rehabilitation program on the gaping crater-like pit that it caused on its mining operations at Didipio.”
“Whereas, OGPI has already expressed that its open pit operations in extracting gold has been stopped even last year,” the resolution added.
In a copy of the resolution obtained by Manila Standard, Kasibu Mayor Alberto Bumolo Jr. signed the bill on Feb. 13 and endorsed it to the MGB—one day before Environment Secretary Regina Lopez declared the termination of Mineral Production Sharing Agreements with 75 mining companies.
A source at the MGB told the Standard the regional office has yet to receive an official copy of the resolution.
However, in a letter to Vice Gov. Lambert Galima Jr. and members of the Sangguniang Panlalawigan, OceanaGold general manager David Way said they have filed their appeal with President Duterte’s office “in accordance with the rules and regulations to prevent the execution of the suspension order.”
“We believe that there is no legal basis on the suspension order and that the company is not in violation of any laws, rules or regulations, and the operation is not posting any threat to public, security, health, safety or otherwise,” he said.
Way said the Didipio mine is also governed by an Environmental Management System that is ISO 14001-2015 certified.
He added that OceanaGold has been “an environmentally and socially responsible mining company” that has delivered “meaningful benefits to a multitude of stakeholders in the host communities that support the mine in the provinces of Nueva Vizcaya and Quirino.”
Residents in Kasibu, however, are supposedly alarmed by the uncertainties brought about by mine closure and suspension orders issued by Lopez. Some anti-mining residents also expressed worries the open pit “might cause danger” if not properly rehabilitated.
OceanaGold’s Way, however, said the company has already compensated the impacted areas “including the loss of future income (under the Surface Rights Acquisition)” as provided by its Financial and/or Technical Assistance Agreement with the government, the first such project granted by the country in the 1990s.
OGPI has also sponsored training to control the virus infestation at Malabing Valley, Kasibu, known as the major source of citrus products of Nueva Vizcaya; purchased food requirements for the mine from local markets totalling to P534 million from 2013 to 2016; and upgraded, maintained and improved 107 kilometers of roads, among other benefits to its host communities, the company said.
Also, Way said OceanaGold has “assisted and funded 11 cooperatives in establishing micro and small enterprises in agriculture; provided organizational and technical trainings; and established OGSAI, an affiliate company to undertake agroforestry and agribusiness/livelihood projects in partnership with local landholders and community associations.”
The Socio-Economic Assessment 2015 conducted by University of the Philippines in Los Baños Foundation indicated that the average monthly household income in Didipio is P19,380, Way added.
OGPI has also paid P130 million in Real Property Taxes and an estimated P3.43 billion for income, excise and local business taxes, among other payments to the government, from 2013 to 2016.
In that same four-year span, OGPI spent around P674 million for the development of host and neighboring communities, supported 60 school teachers through salary subsidies, and granted P17 million in scholarships and educational assistance, Way said.
“Of the 1,800 employees at the Didipio mine, 98 percent are Filipinos. Around 55 percent are from Didipio and neighboring communities within Nueva Vizcaya and Quirino,” he added.
Earlier, provincial board members inspected the Didipio operations on in early February to evaluate the impact of its operations and alleged violations.
DENR’s suspension order was based on the petition of the Nueva Vizcaya government for the cancellation of the firm’s FTAA, alleging damages to houses caused by blasting operations and the potential adverse impact to the agricultural areas of the province, among others.
The order also required OGPI to address the issues raised in three months’ time.