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Monday, January 21, 2008

 

Palawan mining company allowed to
operate pending contract review

By William B. Depasupil, Reporter

THE Supreme Court (SC) has allowed the continued operations of a Palawan-based mining firm after it issued a temporary restraining order (TRO) enjoining the Court of Appeals (CA) and a lower court from enforcing their respective injunction orders restricting the firm’s mining operations in the said province.

In a three-page order, the SC’s Third Division gave the go signal to Citinickel Mines and Development Corp. to proceed with its operations pending review of claims that the firm’s mining contract had already been cancelled due to serious violations of environmental laws.

The High Court issued the TRO on January 16. It also required Citinickel to post a cash bond or a surety bond in the amount of P2 million within five days from notice, otherwise the TRO shall automatically be lifted.

“Unless and until the Court directs otherwise, the bond shall be effective from its approval by the Court until this case is finally decided, resolved or terminated,” the order said.

The CA’s 11th Division had previously upheld the April 13, 2007 injunctive writ issued by Judge Bienvenido Blancaflor of Branch 95 of the Puerto Princesa City RTC, enjoining Citinickel from proceeding with its operation in the disputed mining site in Palawan. Platinum Group Metals Corp. (PGMC) filed the complaint against Citinickel.

Citinickel, in its petition, claimed that PGMC has no operating agreement to speak of since a decision of the panel of arbitrators of the Mines and Geosciences Bureau canceling the same has become final and executory since January 2007.

The firm said that the panel of arbitrators, which was vested by the 1995 Mining Code with original and exclusive jurisdiction over mining disputes, cancelled PGMC’s operating agreement due to alleged violations of its environmental compliance certificates and small-scale mining permits for extracting nickel ore way beyond the 50,000-MT annual limit.

Citinickel added that a separate CA division had earlier sustained the cancellation of PGMC’s operating agreement, which the said firm is seeking reconsideration.

Citinickel claimed that the CA’s 11th Division and Blancaflor committed grave abuse of discretion when they included Citinickel in the injunction orders barring former mine concessionaire Olympic Mines and Development Corp. from canceling its operating agreement with PGMC due to serious contract violations.

Meanwhile, Boac Bishop Reynaldo Evangelista has expressed apprehension over the reported influx of mining companies in the country as he disputed government claims that the surge of mining firms in the country will further strengthen the economy and bring down unemployment.

Evangelista said he is “not confident these companies will adhere to best practices in extracting our minerals especially with the kind of monitoring that our government provides.”

He reminded the government of what happened in Marinduque in 1996 when a tailings pond operated by Marcopper Mining Corp. collapsed burying riverbeds in about three million tons of toxic mine waste that affected several farms and marine life.

   

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