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Friday, March 14, 2008

 

Appeals court rules to allow Oriental Peninsula to run Palawan mine site

 
ORIENTAL Peninsula Resources Group announced on Thursday that it has secured a temporary restraining order (TRO) from the Court of Appeals preventing the implementation of an earlier lower court ruling that barred the listed mining firm from operating its mining tenement in Palawan.

In a statement, Oriental Peninsula said the appellate court issued a 60-day TRO on March 5 that effectively prevents the Palawan regional trial court from implementing the preliminary prohibitory injunction order against the mining company. The TRO has allowed the firm to continue its roadwork and construction of a pier in the area deemed crucial to its mining operations.

On December 21 last year, the lower court extended the three-day TRO it issued previously against Oriental Peninsula to 20 days after the Provincial Mining Regulatory Board (PMRB) allegedly found employees of the company’s subsidiary Citinickel Mines and Development Corp. illegally transporting quarried material in Sofronio Española town.

The lower court said it moved to extend the TRO to prevent “grave and irreparable damage” to public safety and interest, but likewise ordered the PMRB, which initially filed the complaint, to post a bond to cover Oriental Peninsula’s operations.

However, the appellate court found that there is a need to maintain the stats quo since, “the purpose of the TRO or preliminary injunction, whether preventive or mandatory, is merely to prevent a threatened wrong and to protect the properties or rights involved from further injury, until the issues can be determined after the hearing on its merits.”

Oriental Peninsula argued that the only activity that Citinickel is engaged in at its site is the back-filling of land to help the residents in the area whose residential land was eroded due to the recent typhoon. “The back-filling activity was taken up by Citinickel upon the request of the said barangay through a resolution of the Sangguniang Barangay of Punang,” the firm said.

Citinickel owns two nickel mining projects—Toronto Mine and Pulot Mine—that are both covered by an approved mineral production sharing agreement (MPSA) with the government. The accord gives Oriental Peninsula’s subsidiary the exclusive right to conduct exploration activities within the contract area for 25 years starting January 3, 2007.

Platinum Group Metals Corp. (PGMC) contested Citinickel’s right to operate in a portion of Toronto mine, claiming it has the exclusive right to operate the said mining property based on the operating agreement it signed with Olympic Mines and Development Corp., Citinickel’s predecessor, on July 18, 2003. However, Oriental Peninsula said PGMC and Olympic’s agreement was canceled by the Department of Environment and Natural Resources on October 30, 2006, due to “serious environmental violations.”
-- Likha Cuevas-Miel

  
 

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