Green groups hit Norwegian mining firm’s partnership with China corporation

MANILA, Philippines—Environmentalist groups censured a Norwegian mining firm for forging a partnership with a Chinese investors to pursue its Mindoro Nickel Project even as its mining project on Mindoro Island has been found replete with violations.

The Alyansa Tigil Mina (ATM) accused Norway’s Intex Resouces of “corporate irresponsibility” when it entered into a memorandum of understanding with the MCC8 Group Co. Ltd., a Chinese state-owned engineering and construction firm, to pursue the operation of the nickel project.

Under the MOU, MCC8 will be granted a Project Management Contract (PMC) and will form a consortium to undertake project finance, identify a project operator, evaluate EPCM contract options, structure off-take, and complete the Definitive Feasibility Study (DFS) for a staged project construction.

Jaybee Garganera, national coordinator of ATM, “It is the height of corporate irresponsibility that Intex is rushing the sale of the project, and washing its hands of accountability.”

He said that an investigation conducted by the Organization for Economic Cooperation and Development (OECD) showed several violations committed by Intex.

“Both the OECD and the local investigation team have produced conclusive evidences that the Mindoro Nickel Project is unacceptable to the host communities,” he said, adding that “the consortium that speaks of green mining concept is still far from reality thus will not impede in our call for Intex to pull out the project and just respect the local ordinance filed in 2002 prohibiting the entry of all large-scale mining in Oriental Mindoro.”

Both Oriental and Occidental Mindoro provinces have imposed a 25-year moratorium against large-scale mining.

Intex announced last January 18 in Oslo Stock Exchange that it had entered into a memorandum of understanding with the MCC8.

Andy Whitmore of the Philippine Indigenous People Links (PipLinks) questioned the “incessant campaigns” of Intex for the mining project as both national and international investigations have raised serious concerns about the project.

“They shouldn’t be putting out releases seeking to boost investment in the project until they were able to provide answers in the investigation conducted by the Norwegian Contact Point,” Whitmore said referring to the investigation of the Norwegian National Contact Point disclosing that Intex violated certain provisions of the OECD Guidelines for Multinational Enterprises; from the questionable acquisition of Free, Prior, Informed Consent (FPIC) to the unconceivable Environment Impact Assessment that they failed to present to the local authorities.

“This investment is on high risk!” said Jon Sarmiento of Alyansa Laban sa Mina (ALAMIN). “The MNP does not have social acceptability; they are just wasting their time and resources campaigning for the project.  Mindoreño will remain vigilant over this matter. We will protect our remaining forest and will not allow anyone, even big companies to extract the minerals underneath… the forest on itself is our wealth.”

In 2009, the Environmental Compliance Certificate for Intex was revoked following a hunger strike by local leaders and indigenous people in front of the Department of Environment and Natural Resources national headquarters in Quezon City.

Commissioner Dionisia Banua of the National Commission on the Indigenous Peoples gave assurances that despite the current partnership, the NCIP will ensure that the FPIC will be served and implemented with integrity.

Fr. Edu Gariguez, executive secretary of the Catholic Bishops’ Conference of the Philippines-National Secretariat for Social Action, said that the government mining policy is like selling our lands to foreign investors with liberal conditions while our people continue to grow in poverty.

“We stated that the adverse social impact on the affected communities far outweigh the gains promised by the Trans-national corporations.” Gariguez explained.

Garganera added: “We have a bigger call to this government, refrain from promoting the minerals industry, and promote the rights of the Filipino people. Repeal the mining act of 1995, and pass the Alternative Minerals Management Bill that secures all these rights and prioritizes environmental protection and food security over mineral resources.”