Mining firm in Iloilo pursues permit renewal amid stoppage order

HALTED This displaced worker seeks the return of mining exploration on Pan de Azucar Island in Concepcion, Iloilo,which used to teem with TVI Resource Development Inc.’s equipment, until its operation is halted on March 30, the day this photo is taken. Gov. Arthur Defensor Jr. issued the stoppage order after the island’s groundwater was found to contain arsenic. PHOTO COURTESY OF ALTERMIDYA-PANAY

ILOILO CITY, Philippines — A mining company doing exploration work on Pan de Azucar Island in Concepcion town, Iloilo, has renewed its move to conduct mining operations in the area amid opposition from residents and a cease-and-desist order from the provincial government.

Kaycee Crisostomo, spokesperson for TVI Resource Development Inc. (TVIRD), told the Inquirer that it would seek to renew the mineral production sharing agreement (MPSA) granted to its partner, Minimax Mineral Exploration Corp., to explore and mine copper and gold in 535 hectares of land in Concepcion and Ajuy towns, owing to their “significant investment” in these mining sites.

The existing MPSA, which was granted to Minimax in 1999, is set to expire on July 19. The MPSA grants to the contractor the exclusive right to conduct mining operations within a contract area for a given period.

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While it covers only exploration, Crisostomo said they intended to turn their Pan de Azucar activity into a full-blown mining operation. The exploration activities are being carried out as a joint venture project signed in 2012 between Minimax, Mindoro Resources Ltd. and TVIRD.

TVIRD, which is undertaking the actual exploration work, is the Philippine-based affiliate of Canadian resource company TVI Pacific Inc., and is majority-owned by Prime Resources Holdings Inc., the resources arm of the Villar family-owned Prime Asset Ventures Inc.

Ores found during the exploration included copper, iron, gold, silver and pyrite, a sulfide mineral also known as “fool’s gold” due to its gold-like appearance.

Cease and desist

However, Iloilo Gov. Arthur Defensor Jr. issued a cease-and-desist order on March 4 on the mining firm’s operation on Pan de Azucar, upon the recommendation of the Provincial Government Environment and Natural Resources Office (PGENRO), which confirmed the presence of arsenic in the island’s groundwater following a field investigation last Jan. 10.

Results from the field investigation were forwarded to the Environmental Management Bureau in Western Visayas (EMB-6).

Arsenic, while naturally found in some food sources, is dangerous when consumed through groundwater, with immediate symptoms including nausea, vomiting and diarrhea, while long-term exposure may cause skin changes such as darkening and lesions, health officials said.

Crisostomo said they honored the cease-and-desist order but refuted the PGENRO’s findings, which the company’s officials manifested during a provincial board committee hearing on the matter.

“It must be pointed out that the allegation of ‘arsenic contamination’ is without proper basis, as what was shown by the provincial government was merely a rapid assessment test, which is clearly insufficient to reach such a conclusion. Arsenic had been naturally occurring and preexisting [on] the island even before the company commenced any exploration activities,” Crisostomo said.

However, according to PGENRO head Cesar Emmanuel Buyco, TVIRD had already pulled out its equipment from the island after the issuance of the cease-and-desist order.

He said the order mandated the company to outline its mitigating measures in response to the findings made during the inspection.

“They may no longer have time to conduct anymore activities, so they will have to rely on whatever findings that they have, and they have to create their feasibility report which they would submit to the national office of the Mines and Geosciences Bureau, and then they will file their renewal,” Buyco explained.

Locals’ resistance

The presence of mining exploration and potential operations on the island has also met opposition from local residents.

The “Save the Pan de Azucar Movement,” organized by residents, has drafted a petition, signed by about 500 people, urging for the nonrenewal of the MPSA and other relevant permits granted to the company.

“We express our strong opposition against this inhumane act of alien companies on Pan de Azucar Island, we affix our signature to appeal to the higher authorities and to act immediately and demand not to grant renewal of their permits to resume their exploration/mining activities,” the petition read.

However, some residents employed by TVIRD have also made their own petition in support of the continued operation of the company on the island. The pro-TVIRD petition has so far gathered 123 signatures.

As of May 7, Buyco said he has yet to receive copies of these opposing petitions.

Both the PGENRO and TVIRD are also awaiting the results of the EMB-6’s confirmatory tests, which are expected to come out between May and June.