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Exploration permit renewal of Manila Mining still under DENR review

Department of Environment and Natural Resources Secretary Angelo T. Reyes has clarified that the renewal of the Exploration Permit (EP) No. XIII-014 of Manila Mining Corporation covering its Kalaya-an Gold Project is still pending with his office awaiting clearance and final approval.

Reyes said this is contrary to published reports in various newspapers dated 18 April 2006 that MMC’s EP had already been approved and that DENR Undersecretary for Mining Demetrio L. Ignacio had given the company clearance to inform the stockholders about its supposed approval during its annual stockholders meeting recently.

Mines and Geosciences Bureau Director Jeremias L. Dolino for his part said that as required under DENR Memorandum Order No. 2005-20 “all applications for Exploration Permits filed prior to August 26, 2005 shall be cleared with the DENR Secretary.” MMC’s application was filed 16 July 2004 but encountered opposition from the community of Barangay Anislagan, Placer, Surigao del Norte.

Finally, Reyes is also requesting the Securities and Exchange Commission (SEC) for an investigation and possible filing of administrative, civil or criminal actions against MMC for falsely divulging to the public that its EP is already approved. MMC’s false announcement and the subsequent speculative effects in the Philippine Stock Exchange (PSE) is therefore misleading and irresponsible for a publicly-listed company and does not blend well with the government’s efforts to revitalize the mining industry.

April 21, 2006


FACT SHEET
KALAYA-AN GOLD PROJECT

Exploration Permit (EP) No. : XIII-014

Permittee : Manila Mining Corp.

Location : Tubod, Bacuag, Placer, Mainit and Sison, Surigao del Norte

Area : 2,462.9152 Hectares

Date Approved by MGB Regional Office No. XIII : July 17, 2002

Mineral Commodity : Gold, copper and other associated mineral deposits

IMPORTANT EVENTS :

September 14, 1992 - Manila Mining Corp. (MMC) filed a Mineral Production Sharing Agreement (MPSA) application denominated as APSA-000006-X.

December 29, 2000 - A Temporary Exploration Permit was issued to MMC located in Placer, Surigao del Norte denominated as TEP No. XIII-003-2000 (1,180.2606 Has.)

November 5, 2001 - MMC started to establish exploration field office within Bgy. Anislagan, Placer but some residents dismantled the structures.

February 19, 2002 - MMC filed an application for conversion of the portion of its APSA-000006-X to an Exploration Permit application (2,462.9152 ha.).

June 27, 2002 - Thru the Memorandum of the Mines and Geosciences Bureau (MGB) Regional Office (RO) No. XIII, the Petition of the residents of Bgy. Anislagan not to allow MMC and any other firms to conduct mining operations in their Barangay, among others, was forwarded.

July 11, 2002 - Thru the Memorandum of the MGB Director, the clearance to issue the Exploration Permit was granted to MGB RO No. XIII.
July 17, 2002 - MGB RO No. XIII issued the Exploration Permit to MMC denominated as EP-XIII-014.

September 2, 2002 - MGB RO No. XIII received Resolution No. 2002-007 of the Sangguniang Barangay of Anislagan requesting the MGB to cancel EP-XIII-014 of MMC.

September 9, 2002 - Sangguniang Bayan Resolution No. 2002-060 of Placer was issued requesting MGB RO No. XIII to declare a Moratorium of the exploration activity in Barangay Anislagan, Surigao del Norte.

September 20, 2002 - Thru the Letter of MGB Director, MMC and Bgy. Chairman were requested to maintain a status qou situation in Bgy. Anislagan.

October 11, 2002 - Two of the MMC drilling equipment were set on fire by certain anti-MMC residents.

July 16, 2004 - MMC filed the application to renew its EP-XIII-014 covering the entire Permit Area.

July 17, 2004 - EP-XIII-014 expired.

2005 - The Sangguniang Barangay of Anislagan issued the Resolution No. 03, Series of 2005, requesting not to issue the renewal of EP-XIII-014 to MMC as agreed upon during the Regular Session of the said Sanggunian on January 8, 2005.

November 29, 2005 - Thru the Letter of MGB Director, MMC was informed that its renewal application was ready for formal acceptance and was also advised to comply with certain requirements prior to the release of the Permit that shall be renewed.

November 30, 2005 - The renewal application of MMC was approved by the MGB pursuant to Section 4 of DENR Administrative Order (DAO) No. 2003-46.

December 13, 2005 - The DENR issued the Memorandum Order No. 2005-020 prescribing the guidelines in the issuance of EPs.

December 14, 2005 - The pertinent documents for the renewal of EP-XIII-014 of MMC were forwarded to the Office of the Undersecretary for Mining and Legal Affairs upon the instruction of then Undersecretary Deinrado D. Dimalibot for notation of the said Permit

January 19, 2006 - Thru its Letter, MMC submitted the documents in compliance with the Letter dated November 29, 2005 of the MGB Director for the release of the renewed Permit. Copies of Resolution No. 2005-127 of the Sangguniang Bayan of Placer, Surigao del Norte favorably indorsing the renewal of EP-XIII-014 and the Memorandum of Agreement (MoA) it entered into with the Municipal Government of Placer were also submitted by MMC.

The said MoA shows, among others, that no exploration activities shall be conducted by MMC within the proposed water source in Barangay Anislagan and that MMC shall see to it that the existing water source in Barangays Macalaya and Boyongan of the same municipality shall not be affected by its exploration activities.

March 10, 2006 - The DENR returned the pertinent documents to MGB, but without the notation of Undersecretary Dimalibot in the Permit.

March 20, 2006 - The MGB re-submitted the pertinent documents to the DENR for clearance /approval by the secretary.

ISSUES:

1. Whether or not to issue the renewal of EP-XIII-014 to MMC

As per Congressman Barbers’ view, the renewal of the Exploration Permit may be issued to MMC if all the requirements have been complied with.

2. Whether or not MMC may be allowed to undertake mining operation in the Permit Area

Congressman Barbers thinks that there is a pervading anti-MMC sentiment in the area and that the only way that mining operation may be allowed is if the name of MMC can be “hidden” such as thru a joint venture agreement.

   
   

Republic of the Philippines - Mines and Geosciences Bureau / Department of Environment and Natural Resource
Central Office: MGB Compound, North Avenue, Diliman, Quezon City | Telephone: (63-2) 928-8642 / 920-9120