Office of the President
of the Republic of the Philippines

MINERALS DEVELOPMENT COUNCIL

STATEMENT ON
THE JANUARY 01, 2008 ATTACK OF THE EXPLORATION BASECAMP OF
SAGITTARIUS MINERALS, INCORPORATED (SMI)
IN TAMPAKAN, SOUTH COTABATO

In the strongest terms possible, the Minerals Development Council (MDC) condemns the “punitive raid” owned by the communist New People’s Army (NPA) on the exploration area of SMI. The raid resulted in damages estimated by SMI at around PhP12 million.

While isolated amidst the vastly improving security situation nationwide, the raid evidently wants to derail the Government’s Revitalization Program for the Philippine Minerals Industry.

The MDC, however, believes that efforts to ruin the gains of the current thrust of the Government on mining, by means outside the confines of what is acceptable in a democratic society, is unconscionable. The biggest losers will be the communities and workers whom the communist group claim to protect. The raid is a serious affront to the will of communities supportive of the exploration project in their desire to improve their quality of life.

MDC has gathered information that for 2006/2007 alone, SMI earmarked close to PhP100 million pesos for various community/LGU/IP-managed and company-managed, community demand-driven projects. This includes educational support for 10, 250 elementary to college students, community health support, community capacity building, assistance in the updating of the 5-Year Comprehensive Land Use and Development and Barangay Development Plans, Support to the conversion of the Certificate of Ancestral Domain Claims to Certificate of Ancestral Domain Titles, among others. These community initiatives by SMI disprove the claims of the communist group.

It should be emphasized that SMI is still in the exploration stage and these community initiatives are unprecedented in the local minerals industry. While SMI has affirmed its commitment to the project, any decision to the contrary will leave the recipient communities empty handed and possibly, condemned to poverty.

The MDC is firm that the Government’s Revitalization Program is on solid foundation, anchored not purely for the potential economic gains but with due and equal regard for the environment and the communities. The MDC understands that the development of the country’s mineral wealth is not a panacea for national development but mining investments are clearly an important part of the country’s economic revival.

Nonetheless, the MDC will intensify its information campaign and relationship-building activities with LGUs and communities, cognizant that such are important ingredients of good relations between mining firms and local communities necessary to reduce mining-associated social tensions and to create the conditions for significant reductions in poverty, thus, maximizing the potential positive impact from mining investments. Additionally, companies will be advised to periodically touch-base with the national police and military forces to strengthen security coordination and implementation.

The MDC further believes that with our vast mineral wealth, the country cannot dismiss the possibility of minerals-based socio-economic development. This has been successfully demonstrated and currently being demonstrated by/in a number of countries, in countries that translated their natural capital/mineral wealth into economic wealth to make them useful for their long-term development as a nation and to enhance the quality of life of their people, an objective shared by our current Revitalization Program.

Development is the end this Government seeks, Sustainable Development is what we will achieve…it is the only way forward for the Philippine minerals industry and the country.

THE FOREGOING WAS ADOPTED BY THE MINERALS DEVELOPMENT COUNCIL IN A MEETING PRESIDED OVER BY ITS CHAIRMAN, DENR SECRETARY JOSE L. ATIENZA JR., ON JANUARY 10, 2008 AT THE DENR OFFICE IN QUEZON CITY, WITH THE FOLLOWING MEMBERS IN ATTENDANCE:

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES (DENR)

PRESIDENTIAL ADVISER FOR MULTILATERAL DEVELOPMENT (PAMD)

CHAMBER OF MINES OF THE PHILIPPINES (CoMP)

DEPARTMENT OF AGRARIAN REFORM (DAR)

DEPARTMENT OF AGRICULTURE (DA)

DEPARTMENT OF FINANCE (DOF)

DEPARTMENT OF INTERIOR AND LOCAL GOVERNMENT (DILG)

DEPARTMENT OF LABOR AND EMPLOYMENT (DOLE)

DEPARTMENT OF NATIONAL DEFENSE (DND)

DEPARTMENT OF TRADE AND INDUSTRY (DTI)

NATIONAL ANTI-POVERTY COMMISSION (NAPC)

NATIONAL COMMISSION ON INDIGENOUS PEOPLES (NCIP)

NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY (NEDA)

PHILIPPINE INFORMATION AGENCY (PIA)

ALSO IN ATTENDANCE WERE: LEAGUE OF PROVINCES OF THE PHILIPPINES, LEAGUE OF MUNICIPALITIES OF THE PHILILPPINES, AND LIGA NG MGA BARANGAY SA PILIPINAS.

1 The MDC is a 15-member Cabinet-level body under the Office of the President and chaired by the DENR Secretary. Its main objective is to provide a coordinating mechanism to harmonize existing policies, facilitate investments, provide oversight to the Mineral Action Plan implementation, and address issues and concerns of the mining industry.

For inquiries:

Undersecretary Ramon J.P. Paje
MDC Executive Director
Tel. No. (632) 9262628; 9262577