SURIGAO DEL NORTE (July 18, 2003) - Mining-sponsored community development activities in Loreto, Surigao del Norte will continue despite the temporary shutdown of KROMINCO Inc. brought about by the plummeting world prices of chromite.

Regional Director Alilo C. Ensomo of the Department of Environment and Natural Resources - Mines and Geosciences Bureau (DENR-MGB) announced that the company has assured government that it will maintain its social commitments to the host and neighboring barangays despite the company’s financial woes.

“Notwithstanding its limited budget for community processes, KROMINCO has managed to comply with the commitments incorporated in its Social Development and Management Program (SDMP),” RD Ensomo said.

The SDMP is a five-year community development package mandated under the Philippine Mining Act of 1995 (RA 7942). Mining companies are required to allocate 90% of 1% of their annual direct mining and milling costs for community development and the remaining 10% for the development of mining technology and geosciences.

In order to monitor KROMINCO’s SDMP compliance, RD Ensomo said that a community-based Technical Working Group (CTWG) regularly meets to discuss the issues surrounding the mining project, as well as the implementation of livelihood projects. CTWG members include representatives from religious sector, local government units, people’s organizations and environmental non-government organizations (NGOs) such as the Santiago Association of Volunteers for Environment (SAVE), Coastal Area Mngt. of Esperanza (CAME) and the Haribon Foundation.

During its last meeting last June 17, CTWG members stressed the need for more information on RA 7942, the proposed National Minerals Policy (NMP) and other government policies to empower the communities in making intelligent decisions with regard to minerals development.

On July 10, the MGB regional office in cooperation with KROMINCO sponsored a Forum on Mining Laws & the National Minerals Policy attended by more than 60 participants from the host barangays of Santiago, Esperanza and Panamaon, Loreto, Surigao del Norte.

The same forum will again be conducted on July 29-30 for municipal officials, NGOs and other government agencies based in Surigao. Participants will also be briefed on Mine Management and Processes, Geological Services, Environmental Protection and Rehabilitation, and Social Development and Management Program.

The ongoing DENR-MGB regional consultations on the proposed NMP and other mining concerns are part of the extensive social preparation for the Administration’s Revitalization of the Minerals Industry Program. (Region 13)