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State firm to auction 10,000 has. of quarrying, mining properties

Thursday, October 22, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]


STATE-RUN Philippine Mining Development Corp. (PMDC) has opened for bidding the rights to explore and develop six quarrying and three mining projects covering almost 10,000 hectares (has.) nationwide.

"The PMDC invites all interested Filipino corporations to apply for eligibility and submit sealed bid proposals for a joint operating agreement for the exploration, development and mining operations of the PMDC’s mining properties," the government firm said on its Web site.

Mining properties up for sale are the 240-ha. Lagonoy chromite project in Camarines Sur, the 104.89-ha. Itogon gold project in Benguet, and the 90-ha. Toledo copper project in Cebu.

Meanwhile, state quarrying properties to be auctioned off are the 4,795-ha. Pinamungahan limestone project in Cebu, the 3,100-ha. Guihulngan limestone project in Negros Oriental, the 549-ha. Toledo limestone project in Cebu, the 332-ha. Bulacan silica project in Bulacan, the 115.22-ha. Talibon silica project in Bohol, and the 27-ha. Bulacan "marblelized" limestone project in Bulacan.

In 2005, then Environment Secretary Michael T. Defensor ordered a final and executory cancellation of non-performing mining projects totaling 68,570 hectares throughout the country.

Mining companies failed to conduct activities for a long period in 65 cancelled projects. In 2007, the projects were transferred to the PMDC from the Mines and Geosciences Bureau (MGB).

Winners of the public auction will be awarded with contracts late next month, said Jaime T. De Veyra, PMDC vice-president and chairman of the firm’s Bids and Awards Committee.

In July, PMDC awarded Paraiso Consolidated Mining Corp., a consortium of four local miners, the rights to explore and develop the 1,620-ha. Upper Ulip-Paraiso project in the gold-rush area of Mt. Diwalwal after two failed auctions.

The PMDC is the Department of Environment and Natural Resources’ corporate arm tasked to "monitor and oversee the effective development of the government’s mineral resources."

Firm keeps mining rights

Meanwhile, Rapid City Realty & Development Corp. holds the mining rights over some 3,155 hectares of land within the Surigao Mineral Reservation in Surigao del Norte, the Court of Appeals has ruled.

In a decision penned by Associate Justice Rosmari D. Carandang, the thirteenth division of the appellate court upheld the decision of the Office of the President that overturned the Mines and Geosciences Bureau’s order reinstating the application of a certain Corazon Liwat-Moya.

Ms. Liwat-Moya was in fact the original applicant of some 650 hectares of land within the contested area. Her application was filed in 1991. The bureau instructed her to submit several documents with regard to her application.

She took no heed however, prompting the bureau to deny her application 10 years later "for lack of interest."

The mining bureau thereafter entertained the application filed by Rapid City, which recently assigned its mining rights to Century Peak Corp.

Ms. Liwat-Moya filed a protest, and the MGB conceded by reinstating her application for the mining rights in the Surigao del Norte reservation.

Rapid City subsequently raised the issue before the Office of the President. The Office of the President sided with the firm, saying Ms. Liwat-Moya had effectively lost her rights over the property.

The appellate court agreed. "We cannot but agree with the findings of the [Office of the President] that petitioner (Ms. Liwat-Moya) slept on her rights and failed to pursue her application," the court said.

It added the denial of Ms. Liwat-Moya’s application became final when she failed to file an appeal before the mining bureau.

Associate Justices Arturo G. Tayag and Michael P. Elbinias concurred with the ruling. — Neil Jerome C. Morales and Ira P. Pedrasa

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