Press Release
May 11, 2008

BENGUET OFFICIALS URGED TO SIT DOWN WITH LOCAL EXECS TO RESOLVE ROW OVER MINING

Senate Minority Leader Aquilino "Nene" Q. Pimentel, Jr. (PDP-Laban) today urged executives of Benguet Corporation to hold a dialogue with municipal officials in Sta. Cruz, Masinloc and Candelaria, Zambales to resolve their disputes over the company's mining operations in these areas.

Pimentel gave the suggestion after Mayor Luisito Marty of Sta. Cruz, as well as the mayor of Masinloc and the vice mayor of Candelaria and concerned citizens from the three towns, brought to his attention the alleged violations committed by Benguet in extracting nickel ores and other minerals there.

The Sta. Cruz mayor, in particular, claimed that Benguet did not have the necessary government permits when it recently transported 150,000 metric tons of iron ores in three ships to a buyer in China. The mayor said that the company was only authorized to undertake "bloc sampling" pending compliance with all requirements. Pimentel said the 150,000 MT of iron ores shipped to China could be hardly considered samples.

Pimentel said documents furnished to him by Benguet showed that its mining operation in Sta. Cruz was covered by an environment compliance certificate dated August 1, 2007, issued by the Department of Environment and Natural Resources, and it had a transport permit dated May 2, 2008 for the shipment of ores.

However, he said "the documents did not include the required permit of the mayor." Benguet claimed that Mayor Marty has merely sat on its permit application for which it has sued him in court.

"Reports reaching my office indicate that before the government agencies concerned approved the documents. Benguet was already mining the area," Pimentel said.

Pimentel said the dispute would only be exacerbated if the two sides will merely swap accusations in the media or seek the intervention of the courts.

"I suggest therefore that the corporation should sit down with the local officials of Sta. Cruz, Masinloc and Candelaria to thresh out the problem," he said.

"Perhaps, Benguet officials should seriously discuss the remaining issues with the local officials so that their mining operations in the three towns could be done in full compliance with the law."

Pimentel said even assuming that Benguet is complying with state regulations, it should take into consideration the concerns and interest of the local governments concerned even if it has already secured the approval of the DENR.

"The best solution of this problem is for the two sides to talk with each other and see how to protect the environment from the ill-effects of mining activities. It is the obligation of the local government officials to defend the rights of their constituents. That point should be understood by Benguet."

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