Gov’t takes over abandoned mines

The state-run National Resources Mining Development Corp. (NRMDC) will take over and undertake the rehabilitation of three abandoned minesites as part of government’s measures to further perk up the renewed interest in the local mining industry.

"We are currently negotiating with the concerned parties about the turnover of these abandoned minesites and we expect to have something positive in the next two weeks," said Artemio Disini, president of NRMDC.

The three abandoned minesites, which are partially government-owned, are the copper mines of Basay Mining Corp. (formerly Construction and Development Corp. of the Philippines) in Basay, Negros Oriental which stopped operations in 1984; the pyrite and copper mines of Philippine Pyrite Corp. (formerly mined by Marinduque Mining and Industrial Corp.) in Bagacay and Hinabangan, Western Samar which shut down in 1993; and the Sta. Inez and Batong Buhay mines of Maricalum Mining Corp. in Sipalay, Negros Occidental.

Disini said that while these mines have been abandoned, there are still significant minerals that could be extracted and processed.

He added that NRMDC is now also talking to Privatization Management office and the Department of Finance to work out the turnover of the said mines.

The government, through the NRMDC, is actively pursuing mining projects. It has already concretized plans to raise at least P2 billion this year to develop the Mt. Diwalwal gold rush area in Mindanao into a world-class mine.

Disini earlier said that NRMDC will raise funds through commercial borrowing and undertake a partial privatization through an initial public offering before the end of 2005.

Part of the money to be raised will be used for further exploration and extraction of the seven gold and copper prospects in Mt. Diwata or Diwalwal mineral reservation area which straddles the Monkayo, Compostela Valley, and Boston and Cateel, Davao Oriental provinces.

NRMDC is looking at gold deposits at the Buenas-Tinago and Balite veins, and the gold and cooper prospects at the Upper Ulip/Matangad, Mabatas/Higanteng Bato, Pagasa/Paraiso, Simulao and Mapaso/Letter V/ Bermuda areas.

The NRMDC was created last year by the Office of the President upon the recommendation of the Department of Environment and Natural Resources, the National Economic and Development Authority and the Philippine National Oil Co.-Energy Development Corp. (PNOC-EDC).