Australian Ambassador Tony Hely expressed concern yesterday over security threats on the Philippine mining operations of several Australian companies.
In an interview with The STAR, Hely said Australia’ intends to “talk to the Philippine government to address the matter so that the reputation of the Philippines as an investment site is not tarnished.”
Hely noted that there are a number of Australian investments in the country’s 23 major mining operations.
He said these investments should be viewed as “developmental” investments which are also financing socio-economic projects.
Hely admitted the Australian government has raised concerns over recent security threats to some mining projects with Australian business interest.
The communist New People’s Army (NPA) recently raided the copper-gold mining operations of Sagittarius Mines Inc. (SMI) in Tampakan, Mindanao.
The NPA attack reportedly resulted in an estimated P12 million in damages to SMI.
SMI is the local subsidiary of Australian mining giant Xstrata Copper.
Xstrata acquired a 62.5-percent controlling interest in the Tampakan project from Indophil Resources NL.
Likewise, Hely also cited the continuing opposition of some environmental and non-government organizations (NGOs) to the mining operation of the Lafayette Mining Group in Rapu-Rapu Island, Albay.
Hely acknowledged that such security threats are a factor in attracting and solidifying more foreign investments in the Philippine mining sector.
Several other Australian mining giants such as BHP Billiton have made initial exploratory investments in some mining projects, but have still not committed in a much more substantial manner.