Atienza steps in to resolve dispute between BHP Billiton, local partner

Environment and Natural Resources Secretary Jose L. Atienza has decided to step in and mediate a dispute between Australian mining giant BHP Billiton and its local joint venture partner Peter Tan, in an effort to ensure that BHP Billiton continues to stay in the country and put in more investments.

In an interview with The STAR, Atienza said he was assured by BHP Billiton officials that “they remain very bullish about the Philippines and are here to stay for the long-term.”

He said he is doing everything to help them settle it. “I want them to succeed and put in more money.”

Atienza pointed out that BHP Billiton is the world’s largest resource company and its continued presence and investment in the Philippines would attest to the attractiveness of the country as an investment site.

BHP Billiton is a producer of energy-related products, such as energy coal, oil, gas, liquefied natural gas and uranium. Its customer sector groups (CGS) are organized into nine business units: petroleum, aluminium, base metals, diamonds and specialty products, stainless steel materials, iron ore, manganese, metallurgical coal and energy coal.

The dispute between BHP and its local partner stems from the joint venture of BHP subsidiary QNI Ltd. and Tan who holds seven mineral production sharing agreements (MPSAs) in various parts of the country.

According to Atienza, Tan had been complaining about the slow pace of the joint venture which continued to remain at the exploratory stage at a time when world mineral prices are peaking.

Tan, Atienza said, wanted QNI to “fast-track” the joint venture and start production.

Then out of frustration, Tan decided to rescind his joint venture contract with QNI and the dispute has now landed in court.

Atienza said he decided to step in as the mining project is a three-way partnership among QNI, Tan and the Philippine government which stands to benefit from the investment.