A compromise agreement may be at hand for Australian mining giant BHP Billiton and its local joint venture partner Peter Tan.
In his weekly press conference yesterday, Environment and Natural Resources Secretary Jose L. Atienza disclosed that a compromise may be reached “hopefully by next month” between BHP and Peter Tan.
Atienza revealed that he had mediated a meeting in Singapore between Tan and BHP representative Chris Campbell whereby it was acknowledged that there is a need to provide some immediate cash flow for the Filipino partners while at the same time preserving the long-term investment outlook of BHP.
The deal, which is still being hammered out, may involve the operation of some mining areas which would have to be determined by both parties, Atienza said.
Atienza expressed optimism that his mediation would convince BHP to continue its investments in the country, while at the same time addressing the need to provide immediate cash flow for the group of Tan.
Atienza had previously told The STAR that in his talks with BHP Billiton officials “they remain very bullish about the Philippines and are here to stay for the long-term.”
“I am doing everything to help them settle it. I want them to succeed and put in more money,” Atienza said.
BHP Billiton Ltd., Atienza pointed out 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 Ltd. is a diversified resources group. The company 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 Filipino partner Peter Tan stems from the joint venture of BHP subsidiary QNI Ltd. and Peter 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.
Unfortunately, out of frustration, Tan decided to rescind his joint venture contract with QNI and the dispute has now landed in court.
Atienza has, thus, decided to step in and mediate especially since the mining project is actually a three-way partnership among QNI, Peter Tan and the Philippine government which stands to benefit from the investment.