Atienza acts to resolve Billiton row with partners

MANILA, Philippines - Environment and Natural Resources Secretary Jose L. Atienza is set to make a final push to resolve the continuing dispute between Australian mining giant BHP Billiton Ltd. and Peter Tan’s Asiaticus Management Corp. (Amcor).

Atienza said the disputed Pujada mines “cannot just be idle.”

“Government will give a final push for them to decide on what to do  with the minerals,” Atienza said, stressing that any decision or action to be taken would be made in “fairness” and “justice.”

Atienza is hoping that a final resolution could be found in three to four weeks.

Atienza has repeatedly said that “government has the final option. If they do not agree, government moves in.”

Atienza said Tan and the other local partners and BHP Billiton do not see eye to eye on the timetable for the development of the Pujada mines.

Tan and his group want development to be fast-tracked, while BHP prefers a more circuitous approach to developing the mining venture.

The continued difference is making both parties dig in their heels and threatening more legal action.

Tan has secured a ruling from the Makati Regional Trial Court stopping BHP from operating the Pujada mines, forcing the Australian firm to stop operations and close down its Manila office. On the other hand, BHP won its international arbitration case against Tan.

Atienza has met separately with the two disputing partners to come to an agreement on the implementation of the arbitration decision and hopefully allow the stalled Pujada nickel mining venture to finally proceed.

Atienza, however, has not had much success in convincing either party to move towards a compromise.

The continued discord is also reportedly frustrating BHP.

The Philippine government is keen on ensuring that BHP proceeds with its previously estimated $2-billion investment in the country as it would give a boost of confidence to the local mining sector.

Tan has rescinded a joint venture agreement with BHP following his perception that BHP is dragging its feet on the project. Tan complains that delayed development of the Pujada mines in financially hurting the Filipino partners of BHP.

BHP Billiton Ltd. is a diversified resources group. It is a producer of energy-related products, such as energy coal, oil, gas, liquefied natural gas and uranium.