BHP Billiton, Oceana Gold not leaving RP

MANILA, Philippines - Mining giant BHP Billiton Ltd. and Oceana Gold have not expressed any intention to leave the Philippines, Environment and Natural Resource Secretary Jose L. Atienza said yesterday.

In a talk with reporters yesterday, Atienza said he has not received any word from BHP Billiton that it is planning to pull out of the Philippines following an earlier report that the mining firm is divesting its assets in Indonesia due to the global economic slump.

BHP has officially informed the Indonesian government of its selective divestment plan anchored on negotiations that will be conducted on a “case by case” basis.

Atienza expressed confidence that BHP has no intention to leave the Philippines after it has gone through the trouble of ironing out its differences with its Filipino partner.

“They are staying put. They would not have spent so much in legal fees in international courts just to eventually pull out,” Atienza told reporters.

He revealed that BHP and its Filipino partners led by Peter Tan are in the process of discussing “their points of differences and agreements.”

Atienza had brokered an agreement between BHP and the Tan Group to settle their differences and proceed with their joint venture.

BHP had filed and won an arbitration case in Singapore against its Filipino joint venture partners.

Atienza was able  to broker a deal between the two parties that would hopefully allow the stalled Pujada nickel mining venture to finally proceed.

The DENR is keen on ensuring that BHP proceeds with its previously estimated $2 billion investment in the country.

BHP Billiton has scaled down its operations in the country because of it legal dispute with Tan.

BHP Billiton has laid off its Manila staff for its joint venture mining firm Asiaticus Mining Corp. and suspended operations in its mining exploration site in Mati, Davao, following its protracted dispute with Tan.

Tan had rescinded a joint venture agreement with BHP following his perception that BHP is dragging its feet on the project. He said BHP’s inaction is costing its Filipino joint venture partners.

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.

Atienza stressed that with the global economic recovery expected next year, mining firms like BHP would take note of the Philippines which is at the forefront of the mining sector.

Atienza also denied rumors that another firm Oceana Gold is thinking of pulling out of the Philippines following its continued failure to proceed with its Didipio gold project.

Atienza acknowledged that Oceana Gold continues to suffer internal and financial problems, but has not expressed any intention to pull out of the Philippines either.