Miner appeals MGB decision

MANILA, Philippines - Gold miner San Manuel Mining Corp. (SMMC) is appealing to the Office of the Environment Secretary the decision of the Mines and Geosciences Bureau (MGB) to deny further exploration in its contract area after exceeding the maximum exploration period allowed by the law.

The company’s Mineral Production Sharing Agreement (MPSA) No. 004-91-X which was granted on Jan. 7, 1991 is now on its 21st year. Under the rules, the exploration period can only take place within 10 years.

After two decades of exploration activities, no ore has been discovered by the firm.

The MPSA area is situated in Masapelid Island, Surigao del Norte covering 1, 480 hectares.

“They are now appealing it to Secretary (Ramon Paje). The MGB ruled that the exploration is only up to 10 years. It’s a ground for cancellation of the MPSA,” said Jasareno.

After the cancellation of a company’s MPSA, the government can bid out the contract area.

The said MPSA area is now being claimed by Australian miner Bundok Mineral Resources Corp. (BMRC), which claims to have signed a joint venture with SMMC, for further exploration activities in the area.

It has been reported that BMRC’s petition for the extension of exploration activities is backed by residents of Masapelid Island who want to save their mining jobs.

In November, Jasareno maintained that BMRC has no legal personality to explore the area because it has no approved agreement with SMMC.