SMI seeks dialogue on ECC conditions

MANILA, Philippines - Xstrata-backed Sagittarius Mines Inc. is seeking clarifications on some of the conditions laid down by the Department of  Environment and Natural Resources (DENR) for the provision of an Environmental Compliance Certificate (ECC) for the $5.9-billion copper-gold project in South Cotabato, its spokesman said yesterday. 

“The majority (of the conditions) are acceptable. There are just a few that need discussion and clarification,” said SMI spokesperson John Arnaldo.

Arnaldo said the company is still reviewing the ECC signed by Environment Secretary Ramon Paje early this week and would be preparing for a dialogue with the DENR.

Under the rules for the issuance of an ECC, the document should be signed by both parties before it is considered enforced.

The conditions set by the DENR are as follows: SMI should obtain Free and Prior Informed Consent (FPIC) from occupants of ancestral domain, land access permits from the Department of Agrarian Reform, and endorsement from the local government units comprised by its tenement.

SMI is also required to have “continuing liability” for any environmental damage that would occur within its tenement. Paje said the company cannot invoke force majeure in the event of a disaster within its tenement.

Paje said failure to comply with these conditions may result to cancellation of the clearance.

SMI declined to identify the conditions that it is seeking clarification for pending the conduct of dialogue with the DENR.

“We’re very hopeful that with the dialogue, we will arrive at a common understanding with the DENR,” said Arnaldo.

The company is still struggling with the open-pit mining ban imposed by the South Cotabato provincial government which refuses to lift the ordinance despite the issuance of the ECC.

The Interior department has also issued a memorandum circular asking all local government units (LGUs) to comply with the provision in the new mining policy, stipulating that local ordinances pertaining to mining activities should be consistent with national laws governing the extractive industry.