NPA attack forces Philex to temporarily close Negros mine

BACOLOD CITY, Philippines – Some 100 Negrenses stand to lose their jobs with the temporary closure of Philex Gold Mining Corp. in Sipalay City, Negros Occidental, Sipalay Mayor Oscar Montilla said.

Montilla said the people of his city are wary about the closure of the company as hundreds more are expected to be employed by the company when it starts its full operations.

We’re just worried that Philex might soon decide to transfer their operations in other areas, Montilla said.

Manuel V. Pangilinan, chairman of Philex Mining, announced over the weekend that Philex Gold Mining Corp. has temporarily stopped its mining operations in Sipalay City after its site was raided by suspected members of New People’s Army (NPA) last month.

“We cannot afford to continue our operations (in Sipalay) knowing that the lives of our employees there are at risk because of NPA atrocities,” Pangilinan said in a press conference at the Shangri-La Hotel in Makati City last Saturday.

Philex Mining encompasses barangays Nabulao and Camindangan in Sipalay. Last May 3, at least 30 suspected NPA members raided its compound in Sitio Umas Brgy. Camindangan, and burned two bunkhouses and other equipment.

The following day, when 18 responding Army troopers conducted hot pursuit operations in the area, the NPA killed five of the soldiers, and injured two others.

After the encounter that lasted more than an hour, the rebels seized six high-powered firearms from the Army soldiers: 4 M16, one M14 and one K3 rifles.

In a statement on May 4, Philex said there were no casualties from among their employees following the NPA attack. “It is unfortunate that this incident happened and we are unaware of the reasons why the rebels committed such acts of violence,” it said.

“The area of attack is 30 kilometers away from the company’s Bulawan gold project, which is now under care and maintenance through its subsidiary Philex Gold Philippines Inc.,” the Philex statement said.

“Philex Mining has reinforced security measures to ensure the safety of the surrounding community while employees assigned at the Omas exploration site had been pulled out for safety and security,” the company said.

It also stated that its explorations are permitted and endorsed by both the Sipalay and Hinobaan town governments and by the Negros Occidental Provincial government.

Philex said it has been operating the Bulawan project since 1990, through its subsidiary, Philex Gold Phils. Inc. The project began production in 1996. It was shut down in 2002 when world gold prices went down, it added.

“While still onsite to monitor the mine facilities and ponds’ stability, Philex Mining continues to explore within the tenement for feasible ore resources. Environmental activities continue, including reforestation, solid waste management and establishment of Robusta coffee plantation with the support of its host and neighboring communities,” the company said.

Pangilinan said they will resume operations once the peace and order in southern Negros Occidental has stabilized.

He added that they are concentrating now on the operations of their mining firms in Benguet and Surigao Del Norte with multi-million peso of investments.