MANILA, Philippines - Senate President Juan Ponce Enrile squelched calls by his colleagues yesterday for an investigation into an alleged anomalous P6.2-billion coal mining deal in Catanduanes, saying he had been told by the businessman involved in the controversy that the project had already been aborted.
Enrile said he called up tycoon Enrique Razon yesterday upon learning of the news on the controversy and was told that the project had already been abandoned a long time ago. Razon is reportedly close to the Arroyo administration.
“He (Razon) said that was a long time ago. We found the ore body to be limited and we did not pursue it anymore,” Enrile said, quoting Razon.
“What is the purpose of looking into it? To find out whether they’ve applied properly or they conducted the necessary exploration procedures?” Enrile asked. “You know, mining in this country is governed by law. If you comply with the law, there’s nothing wrong about it as long as you do not degrade the environment.”
Enrile said the project was explored in 2005 but the group of Razon found it uneconomical because the price of coal had dropped, even in China.
Enrile explained those opposing the project, including the Church, probably did not know mining laws.
“You apply for a mining crane. Then, you conduct exploration work. You determine your reserve, how long you can develop and exploit. If you find enough reserve, (like) a power plant that will last for 100 years, maybe you can get enough to sell and recover your investment because when you start exploration, there is money involved,” he said.
“It’s like making a gamble. Of course, you have to drill. You don’t know what you will find – water, gold, sand or rock. A lot of times you lose in mining ventures if you do not hit the ore body,” Enrile said.
Sen. Jamby Madrigal, chair of the Senate committee on environment and natural resources, filed Resolution No. 1289 directing her committee and the Blue Ribbon to investigate the matter, saying the project would lead to “enormous environmental destruction and degradation” in Catanduanes.
It was the Department of Energy, through Secretary Angelo Reyes, which awarded the coal mining contract to Monte Oro Resources Energy Inc. The conduct allowed mining operations in 7,000 hectares of land in the towns of San Andres, Caramoan and Panganiban in Catanduanes.
Based on Madrigal’s resolution, the coal to be extracted in the awarded area was estimated to be worth P6.2 billion but out of this amount, the national government and the local government were expected to earn only P186 million from three percent royalty and P9 million worth of taxes.
“This will destroy the environment and disrupt the lives of the marginalized folk, farmers and fishermen. Once again, we must stop this arrogant display of crony capitalism and abuse of power,” Madrigal said of the mining project.
“It is worth noting that Monte Oro Resources Energy Inc. is reportedly owned by Enrique Razon Jr., a known crony of Gloria Macapagal-Arroyo and to whose award of the National Transmission Corp. is likewise being questioned,” the resolution read.
Senators Manuel Roxas II and Panfilo Lacson voiced support for an investigation.
“Everyone should follow the rules and regulations, especially environmental compliance certificates,” Roxas said.
Lacson, for his part, said that aside from environmental implications, “there is the cronyism factor that we are dealing with. “There should be public hearings and public consultation at least,” Lacson said.
DENR to step in
Department of Environment and Natural Resources (DENR) Secretary Lito Atienza also vowed to scrutinize the planned coal mining venture.
“We will act on it once we receive documents from the company. But right now we only know of the project from what we have read in the papers,” Atienza said.
“We will also see if the technology they will be using is according to the standards that we have set. But if they do not comply with our conditions, we will act on it negatively,” Atienza noted.
He said Monte Oro has not applied for environmental clearance certificate.
Meanwhile, the militant Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya) urged President Arroyo to revoke the DOE permit to Monte Oro.
In a statement, Pamalakaya national chairman Fernando Hicap said Mrs. Arroyo should stop “this recipe for environmental destruction for the sake of the people’s welfare, safety and environment.” – With Katherine Adraneda