Gov’t loses P200 M in Mt. Diwalwal sharing scheme

DAVAO CITY — The government has lost close to P200 million in revenues from the mining operations at the goldrush site in Mt. Diwalwal, Monkayo, Compostela Valley since the 85-15 percent sharing scheme was implemented in September 2002.

The government projected to earn at least P120,000 a day or P22 million in six months from the sharing scheme that was supposed to allow miners to get 85 percent of the gold ore production.

Environment Secretary Angelo Reyes said the government is losing in this venture because the National Resources and Development Corp. (NRDC) lacks personnel to attend to the details of the operations in the mining sites.

Reyes, who arrived here yesterday to address the conference of the Mindanao chapter of the League of Municipalities of the Philippines (LMP), said the lack of personnel hampers the efficient collection of revenues from the miners operating in the area.

The 85-15 sharing scheme was first implemented on Sept. 6, 2002 when President Arroyo visited the mining site to take control of the area and ensure that the government gets a share from its gold production revenues that already reached over P40 billion since the mining operations started in the early ’80s.

Before the 85-15 sharing scheme was implemented, the government padlocked all tunnels and mining portals in Mt. Diwalwal, afterwhich the DENR granted 17 service contracts to qualified cooperatives of about 5,000 small-scale miners and a separate contract to a ballmill operator, which employ another 400 workers.

The President even declared Mt. Diwalwal a national mining reservation site on Oct. 11, 2002 to strengthen government control of the area.

Although Reyes was not able to ascertain the total revenue losses for the government, local mining bureau officials were able to estimate the revenue losses for the govenment, which was also attributed to the low grade gold ore extracted from the mining site.

Reyes said the government will work on the establishment of a proper dumpsite and a tailings pond to protecting the surrounding environs of Mt. Diwalwal.

Meanwhile, the Sunshine Tunnel of the JB Management Corp. at Mt. Diwalwal has remained locked following the death of 37 miners last year.