MGB suspends mine project in Isabela

BAYOMBONG, Nueva Vizcaya, Philippines – The operations of the Nickel Mining Project in Isabela’s coastal Dinapigue town has been suspended by the Mines and Geosciences Bureau (MGB) amid the provincial government’s claim that its continued operation poses danger to the environment.

According to the MGB, last week’s suspension of the project came after its owners and operators, Geograce Resources Philippines, Inc. (Geograce), failed to submit required documents detailing its work plans, update of its activities and scope of operations.

“Until the firm complies with our requirements, our suspension order remains in effect,” said Mario Ancheta, MGB director for Cagayan Valley.

The project’s suspension also came after a provincial government-led fact-finding team accused the firm of utilizing heavy equipment and noxious substances in its operations, which pose danger both to the health conditions of the residents and to the environment.

The MGB said it would also investigate the allegations of the provincial government over the firm’s alleged environmental violations, including rampant cutting of trees to pave the way for the firm’s operations as well as the use of deadly substances.

Isabela Gov. Faustino Dy III, who commissioned the fact-finding team, also said that the firm was already encroaching on a national government-protected natural forest, including the naturally-grown bonsai trees in the northern Sierra Madre Mountains.

“This is a very alarming development since the area is a national government protected landscape,” said Dy, regarding Dinapigue’s remaining forest cover, especially the state of the bonsai tree forest in the area, probably the only one of its kind in the country.

The nickel project was started during the administration of then governor Grace Padaca. It was being operated by the Platinum Group Metals Corp. (PGMC) owned by the Atayde family, one of whose scions, board member Jaime Atayde, is a known Padaca ally.

The PGMC had previously been issued a Mining Production Sharing Agreement to extract some two million tons of nickel from some 2,000 hectares of land in Dinapigue. It later made a profit-sharing agreement with Geograce.

A potential eco-tourism destination, Dinapigue, also inhabited by the Dumagats, is located along the Pacific coast bounding on Aurora. It is said to be rich in nickel, an important component in alloy, steel, magnet, coinage and green tint processing.