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Hinatuan Mining scales down operations

Posted on September 10, 2015

By Lilybeth G. Ison

MANILA, Sept. 10 (PNA) — Hinatuan Mining Corp. (HMC), a subsidiary of Nickel Asia Corp. (NAC), is scaling down its operations, affecting at least 200 of its employees, who are residents of Manicani island off the western coast of Guiuan, Eastern Samar.

The move was primarily driven the company’s inability to secure the release of the Mineral Ore Transport Permit (MOEP) for the removal of ore stockpile on the island from the Mines and Geosciences Bureau (MGB) Region 8 office, despite the approval last July 2014 by the MGB Head Office for such disposal.

The scale-down, which will be effective Sept. 15, had been previously discussed with the concerned parties, including the barangay captains of Manicani’s four barangays.

Manicani, a 1,000 hectare island, has a nickel deposit covered by MPSA 012-92-VIII awarded to HMC. But mining operations on the island have been suspended since the early 2000s and HMC has been on a “care and maintenance” mode for the last 12 or so years.

Stockpiles of ore, waste from the previous operations, remain piled on the island.

As early as 2002, a special task force put together by then Environment and Natural Resources Secretary Heherson Alvarez recommended the disposal of nickel ore stockpiles on the island, to ease environmental risk.

On July 1, 2014, MGB Director Leo Jasareno issued a letter authorizing HMC “to dispose of the nickel ore stockpiles situated in the contract area.”

This move came on the heels of a letter from the Office of the Presidential Assistant for Rehabilitation and Recovery (OPARR), endorsing the request to allow the disposal of the stockpiles as a means to jumpstart the reconstruction efforts in typhoon “Yolanda” affected areas.

It was noted that storm surge similar to what was felt in Tacloban City at the height of typhoon Yolanda spared Manicani Island, thus sparing also the ore stockfiles from destruction.

“We cannot understand why the MGB Region 8 refuses to release the MOEP when it was the MGB Head Office itself in 2014 that granted us the permit to dispose of the ore stockpile,” said HMC officer in Charge Arnilo Milaor.

Milaor said that when they received the order in 2014, they began hiring staff in preparation for the hauling.

“Now that the hauling cannot happen for maybe another year we need to lay off people and return to care and maintenance mode,” he said.

Immediately after “Yolanda”, HMC and its parent company — NAC — adopted Manicani island to assist in its post-Yolanda recovery efforts.

The company pledged to rebuild every single one of the over 500 homes damaged by the typhoon irrespective of the mining sentiment of the owner.

It launched a two age bracket basketball tournament among the four barangays on the island with covered courts as prize.

The company also initiated the installation of a water supply system in the four barangays, and has a few other projects in the works.

To date HMC has already poured in over Php100 million on the island.

Tito Abucejo, barangay captain of Buenavista (the island’s biggest barangay), said that while “so many people pledged to help after Yolanda, only HMC delivered on each promise, and more.”

“Now that the MGB refuses to release the permit to move the stockpile, how will our people earn their livelihood? Who will cover for the lost income of our people?” asked Abucejo.

All four barangays on Manicani island -– Buenavista, Banaag, San Jose and Hamorawon –- have issued a joint resolution urging incumbent DENR Secretary Ramon Paje, Borongan Bishop Crispin Varquez and MGB Director Leo Jasareno to allow the removal of the ore stockpiles as this poses an environmental hazard, with removal operations providing residents a source of income.

But the appeal of the residents who are most affected by this situation appears to have fallen on deaf ears. (PNA)

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