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March 20, 2010                             Manila, Philippines
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Senate Urges to Probe ZTE Mining Projects in Mindanao

PUBLISHED ON March 12, 2008 AT 11:22 AM ·

Green watchdog Kalikasan People’s Network for the Environment (Kalikasan PNE) today urged the Senate to probe other state-approved projects in the Philippines by the controversial Zhong Xing Telecommunications Equipment Co. Ltd. (ZTE Corp.), particularly mining projects in Mindanao.

This, after Trade Secretary Peter Favila disclosed on Tuesday’s Senate hearing on the NBN deal that the government inked five projects with ZTE Corp’s sister company, ZTE International Investment Ltd., estimated to be worth $4 billion–or ten times more than the scandalous $329 million NBN deal. Among these are dealsfor the exploration, development and operation of mining areas in North Davao and Diwalwal in Compostela Valley in Mindanao.

In a statement, Clemente Bautista, Jr., National Coordinator of Kalikasan PNE, urged the Senate Blue Ribbon Committee to probe and push for the cancellation of ZTE’s other mining projects in Mindanao.

“Nagkaroon din kaya ng “tongpats” sa mga proyektong ito? Were there any instances in these other deals where “tongpats” and “moderation of greed” occurred? There is only one way to know, and that it through a honest-to-goodness probe,” Bautista said of the Mindanao mining deals.

Favila signed a memorandum of understanding (MoU) on March 14, 2006 in Guangdong, China with the Chinese firm for a $4-billion loan. The signing was witnessed by ZTE President Yu Yong, then Presidential chief-of-staff Michael T. Defensor and ZTE Chairman Hou Weigui.

“The disclosure of ZTE’s mining deals in Mindanao are a cause for alarm. It’s no secret that President Arroyo is a very, very aggressive promoter of large and foreign-owned mining projects throughout the Philippines, especially in Mindanao. What other natural resources and patrimony has President Arroyo and First Gentleman Mike Arroyo sold off to foreign investors like ZTE to get more “tongpats” in their pockets?,” Bautista said.

Kalikasan PNE also urged the Senate and Congress to investigate whether ZTE’s mining projects were linked to the presence of military troops in Davao del Norte’s lumad communities.

“PASAKA, a regional confederation of lumad organizations in Southern Mindanao along with Lumad support groups belonging to Solidarity Action Group for Indigenous Peoples (SAGIP), reported that massive military operations have started in the area of Talaingod from January 7 to 24 this year, timed with the declaration of large logging and mining investments in the region. Is this wave of militarization, community displacements, and human rights violations in Northern Davao related to the new mining deals that the Arroyo administration inked with foreign firms like ZTE?,” Bautista said.

Kalikasan People’s Network for the Environment (Kalikasan PNE) is a network of non-government organizations (NGOs), grassroots organizations, and environmental advocates.

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