Gov’t Warned Vs Granting Diwalwal Mine Rights to ZTE

Senate Minority Leader Aquilino Q. Pimentel, Jr.
(PDP-Laban) today warned Malacañang against a
government plan to allow China’ ZTE Corp. to operate a
mining concession in the gold-rich Mount Diwalwal in
Mindanao.

Pimentel said the reported impending entry of ZTE as a
major player in the Mount Diwalwal gold rush area has
caused restiveness among the various stakeholders,
there particularly the small scale miners who fear
that their mining right there is being undermined due
to competition from big companies that are favored by
the government, including foreign ones.

“The news that ZTE will now be a major player in the
Diwalwal mining area as a terrible blow to small
miners, including lumads and prior locators,” the
senator from Mindanao and principal author of the
Small Scale Mining Act of the Philippines said.

“Aside from complicating matters, it may even cause
bloodshed.”

The possible grant of a mining concession to ZTE was
first revealed by Trade and Industry Secretary Peter
Favila during his testimony before the Senate on the
controversy over the $329 million national broadband
network-ZTE contract on March 11.

Favila informed the joint Senate investigating panel
that on July 12, 2006, he signed in behalf of the
Philippine government a memorandum of understanding
with the ZTE International Investment Ltd. involving
exploration, development and operations of mining
areas in Diwalwal and Davao, establishment of an
information technology school and establishment of an
economic zone in Davao.

The proposed mining operations of ZTE International
Investment Ltd. – the investment arm of ZTE
International – was supposedly part of a long-term
Chinese investments in the Philippines worth $32
billion that have been agreed upon by the two
governments.

Pimentel expressed apprehension that the Arroyo
government will now be more obliged to go ahead with
the plan to allow ZTE to engage in mining operations
in Diwalwal to compensate for the cancellation of the
NBN-ZTE contract after grave anomalies in the deal
were uncovered in the Senate inquiry, including
overpricing and bribery by the Chinese
telecommunications firm of Filipino government
officials.

Further giving credence to the administration’s plan
to implement its agreement on mining venture with
China in Diwalwal was a June 23, 2006 ruling of a
division of the Supreme Court which cancelled all
mining rights and operations in the Diwalwal gold rush
area.

The mining area covered by the court ruling is the
same area covered by the 2006 memorandum of agreement
signed by China and the Philippines.

The court ruling is being disputed by the Mindanao
Gold Mining Corp. through a petition which the Supreme
Court is scheduled to take up in today full court
session in Baguio City.

The minority leader said that the entry of foreign
investors in the Diwalwal mining areas is uncalled for
since Filipinos have proven their capability to
explore, develop and operate these areas for the
benefit of the greatest number of the people.

Pimentel said the government should refrain from
making decisions that will threaten the interest and
livelihood of Filipino miners, big or small, and spark
social discontent in that politically volatile region.
-o0o-

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