InterAksyon.com
The online news portal of TV5
MANILA, Philippines - The unit of the country’s largest nickel producer has resumed operations after members of the New People’s Army attacked its mine site and several others within the same area in Surigao del Norte on October 3.
Nickel Asia Corp. disclosed to the Philippine Stock Exchange Wednesday that the damage suffered by its unit, Taganito Mining Corp. (TNC), amounted to P500 million in replacement value of the equipment and structures destroyed by the insurgents.
“TMC has more than sufficient funds to cover the damage and is embarking on a procurement program to replace the damaged equipment and to repair the structures,” Nickel Asia said. It added that it sees no significant reduction in ore tonnage for the year.
The parent firm said TMC is now operating and in three weeks it would start loading operations for its nickel ore. Until then, the shipments are diverted to Nickel Asia’s other mines. About a quarter or 500,000 wet metric tons of total shipments from TMC have been scheduled for delivery this fourth quarter.
Nickel Asia also said that the damage caused on the adjacent nickel processing plant is also minimal but it could not give an estimate on the value of the damage inflicted on the project, which is still under construction.
“It is apparent that the insurgents are not happy with economic progress in this part of Surigao province accelerated by the commencement of this project. The project employs 6,000 people and the impact of this on the local economy had been significant and palpable,” Gerard H. Brimo, Nickel Asia president and chief executive officer, said.
“The populist rhetoric that followed the armed raid is unadultered propaganda, which has no demonstrable basis in fact. TMC stands by its exemplary social and environmental record for the past 24 years, which have earned the company various awards in these fields,” he added.
Industry players have said that the NPA attacks have created fear among investors and showed the government’s weakness in protecting huge investments in the rural areas where these mining companies operate.
Police said about 200 NPA guerrillas have attacked several mine sites in Surigao del Norte. They briefly took some TMC employees hostage and burned trucks, excavators and a guest house. A mine run by Platinum Metals Group was also attacked as a payback for the alleged environmental damage caused by mining operations of these firms.
“Whatever may have been the political agenda for this unfortunate incident, the company will not be deterred in its mission. We will proceed with the project and our partners join us in this resolve,” Brimo said.
