Mining firms in dispute over Palawan properties

Platinum Group Metals Corp. has threatened to ask the court to cite the operating unit of listed Oriental Peninsula Resources Group for contempt if it tries to stop PGMC from operating nickel mines in Narra and Sofronio Espanola, Palawan. In a statement, PGMC said Citinickel Mines and Development Corp. can not cancel an agreement giving PGMC the right to operate mines. PGMC made the statement following a report which said Citinickel is planning to terminate the mining contract of PGMC after a decision of the SC which recognized that Citinickel is the successor-in-interest of Olympic Mines and Development Corp. Olympic Mines has transferred its application for mining agreement, including its rights to Citinickel. It claimed that PGMC committed gross violations in the operation of two nickel mine sites in Palawan. However, PGMC insisted that, based on an earlier case decided by the Supreme Court, PGMC had substantially complied with the terms of the operating agreement and had not committed the alleged violations. “More importantly, the SC points out that this ruling was never appealed by Olympic(/Citinickel). The issue has thus been settled in favor of Platinum," PGMC said. But Oriental said the validity of the termination of the operating agreement remains an issue and has yet to be resolved by the court. RTC Palawan had ruled in favor of PGMC which claimed that Citinickel and mining claim owner Olympic Mines had violated PGMC’s operating agreement with Olympic after Olympic unilaterally voided its agreement with PGMC and signed a similar agreement with Citinickel. The Panel of Arbitrators, on the other hand, had favored Citinickel-Olympic after claiming jurisdiction on the case. The counsel of PGMC said that if the SC junks a second motion for reconsideration filed by Oriental-Citinickel said the Palawan RTC will resume hearing mainly to finally declare who has the right to mine the property. -Cheryl M. Arcibal, GMANews.TV