Gov't grant of mining operations to ZTE questioned

MANILA, Philippines - A mining firm on Thursday went to the Supreme Court to question the government's "cooperative agreement" with ZTE International Investments, Ltd., the investment arm of the Chinese firm ZTE Corporation, to explore, develop and operate mining sites in Mt. Diwalwal. In a nine-page urgent manifestation and motion filed before the Supreme Court, Southeast Mindanao Gold Mining Corporation (SEMGMC) - a Mindanao-based firm - sought a reversal of the SC First Division's June 23, 2006 decision. The June 2006 decision gave the government full control and supervision over mining operations in Agusan-Davao-Surigao Forest Reserve known as the "Diwalwal Gold Rush Area" after it affirmed the cancellation of all exploration permits earlier issued to other private mining firms. According to SEMGMC lawyer Cirilo Doronila, the ruling paved the way for Malacanang to enter into understanding with ZTE Corp. that gives it the right over mining operations in the disputed Diwalwal site. Doronila said such development came as a surprise considering that the status of the mining areas in Mt. Diwalwal is still unsettled. "The validity of the MOU executed with the ZTE Corporation, as well as the NBN (national broadband deal), has been the subject of controversy and it would be more prudent that this Honorable Court veer away from any involvement on this matter," the mining firm said. At the same time, SEMGMC asked the high court to set the case for oral arguments. SEMGMC noted that the government executed the memorandum of understanding (MOU) with ZTE Intl. on July 12, 2006 or just less than three weeks after the SC First Division issued the subject decision. It further stressed that the signing of the memorandum with ZTE was made even before the June 23, 2006 decision has attained its finality. The first motion to reconsider the decision was filed in August 2006 or almost a month after the signing of the ZTE agreement. SEMGMC's motion for reconsideration is still pending resolution before the SC, and that the proximity of the date of the decision and the execution of the MOU is such that the MOU could not have been executed if not for the decision rendered by the First Division. "By this manifestation, respondent SEMGMC does not, with all due respect to the Honorable Court, suggest any irregularity. In order, however, to remove any cloud of doubt as to the judiciousness of the Court's resolution on the constitutional issue of Proclamation 297, SEMGMC respectfully reiterates its prayer that the resolution of its motion for reconsideration be elevated to the Court en banc and be heard on oral arguments," it said. The assailed ruling of the SC reversed and set aside the Court of Appeals' March 13, 2002 decision upholding the Canada-based Marcopper Mining Corporation's Exploration Permit (EP) No. 133 over the subject area. The First Division held that Marcopper's EP has already expired and that its subsequent transfer to its local subsidiary SEMGMC on February 1994 is void. SEMGMC is a domestic corporation alleged to be a 100 percent-owned subsidiary of MMC. The ZTE project was one of those signed by Trade Secretary Peter Favila as a cooperative agreement to work towards the development and implementation of various investment activities, among them the operation of mining in Northern Davao, the exploration, development and operation of mining areas in Diwalwal and establishment of an economic zone in Davao area. - GMANews.TV