Residents of town in Palawan suffer from mine site closure

PALAWAN, Philippines - The temporary closure of a nickel mine in April last year has impacted on local employment and economic activities in the sleepy Narra town in the province, a pilot resettlement community for communist rebel returnees. "It’s sad but the residents are hoping to go back to their jobs," said Narra Mayor Clarito D. Demaala, Jr. The town’s name came from the acronym of the National Resettlement and Rehabilitation Administration (Narra), a state agency created in 1954 to resettle dissidents and landless farmers under Republic Act 1160. The local government, Mr. Demaala claimed, has lost as much as P160 million since the mining site’s development was suspended due to a dispute between the new and previous operators. In San Isidro, a host village to the nickel mines, Platinum Group Metals Corp., which operated the mines since 2004, had supported as much as 500 local workers. Barangay Captain Betty C. Ignacio said downstream businesses started to grow when the residents were hired to develop the 768-hectare mine site. "People started purchasing appliances in cash and some through installment plans." Nowadays, residents are left with nothing and are forced to sell appliances and other possessions to survive. Unlike in other areas, agriculture, an alternative income source, is not a major activity here. "Most of the residents don’t have sustainable livelihood because the soil is unfit for planting rice or other food crops," said Reu Peneyra, municipal agriculture officer. The town’s soil has high iron content and acidic, he added. "When soil has too much iron content, the farmers would have to invest more in farm inputs, which would be too costly. Even then, the harvest would not be good," said Mr. Peneyra. In the past, the town had been the charcoal capital of Palawan and there are indications residents are going back to charcoal-making, which entails illegal cutting and burning of wood especially in the upland areas. Rethur Plaza, president of the fishermen’s association said the locals are reverting to selling charcoal, which also affects fishing livelihood as more mangrove trees are illegally cut. "It was hard for us to arrest the perpetrators because they merely want to survive and feed their families," said Ms. Ignacio during an open forum held here two weeks ago, where around 20 stakeholders from different associations and government agencies attended. The operation of the mines became controversial due to a dispute between recent operator Platinum Group and Citinickel Mines and Development Corp., the operating unit of Oriental Peninsula Resources Group, Inc. The stoppage was due to a pending court case that should determine which group should control the mines. Citinickel representatives were unavailable for comment, but Platinum Group officials said they have not deserted Narra despite a court injunction issued last year. "We still continue our services to the community," said Robert Nieto, general manager of Platinum Group’s Palawan and Surigao mining operations. He said Platinum Group provides educational assistance to the locals although they are yet to go back to the mines. There are 23 college scholars now supported by the company, he added. The Malinao Tagbanua Tribal Association has also supported seven college scholars funded by the percentage share that the association received from the company in the past. The Filipino-controlled integrated ferronickel processing firm has two more mining operations in Surigao del Norte in Mindanao and in Isabela in Luzon. The company is also rehabilitating three smelting plants in Manticao in Misamis Oriental; Iligan, Lanao del Norte; and Danao City, Cebu. - Geefe P. Alba