TVI Pacific Canatuan drilling delayed
TVI Pacific Inc TVI
Shares issued 107,529,821 Oct 18 close $0.065
Tue 19 Oct 99 News Release
Mr. Cyrus Ameli reports
The completion of the drilling program at the company's Canatuan site in
Zamboanga del Norte on the island of Mindanao, Philippines, has been
temporarily delayed as a result of picketing by a small group of
approximately 50 demonstrators. The drilling program is being undertaken as
part of the terms of a letter of intent to joint venture and develop the
project with a major Japanese group.
The demonstrators, the majority of whom were apparently paid to travel to
the site from outside the area to oppose TVI's activities, commenced
picketing on Aug. 17 as TVI began moving its drilling rig to the first
drill site. TVI immediately ceased operations to avoid a confrontation with
the protesters. On Aug. 27, the Siocon regional trial court granted relief
to TVI and issued a temporary restraining order. The TRO was subsequently
implemented by the Philippine National Police, thereby allowing TVI to
continue with its drilling program. There was no involvement by TVI or its
representatives in implementing this order and, contrary to reports
published recently, at no time during these events were any protesters
illegally detained, injured or otherwise mistreated. After extensive
hearings at which both TVI and representatives of the protesters presented
their cases, an injunction against the protesters was issued.
After the drilling of two of the planned five holes was completed, the
picketers reappeared, claiming that the TRO did not apply to them. TVI once
again ceased operations to avoid a confrontation with the protesters. The
company is seeking a further restraining order and injunction that will
specifically name all of the parties involved and expects this to be
awarded within a week. TVI has been notified by the PNP that the current
injunction will be enforced in the near future, and expects that the
drilling program will resume shortly and be completed without further
delay.
The parties that comprise the demonstrators have been identified as either
members of the Canatuan Small Scale Miners Multi-Purpose Co-operative, the
Siocon Subanon Association, Inc., and various non-governmental
organizations, including the DIOPIM Committee on Mining Issues, or paid
demonstrators brought in from outside the area for the express purpose of
picketing on behalf of these groups. The CSSMMC demonstrators are said to
represent Eddie Cayabyab, one of the self-styled area owners, who is
currently engaged in illegal small scale mining activities on TVI's
property at Canatuan. Illegal small-scale mining at Canatuan has involved
the active use of child labour, the clear-cutting of forests and pollution
of the local environment. The CSSMMC, represented by its leader, "Boy" Lim,
comprises 14 so-called area owners. It has expressed an interest in
settling with TVI as soon as possible, so that the small scale miners can
leave the property. To this end, settlement agreements have been entered
into recently with these area owners.
The SSAI is led by Jose Anoy, a Subanon from the area who holds a
certificate of ancestral domain covering the Canatuan area. TVI is advised
that under Philippine law the CADC confers certain rights and
responsibilities on its holder; however, TVI's mineral production sharing
agreement rights take precedence over those conferred by the CADC. This
regime has been confirmed and reinforced by the recent court hearings, by
independent reports of the National Commission of Indigenous Peoples (a
national body that regulates CADC issues) and by the Mines and Geo-Sciences
Bureau, an office of the department of environment and natural resource
(which regulates MPSAs). The demonstrators are claiming that the SSAI,
through their CADC, have a prior claim to the area. TVI has been informed
that this claim is without merit. Furthermore, the NCIP is currently
investigating the validity of the SSAI CADC and apparent irregularities
surrounding its issuance.
Several independent investigations were recently conducted into the current
situation at Canatuan, including the demonstrations. These were prompted by
recent, grossly inaccurate and highly exaggerated articles that appeared in
the Philippine press. One of the investigations was led by the regional
director of the National Commission of Indigenous Peoples, Perla De Castro.
Another was conducted, separately, by the regional director of the Mines
and Geo-Sciences Bureau, Dean P. Apao. Both reports concluded that there
was no evidence of any human rights violations and that the PNP (which
enforced the TRO) "exercised maximum tolerance in dealing with the
picketers." Both investigations also validated TVI's right to exclusively
operate in the area, refuted the adverse claims that have been made against
the company and advocated a rapid resolution to the matter so that TVI may
continue with the development of Canatuan.
A representative of one of the Dipolog Catholic church groups also visited
the site to investigate the situation, and is reported to have expressed
his strong disapproval of the apparent gross fabrication of information
being generated by the anti-TVI elements.
TVI's exclusive legal rights to develop and mine the Canatuan property
derive from many permits that have been awarded to the company, including a
valid mineral production sharing agreement and an environmental compliance
certificate. The process of acquiring these permits was a lengthy and
comprehensive one, involving exhaustive public hearings and an
all-inclusive community relations and environmental planning program. TVI
has contributed, and will continue to contribute, a great deal to the
welfare of the local populace, providing employment, educational
scholarships and assistance, housing assistance, medical services and
community development assistance.
The company believes that a solution to the difficulties that have delayed
the current work at Canatuan is close at hand. It is pursuing both a legal
resolution and a negotiated settlement with all of the parties concerned.
TVI has always received and is still receiving, strong support from the
local community and municipal, provincial and national governments. The
Subanen of Siocon, the indigenous residents of the Canatuan area, recently
circulated a petition which is to be submitted shortly to Secretary Antonio
Cerilles of the DENR. The petition has apparently been signed by the
majority of community members, including Canatuan Subanen small scale
miners. It expresses their "strong support for the continued operation of
TVI Pacific group of companies in Canatuan." The petition also confirms
TVI's observation that the groups opposing the company "are not from Siocon
... and do not respect the rights of indigenous people (Subanen) in Siocon,
Zamboanga del Norte."
The office of the President has also expressed its interest in accelerating
the development of Canatuan and has organized a meeting of
intergovernmental agencies, including the NCIP, DENR (MGB), PNP, governor's
office and social welfare department, which is scheduled for Nov. 10 to
address the situation. The company is certain that its long-term
involvement in the area will benefit both the company and the residents of
the Canatuan region.
Project and joint venture status
TVI has continually kept its prospective joint venture partners fully
informed on developments at the Canatuan site and is encouraged by their
continued support for the project and for the company's efforts to resolve
the situation in a peaceful manner and as quickly as possible.
WARNING: The company relies on litigation protection for "forward-looking"
statements.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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