MFL-MFN, this is prior day news outlining the MFN position
Mr Bachelor Sergio Granados / Secretary General of the Government of the State of Chihuahua
Present
In his capacity as mediator to resolve the conflict we have experienced in recent months between the assembly's permanent Ejido Huizopa and this company, we inform you that yesterday evening, we received from the Directorate of the Interior response through Deputy Victor Quintana, gives us the Ejido for the initiative that we put in their hands last Tuesday, 12.
After analysing the proposal, the company estimated the cost of the request of the ejido in more than 2 billion pesos, equivalent to more than half the value of the Corporation in the market.
Faced with these demands, offering the company to pay 60 million pesos to start the work of exploitation, can hardly be closer to the expectations of farmers. This situation was already taking shape at the table of dialogue, which only made progress in the environmental and social issues, but was unable to resolve the economic demanding on pay additional income to the already paid for more than 39 million pesos through the usufruct contract, plus 50% of the profits from the mine.
The mine will have no profits by 3 billion dollars ejidatarios and his advisers calculated. This perception has tainted the possible negotiation.
The company has acted in good faith, trusting in the rule of law, in word and commitments made between the ejido and the company. Thus, CMD paid the rent of land in a single exhibition, as was requested by them, built a community center for 42 houses, school and kindergarten, lounge ejido, public offices, clinic equipped first level, church, roads, sports fields, urban infrastructure (electricity, drainage, water, among others which are provided at no cost to residents), paid relocation to each of the villagers, trained personnel in the region and its current operational plan consists of the 43% of residents of the area, and a total of 75% of total workers are Chihuahuense. It also provides scholarships to students from children of farmers and students from the village of Dolores.
Moreover, today the President and CEO of our corporation was at the Autonomous University of Chihuahua, delivering for the third time amounting to 25 thousand U.S. dollars, aimed at supporting college students for careers of Geology and Mining Engineering and Metallurgy of this house Study, to be young Chihuahuense the main beneficiaries of the new mining boom in the mountains.
The company has invested for the benefit of Ejido Huizopa more than 124 million pesos, of which 67 million have been paid in cash and directly to the ejido, which has made the distribution among its members, in addition to more than 57 million pesos in infrastructure, which today is part of the heritage of Ejido.
All this we have done so out of conviction and to build a relationship of harmony and cooperation with the inhabitants of Ejido. CMD understands that reaches a community with which he would share his fate, so in a manner respectful has tried to help improve the quality of people's lives.
Analysis of the counterproposal presented by the Ejido on August 13, 2008.
1. CMD is unable to afford a new centre of population elsewhere in 788 hectares.
2. CMD offered a contribution of 12 million pesos to the efforts of State Governments, Federal and Municipal for the construction of the proposed road Dolores - Wood. The company did not propose assume the entire cost of construction, since in any case is the authority which plans, builds and provides maintenance to roads. If the Ejido submit a stroke of the way for the construction company, said the project should be handed over to the competent authorities.
3. We regret that not accept the establishment of a fund to support productive projects, as was demand for many farmers to enter the development of mining in the region, through honest work. Paying an income of 40 thousand pesos per hectare each year, ie 48 million annually in total 720 million pesos, in addition to what has already been paid by contract for a public company whose investors already covered this concept across the consideration of the usufruct contract is legally and economically unviable.
Joining ejidatarios of liquid profits of the company by 25%, no longer by 50% as originally raised, is also a demand impossible to meet, as they have expressed the same federal and state authorities repeatedly.
4. With respect to the granting of concessions and contracts to firms ejido, we agree and we have been promoting. However, cancel contracts to companies that currently provide services to the mine in canteens, transport, pipes and machinery for granting an exclusive basis to ejido, as well as affect many families who have set up their effort with businesses in Madera and in Chihuahua , Puts them at risk of disappearing.
5. With regard to our commitment to providing training, we are pleased to know that there is interest at this point.
6. As for the usufruct contract signed with the ejido, approved by a majority of the members of the assembly (83%), and with the backing of federal authorities and testified for the state, if the Ejido it considers invalid and illegal, undoubtedly judicial review is the right way to settle the matter. We regret that our offer to purchase the land for ten times the value of an appraisal, find it a mockery and this was never the intention of CMD.
In relation to other demands, declare that:
a) In the environmental issue, the company has already submitted its proposal in this regard at the table of dialogue, with a backing of 85 million pesos and remains committed.
b) In relation to the use of water, CMD reiterates that only use authorized by the National Water Commission also built plant and wastewater treatment to prevent pollution of streams and Aguaje.
Finally, it is important to mention that the site is worthless if someone does not do the necessary investments to find, explore, examine its technical feasibility, economic and productive for finally extracting and processing the ore. CMD has devoted 14 years of work, large investment and yet began the production stage.
Sincerely.
Gregg Bush / vice president of operations |
