Digging for profits: Who owns PH mines?

QUICK FACTS

Name of mining firm: Oriental Vision Mining Philippines Corp.
Location: Tubajon, Libjo, and Cagdianao, Dinagat Islands
Mining area: 2,314.20 hectares
Metals extracted/mine products: Nickel
Mining permit period: 2007-2032
Total manpower complement: 205

 

OWNERSHIP

Incorporation date: March 4, 2008

Stockholders:
Eminent Fame International Ltd.
Borja, Ferdinand S.
Adnama Mining Resources Inc.
Lorenzana, Carmen
Crisologo, Allan L.
Tuyac, Ulfredo A.
Chen Fang

Chairperson of the Board: Chen Fang

 

MINING REVENUE 

Current assets: P120.52 million (2018)
Current liabilities: P271.09 million (2018)
Revenue from sale of ore: P135.95 million (2017)
Net income: -P104.23 million (2018)

 

MINE AUDIT FINDINGS (2016/2017)

According to the Notice of Issuance of an Order sent to Oriental Vision on Feb. 8, 2017 pertaining to operations under Mineral Production Sharing Agreement No. 242-2007-XIII, the company had violated certain provisions of:

  •  PD 1586 or “Establishing an Environmental Impact Statement System, including Environmental Management-related Measures and for other Purposes”;

  •  DAO 2003-30 or the IRR of the Philippine Environmental Impact Statement (EIS) System;

  •  RA 8749 or the “Philippines Clean Air Act of 1999”;

  •  RA 6969 or the “Toxic Substances and Hazardous and Nuclear Waste Control Act of 1990”;

  •  DAO 2013-22 or the “Revised Procedures and Standards for the Management of Hazardous Wastes”;

  •  RA 7942 or the Philippine Mining Act of 1995;

  •  DAO 2010-21 or the Revised IRR of RA 7942;

  •  DAO 2000-98 or the Mines Safety and Health Standards; and

  •  DAO 2015-07 Mandating Mining Contractors to Secure ISO 14001 Certification.


Field validation by the DENR determined that Oriental Vision’s mining operations had impaired the functions of the watershed in the area and are causing siltation of the coastal waters.

The DENR review of the audit report as well as explanations from the company showed that it had violated certain provisions of the following laws, rules, and regulations:

  • PD 1586 or “Establishing an Environmental Impact Statement System, including Environmental Management-related Measures and for other Purposes”;

  • DAO 2003-30 or the IRR of the Philippine Environmental Impact Statement (EIS) System;

  • RA 8749 or the Clean Air Act of 1999;

  • DAO 2004-26 amending Rule XIX of DAO No. 2000-81 (IRR of RA 8749);

  • RA 6969 or the “Toxic Substances and Hazardous and Nuclear Waste Control Act of 1990”;

  • DAO 2013-22 or the “Revised Procedures and Standards for the Management of Hazardous Wastes”;

  • RA 7942 or the Philippine Mining Act of 1995;

  • DAO 2010-21 or the Revised IRR of RA  7942;

  • DAO 2000-98 or the Mines Safety and Health Standards; and

  • DAO 2015-07 Mandating Mining Contractors to Secure ISO 14001 Certification.


The above violations, according to the order, constitute sufficient grounds for the cancellation of the firm’s MPSA.    

The full report and/or copy of the DENR order may be viewed here.

 

STATUS OF RECOMMENDATIONS / COMPANY RESPONSE (AS OF MARCH 2022)

PCIJ sent a letter to the company on Feb. 21, 2022, and called its offices on March 2 and 16, 2022. We have not received a response as of this writing.
 

STATUS OF OPERATIONS

In February 2017, former Environment Secretary Gina Lopez ordered the closure of 23 mines, including Oriental Vision Mining Philippines Corp.

According to an October 2017 Interaksyon report, Oriental Vision was among the firms in the Caraga region that had filed appeals and motions for reconsideration, which allowed it to operate in the meantime.

No update on the status of the mining company could be found. The results of a review by the Mineral Industry Coordinating Council have yet to be released as of writing.

 

IN THE NEWS

Lopez orders closure of 23 metallic mines
Dinagat village chiefs warn of bloodshed if mining enters their place
Mining industry in limbo

 

Sources: 

General Information Sheet, 2020
Financial Statement, 2019
List of existing Mineral Production Sharing Agreements, Mining and Geosciences Bureau
Philippine Metallic Mineral Production, Mines and Geosciences Bureau
Poverty and socioeconomic indicators, Philippines Statistics Authority

Copy of full Mine Audit Reports by company, 2016
Copy of Notices of Issuance of an Order, 2017
Copy of Orders of Cancellation and/or Suspension, 2017

Acronyms used:

RA (Republic Act)
IRR (Implementing Rules and Regulations)
PD (Presidential Decree)
DAO (Department Administrative Order)
MPSA (Mineral Production Sharing Agreement)
SDMP (Social Development and Management Plan)

 
Disclaimer: The mine audit was conducted in 2016 after Regina “Gina” Paz Lopez assumed the post of environment secretary. The findings in the reports, which authorities sent to the mining firms in 2016, were likely addressed in the succeeding years following a review conducted by the Mining Industry Coordinating Council after the audit led by Lopez, who died in 2019. PCIJ has verified the reports and reached out to each company for comment. We suggest you also confirm findings included in the reports as some information may have changed over time.

The reports come from files that PCIJ has received in connection with various environmental investigations. We are releasing them in full, recognizing the public value of the files to mining communities, miners, policymakers, civil society, and researchers.

Note: The Human Development Index is a measure of how well a country has performed, not only in terms of real income growth, but also in terms of social indicators that measure people's ability to lead a long and healthy life, acquire knowledge and skills, and have access to the resources needed to afford a decent standard of living. An HDI value below 0.550 is considered low and below 0.399 is very low. The national average for the Philippines is 0.718 as of 2020.

This article was produced with the support of Internews' Earth Journalism Network.