A MINING FIRM facing the prospect of having to shut down an operational site has gone to court to contest a provincial government’s move to ban open-pit extraction.
TVI Resource Development Philippines Inc. (TVIRD), a unit of Canada-based miner TVI Pacific, Inc., yesterday said it had asked a Dipolog City court to issue a temporary restraining order (TRO) against a Zamboanga del Norte ordinance that took effect last week.
The company’s move marks the first legal challenge to local government moves to limit mining operations. Last year, the province of South Cotabato issued a similar ban on open pit mining that could scupper Sagittarius Mines, Inc.’s planned Tampakan gold-copper project.
“[The firm has] launched an action in court for a … TRO and/or a preliminary injunction against any officers, agents, employees, representatives and anyone acting on behalf and within the control of Zamboanga del Norte from implementing an ordinance banning open pit mining in the province,” TVIRD said in a statement.
The miner last week said it would seek to exhaust “all legal remedies” to nullify the provincial ordinance, which mandates a halt to operations at the firm’s Canatuan copper mine a year from now.
The firm, in its petition, reiterated its claim that the Zamboanga del Norte ordinance was “unconstitutional and invalid.”
It also argued the ordinance was contrary to provisions under the Local Government Code of 1991 and the Philippine Mining Act of 1995. The national government has spoken up against the bans but has so far favored settling the matter at the local level.
The government, TVIRD claimed, “stands to lose not only the revenue from the mining operations but also hamper its policy to encourage foreign and private sector investment in the mining industry.”
Mines and Geosciences Bureau director Leo L. Jasareno last week said his bureau was studying measures to resolve the situation. MGB officials were not immediately available for comment yesterday.
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By: KAM
Source: Business World, Nov. 9, 2011
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