Brighter Mining Future for Balabag-Bayog, as Philippines Shuts Down 80 Illegal Mining Sites

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Researched by Industrial Info Resources (Sugar Land, Texas)--The government of the Philippines, through the National Bureau of Investigation (NBI), has shut down about 80 illegal mining sites in the small town of Bayog, Zamboanga del Sur, that allegedly were operated and protected by a group of small-scale miners led by a municipal councilor.

The shutdown came following a tip-off by Antonio Cerilles, the governor of Zamboanga del Sur, who raised concerns before the Mines and Geosciences Bureau (MGB) on the supposed unabated, illegal mining operations in Zamboanga del Sur.

In a letter to the NBI dated September 5, 2012, the governor reported the presence of heavily armed persons acting to protect some groups who are conducting illegal mining operations in the towns of Sitio Balabag, Barangay Depore, and Bayog.

"These groups are publicly seen with high-powered firearms and have been exerting all efforts just to continue their illegal mining operations," the governor said.

He explained further that the miners are using mercury in their mining operations, which is prohibited by Section 11(e) of Executive Order 79, issued by Philippines President Benigno Aquino III.

"Indeed, if there is anything that needs immediate action this time, it is the stoppage of all forms of illegal mining, as they have been using explosives and toxic chemicals, such as mercury, in order to extract more minerals," the governor said.

In a swift reaction to Governor Cerilles' report, the Philippines government decided to invade the said mining sites with a team of combined armed personnel from the Police, Philippines Army and the NBI.

The operations started on Tuesday, October 23, targeting small-scale miners who are members of the Monte de Oro Small Scale Miners Association, operating in Balabag Hill in Bayog town, where the TVI Resource Development (Philippines) Incorporated (TSX:TVI) (TVI) also operates.

It was a deadly adventure for the combined taskforce, who had to narrowly escape a roadside mine explosive buried by the illegal miners to check intruders. However, they succeeded in dismantling dozens of rod mills and other structures used by the illegal miners, and took some chemical explosives for legal evidence.

Speaking to reporters, after the incident, an official of the NBI said: "The team's primary objective was to assist the Mines and Geosciences Bureau in securing the pieces of evidence needed to prosecute the offenders. The handling, transport and custody of evidence will be done by the Department of Environment and Natural Resources personnel and the local government units."

The right to mining in the Balabag tenement of Zamboanga del Sur was solely and officially granted to TVI in 1999, but the activities of illegal miners have reduced it into a mere competition for decades, with attendant violence and theft challenges. In July 2012, a private security guard, in an act described as "self defense," reportedly shot dead one of the illegal miners, who was said to have attempted to steal some chemical explosives belonging to TVI.

TVI is currently developing a $65 million gold-silver mine and processing plant project in the Balabag province, and had earlier declared its mining feasibility study to the Philippines Bureau of Mines Geosciences in April 2011. However, the project became delayed by the impasse of the popular mining law reforms in the Philippines, including Executive Order 79 (EO79), and was badly affected by the activities of illegal miners in the area.

Now that the government has stepped in to handle the situation, some stakeholders in the mining industry in Philippines and officials of TVI have expressed hope that a brighter mining future has returned to the region.

"We are happy that authorities finally enforced the government order to put a stop to all illegal mining activities in Balabag," said Lullie Micabalo, a spokesperson for TVI.

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