PHL Awards P2.3T Gold Mining Contract to Foreign Firm

05/27/2015 | 12:22 0 Posted in Environment, Local Issues

05/29/2015 – Bacolod City | The town of Hinobaan, the southernmost municipality of Negros Occidental caught international attention on 1982 following the discovery of golden nuggets on its rivers. In just couple of weeks, hundreds of hectares of forest have been dug by people from all over the Philippines and even the nearby Malaysia and Indonesia.

The Hinobaan gold rush did not lasted long though. Many people made fortunes and others also lost their lives due to landslides and related illness like Malaria and Typhoid Fever.

In 2008, a local resident reported to found 3.8 kilograms of pure 24-carat golden nuggets in just 4 hours of panning. The find was reported to cost P6.5M, enough for the family to relocate to town proper and secure their lives. Small finds were also reported since then and the news once again reached mining companies around the world.

Rio Tinto, one of the largest mining companies submitted a proposal 5 years ago when the government announces it would seek bidders to mine the 652 square kilometers of National Forest. Twelve other companies were reported to submit their proposals but after almost 5 years of lengthy process and natural considerations, the government has decided to award the bulky 30-year contract to the British-Australian mining company.

A local mining company owned by Lopez Group of Companies has been operating in the area with several sites for decades with different levels of success. The area given to Rio Pinto covers the towns of Hinobaan, Candoni, Ilog, and Cities of Sipalay, Kabankalan, Bayawan City, and Mabinay on Negros Oriental side.

The contract is the biggest mining project the Philippine government has awarded to a foreign investor and it is expected to provide more than 20,000 local jobs. Natural Parks are not included in the areas to dig according to the sources.

The groundbreaking ceremony is scheduled on June or July, 2015 in the Municipality of Hinobaan, Negros Occidental.

/Fanny Jalacjac/ Assisted Press Bacolod