DENR freezes Intex's permit for $2.4-B nickel project

Posted at 11/18/2009 8:20 PM | Updated as of 11/18/2009 8:24 PM

MANILA - The Department of Environment and Natural Resources (DENR) on Wednesday suspended a mining permit given last month to the $2.4 billion nickel project of Norwegian firm Intex Resources ASA following opposition from local communities.

"I have directed the Environmental Management Bureau to immediately suspend the environmental compliance certificate of Mindoro Nickel Project until such time that a genuine public consultation shall have been undertaken involving the concerned local government units, the Church and other interested groups," DENR Secretary Lito Atienza said in a statement.

The provincial government of Mindoro, an island in the central Philippines, said there was no consultation between the government, Intex and the local communities on the mining project, which residents say sits on a watershed.

About 2 dozen people, including members of a tribal community, priests, local officials and some residents began a hunger strike in front of the environment ministry on Tuesday to force the government to revoke the mining permit.

Atienza has ordered the inspection of the mining site by a team composed of representatives from the government as well as the Church.

The mine has estimated reserves of more than 2 million tons of nickel. Intex secured its mining permit on October 14.

The government had scrapped a permit for the same nickel project in 2001 after finding out that the mine site was located on a watershed.

The Philippines is targeting its mining sector, one of the world's largest and most lucrative in the early 1970s, to attract up to $14.5 billion in investments by 2013.

But only around $2.4 billion has flowed in since 2004 due to communist insurgencies, disputes with communities and local partners and opposition from the Catholic Church. - Report from Reuters


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