BHP quits Phil mine after Caritas campaign

Published Date: January 12, 2010

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Anglo-Australian mining giant BHP Billiton has pulled out of a nickel mining project in the Philippines following a campaign by English Caritas agency, CAFOD.

BHP Billiton’s 40 percent stake in the US$22.7 billion project was sold to local joint-venture partner AMCOR (Asiaticus Management Corp), UCA News reports.

“It looks like (AMCOR) will proceed with the nickel mine,” said CAFOD’s extractives policy analyst, Sonya Maldar.

CAFOD is continuing its call for a new consent process before work starts on the mine at Macambol in Davao Oriental province.

“Given the serious flaws in the official consent process, AMCOR and any future partners in the project cannot use this to push ahead with mining in the area,” Maldar said.

“There must be a new consent process that is genuinely free and fair.”

Lila Paglinawan of the Philippine lobby group the Interfaith Movement for Peace Empowerment and Development (IMPEDE) said: “We fear the impact of this huge mining project on the environment and the livelihoods of farmers and fishermen in Macambol and beyond.”

Launching its campaign in 2008, CAFOD claimed that local people were kept in the dark about the project which, it said, could lead to soil erosion, landslides, flash floods and pollution that could affect the livelihoods of 65,000 people.

The site is close to two designated areas of outstanding natural beauty, the Hamiguitan mountains and Pujada bay.

CAFOD claimed that government officials and AMCOR had offered bribes to gain support for the mine and to silence criticism.

More than 6,000 cards, emails and protest letters were sent to BHP Billiton.

Last August, the company said it was still committed to the project though a dispute with AMCOR had led to work ceasing. According to the Philippine publication Business Insight Malaya, AMCOR had wanted to start work immediately and BHP Billiton had wanted to delay until 2015.

Only last month, BHP Billiton denied that it was pulling out of nickel mining worldwide despite a drop in the price of the metal.

SOURCE

Mining company quits project after Church campaign (UCA News)

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