Military offers to help mining firms
Reuters
First Posted 15:26:00 01/29/2008
Filed Under: Economy, Business & Finance
MANILA, Philippines -- The Philippines has offered to provide security assistance to foreign mining companies after communist guerrillas attacked two sites in the last three months, the head of the military said.
General Hermogenes Esperon said the government was willing to subsidize some of the security requirements of mining companies, offering to organize, train and equip private security guards to protect exploration and production sites from rebel attacks.
"We don't mind subsidizing these companies in terms of security because our government would get something in return in the form of taxes and the number of jobs generated in the provinces," Esperon told foreign correspondents late on Monday.
"We provide these security guards the skills and equipment, but we only ask the mining companies to pay for the daily mess allowance of 90 pesos (about $2.20)."
The Philippines allows 100 percent foreign ownership of mining projects in the country to bring much needed investment into the sector. The archipelago is believed to have about $1 trillion in unexplored mineral wealth.
Only $1 billion has flowed into the mining industry since 2004, but the government hopes this will surge to about $10 billion within the next three years.
On Jan. 1, Maoist-led New People's Army (NPA) rebels attacked a mining camp operated by the Switzerland-based Xstrat on the southern island of Mindanao, burning down seven buildings.
In October, communist rebels torched equipment and vehicles owned by Australia's El Dore in another attack on a high-profile mining project in the country.
Mining secretary Joselito Atienza has vowed to stop these attacks, asking 12 government agencies, including the army and police, to draw up a plan to protect mining projects across the country.
But Atienza rejected creating special military units to guard mining projects against rebels who were extorting money in the form of "revolutionary taxes".
Esperon said he planned to step up army offensives in rebel strongholds in the Bicol region, the central island of Samar and on southern island of Mindanao.
Part of this strategy was to form civilian security forces, called Citizens' Armed Forces Geographical Units (CAFGUs), to guard their own communities, preventing rebels from attempting to regain control and influence.
Esperon said special CAFGUs had also been organized to guard companies, such as mining and plantation, in the provinces of Davao, Surigao, Zamboanga and Zambales.
"In the last six months, I have not received requests from companies to form these special units but we're ready to help and protect foreign investments in the country," he added. (Reporting by Manny Mogato, editing by Raju Gopalakrishnan)
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