Nickel project reopening boosts local economy, creates jobs
MANICANI Island, Eastern Samar—Renewed activity at the long-idled nickel project here of Hinatuan Mining Corp. (HMC) has bolstered the local economy over the past two months , but this may not last long with an impending audit by mining regulators.
In May, HMC started shipping out to China ores from stockpiles that have for 15 years remained undisturbed—except by wind and rain.
The stockpiles are composed of low-grade ores remained in this island of some 2,500 inhabitants—by HMC’s count—since the mine shut down in May 2001.
The Manicani nickel project, then under a different owner, stopped operation partly due to low ore prices and partly due to the death of an engineer allegedly at the hands of anti-mining assailants.
In July 2014, amid a wide-ranging assessment of mining operations in the country, the Mines and Geosciences Bureau ordered HMC to dispose of the stockpiles.
However, it took almost two years before the company secured the necessary permits to move the ores.
Article continues after this advertisementRolando R. Cruz, vice president of operations at HMC parent firm Nickel Asia Corp., said in an interview HMC had hired 495 locals since the shipping of ores started two months ago.
Article continues after this advertisementThe number represents one-fifth of the local population, and one half of adult islanders. The jobs range from clerical work to clearing weeds to doing laundry.
“We have been spending P6 million a month in the payroll,” Cruz told the Inquirer, suggesting that the average pay was about P12,000 monthly.
“We cannot sustain (such expenses) when we stop the disposition (removal) of the ores,” he added.
Last week, Environment Secretary Regina Lopez said HMC had volunteered to stop ore loading activities and submit to an audit of its mining concession.
According to company officials, HMC will suspend ore hauling when it completes loading 50,000 wet metric tons of material onto a vessel docked at Manicani.
On a best-case scenario, when the weather is optimal, loading such a vessel could take just about a week.28
