Warnings raised on Maharlika mining investment

MANILA, Philippines —  The latest investment of the country’s sovereign wealth fund could translate to P31 billion in environmental damage, according to an advocacy group.

In a statement, policy and advocacy group Legal Rights and Natural Resources Center (LRC) claimed that the $76.4 million (P4.4 billion) investment of the Maharlika Investment Corp. (MIC) in the copper-gold project of the Makilala Mining Corp. could result in billions of pesos in environmental damage.

According to LRC’s computation, based on global benchmarks, the investment could translate to P31.15 billion in damage considering that every $1 of mining capital is equivalent to $7 in damage.

“Even considering the lowest and median projections of the study would result in $0.50 to $3.80 in damage,” LRC said.

LRC said the invested funds could have been spent on actual social services and sustainable development needs but were instead diverted to a potentially destructive mining project.

Globally, the cost of mining damage could reach up to $5.19 trillion per year.

Sought by The STAR for comment, MIC president and CEO Rafael Consing Jr. said the wealth fund’s decisions are based on a balanced consideration of economic potential and environmental sustainability.

Consing said that MIC would ensure that all projects it supports operate in a manner that minimizes environmental impact and maximizes benefits for local communities.

“We have conducted extensive due diligence on the potential environmental impact of the project and continue to do so as we update the feasibility study with a global project engineering firm,” Consing said.

He added that Celsius Resources is also bringing extensive expertise in modern extraction techniques and sustainable mining practices.

Consing said that a portion of the loan would be utilized to rehabilitate the old tailings storage facility from the previous operations.

Makilala is expected to utilize the sub-level open stoping mining method with backfilling, eliminating the need for a tailings dam and limiting potential water contamination, habitat destruction and long-term pollution.

LRC said the beneficiary mining company is a subsidiary of an Australian mining firm, Celsius Resources Ltd.. Thus, it claims that essentially MIC is subsidizing a foreign mining company instead of attracting foreign investments.

Last week, Makilala Mining signed a binding term sheet with MIC for a bridge loan facility of up to $76.4 million to fund early works for the Maalinao-Caigutan-Biyog (MCB) copper-gold project in Kalinga.

The financing will support the project’s feasibility study update, front-end engineering design and early development activities, including the construction of a main access road in coordination with the Kalinga provincial government.