Tampakan project FTAA extended for six more years, or until 2038

3 weeks ago 13
Tampakan 6 2A photo of the mining tenement of Sagittarius Mines, Inc. in the mountains of Tampakan, South Cotabato taken on 29 January 2025. SMI says that open-pit mining is the most viable method to extract the minerals. MindaNews photo by MANMAN DEJETO.

TAMPAKAN, South Cotabato (MindaNews / 19 February) – The Financial or Technical Assistance Agreement (FTAA) granted to the controversial Tampakan project, the largest undeveloped copper and gold minefield in Southeast Asia, was extended from 12 to 18 years – from 2032 to 2038, according to an amended order issued by the Department of Environment and Natural Resources (DENR).

MindaNews recently obtained a copy of the DENR order issued on June 14, 2022 by then acting DENR Secretary Jim Sampulna, 16 days before Rodrigo Duterte stepped down as President.

This is the second extension of the FTAA and the second time residents of South Cotabato learned, belatedly, about the extension.

The 12-year extension – from 2020 to 2032 – was approved on June 8, 2016 by Leo Jasareno, then national director of the DENR’s Mines and Geosciences Bureau (MGB).

Jasareno’s order cited as reasons for extension the cases filed against the FTAA; the provincial government of South Cotabato’s passing of an ordinance in 2010 banning open pit mining, the method that will be employed by the Tampakan project; and the issuance of CLOAs (Certificate of Land Ownership Awards) within the contract area “are determined to be acts beyond the reasonable control of SMI or Force Majeure.”

Force majeure, it said, is a “justifiable cause” for the extension of the FTAA.

The approval came 22 days before Benigno Simeon Aquino III stepped down as President and Duterte took over.

Like the first extension,  no announcement was made about the second.

The Diocese of Marbel learned about the second extension — March 22, 2032 to March 22, 2038 — only recently, after it filed a petition last October 4 asking a local court in Koronadal City to void the 12-year extension granted to the FTAA of Sagittarius Mines Inc. (SMI), developer of the Tampakan project.

The FTAA, which has a life span of 25 years, was set to expire on March 22, 2020.

FTAA No. 002-95-XI was originally granted to Australian firm Western Mining Corp. (WMC) on March 22, 1995. SMI acquired the FTAA from WMC in 2001 with the approval of then Environment Secretary Heherson Alvarez.

Shocked

MindaNews learned about the June 2016 decision to extend the FTAA from March 22, 2020 to March 22, 2032 during a sit-down interview with then MGB – Region 12 director Felizardo Gacad Jr. at his office in Koronadal City.

Marbel Bishop Cerilo Casicas told MindaNews on February 13 that they were shocked to learn that the Tampakan FTAA’s extension was amended from 12 to 18 years, or from 2032 to 2038.

Bishop 10 2Marbel Bishop Cerilo Casicas, D.D., stresses a point during a sit-down interview at the office of the Social Action Center of the Diocese of Marbel on 13 February 2025. MindaNews photo by MANMAN DEJETO

“What’s amazing here is that it’s no longer extension. They changed the term extension into restoration,” Casicas said.

Sampulna’s June 2022 order was titled “Restoration of the Lost Term of the Financial or Technical Assistance Agreement No. 02-95-XI-Amended granted to Sagittarius Mines, Inc.”

In seeking  another extension SMI cited, among others, peace and order problems, the open-pit ban imposed by the South Cotabato provincial government, DENR’s cancellation of its ECC on  February 14, 2017 (which the Office of the President restored on May 6, 2019) and the declaration of the COVID-19 pandemic in 2020.

 “The above problems encountered by SMI … are determined to be acts beyond the reasonable control of SMI or force majeure covering for a total period of 18 years,” Sampulna’s order stated.

Sampulna’s June 2022 order said the June 2016 extension until 2032 “is hereby amended by restoring the lost term of FTAA No. 02-95-XI-Amended for a period of 18 years from the expiration of its first 25-year term … and such term shall now expire on March 22, 2038.”

“Wala gid mi kabalo ana ba” (We didn’t know about this), Casiscas told a MindaNews team at the office of the Social Action Center of the Diocese of Marbel.

The Bishop noted that there are groups monitoring the DENR’s website for contracts, extensions and cancellations but “wala na sya mogawas didto” (that did not appear there).

He said they only learned about the 18-year extension “around December” after SMI responded to their court petition filed last October to void the 12-year extension.

The Bishop said both extensions lack transparency because they were not made public as soon as the orders were issued. It took four years before the public knew about the 2020 to 2032 extension and it took 2.5 years before the public learned about the 2032 to 2038 extension.

MindaNews sought Efren Carido, director of the Mines and Geosciences Bureau – Region 12, for an interview on February 13 but was told that the DENR central office still needs to issue a clearance to face the media.

“Key driver”

MindaNews interviewed Carido by phone on April 11, 2023 involving the illegal banlas operations within the Tampakan project mining tenement. (Read: Illegal mining, loose guns linger in Tampakan mining tenement)

The new policy on seeking clearance first from the DENR main office was issued by Environment Secretary Maria Antonia Yulo-Loyzaga on April 25, 2023, a copy of which MindaNews was furnished.

In his keynote address at the Philippine Mining Club on August 4, 2023, Roy Deveraturda, SMI president and chief executive officer, talked about the Tampakan project, highlighting its economic contributions.

“A project of this size has the potential to be a key driver in economic prosperity, industrial growth and social development not only in its host communities, but more so for the entire island of Mindanao, and the country as a whole,” Deveraturda was quoted as saying in an article published on September 12, 2023 by Philippine Resources, a magazine about the mining and construction industries.

The article noted that the Tampakan project “obtained an FTAA that expires in 2038, and renewable for another 25 years.”

“It will create thousands of jobs, build roads and other life sustaining infrastructures. It will also bring basic utilities like clean water and low-cost electricity to the communities. It could provide solutions to poverty, ignorance, hunger, and disease,” Deveraturda, a retired military general, added.

Revoke extension

On October 4, 2024, some 1,000 people marched in the streets of Koronadal City, the capital of South Cotabato, to petition a local court to cancel the 12-year FTAA extension of SMI.

Casicas led the filing of the petition voiding the 12-year extension.

1004 ftaa petitionResidents of South Cotabato and neighboring areas brave the heat to file a case challenging the 12-year extension granted to the Tampakan project in Koronadal City on Friday, 4 October 2024. MindaNews photo by BONG S. SARMIENTO

Aside from Casicas, the other petitioners are the Columbio Multi-Sectoral Ecology Movement Inc., La Bugal B’laan Tribal Association Inc., Nagkakaisang Magsasaka ng Libertad Irrigators Association Inc., Maligaya Communal Irrigators Association Inc., New Bantangan Farmer’s Association, and San Jose Mabini Irrigators Association.

The Cacub Irrigators Association Inc., Marbel 6-Concepcion Irrigators Association, Tampakan Irrigators Service Development Association Inc., and Sitio Cadedang Communal Irrigators also joined the petition.

These groups are based in Tampakan and Koronadal City in South Cotabato and Columbio in Sultan Kudarat.

Named respondents are Executive Secretary Lucas Bersamin, DENR Secretary Yulo-Loyzaga, MGB OIC-Director Atty. Danilo Uykieng and SMI.

Casicas said that they have conferred with their lawyers about their next move after learning that the Tampakan FTAA was extended from 12 to 18 years. (Bong S. Sarmiento / MindaNews)

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