Defend Patrimony demands permanent closure of Rapu-Rapu mine, accountability and responsibility from Arroyo, DENR, and Lafayette

Defend Patrimony Press Release
18th December 2007
http://www.minesandcommunities.org/Action/press1775.htm

Anti-mining liberalization alliance Defend Patrimony today pressed for the permanent closure of the Arroyo administration's first foreign-owned showcase mining project in the Philippines owned by financially-troubled Lafayette Mining Limited (LML) of Australia.

LML owns 74% of Lafayette Philippines Inc. which runs an open-pit mine in Rapu-Rapu island in Albay. LML Board of Directors yesterday declared that they will be undergoing 'voluntary administration', transferring control of the company's business, property, and affairs to Australia-based administrator Ferrier Hodgson under Rod Sutton and Peter McCluskey after repeatedly failing to pay its liabilities on time.

At a protest action in front of the Department of Environment and Natural Resources (DENR) Main Office in Quezon City today, environmental activists united under Defend Patrimony pressed Environment Secretary Lito Atienza to immediately support the permanent closure of the Lafayette mine and set in place mechanisms for the rehabilitation of the area and renumeration or compensation for mining-affected communities.

"The recent bankruptcy of Lafayette should once and for all convince the government to totally close the mining operations in Rapu-Rapu island," Clemente Bautista Jr., a convenor of Defend Patrimony alliance and National Coordinator for Kalikasan Peoples' Network for the Environment (Kalikasan PNE), said in a statement.

"More than a financial mess, the Lafayette mine is an environmental and social failure. We have forewarned President Arroyo and the DENR that the project is not socially, technically, environmentally and financially feasible but they still allowed it to proceed. The Arroyo administration should be held accountable along with Lafayette to rehabilitate the island and compensate the local residents for the damages done by the mine", Bautista added.

"They also must ensure that enough rehabilitation fund is available for the affected people in the Island. This must be primarily provided by the Banks now that operating the mines", the Kalikasan PNE coordinator stressed. Based on a dialogue of Defend Patrimony with DENR officials, there is still no funding available for rehabilitation of Rapurapu if ever the mines closed immediately.

According to banktrack.org, the mining project is funded by the following financial stakeholders: a lenders group (ABN AMRO, ANZ, Investec, SC First Bank, Standard Chartered, Standard Bank), LG International and KORES, Korean state companies, and Lafayette's shareholders.###

For interviews, please contact Mr. Clemente Bautista Jr., 63-922-844-9787 or 9209099 or through email kalikasan.pne@gmail.com

DEFEND PATRIMONY! is a broad alliance comprised of organizations and individuals united in the defense of Filipino people's rights and national patrimony against the wholesale plunder of our mineral and other natural resources.