On October 20, 2009, the Sangguniang Panlalawigan of Albay, upon the lead of Kinatawan July Tingzon, summoned the Rapu-Rapu Minerals, Inc. to present information regarding tax payments and environmental impact of the latter’s mining operations. Mrs. Cecille Calleja claimed that the communication they received required them to present tax information only. They were not ready to present data on environmental impact so she asked for another audience with the Board. Two other representatives verbally informed the SPA on tax payments and social development projects. (Their Powerpoint presentation would not work.) Total tax payments from 2005 to 2008 as alleged by RRMI is over P500 million. The SDMP budget for 2008 was P16 million. As claimed by Ms. Lani Lanuzo, the money was given to village officials who then determined how it would be spent.
The representative from BIR Legazpi confirmed the claims of tax payments. She said that when RRMI became a big tax payer in 2008, the money then went to BIR national office. She pleaded to the SPA to support the effort of BIR Legazpi to have the payments made in the local revenue office. She was concerned about the tax collection performance of her office but not with the availment of tax windfall by the people of Rapu-Rapu. (Please read SARA response to claims about tax payments.)
A representative from the Philippine Economic Zone Authority confirmed the tax exemption privileges of Rapu-Rapu Processing, Inc. for four (4) years.
As SARA Spokesperson, I presented the video “Rapu-Rapu” made by Bikol Express showing the suffering of the people of Rapu-Rapu due to the previous fishkills and ongoing decline in fish catch. I also showed them the complex corporate structure relating RRMI, RRPI, LPI, Kores, LGI, MSC, Ungay-Malobago, Inc, and JV Calleja Group. I emphasized that the diagram was reliable because it came from the Annual Report of MSC in 2008. It was important to clarify the corporate structure because the RRMI representatives tried so hard to make the audience believe that they are not “Lafayette.” I asserted that they are still “Lafayette” as technically manifested by the continued ownership of the mine by “Lafayette Philippines, Inc.” Towards the close of the presentations, Mrs. Calleja insisted that they are not “Lafayette” anymore. Instead, they are “Korea Malaysia Philippines or KMP.” With the same people who were in “Lafayette”, this alleged “KMP” is a mere new name for the same juridical entity. If Satan is called Lucifer, he is the same devil.
The presentations of RRMI sounded like the SONA of President Gloria M. Arroyo. So much is claimed on paper but virtually nothing is seen on the ground. Notably the alleged accomplishments are mostly for the three "direct impact barangays" even as the damage of mining operations is felt as far as Barangay Mananao in the north; Rawis, Legazpi City in the west; and Prieto Diaz, Sorsogon in the south. While the island residents are in pain back in Rapu-Rapu, RRMI representatives were joyous in the session hall of the SPA. This, I believe, is the typical attitude of the Lafayette people. They refuse to see the issue from the viewpoint of the masses. They can afford to exhibit mirth while the people of Rapu-Rapu, as shown in the video “Rapu-Rapu” by Bikol Express, are weeping over the loss of their livelihood and patrimony.
Virgilio S. Perdigon, Jr.
The island of Rapu-Rapu in Albay, Philippines, is hostage to RRPP, formerly owned by Lafayette Mining Ltd of Australia, now taken over by LG & KORES of South Korea and MSC of Malaysia. Victim of compromised laws & corrupt government officials, the residents can only brace themselves for more ecological disasters & their effects: health problems, loss of land & livelihood, & uncertain future, UNLESS WE TAKE ACTION TO CLOSE THE RAPU-RAPU MINE.
Thursday, October 29, 2009
Response of SARA to the Alleged Tax Payments of RRMI
The Save Rapu-Rapu Alliance responds as follows to the statements of RRMI, BIR and PEZA re tax payments:
1. The environmental damage is much more than the benefits from alleged taxes. The current and future benefits from farming and fishing will be almost totally wiped out. The alleged taxes are in the millions; farming and fishing benefits are beyond quantification, being the source of sustenance for all generations of island residents.
2. There is no verification of actual payment. Government agencies and mining companies have been accused of collusion and cover-up.
3. There is no independent validation of income declared by RRMI; hence, there is no certainty that the amounts allegedly paid as taxes are correct.
4. The alleged taxes are from RRMI only. RRPI enjoys exemptions as PEZA privileges. This could be the reason for the separation of the two companies. RRPI is 100% foreign-owned; RRMI is 64% foreign-owned. The claim is that the privileges are for four (4) years. The PEZA law stipulates six (6) years which can be extended to eight (8) years (Special Economic Zone Act of 1995 Rule XV Section 6). It is not surprising then that the mine life is set at eight (8) years.
5. The local BIR office wants the taxes to be paid to them instead of BIR national office to improve the former’s tax collection performance. They did not express desire to ensure that the benefits accrue to the residents of the island.
6. There are discrepancies between taxes alleged by RRMI and those reported by MGB.
7. There is no visible benefit for the residents of the island in terms of roads, bridges, health services, and other projects and programs. For example, it still takes 7 hours for residents of Tinopan and Binosawan to carry on their backs the farm produce to Poblacion.
In the light of these considerations, the Save Rapu-Rapu Alliance refutes the alleged payment of taxes as justification for the continued operation of the mine. We maintain our stand that the mine should be closed, and that the mining companies clean up the contaminated areas, pay for the damages, and leave the island. We also reiterate our call for the implementation of alternative options for the development of Rapu-Rapu such as land distribution, farm subsidies, potable water system, decent housing, fast transportation, environment-friendly roads, power generation, and preservation of the island’s ecosystem.
Save Rapu-Rapu Alliance
October 20, 2009
1. The environmental damage is much more than the benefits from alleged taxes. The current and future benefits from farming and fishing will be almost totally wiped out. The alleged taxes are in the millions; farming and fishing benefits are beyond quantification, being the source of sustenance for all generations of island residents.
2. There is no verification of actual payment. Government agencies and mining companies have been accused of collusion and cover-up.
3. There is no independent validation of income declared by RRMI; hence, there is no certainty that the amounts allegedly paid as taxes are correct.
4. The alleged taxes are from RRMI only. RRPI enjoys exemptions as PEZA privileges. This could be the reason for the separation of the two companies. RRPI is 100% foreign-owned; RRMI is 64% foreign-owned. The claim is that the privileges are for four (4) years. The PEZA law stipulates six (6) years which can be extended to eight (8) years (Special Economic Zone Act of 1995 Rule XV Section 6). It is not surprising then that the mine life is set at eight (8) years.
5. The local BIR office wants the taxes to be paid to them instead of BIR national office to improve the former’s tax collection performance. They did not express desire to ensure that the benefits accrue to the residents of the island.
6. There are discrepancies between taxes alleged by RRMI and those reported by MGB.
7. There is no visible benefit for the residents of the island in terms of roads, bridges, health services, and other projects and programs. For example, it still takes 7 hours for residents of Tinopan and Binosawan to carry on their backs the farm produce to Poblacion.
In the light of these considerations, the Save Rapu-Rapu Alliance refutes the alleged payment of taxes as justification for the continued operation of the mine. We maintain our stand that the mine should be closed, and that the mining companies clean up the contaminated areas, pay for the damages, and leave the island. We also reiterate our call for the implementation of alternative options for the development of Rapu-Rapu such as land distribution, farm subsidies, potable water system, decent housing, fast transportation, environment-friendly roads, power generation, and preservation of the island’s ecosystem.
Save Rapu-Rapu Alliance
October 20, 2009
Saturday, October 10, 2009
SARA Calls for Boycott of LG Products
The mining operations in Rapu-Rapu have resulted in severe decline in fish catch in the waters around the island. Hunger and poverty are daily felt by the residents. Diseases like diarrhea and skin rashes have afflicted them. In the face of these scorges, the mining companies advertise over the radio that the decline in fish catch is the result of the destruction of the mangrove forests by the residents of Rapu-Rapu. This is insult added to injury! The miners overlook the scientific fact that mangroves are destroyed by contamination from metals like copper, zinc, cadmium and nickel. Copper and zinc are the object of mining operations, aside from gold and silver. In the process, they also unleash naturally occurring mercury and cadmium. In other words, the mining operations cause the destruction of the mangroves. Hence, the mining operations cause the decline in fish catch. On top of this, the scattering of silt around the island is killing the local fish species and driving away the migratory ones.
There are several companies involved in the mining operations: Lafayette Philippines Inc. (LPI) which owns Rapu-Rapu Minerals, Inc. and Rapu-Rapu Processing, Inc.; Korea Resources Corporation (Kores); LG International Corporation; Malaysia Smelting Corporation which own LPI; and Rapu-Rapu Holdings, Inc.; JV Calleja Group; Ungay-Malobago Mines, Inc.; and Toronto Ventures, Inc. which have minor stakes in the mine. They are related in a complex arrangement but a graphical depiction on the right side of this page would help the reader understand.
In view of the unrepentant attitude of the mining companies, the Save Rapu-Rapu Alliance launched a non-violent protest action plan. The first stage is the call for boycott of LG products – refrigerators, washing machines, cellphones, flat screens, airconditioners, etc. LG has retail outlets in the local economy. With the vital participation of our friends in other countries, the impact would be multiplied.
Through this non-violent protest action, we will make LG feel how it is to lose one’s income. An estimated 14,000 fishermen and their dependents have already lost theirs, from 60 to 93 %, according to a study by Ibon Foundation.
Should the mining companies not close the Rapu-Rapu mine, in 2010 we will expand our boycott call to cover other Korean products because Korea Resources Corporation is owned by the South Korean government which has turned a deaf ear to the plight of the island residents. Our fathers and grandfathers shed their blood in the Korean War to defend their freedom in the 1950’s. Today, a large number of their children and grandchildren are being oppressed by South Koreans through Kores and LG. What ingratitude!
So, to our friends the world over, we are seeking help. The suffering of the people of Rapu-Rapu island should not last any longer. Please come to their aid. Boycott LG products!
Save Rapu-Rapu Alliance
There are several companies involved in the mining operations: Lafayette Philippines Inc. (LPI) which owns Rapu-Rapu Minerals, Inc. and Rapu-Rapu Processing, Inc.; Korea Resources Corporation (Kores); LG International Corporation; Malaysia Smelting Corporation which own LPI; and Rapu-Rapu Holdings, Inc.; JV Calleja Group; Ungay-Malobago Mines, Inc.; and Toronto Ventures, Inc. which have minor stakes in the mine. They are related in a complex arrangement but a graphical depiction on the right side of this page would help the reader understand.
In view of the unrepentant attitude of the mining companies, the Save Rapu-Rapu Alliance launched a non-violent protest action plan. The first stage is the call for boycott of LG products – refrigerators, washing machines, cellphones, flat screens, airconditioners, etc. LG has retail outlets in the local economy. With the vital participation of our friends in other countries, the impact would be multiplied.
Through this non-violent protest action, we will make LG feel how it is to lose one’s income. An estimated 14,000 fishermen and their dependents have already lost theirs, from 60 to 93 %, according to a study by Ibon Foundation.
Should the mining companies not close the Rapu-Rapu mine, in 2010 we will expand our boycott call to cover other Korean products because Korea Resources Corporation is owned by the South Korean government which has turned a deaf ear to the plight of the island residents. Our fathers and grandfathers shed their blood in the Korean War to defend their freedom in the 1950’s. Today, a large number of their children and grandchildren are being oppressed by South Koreans through Kores and LG. What ingratitude!
So, to our friends the world over, we are seeking help. The suffering of the people of Rapu-Rapu island should not last any longer. Please come to their aid. Boycott LG products!
Save Rapu-Rapu Alliance
Thursday, October 1, 2009
MSC Sells 30% Share in Rapu-Rapu Mine
Published: 2009/09/04
MALAYSIA Smelting Corp Bhd (MSC) said it will sell its 30 per cent stake in the Rapu Rapu polymetallic project in Philippines which it bought on April 17 last year.
This is another non-tin asset that MSC is planning to sell apart from the recent proposed divestment of a 22.1 per cent stake in Australia 's gold mining company Beaconsfield Gold NL.
MSC told Bursa Malaysia the sale is in line with the company's focus to reduce cost and debt.
"The company has also decided not to proceed with the proposed bonus and rights issues in view of its decision to divest some of the group's non-tin assets," it said.
http://www.btimes.com.my/Current_News/BTIMES/articles/BURSMSC/Article/index_html
MALAYSIA Smelting Corp Bhd (MSC) said it will sell its 30 per cent stake in the Rapu Rapu polymetallic project in Philippines which it bought on April 17 last year.
This is another non-tin asset that MSC is planning to sell apart from the recent proposed divestment of a 22.1 per cent stake in Australia 's gold mining company Beaconsfield Gold NL.
MSC told Bursa Malaysia the sale is in line with the company's focus to reduce cost and debt.
"The company has also decided not to proceed with the proposed bonus and rights issues in view of its decision to divest some of the group's non-tin assets," it said.
http://www.btimes.com.my/Current_News/BTIMES/articles/BURSMSC/Article/index_html