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    Posted September 25, 2012 by
    bentesiorna

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    MGB closure on mine firm's warehouse stays

     
    The closure order imposed by the Mines and Geosciences Bureau 11 on a mine firm's warehouse along Lanang, Davao City will remain for as long as the ongoing conflict between two factions of the Nationwide Development Corporation (Nadecor) is not resolved.

    This was the statement made by MGB 11 director Edilberto Arreza after Nadecor's American partner, St. Augustine Gold and Copper Inc. (SAGC), sought clarification on the closure order issued since last July and is still in effect until press time.

    The Lanang warehouse is the storage depot of the core samples of the drilling conducted by SAGC for the past year.

    In an interview, Arreza said he issued the order upon the request of one of the two warring factions of Nadecor. He explained that as part owner of the core samples, the government has the right to issue such an order aimed for the protection of the samples.

    "When the Ricafort group brought to my attention because they were worried that the samples might be destroyed or interchanged/harmed due to desperation, I decided to intervene and issue the order, because the government is part owner of these samples," Arreza said.

    "This is to safeguard the integrity of the core samples while the two factions are embroiled in a dispute," he added.

    When informed that the warehouse is actually being rented by SAGC and not Nadecor, Arreza maintained that the government is duty-bound to protect the mine core samples which is partly-owned by the government.

    The MGB regional director said the closure order on the warehouse will stay for as long as the "two factions of Nadecor would not resolve their conflict among themselves".

    "This is to safeguard the integrity of the core samples while the two factions are embroiled in a dispute. The two groups are not allowed (to make use of any of the samples inside the warehouse) at this moment," Arreza said.

    Nadecor is presently embroiled in an internal conflict between the Ricafort group (Old Board) and the Calalang group (New Board). The request for the sealing off of the Lanang warehouse was made by the Ricafort group.

    In a Court of Appeals decision promulgated last June 2012, the CA recognized the authority of the Calalang group over the Ricafort group. Thus the MGB should have taken this into account before issuing the order. BOT

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