DAVAO CITY, April 18 (PNA) – Mining investments in the Davao Region remarkably increased in 2006 compared to previous year, data from the Mines Geosciences Bureau (MGB) Davao showed.
In 2006, mining companies that applied for exploration operations in the regions mineral-rich deposit areas totaled to 26 with a paid up capital amounting to P872,952,278.91 compared to 2005 with 14 companies and corresponding paid up capital of P799,063,920.00.
Total proposed exploration expenditures in 2006 from the 26 mining companies posted P219,070,860.00 compared to P192,071,906.00 from 14 companies in 2005.
Mine Management Division (MMD) chief Maximo Lim attributed the growth of mining investments both capital and proposed exploration expenditure in 2006 to the recent interest of various foreign mining companies to invest in Region 11.
At present, there are eight mining companies which are conducting on the ground exploration activities in the regions mining areas.
Edilberto Arreza, MGB regional director, said the eight companies operating in Davao Oriental and Compostela Valley are Hall Mark Mining Corp., Davao Mining Corp., Southern Horizon Mining Corp., Jake Mining Corp., Bunawan Mining Corp., Philippine Mining Corp., Omega Resources Philippines Inc.,and Alsons Development Corp.
Arreza, however, said the ongoing extortion of the New Peoples Army (NPAs) from mining operators is quite disturbing considering the huge cost which mining business entails to potential investors.
He said the government must intensify its development efforts in the rebel-infested mountains to minimize the rebels’ extortion activities.
The official expressed fear that if not abated, the extortion activities might drive investors away to the detriment of the mining industry. (PNA)
