Published in the HAPIT
April-June 2006 Issue

Known as the land of gold, the province of Benguet has been a haven for large-scale mining operations of several multinational and transnational mining companies for over a century now. Itogon, home to Ibaloi and Kankanaey ethno-linguistic groups, is one of the 13 municipalities of the province and it is this municipality that has hosted the most number of mining companies.

Operated by foreign companies, both open pit and underground large-scale mining has resulted to adverse destructions to the land, livelihood and people of Itogon. Hundreds of families have been displaced and the environment was greatly polluted leaving the people homeless and landless. While foreign companies brought home gold bullions, the people of Itogon remained marginalized with small-scale mining as the main source of livelihood at near.

The underground of Itogon has already been mined out due to almost a century of large-scale mining. However, a lot of foreign mining investors are still interested in mining the remaining land that makes the people of Itogon constantly threatened from further aggravations of their present economic conditions and socio-cultural existence. One of these companies is the Anvil Mining Limited (Anvil), which has signed an Evaluation and Development Agreement with Itogon Suyoc Resources Inc. for its gold properties in Itogon on August 2006.

Profile: Anvil Mining
The Anvil Mining Limited is an Australia-based mining company which was established in the early 2000’s and is largely interested with high grade deposits and ore bodies of copper, silver, and gold. Funded by the World Bank, it was also incorporated in the Toronto Stock Exchange in Canada in January 2004.

Anvil owns and operates at least three copper and silver mines in the Democratic Republic of Congo (DRC) in Africa, one in Vietnam and recently, it has eyed the gold in Itogon, Benguet.

Anvil Mining is now extending its mining activities beyond the DRC. While the company intends to focus on the copper and silver mining in the DRC, it is very much interested with the Itogon gold since it fits well with its objectives of geographic diversification and it will supplement the positive outlook for its silver and copper productions.

Anvil Mining’s disregard for human rights
Just like other transnational/multinational mining companies that have wrought havoc in its areas of operation, Anvil has also committed grave human rights abuses. Of highlight is Anvil’s mining operations in Congo, Africa.

On June 2005, Australian broadcasting corporation Four Corners revealed Anvil’s involvement in the massacre of more than 100 unarmed civilians in Kilwa village in the province of Katanga, Congo during an uprising by a small band of rebels on October 2004. The village of Kilwa is a remote fishing town situated 50 kms away from Anvil’s open pit Dikulushi mines which started in 2002.

In an investigative report by Four Corners, it was revealed that in the uprising, Anvil has eased out logistical support to the Congolese Armed Forces. The small scale uprising was brutally suppressed by the said government troops in two hours and with the help of Anvil. However, though the rebels put up no resistance against them, the government army has committed summary execution of more than 100 civilians, including women and children, and indiscriminate massive arrests, detention and torture which lasted even after the suppression of the uprising. Anvil trucks and planes were used to transport troops and then to allegedly take away corpses of the victims of summary executions.

Four Corners also reported that according to eyewitnesses, the troops used Anvil vehicles to terrorise the town, killing and beating villagers and looting their houses. A local police testified that all vehicles used by soldiers were from Anvil. He was accused of collaborating with the rebels and was detained at the Anvil mining guesthouse with about 50 other prisoners. They were all beaten and some of them were tortured to death by the government army.

The United Nations peacekeeping mission in Congo has also conducted an investigation of the incident. Their results state that the company admitted that several trucks and planes were used to transport troops to Kilwa but denied “helping” with the deadly attack. It also claims that Anvil employees provided food and money to the army in Kilwa. The United Nations investigators have also reported that 14 of the victims of killings were forced to kneel at the edge of a burial pit before being shot, one by one, at the back.

During the uprising, Anvil closed its mining operations for a few days and when it resumed, it has requested for the provision of additional security from the government for the mine so that, should such incidents occur again, the company would be able to continue operations.

In addition, the World Bank’s political risk guarantee arm, Multilateral Investment Guarantee Agency, has reported in September 2006 that its client, Anvil Mining, has hired an international security company and a law firm to regulate its contacts with the government on security-related issues.

After Four Corners revealed the Kilwa bloodbath, several non government organizations and other environmental and human rights groups based in Australia, Canada and in other countries called for thorough investigation of the incident by their respective governments and other concerned international bodies. Issues were raised in terms of the responsibilities of the World Bank, as a financial provider for Anvil Mining, in ensuring that the company should respect human rights.

These groups condemned Anvil for allowing the bloodbath to protect its mining interests in the resource-rich land of Congo. It was known that the rebels who led the uprising also resisted the company’s open pit mining operations in Dikulushi. Thus, it is not impossible for the company to move against protesters of their operations even at the cost of the death of civilians.

Anvil Mining and its interest in Itogon
On August 2006, the Anvil Mining Limited has signed an Evaluation and Development Agreement with Itogon Suyoc Resources Inc. for its gold properties in Itogon. The Itogon Suyoc Mines is a private Philippine minerals company whose properties cover an area of 2,896 hectares including an underground gold mine that has produced about one million ounces of gold and 40,000 ounces of silver from ore with an average gold grade of 6.9 g/t.

In a news release by the Anvil Mining Limited on August 18, 2006, it was stated that in the Evaluation and Development Agreement, the company can acquire 100% of the Itogon Suyoc Resources’ mineral properties by completing a staged evaluation process, which includes the following terms and conditions:
• Anvil will make a cash payment of $120,000 (about 6 million pesos) upon signature of the agreement and will subsequently carry out a due diligence evaluation within a four-month period;
• Should Anvil elect to proceed with detailed evaluation of the properties, the Company will make a cash payment of $2.0 million (about a hundred million pesos) to Itogon, fund a minimum of $2.0 million in exploration expenditures and use its best efforts to complete the detailed evaluation within a two-year period;
• Following the detailed evaluation, Anvil will use its best efforts to complete a feasibility study within a period of two years; and
• Anvil will make a cash payment of $500,000 (about 25 million pesos) upon transfer of Itogon’s mineral properties to Anvil.

With Anvil Mining’s controversial involvement in the Kilwa massacre, and the huge sum of money it is willing to spend to acquire 100% of the mineral properties of Itogon Suyoc Resources Inc. upon completion of a staged evaluation process, its interest in Itogon is poses serious threat to the people and the land.

The people of Itogon have consistently resisted large-scale mining for decades. At present, however, several mining companies still operate, such as the Philex Mining Corporation. Some mining firms have also converted their operations to other projects, such as the bulk water project in the Antamok open pit that is being targeted by Benguet Corporation.

Anvil particularly intends to operate in the Sangilo community in Itogon. This means a reopening of the Sangilo mines which closed in 1997 due to community protest. One of the mines’ tailings dam collapsed, and polluted nearby rivers and farms.

Itogon’s underground consists of tunnels due to years of massive mining operations. Anvil’s operations, if these push through, can seriously endanger the Sangilo community.

Anvil started a Rapid Social Feasibility Assessment in September 2006, the first stage of conducting an assessment on the history of mining in the target area, including the history of the peoples’ struggle against mining and the present conditions of the affected communities. A decision on whether or not to pursue mining operations in Itogon will be made by Anvil Mining by the end of the year.

Anvil may be on its toes to reactivate mining operations in Itogon through the Itogon Suyoc Resources Inc. The people of Itogon, however, have drawn experience and lessons from years of solidarity and resistance to destructive projects. More than ever, they armed and learned as to confronting such situations. # Sarah K. Dekdeken

References:

Neighbour, Sally. The Kilwa Incident. http://www.abc.net.au/4corners/content/2005/s1384238.htm
UN massacre report raises new Anvil allegations. http://www.abc.net.au/news/newsitems/200509/s1470689.htm
Audit Finds World Bank Partly to Blame for Abuses. www.ipnews.net/news.asp?idnews=32017
The official website of Anvil Mining Limited. www.anvil.com.au