Del Rosario Pandiphil Inc, our correspondents in the Philippines, has provided us with the following information.

Update, 12 October 2011:

As gathered from our appointed surveyors in the Surigao area, things have apparently stabilized for the meantime. The mines have again started to send barge loads of nickel ore for loading to the foreign vessels at anchorage. It would be prudent that Masters and crews of vessels loading in the area remain cautious and alert.

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On 3 October 2011, three (3) mining facilities (Taganito Mining Corp., Tganito HPAL Nickel Corp. and Platinum Metals Group) located in and around Claver town, Surigao del Norte were confirmed to have been attacked by the rebel group known as the New Peoples Army (NPA). The NPA is the armed wing of the Communist Party of the Philippines (CPP).

Based on news reports and information acquired from our attending surveyors in the area, about 300 New People’s Army guerrillas wearing police/military uniforms staged coordinated strikes on the three (3) mines – briefly holding some mine employees as hostage (with unconfirmed reports that two (2) are still in captivity), killing three security guards, damaging office computers and mining equipment, burning down at least 10 dump trucks, eight backhoes, three barges, an administrative office and a guest house.

It was also reported that the rebels took over MV Con Carrier-7, a cargo ship of Aleson Shipping, which was docked at the TMC port and carrying almost 10,000 liters of fuel and ordered everyone out of the vessel, before bombing it. As a result, the Philippine Coast Guard is looking for signs of an oil spil and will conduct an “oil spill assessment” at the TMC port at Hayanggabon village in Claver town.

Foreign vessels anchored near Taganito safely sailed away from the anchorage.

It was initially reported that the attacks were prompted by refusal of the said mining facilities to pay a “revolutionary tax” demanded by the NPA.

However, on Tuesday (4 October), the NPA spokesperson released their conditions to stop the attacks, namely:

1. Mining firms must settle royalty fees and other benefits intended for rightful indigenous people affected by mining activities;
2. Address environmental woes brought by mining in the area as soon as possible;
3. Stop all mining operations and construction of the nickel ore processing plants; and
4. Address local mine workers’ complaints of low wages.

The threat is real. A spokesperson of the National Democratic Front (NDF), the political arm of the CPP, said the attacks last 3 October would not be the last. It was further stated that the three (3) mining corporations were sent letters earlier in the year with charges of environmental destruction and abuse of worker’s and indigenous peoples rights. According to the spokesperson, the same were ignored and hence the “revolutionary movement”handed the penalty.

The Philippine Government, stating that the situation in the area has been contained, has deployed additional troops in the area to improve security and pursue the NPA guerillas.

Kindly note that TMC and PGMC are among the country’s leading exporters of nickel ore to Japan, China and Australia. TMC is owned by Nickel Asia Corp., the Philippines’ largest nickel producer with Japan’s Sumitomo Metal Mining Co. as its partner. Taganito HPAL is a sister company of TMC. The mining operations of TMC and PGMC in the hinterlands of Claver were marred with controversies amid alleged irregularities in the acquisition of mine permits, displacements of “lumad” (indigenous people) communities and environmental destruction.

In May, the Tribal Coalition of Mindanao Inc. (Tricom) asked the Supreme Court to cancel mining permits, licenses and agreements granted to TMC, PGMC and three other mining firms over supposed spurious tribal consent documents in securing licenses and permits. The mine is owned by Nickel Asia Corp., the Philippines’ largest nickel ore producer. An affiliate, Taganito HPAL Nickel Corp., and the nearby Platinum Metals Group were also attacked, in what the NPA claimed was payback for years of alleged environmental damage and abuse by the firms.

As of 4 October 2011, our appointed surveyors have reported that vessels have returned to the loading anchorages but until now (afternoon of 5 October) loading operations have yet to resume. Although the threat appears to have been contained, we would suggest that Members continue to exercise caution given the threat of further attacks. Further, for vessels presently in Surigao or fixed to load cargo in Surigao, they should confirm with their charterers/agents when loading operations will commence and/or resume.

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Member Alert is published by The Swedish Club as a service to members. While the information is believed correct, the Club cannot assume responsibility for completeness