“It is unfortunate that DENR has given this Australian-controlled firm the green light to extract gold ores on the island over the objections of residents, who live in fear of cyanide poisoning,” Escudero said.
In October 2005, Lafayette was directed by the government to suspend its operation after its dam that held the cyanide laced wastewater overflowed twice and contaminated rivers and waterways downstream. A dangerous chemical, cyanide is used in gold processing.
“The two accidents occurred after only three months of operation” Escudero noted. “Apparently, Lafayette takes its environmental responsibilities very lightly. I can therefore understand the people’s concerns.”
Justifying the decision, DENR said the firm had fully complied with the requirements. It added the firm had expanded the impounding area from 126 meters to 145 meters. To prevent accidental spills especially during heavy rains, Lafayette had also constructed an 840-meter long drainage canal.
But Escudero would not be mollified. He noted that an independent fact-finding commission, headed by Bishop Arturo Bastes of Sorsogon, had recommended the permanent shutdown of the firm.
The Bastes Commission was created by President Gloria Macapagal-Arroyo following widespread condemnation of the spillage and fear of environmental degradation.
“What’s the use of creating an investigating body if the government won’t heed its recommendations?” Escudero asked. As regards claims of compliance as basis for the reopening, he noted that “no independent body had made the appraisal to determine their validity or falsity.”
Defend Patrimony!, a nationwide movement that calls for an amendment of the Mining Act of 1995, said DENR and Lafayette refused to allow any independent fact-finding mission into the mining site to authenticate compliance for the duration of the two test runs.
Until its operation was suspended, Lafayette Philippines was producing an average of 2,500 ounces of gold a month. Aside from Lafayette of Australia, LG International Corp. of South Korea and Korea Resources Corp., which is government owned, make up the main stockholders of the firm.
10 February 2007
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