‘Suspend any pozzolan extraction without study’

A bill suspending pozzolan extraction activities on Mt. Pagan was introduced yesterday at the House of Representatives.

This comes amid growing interest from prospective investors and apprehensions from some local groups.

The bill, titled Pozzolan Extraction Act of 2004, authored by House Speaker Benigno R. Fitial, mandates the conduct of a comprehensive assessment of pozzolan mining on Pagan before an extraction is made in the area.

“Pozzolan extraction activities shall be suspended until such time that the study is completed and the necessary regulations have been promulgated based on the recommendations of the study,” said Fitial.

He said no individual or company can be permitted by the government, including the Marianas Public Lands Authority, to extract or mine pozzolan.

Violators shall be assessed a $1,000 fine.

The bill authorizes the governor to reprogram any unobligated funds to finance the conduct of the study.

Further, the proposal calls for the creation of a task force to oversee the assessment project. The task force shall consist of representatives from the Office of the Mayor of Northern Islands, MPLA, Division of Environmental Quality, Department of Lands and Natural Resources, Department of Commerce, Department of Finance, Department of Public Works, Coastal Resources Management, and the Commonwealth Development Authority.

The assessment shall look into a fair market valuation of pozzolan, qualification requirements of persons or companies applying for mining permits, appropriate permitting procedures, fee and royalty schedules, environmental impact, mitigation plans, and reservation of appropriate percentage revenues collected for Northern Islands development.

The MPLA said that it has received at least two proposals from investors to conduct mining at Mt. Pagan.

But one of the two, Texas-based Consolidated American Energy Resources Inc. recently withdrew its proposal for undisclosed reasons.

The other company, Azmar, has been pushing for MPLA’s approval of its mining permit application.

The MPLA, however, insists that Azmar has not shown the financial capability to undertake the project.

Azmar earlier said that it was ready to infuse some $46 million for the project. It said it would spend an initial $15 million to build roads, a harbor, and other basic infrastructure on Pagan.

It projects to mine and sell 4.55 million metric tons of pozzolan per annum by the third year, and remit required annual taxes and royalty fees to the government.

Azmar said that Pagan has 200 million metric tons of pozzolan deposit, which guarantee continuous mining revenue for the CNMI for nearly 50 years.