15-day talks with Azmar OK’d

Despite the failure of Azmar International to provide most of the documents it was required to submit, the Marianas Public Lands Authority decided yesterday to open a 15-day negotiation period with Azmar regarding a conditional mining permit.

The MPLA board of directors also approved a confidentiality agreement that would oblige both Azmar and MPLA to keep mum about the negotiation proceedings while the talks are ongoing.

Pursuant to the board’s decision, the MPLA commissioner and legal counsel will start negotiating with Azmar representatives. A draft temporary mining permit will also be presented to Azmar to initiate negotiations.

MPLA chair Ana Demapan-Castro maintained that no permit allowing Azmar to mine pozzolan on Pagan has been granted yet. She said the board only wanted to prove that MPLA is acting in good faith in working with Azmar and that it is not discouraging any investors.

For his part, Azmar’s spokersperson Don Farrell said he was “very enthusiastic” about negotiating with MPLA. “I’m not sure if negotiations are even necessary. They may hand us a draft [permit] that may be absolutely acceptable, and that’s it,” Farrell said.

Before making the decision, the board members reviewed the Sept. 15 letter sent by then acting MPLA commissioner Frank Eliptico to Azmar president Kenneth J. Moore. In that letter, MPLA listed some 30 different documents that Azmar was supposed to submit within 60 days.

The board went through the items one by one, with MPLA property management chief Franz Reksid reporting whether Public Lands received each required document.

Based on Reksid’s report, Azmar failed to turn in at least two thirds of the required documents, including nine of the 10 required papers relating to financial and investment information.

The board then went on a five-minute recess, which lasted about 20 minutes.

When they came back, MPLA board member Nicolas Nekai read a motion to open negotiations with Azmar, to authorize the MPLA staff and legal counsel to negotiate with Azmar representatives, and to authorize the transmittal of the draft temporary permit to mine pozzolan to Azmar in order to initiate negotiations.

MPLA legal counsel Alan Lane raised the subject about the confidentiality agreement, and it was incorporated into the motion.

MPLA vice chair Manuel Villagomez seconded the motion, which was approved by all but one board member. Benita Manglona, who was participating in the meeting via teleconference, abstained, citing concerns about Azmar’s failure to submit the required documents.

“If Azmar is really interested in getting a mining permit, why didn’t they comply with the conditions? I want to make an informed decision. I’m not trying to turn any investor away. I just want to make sure that the citizens are protected [and that Azmar] has the financial capability to conduct mining on Pagan,” Manglona said.

She added that Azmar should have at least written a letter explaining why it was not able to turn in the documents.

Attorney Matthew Smith, a supporter of the PaganWatch group, which has been opposing the issuance of a mining permit to Azmar, said the board’s decision was “crazy.”

“It appears that they said [to Azmar], ‘You failed to comply with all early the requirements in the 60-day period. Therefore, we will open secret negotiations with you and give you your permit.’ That’s how it sounded like,” Smith said.