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MPLA defers action on JG Sablan mining permit
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Posted on Sep 08 2004
The Marianas Public Lands Authority has again deferred action on the request of J.G. Sablan Rock Quarry Inc. for continuation of its mining permit on Pagan.
In a meeting yesterday, the MPLA board of directors instructed the staff instead to arrange a meeting with J.G. Sablan officials within the next few days. The result of the discussion is expected to guide the agency in deciding whether or not the company continues to possess mining rights to Pagan.
“We are not ready to make a decision. We’re trying to work something out with JG Sablan,” MPLA chair Ana Demapan-Castro said.
The board will reconvene for another special meeting and come up with a decision on J.G. Sablan’s request on Sept.17.
On Aug. 1, 1993, MPLA granted a permit to Saipan-based J.G. Sablan to mine basalt and pozzolan from Pagan. Two years after, J.G. Sablan was given a new 20-year permit despite its failure to generate and report any revenue to the government from its activities on the island.
In its web site, Pagan Watch, a non-profit organization that has been following mining activities on the northern island, cites a November 2000 report from the CNMI Office of the Public Auditor, which found J.G. Sablan to be $1.3 million in arrears for Pagan and other quarry fees and royalties.
“To this day J.G. Sablan has been unsuccessful in marketing basalt or pozzolan from Pagan and has failed to meet its fee and royalty obligations under the terms of the permit. These include an annual fee of $20,000 and royalties of $2.25 per cubic yard for basalt and pozzolan removed from Pagan,” Pagan Watch said.
The issue around J.G. Sablan’s mining rights to Pagan is tied with Azmar International’s application for a permit to mine pozzolan on Pagan.
If the board finds that J.G. Sablan still has the rights, then Azmar’s permit would be limited to a small area on Pagan.
