‘Credible investors now pursuing Pagan mining’

PaganWatch, the local CNMI environment watchdog group, is calling for fast action on the part of local representatives in assembling a task force to deal with the renewed interest in the proposed mining of Pagan.

“After meeting with Bridgecreek’s CEO Frank Jao and president John Carlson, as well as discussions with other investors interested in mining on Pagan, it is clear that there are now several credible investors interested in Pagan,” said PaganWatch co-founder Peter J. Pangelinan Perez.

“This very encouraging development serves as a wake-up call for MPLA and legislators that the investment potential is real and needs to be handled carefully. It is a one-time opportunity that—if properly managed—can provide a great benefit to the entire CNMI community.”

PaganWatch advocates an open and community-involved approach to potential mining of Pagan “in order to protect the community from any mining plan that would end up benefiting only a few individuals while the community received little profit and possibly a very big environmental clean-up bill.” Last year, members of PaganWatch successfully blocked an attempt by an investor to gain control of this potentially multi-million dollar CNMI asset.

At the end of 2004, after discussions with PaganWatch and then House Speaker Benigno R. Fitial, MPLA made a public commitment to form a community-involved task force to evaluate the mining opportunity and to produce a Request for Proposals that outlines the terms and conditions under which all interested investors can pursue the opportunity on an equal footing.

“PaganWatch calls on MPLA to immediately form the task force so that interested investors have a legitimate and business-supportive path to follow,” Perez said.

It is of major concern to the watchdog group that, without the efforts of a critical task force, legitimate investors will not have all the necessary information and community support to enable them—and therefore the CNMI—to succeed.

Rep. Cinta Kaipat, co-founder of PaganWatch, was particularly concerned about the possibility that investors might be misled into accepting a defunct mining permit filed by J.G. Sablan as a valid means of entry to the mining business.

“Frankly, by moving forward on the mining project via the J.G. Sablan mining permit, investors will have picked a most difficult path that will ultimately lead nowhere. There are a number of documented legal, ethical and, we believe, even criminal problems with the J.G. Sablan permit and the handling of the permit by MPLA—problems so serious that we cannot afford to ignore them because of the consequential damage to the CNMI community and especially to the indigenous people,” a PaganWatch statement quoted Kaipat as saying.

PaganWatch attorney Matthew Smith agrees. “If any operator is allowed to use a voided permit—one with numerous breaches of its terms over 10 years—then a permit in the CNMI will mean nothing. It will mean that anyone can ask for a permit and know the only party with obligations under the permit is the CNMI government—that the permitee can break all the rules, take all the benefits, and pay nothing without fear of any consequences.”

While encouraged by the strong interest shown by credible new investors, PaganWatch points out that the CNMI will lose out if the investors are not provided a clear and level playing field as they submit competitive bids.

“PaganWatch is therefore absolutely opposed to any attempted use of the J.G. Sablan mining permit that was found null and void by the MPLA itself, and will vigorously oppose any attempt to revive the permit.

“Not only is the use of the void permit improper and illegal, but it would deprive the CNMI of a one-time, tremendous opportunity to negotiate a fair and equitable deal for the CNMI with new and capable investors,” said Perez. (PR)