Fact vs. Fiction

The allegations and the truth behind House Resolution 426 and the issues raised during the inquiries conducted by the House Committee on National Cultural Communities on September 23, 2005 and December 14, 2005.

FICTION FACTS

Toronto Ventures, Inc. There is no Toronto Ventures, Inc. TVI’s official name is TVI Resource Development (Phils.), Inc., an affiliate of TVI Pacific, Inc. of Calgary, Alberta, Canada

TVI is operating illegally • TVI holds a Mineral Production Sharing Agreement (MPSA) with the Philippine government • The MPSA covers an area of 508.34 hectares within Canatuan

TVI’s Canatuan Project lacks TVI entered into a Memorandum of social acceptability. It did not Understanding with the Subano secure free, prior and informed Association, Inc. (SSAI) for the development of consent (FPIC) from the Subanon Canatuan as a gesture of good faith and indigenous people (IP), the affirmative action despite the fact that TVI holders of the Certificate of secured its MPSA prior to the issuance of Ancestral Domain Title (CADT) CADT to the Subanon. in Canatuan Important dates: • October 23, 1996. MPSA executed between government and Mr. R. V. Bosque (claim owner); and Benguet Corp. (operator) • May 14, 1998. The DENR Secretary approved the assignment of the MPSA to TVI pursuant to the Deed of Assignment executed between TVI and Benguet Corp. on June 16, 1997 • October 21, 1997 . The DENR issued the CADC to the Subanon IPs covering an area of 6,523 hectares in Siocon, del Norte, one week prior to the enactment of the IPRA Law on October 29, 1997 • October 2001. TVI executed the MOU with SSAI • June 12, 2003. CADT issued to the Subanon people.

FICTION FACTS

TVI did not secure LGU • TVI obtained resolutions from three endorsements/FPIC for its mining barangays affected by its mining project. operations:

a) Tabayo, Siocon, b) Barangay Kilalaban, , Zamboanga del Norte c) Barangay San Jose, Baliguian, Zamboanga del Norte

• TVI secured a Certification from the Office of the Sangguniang Panglalawigan of Zamboanga del Norte dated October 1, 2002 attesting that “there is no provincial ordinance or resolution banning or prohibiting mining operations in the province.”

• On October 15, 2002, the Siocon Subanon Council of Elders issued a resolution consenting to the mining operation of TVI, as attested by the NCIP.

• On March 13, 1996, former Siocon Mayor Jesusa Pastor signed a document expressing her support for TVI’s mining operations.

These documents, along with other terms and conditions that we were able to comply with, were accepted by the Mines and Geosciences Bureau and served as its basis for the renewal.

SSAI does not represent the • SSAI is recognized by the National Canatuan CADT holders. Commission on Indigenous Peoples (NCIP) as the legal representative of the Canatuan CADT holders. • NCIP Administrative Order No. 2 Series of 2002 specifies that the CADT can only be awarded to IPs who have organized themselves following the guidelines of the Special Provincial Task Force on Ancestral Domains.

FICTION FACTS

TVI encroached on the Subanon • There is no substance to the concept of ancestral domain in Canatuan encroachment. • TVI’s Canatuan Project enjoys the strong support of the Subanon IPs in Canatuan who have joined in the common effort of judiciously utilizing resources as a means of attaining economic and social progress.

Mt. Canatuan is a traditional place • Through their MOU and MOA with of worship of the Subanon people TVI, the Subanon IPs manifested their recognition and respect to the prior mining rights of TVI in the area covered by the CADT and guaranteed the free and unlimited access for exploration and operations • The Indigenous Peoples Rights Act (IPRA) Law provides that the IPs have the right to use their lands as they see fit, including contracting with third parties for resource extraction and utilization. • An archaeological assessment conducted by the Archaeological, Cultural, Environmental Consultancy, Inc. on behalf of the National Museum of the revealed that the areas affected by TVI’s mining operations are negative of any Subanon archaeological or cultural materials; there was no evidence found of any historic or prehistoric religious practice, ever, at Mt. Canatuan.

The mine is displacing IPs from Mr. Jose Anoy and Mr. Onsino Mato, former their ancestral lands against their Subanon leaders, were repudiated by their will. community and voted out of leadership of the SSAI, in part because of their alleged alignment with what was believed by the community to be the evils of small-scale mining, which operated in Canatuan from the early ‘90s until the early 2000s.

FICTION FACTS

Mr. Jose Anoy and Mr. Onsino • It is not TVI’s policy to prevent Mato are banned by TVI from Subanons from entering their homes in entering Canatuan Canatuan. • If such incident occurred, it would have been contrary to company policy. • If a complaint is made to TVI concerning inappropriate conduct or wrongdoing by security assigned to the company, TVI will investigate it and act appropriately. • If allegations concern 2002, it should be noted that this was a period of high tension following the ambush in December that killed 13 people, in which certain Subanons were suspected by the community of being involved. • 2002 was also a period in which people associated with small-scale mining reacted to the forcible demolition of their plants by the government; TVI needed protection from these elements. • Mr. Anoy was present in his house in the small-scale miner community last year, looking after his daughter’s children while TVI rushed her to the hospital, five hours drive away from Canatuan, for an emergency C-section. • TVI welcomes any initiatives for Mr. Anoy and the SSAI to resume discussions and work toward reconciliation.

TVI security personnel threatened • TVI is not aware of Mr. Mato’s Mr. Onsino Mato’s life. allegations, although the company wishes that he had called TVI’s attention right away.

FICTION FACTS

TVI security personnel threatened • Mr. Mato revealed during the September Mr. Onsino Mato’s life (con’t). 23, 2005 Public Hearing that the person who allegedly threatened him was a soldier of the 44th Infantry Batallion. TVI believes this matter can be best addressed by officials of the Armed Forces of the Philippines, which has control over the military and security personnel posted in Canatuan.

TVI has posed a threat to local • The presence of the AFP and Special residents by employing the CAFGU Active Auxillary (SCAA) in services of military and Canatuan is a precautionary measure paramilitary formations in employed to maintain peace and order in Canatuan. the community. • Having invested more than $25 million into the Canatuan Project, TVI is compelled to protect itself , its employees, and its community from criminal and terrorist elements who threaten to harm not only the company’s physical assets but, more importantly, its on-site personnel. • The urgency to protect itself became more pronounced for TVI when two ambush incidents occurred near the project site on March 13, 2002 and December 26, 2002 that resulted in the death of 15 and injuries to 20 TVI personnel and their relatives, mostly Subanon.

TVI has control over military and • The military and SCAA units in SCAA personnel to which several Canatuan are under the direct control of incidents of harassment were the AFP. attributed. • SCAA units were established under the auspices of Sec. 4 Article XVI of the 1987 Philippine Constitution, following Pres. Corazon Aquino’s Executive Order 264 and its subsequent Implementing Rules and Regulations.

FICTION FACTS

TVI has control over military and • Since the deployment of SCAA forces – SCAA personnel to which several mostly Subanon themselves – the people incidents of harassment were in Canatuan have been enjoying the attributed (con’t). benefits of security. • There have been incidents in which TVI or SCAA personnel have been the victims of aggression or provocation by representatives of organizations or interests protesting against mining in general or acting in behalf of illegal small-scale mining-financed interests in particular. Despite SCAA acting in self- defense, they have been accused of harassment.

TVI’s Canatuan Project destroys • TVI strives to be an industry leader by the environment. taking a best practices approach to environmental management. • For 2004 and 2005, TVI spent a total of P130 million in its environmental management and protection initiatives. The company has allocated P80 million for 2006, with a possibility of increasing to P200 million. • TVI welcomes the proposal to extend the membership of the Multipartite Monitoring Team to include representatives of the Church, farmers’ and fishermen’s groups, as well as Subanon IPs.

Since TVI began operations at the • The Canatuan River watershed head of the watershed, fishing represents less than 1% of the Siocon communities and those farming River. The disturbed areas within the and living near the river have Canatuan creek watershed represent reported a serious decline in water even less this figure. quality and reduced yields from • TVI recycles cyanide and destroys it; their fisheries and fish farms due monthly testing has verified that there is to heavy siltation and cyanide no leakage from the containment to contamination. potentially pollute the surrounding area.

FICTION FACTS

Since TVI began operations at the • As part of its erosion control measures, head of the watershed, fishing TVI built 17 sediment control dams to communities and those farming prevent siltation of Canatuan Creek and and living near the river have the Siocon River. reported a serious decline in water • As of end-2005, TVI had planted nearly quality and reduced yields from 55,000 trees within the Project area as their fisheries and fish farms due part of soil erosion and long-term site to heavy siltation and cyanide restoration programs. contamination (con’t) • Over a 13-month period between December 2002 and January 2004, TVI removed and reprocessed nearly 24,000 tonnes of mercury and cyanide contaminated tails produced by previous small-scale mining operations. These tails were relocated from uncontrolled ponds to engineered tailings impoundments constructed by TVI. • There are other causes of erosion within the water. These include road construction, slash-and-burn farming, housing development, and even the natural process. Few, if any other processes incorporate the erosion measures that TVI uses as part of its environmental management initatives

There was seepage of tailings • There has not been a release of tailings from tailings dam leaks. from the dam. • Water stored within the tailings dam is recycled to the mill and used within a closed circuit.

The pollution of Siocon River due In February 2004, TVI representatives met with to TVI has caused skin diseases officials of the Department of Health in Siocon, among Siocon residents. who had already done a study of the community following the allegations and found that the skin rashes were due to scabies, a highly communicable infection caused by tiny mites passed from person to person or in water. There had been a significant geographical area of contamination along the coast, possibly spreading through the shallow coast waters and children swimming.