Rebel Attacks on Nickel Ore Mines in the Surigao Del Norte Region

Mindanao, Philippines – rebel attacks on nickel ore mines in the Surigao del Norte region

The attacks On 3 October 2011, three mining firms located in and around Claver town in the Surigao del Norte region of Mindanao, Philippines were attacked by the rebel group known as the New People’s Army (NPA). It was reported that the attacks were prompted by a refusal of the mining firms to pay a "revolutionary tax" demanded by the NPA.

The affected mining firms are the Taganito Mining Corporation (TMC), Taganito HPAL Nickel Corporation and Platinum Group Metals Corporation (PGMC)1. According to news reports and Gard’s local correspondent in the Philippines, some 300 NPA rebels wearing police/military uniforms staged coordinated strikes on the three mining facilities. The rebels attacked TMC’s compound first, burning heavy equipment, service vehicles, barges and buildings. Other rebel groups simultaneously attacked the nearby PGCM and Taganito HPAL compounds. Unconfirmed reports indicate that, unfortunately, casualties were also experienced during the attacks.

All foreign vessels anchored near Taganito at the time of the attacks left the anchorage safely.

The current situation The Philippine Government has stated that the situation is now contained and has deployed additional troops in the area to improve security and pursue the NPA rebels. However, according to Gard’s local correspondent in the Philippines, threats of further attacks made by the NPA in a press release are believed by many to be real.

According to the latest press releases (Reuters on 5 October), Nickel Asia Corporation has resumed operations at its biggest nickel mine TMC and expects to ship ore in the next three weeks. In the meantime, shipments will be diverted to other mines. It was also said that the corporation does not expect a big reduction in shipment tonnage this year.

As of this morning (6 October), our correspondent’s appointed surveyors reported that some vessels have returned to the loading anchorages but as far as Gard is aware, loading operations have yet to resume in the affected area.

Recommendations and advice Gard has been monitoring the situation closely and although none of Gard’s Members and Clients have reported problems or specific challenges in the aftermath of the attacks, we strongly recommend Members and Clients to continue to exercise caution while they are in the Surigao del Norte region, given the NPA’s threat of further attacks.

Those Members and clients loading from the affected mines should clarify with their local charterers and agents when loading operations will resume.

We would like to thank Gard’s correspondent in the Philippines, Del Rosario Pandiphil Inc., for their assistance with the above information.

1 TMC and PGMC are among the Philippines’ leading exporters of nickel ore to Japan, China and Australia. TMC is owned by Nickel Asia Corporation, the Philippines' largest nickel producer with Japan's Sumitomo Metal Mining Co. as its partner. Taganito HPAL is a sister company of TMC.