Benguet Corp has terminated a mining venture with an indigenous tribe in Kalinga province.
In a disclosure to the Philippine Stock Exchange , Benguet said that it signed last week a disengagement agreement with the Balatoc tribe for the mutual termination of their joint venture in the Batong Buhay Copper-Gold Project in Barangay Balatoc, Pasil, Kalinga.

“Management reached the decision to withdraw from the project after carefully studying its future prospects and the risks involved, ‘ Benguet said.
“Although the property has good geological potentials, certain unresolved issued with regard to tribal conflicts and land/engineering constraints have eroded the company’s confidence in pushing the project forward,” it said.

Under the disengagement agreement, the Balatoc tribe – through the entry of a new investor – would have to reimburse the company’s previous investments and advances, Benguet said.

The company added that it would later negotiate with the tribe for the retention of Benguet’s remaining interest or participation in the project, “in recognition of its contribution to bring the project to its present state.’

The Balatoc tribe in December 2008 chose Benguet to reopen the 492-hectare Batong Buhay mine.

Source:   www.manilatimes.net