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Sunday, September 13, 2009

Mining Industry

British mining firm posts bond for Nueva Vizcaya gold project
By Marianne V. Go (The Philippine Star) Updated August 26, 2009 12:00 AM

MANILA, Philippines - British mining firm Metals Exploration PLC’s local subsidiary FCF Minerals Corp. has posted a P175 million bond with the Mines and Geosciences Bureau (MGB) for the conversion of its exploration permit into a financial and technical assistance agreement (FTAA).

FCF is currently exploring for gold and molybdenum in its Runruno project in Nueva Vizcaya. It reportedly plans to spend at least $208 million for the development of the project.

FCFMC has filed for a conversion of its EP into an FTAA, which application has been favorably endorsed by Environment and Natural Resources Secretary Jose L. Atienza Jr. to Malacañang for approval in March this year.

FCFMC has secured an extension of its EP up to July 31 this year.

The EP extension will automatically terminate upon the approval of the conversion of the EP to a FTAA.

Atienza said the grant of an FTAA to FCFMC would advance the revitalization program of the country’s minerals industry. If approved, FCFMC’s FTAA would be the 4th granted under the Philippine Mining Act of 1995.

Atienza said “the approval of FCFMC’s FTAA will show once more the continuing confidence of investors in the Philippines and the government’s sustained efforts to rise above difficulties, thus showing the country remains a sound proposition for investments.”

An FTAA is an agreement between the government and a contractor for large-scale exploration, development and utilization of gold, copper, nickel, lead, zinc and other minerals, except for cement raw materials, marble, granite and sand and gravel and construction aggregates.

Securing an FTAA is open to Filipinos and foreign corporations with up to 100 percent foreign equity. An FTAA has a term of 25 years, renewable for the same period upon expiration.

Atienza said the entry of FCFMC would intensify the development of the gold and molybdenum deposits in the area which the mining firm had identified in its recent exploration activities in the area.

FCFMC said it plans to start operations by the second half of this year.

FCFMC is qualified to apply for an FTAA considering that the company’s current authorized capital of P210 million or $4.468 million is way above the government’s required minimum paid-up capital of P10 million.





Canadian mining firm applies for listing on PSE
By Zinnia B. Dela Peña (The Philippine Star) Updated August 12, 2009 12:00 AM

MANILA, Philippines - Canadian mining firm Siga Resources Ltd. will formally file this week its application for listing on the Philippine Stock Exchange (PSE) as it aims to build a presence in the country.

In a press briefing yesterday, Siga financial consultant Anand Nagin said the company is going ahead with its plan to dual list on the PSE by way of introduction because it does not see the need to immediately raise cash. Siga, which has a mining claim in Fiji, is a publicly-traded company in the US.

Established in Nevada, Siga is a start-up, pre-exploration stage company engaged in the search for gold and related minerals.

Nagin noted that the PSE does not have enough companies with dual listing. “We’d like to create the buzz about our company. I think that the Philippines is a good fit for us as we seek a global presence,” he said.

“Despite the fact that discussions have been held with other exchanges, we have always felt that the PSE was a good marriage for us. Given today’s uncertain economic times, innovative thinking is required on all sides. Thus, the intent to dual list shows that Siga is committed to moving forward with its exploration activities in Fiji and will look for projects to participate, once dual listed, in the Philippines,” Nagin said.

Nagin said the company has held preliminary discussions with local companies for possible investment in some projects as it seeks a foothold in the Philippine mining industry. “I believe that the Philippine economy, at large, will benefit through job creation, from the projects we may participate in,” he said.

“We are prepared to move aggressively into the Philippines in all fronts. We’re branching out into the Philippine economy and looking for sites where we will get good returns,” Nagin said.

Nagin said the company’s mining project in Fiji has proven gold deposit and has been tested well and proven to be ripe for exploration.

He said the company is hopeful that the PSE will move expeditiously as possible to act on its application.





Australian mining firm eyes new project in Nueva Vizcaya
By Charlie C. Lagasca (The Philippine Star) Updated June 30, 2009 12:00 AM

BAYOMBONG, Nueva Vizcaya, Philippines — An Australian mining firm is planning to expand its exploration activities in another remote village in this mineral-rich province.

Royalco Philippines, Inc., an Australian-owned mining firm, through its local subsidiary Buena Suerte Mining is now conducting community consultations for the possibility of conducting exploration activities in Barangay Yabbi, Dupax del Norte town here covering at least 3,000 hectares.

The possibility of exploring gold and copper in Yabbi came about as the firm was still at a standstill in the Pao-Kakiduguen area in neighboring Kasibu town after a group of Church-backed anti-mining residents denied entry of their exploration equipment last year despite having an exploration permit from the government.

“We are offering people in the area of Yabbi and environs development projects, including maintenance and repair of roads, as part of our social measure projects and as a show of our sincerity to develop the area with the affected residents,” said Gemma Talapi of Royalco’s community development affairs office.

Some village officials in the area, including those to be affected in case the exploration project pushes through have also expressed support for the said exploration activities in Yabbi, saying this will help in the development of their community as the firm has been able to provide them with simple infrastructure projects.

“Various projects have been made by the firm in upland barangays in Dupax del Norte town,” said Belance village head Tino Sanchez, the municipal federation chairman of the Liga ng mga Barangay.

Joey Ayson, Royalco’s country manager, said more development projects will be provided to the residents of Yabbi, Binwangan, Macabenga, Belance, Oyao and Bitnong once their exploration permit is approved by the government’s Mines and Geosciences Bureau.

The said 3,000-hectare initial exploration area is part of Royalco’s 16,000-hectare exploration site covering parts of Muta, Kasibu and Nagtipunan town in Quirino province.

The Yabbi proposed site came as exploration activities by another mining firm, the British-owned FCF Minerals Inc. (also known as MTL Corp. or Metals Exploration) continued in Runruno, Quezon town with commercial operations foreseen to start next year.

Another firm, the Aussie-Kiwi giant OceanaGold, was on the verge of commercial operations when the global financial crisis had forced it to temporarily halt its multibillion-peso Didipio Gold-Copper project in Didipio, Kasibu.

At the time of the stoppage, the firm was also facing a legal battle with the provincial government here over unpaid local taxes.


Inflation seen dropping to 1.2% in June

By Des Ferriols

MANILA, Philippines – Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. said inflation rate is expected to drop to as low as 1.2 percent in June, mainly due to the decline in electricity rates and the slowdown in food prices.

Tetangco told reporters that the national average inflation rate is projected to drop to 1.2 percent to 2.1 percent in June, reflecting expectations of the Bangko Sentral ng Pilipinas (BSP) for continued milder price increases.

“It’s consistent with our forecast for full-year 2009 and 2010 inflation rates that would both be within their corresponding target ranges,” Tetangco said.

According to Tetangco, the continued decline in the inflation rate in June could have been due to lower electricity rates during the month and slower price increases in certain food items and in domestic pump prices.

“The BSP will continue to monitor price developments, both domestically and in international markets, to ensure that our policy stance remains appropriate and responsive,” he said.

Although the inflation rate would drop down to low single-digit levels, Tetangco has ruled out the possibility of deflation even with the economy likely to go into recession this year.

Tetangco said inflation is heading downwards but there are still no indications that prices of basic commodities would actually start declining.

The inflation rate is a measure of increases in the prices of basic commodities. The higher the rate, the faster prices are increasing. When price increases slow down, the rate drops and when the inflation rate turns negative, it means prices have actually started declining.

But Tetangco said it is unlikely that the inflation rate would turn negative, especially with the world prices of oil starting to go up again.

“At the moment, we see inflation still trending downward, and falling to within target for both 2009 and 2010,” Tetangco said earlier. “While we have reduced our forecasts on inflation, we still don’t see a situation of deflation.”

“As such, there is room for policy to continue to be accommodative,” Tetangco added. “Our primary mandate is price stability, so monetary policy will continue to be determined by our assessment of the risks to inflation.”

According to Tetangco, the BSP is monitoring domestic and global developments to ensure its monetary policy stance is appropriate. He said officials are particularly watchful of liquidity supply.

“We’re watchful the liquidity level doesn’t become excessive,” Tetangco said. “We are also monitoring international oil price developments to see if there is any rise in speculative activity on oil and other commodities due to the expected rise in global demand.”

The BSP has so far reduced its policy rates by 175 points and monetary officials they could and would probably continue to ease monetary policies as long as inflation was coming down.

However, officials have increasingly cautioned that there are concerns over the level of liquidity in the market although the growth in money supply has slowed down to around 13 percent.

“If we can accommodate growth in the process of reducing the policy rate, we shall be accommodative,” said BSP Deputy Governor Diwa Guinigundo. “The other prong of monetary policy is of course the calibration of domestic liquidity to ensure its availability and to help in the proper functioning of the credit market.”

To the extent that the resulting liquidity would not be excessive and would be consistent with non-inflationary growth, Guinigundo said liquidity measures would be considered.




OceanaGold may reactivate Didipio gold project in Nueva Vizcaya
By Marianne V. Go (The Philippine Star) Updated April 06, 2009 12:00 AM

MANILA, Philippines - The “dramatically changed environment for capital projects” is presenting “a way forward” for OceanaGold (Philippines) Inc. to reactivate its stalled Didipio gold project in Barangay Didipio, municipality of Kasibu in Nueva Vizcaya.

This was the optimistic assessment of Blair Way, country president and Didipio project manager, in a briefing of Mines and Geosciences (MGB) officials last Friday regarding the current status of the mine project.

Carefully avoiding any definitive declaration regarding the status of talks regarding the refinancing of the Didipio project, Way admitted though that “we are confident that we will identify a way forward due to the dramatically changed environment for capital projects compared to what we saw in 2008.”

Way assured that “we continue to look at various possibilities for the project, but it would be too premature to rule out any option as this point.”

He vowed that “a full disclosure will be made to the public upon completion of the study.”

All Way would reveal is that “the company continues to examine strategies to resume development of the Didipio project including the effect of reduced scale and capital required to open the mine and process plant.”

Didipio, Way stressed, “remains one of the highest grade gold-copper porphyries at development stage in the world.”

The total mineral reserve of Didipio has been estimated at 34.8 million tons.

The Didipio mine site, Way assured, is being maintained and is ready to operate as soon a the necessary financing is secured.

OceanaGold had hoped to complete and secure by January this year the $185 million financing it needs to finance its continued mining operations for its Didipio copper-gold project.

OceanaGold had previously secured investment bank Stanley Morgan as advisor.

Based on advisor Stanley Morgan’s recommendations, OceanaGold was advised that it could enter into a joint venture, completely sell out or resort to borrowing to finance the continued operation of the Didipio copper-gold project.

Heavy operations at the Didipio mine site had been suspended middle of 2008 due to the lack of funding.

Way also assured the MGB officials that all legal problems it previously had with the local government and community in Nueva Ecija have been resolved, paving the way for the reactivation of the project.

Way reported that the firm currently has 49 personnel to run the Didipio camp and accommodate an 85-man security force on the site, while it also maintains a 41-personnel staff in its Makati office to continuing handling finance, accounts and regulatory compliance works and exploration staff.

Work, Way said, continues in the mine site in terms of environmental works, and maintaining and constructing the main access road and other site areas.




Lepanto invites investors for its gold project
By Marianne V. Go (The Philippine Star) Updated April 22, 2009 12:00 AM

MANILA, Philippines - Lepanto Consolidated Mining Co.has opened the door for other interested group willing to come in and invest in its gold project after discussions with China’s Zijin Mining Group have not progressed as the former hoped it would.

During yesterday’s stockholders meeting at the Rigodon Ballroom of the Manila Peninsula, Lepanto president and chief executive officer Bryan Yap reported that up to now, the Chinese government has not given its support for Zijin’s proposed acquisition of a 20 percent interest in Lepanto’s Benguet gold-copper deposit for $70 million.

He said the Chinese government, appears to be adopting a wait-and-see stance due to the global economic downturn.

Zijin is one of the biggest gold producers in China and is listed on the stock exchange of Hong Kong Limited.

The uncompleted deal covers Far Southeast Gold Resources Inc. which is owned 60 percent by Lepanto.

Yap was quick to clarify that “nobody has walked away from the deal.” He said the memorandum of understanding (MOU) it signed with Zijin is open-ended and does not specify any deadline.

However, since the deal is still pending, Lepanto is talking to other interested parties he added.

“It’s all very preliminary,” Yap said as he refused to identify other parties that have shown interest in the project.

Meanwhile, Lepanto is projecting a P150-million net income this year on expectations of higher gold production, a foreign exchange rate of P48 to $1 and gold prices staying or even higher than $850 an ounce.

Yap said, Lepanto is targeting a production of 45,000 ounces of gold from its Teresa and Victoria mines in Benguet.

It does not intend, however, to resume it copper operations which it had suspended in November last year, Yap said, because of the low prevailing global copper prices.

Lepanto’s Victoria and Teresa mines cover 2,777 hectares with estimated ore reserves of 0.39 million ounces of gold and 16.97 million pounds of copper.

Copper prices dropped to $1.32 per pound in December 2008 from $3.98 per pound in June the same year.




Lepanto Mining hikes capital to P3 billion
(The Philippine Star) Updated April 09, 2009 12:00 AM

MANILA, Philippines - Manila Mining Corp., an affiliate of Lepanto Consolidated Mining Co., is raising its authorized capital to P3 billion from P1.8 billion to raise funds for further studies and possible mine development.

In a filing with securities regulators, Manila Mining said its geology team, having completed its exploration program, will concentrate on converting the ore resource into reserve to justify the reopening of the Placer mine in Surigao Del Norte.

Manila Mining said a total of 51 holes were drilled last year in addition to the 20 holes drilled the previous year for an aggregate depth of 15.9 kilometers.

The company was incorporated in 1949 to engage in the mining and exploration of metals. It started mining operations in 1981. Until 2000, it was producing gold bullion through a carbon-in-pulp plant. It also produced copper concentrates with its copper flotation plant from 1998 to 2001.

Manila Mining incurred a net loss of P132.04 million last year, a reversal of the P276.98 million profit reported the previous year as expenses nearly doubled to P146.8 million.

Other income amounted to P555.52 million, 64.4 percent higher than the year earlier figure of P337.9 million. This included the equivalent of $7 million that was paid by Anglo American to Manila Mining as its entry cost into the Kalayaan project. — Zinnia dela Peña





Lepanto to focus on gold projects
(The Philippine Star) Updated March 27, 2009 12:00 AM

MANILA, Philippines - Lepanto Consolidated Mining Co. will focus its efforts this year on its gold projects in Mankayan, Benguet as it has put on hold its copper operations in view of the sharp decline in copper prices.

“There is no immediate plan to resume copper operations. In view of the very low copper prices, the company is studying ways of making copper operations more efficient,” Lepanto said in a filing with securities regulators.

Lepanto said operations this year will be focused on the Victoria and Teresa gold projects with estimated mining tonnage to reach 525,528 averaging 1,480 tons per day.

The company said it would spend P256 million to undertake development work at the Victoria Gold project. Another P138 million has been set aside for the purchase of mining equipment.

Lepanto said funding for these will come from internally-generated cash and existing credit lines.

The company incurred a net loss of P763.3 million with the mining operations accounting for P400 million. Consolidated revenues went up slightly to P1.84 billion.

Revenues from sale of metals reached P1.72 billion compared with P1.71 billion.

Mining operations showed a loss of P400 million compared with last year’s net loss of P183 million. The loss was largely due to lower gold production and the sharp decline in the price of copper.

Copper prices peaked at $3.98 in June 2008 only to go down to $1.32 per pound in December which resulted in the negative adjustments on the copper concentrate sales amounting to P108 million as of year-end.

Silver price hit a record-high of $20.92 per ounce in March but was down to $8.88 by October. The price of gold improved though averaging $871.96 per ounce compared with the 2007 average of $697.71 per ounce.

Gold produced totaled 37,716 ounces compared with 48,918 ounces while copper production amounted to 3.54 million lbs compared with 246,386 lbs. – Zinnia dela Peña




Lepanto Mining raises capital to P6.65 billion
By Marianne V. Go (The Philippine Star) Updated February 18, 2009 12:00 AM

MANILA, Philippines - Lepanto Consolidated Mining Co. is raising its authorized capital stock from P3.35 billion to P6.65 billion.

In a disclosure to the Philippine Stock Exchange (PSE), Lepanto said the planned increase its authorized capital stock will be presented to stockholders for approval during their annual meeting scheduled for April 20 this year.

Lepanto is engaged in gold bullion production and copper flotation operations.

It produces gold from its Victoria and Teresa operations, both located in Benguet.

Lepanto sells its gold bullion production to Heraeus Ltd. (Hong Kong), which is a refinery based in Hong Kong.

Its copper concentrate is sold through Seagate Minerals & Metals Inc. and Trafigura Beheer B.V. Amsterdam metal traders based in Switzerland and New Jersey, United States respectively.

Under the contract with Heraeus Ltd., Lepanto ships gold bars on a weekly basis.

Lepanto’s principal subsidiaries include Shipside, Inc., which is engaged in the hauling business; Diamond Drilling Corp. of the Philippines, which provides diamond drilling services, and Lepanto Investment and Development Corp. (LIDC) which is in the insurance business.

Lepanto, through LIDC, owns 80 percent of Diamant Boart Philippines, Inc. a manufacturer of industrial diamond tools.





Philex Mining boosts capital by P3 billion via 25% stock dividend
By Zinnia B. Dela Peña (The Philippine Star) Updated February 12, 2009 12:00 AM

MANILA, Philippines - Philex Mining Corp., the country’s largest mining company, is raising its capitalization by P3 billion by way of a 25-percent stock dividend.

In a disclosure to the Philippine Stock Exchange, Philex said its board approved a plan to increase the firm’s authorized capital stock to P8 billion and declare a 25-percent stock dividend.

Based on the stock dividend, 32 percent of the increase in capital will be subscribed and fully paid. The number of shares to be issued pursuant to the stock dividend totals 970.4 million shares.

Philex said adjustments will be made to the number of shares reserved for the company’s stock option plan.

Last week, Philex announced it has taken full control of the Boyongan copper-gold property in Surigao del Norte after buying out its partner, the Anglo American group, for $55 million.

The acquisition was done via a share and asset purchase agreement covering the purchase by Philex of the shares of Anglo in joint venture companies Silangan Mindanao Mining Co. Inc. and Silangan Mindanao Exploration Co. Inc. and the acquisition of various assets, receivables and rights and obligations of Anglo and its local subsidiary in the project.

A pre-feasibility study conducted by Philex showed that the Boyongan copper-gold mine would have a positive net present value of $150 million and a payback of 3 1/2 years, using long-term metal prices of $2.75 per pound for copper and $700/ounce for gold.

Based on the pre-feasibility study, the mine life could extend up to 14 years at a constant millfeed rate of five million metric tons of ore a year.

The study showed that the Boyongan site had a proven mineral reserve of 65.8 million tons at 0.87 percent copper and 1.39 grams/ton gold. The company also said there was the possibility of accessing additional mineralized ground in the northwest portion of the orebody.

With the life of Philex’s mine in Padcal, Benguet set to expire in 2014, the Boyongan mine can ensure that Philex can continue mining operations for another 15 to 20 years.

Last month, Philex produced P745 million worth of metals equivalent to 752,261 dry metric tons (DMT) of copper and gold ore.

The ore yielded 6,122 DMT of copper concentrates with an average grade of 23.81 percent copper, 61.6 grams per DMT of gold and 60.03 grams per DMT of silver.

These have equivalent metal contents of 1.46 million kilograms copper, 377,400 grams gold and 367,562 grams silver.

In the nine months ending September last year, Philex reported a net profit of P3.29 billion, 18 percent lower than the previous year, due to the decline in copper sales, higher general and administrative expenses and mark-to-market losses.





Philex okays First Pacific buy-in
By Zinnia B. Dela Peña (The Philippine Star) Updated October 09, 2008 12:00 AM

Philex Mining Corp.’s board of directors, with the exception of Social Security System (SSS) Romulo Neri, confirmed and approved the sale of 20.16 percent of the company to Hong Kong-based conglomerate First Pacific Co. Ltd. for P6.165 billion.

In a disclosure to the Philippine Stock Exchange, Philex said Neri had objected to the planned divestment, saying the block of shares should be “offered first to the state-run pension firm so that the SSS can exercise its pre-emptive rights.”

“We exercise this pre-emptive right as a matter of good governance,” Neri said. “Our action aims to protect the interest of SSS members and other Philex shareholders.”

Neri said his actions were in accordance with the instructions from the Social Security Commission, which is SSS’s highest policy-making body and is mandated to ensure the protection of the value of the investments, which were taken from the contributions of its 27 million members.

“Our goal is not to stop the deal, but for SSS to be given the opportunity to exercise this pre-emptive right,” he said, adding that the exercise of this right is stipulated under Section 39 of the Corporation Code.

“We simply request that the procedures as mandated by law are followed,” he said.

Six out of seven Philex directors present during the special meeting yesterday, gave their thumbs up to the sale of 778.44 million treasury shares to First Pacific at P7.92 per share.

SSS reportedly holds an 18.4-percent interest in the country’s biggest mining firm.

In the same meeting, the six directors approved a resolution requesting the SSS to recall the nomination of Neri as director due to his violation of his fiduciary duties.

“The board believes that such action of Director Neri is adverse to the interests of the corporation and its shareholders,” Philex said.

Philex said the six directors, including the two independent directors, who voted for the transaction, firmly believe that the transaction will be highly beneficial to the company and its shareholders.

“The corporation will generate P560.5 million more and will have cash of more than P6 billion primarily to fund the development of its Boyongan project and the exploration of its various claims and projects,” Philex said.

Philex also stressed that its management consulted external and internal legal counsel as well as its corporate secretary, and they were all of the opinion that a pre-emptive right does not apply in this case.

In a letter to the SSS, Philex chairman and chief executive officer Walter Brown pointed out that no other shareholder has come forward with a similar position as First Pacific nor has there been any desire expressed to buy shares at P7.92 which is understandable since it is possible to buy at lower prices.

The offer price represents a 10-percent premium over the acquisition cost of Philex which shares have been accumulated as part of its completed share buyback program and which are currently held in treasury.

The total consideration for the purchase will be paid in two equal tranches — the first 10.08 percent on Oct. 13, 2008 and the second 10.08 percent on or before Nov. 30.





First Pacific acquires 20% of Philex Mining for P6.2 B
By Zinnia B. Dela Peña (The Philippine Star) Updated October 05, 2008 12:00 AM

Hong Kong-listed conglomerate First Pacific Co. Ltd. is rapidly expanding its business portfolio in the Philippines through acquisitions in line with its strategy to enhance shareholder value and secure new investment opportunities in sectors that offer long-term value appreciation.

Fresh from its purchase of a 67.1 percent stake in Manila North Tollways Corp. through its local unit Metro Pacific Investments Corp., First Pacific just acquired a 20.16 percent stake in Philex Mining Corp., making it the single largest shareholder of the country’s biggest mining company.

“At 20 percent, that makes us the single biggest shareholder,” said Denis Lucindo, MPIC assistant vice president for investor relations group.

He said the First Pacific group is bullish on the prospects of the mining sector as metal prices continue to appreciate, driven by strong demand for gold and other precious metals.

“Right now, there are a lot of opportunities in the mining sector. Mineral prices remain strong,” Lucindo said.

First Pacific, controlling shareholder of Philippine Long Distance Telephone Co., forged Friday an agreement with Philex to buy 778.444 million common shares of the mining firm at P7.92 each share for a total of P6.165 billion.

The price represents a 10 percent premium over the acquisition cost of Philex which shares have been accumulated as part of its completed share buyback program and which are currently held in treasury.

The total consideration for the purchase will be paid in two equal tranches - the first 10.08 percent on Oct. 13, 2008 and the second 10.08 percent on or before Nov. 30.

The agreement further provides for the appointment of two directors to the Philex board upon completion of the transaction. First Pacific managing director Manuel V. Pangilinan will be nominated to take one of the two board seats.

Philex chairman Walter Brown said the entry of a strategic investor will provide Philex with a strong partner to allow it to vigorously pursue the development of the Boyongan mine and various other claims and prospects.

“That will clearly strengthen Philex’s portfolio of mining assets and, thus, cement its place as the largest and most profitable mining company in the Philippines,” Philex said.

Last week, Philex took over control of the Boyongan site by buying the 50 percent stake of its partner Anglo American Exploration (Philippines) BV for $55 million. Philex Gold Philippines Inc., which is 81-percent owned by Philex, owns the remaining half of the project.

Philex and Anglo discovered the Bongoyan deposit in 2000.

Anglo provided all the funds for exploration and completed the pre-feasibility study on the site where it discovered other mineralized centers in December 2007.

In its recent report to shareholders, First Pacific said it is also looking at mining opportunities in China aside from the Philippines.

Lucindo said the purchase is part of the group’s stategy “to create long term value for its shareholders by actively and carefully considering opportunities in the vital sectors of the Philippine economy, which include mining and port operations. The company is engaged in real estate development through Landco, health care services through Makati Medical Center and Davao Doctors, and the water business through Maynilad Water Services Inc.

“We believe that opportunities continue to exist in Asia and given the recent adverse developments in the global and regional equities markets - where asset values have been marked down - it is likely that a new window of investment opportunities is opening up. It is of course not clear how long this investment window will stay open. We will continue to review and evaluate such opportunities in accordance with our investment criteria,” Pangilinan earlier said.





Philex Mining to sell 20% stake to foreign investors
By Zinnia B. Dela Peña (The Philippine Star) Updated September 13, 2008 12:00 AM

Philex Mining Corp. is selling the shares it acquired from an extended buyback program, representing 20 percent of its issued shares, to foreign strategic investors to raise funds for new mining projects and the acquisition of new equipment to beef up operations.

As part of a program to enhance shareholder value, Philex has repurchased a total of 209.6 million shares in the open market worth P1.57 billion or P7.50 each share, a premium over its closing price of P7 yesterday. The shares acquired represent 6.7 percent of Philex’s outstanding capital stock.

In a disclosure to the Philippine Stock Exchange, Philex said it is “engaged in intensive negotiations with several foreign strategic investors for the sale of these shares.”

Among these investors include the group of former Trade Minister Roberto V. Ongpin and London-based investment fund Ashmore Investment Management Ltd., who has been steadily expanding its investment portfolio from gaming and information technology to oil refining and distribution and mining as it continues to seek new platforms for growth.

“As a 20 percent block, these shares command a significant premium over our acquisition cost due to the fact that the acquiring investor can equity account the income of their investment on these shares in their financial statements,” Philex said.

Of the total shares repurchased, 46.19 million shares were acquired by Philex from Gokongwei flagship firm JG Summit Holdings Inc. and 30.02 million from its food and beverage subsidiary Universal Robina Corp. The shares bought from the Gokongwei Group account for 5.4 percent of Philex’s total issued shares.

Ashmore earlier acquired a 49-percent stake in Philex Petroleum Corp., the oil exploration arm of Philex. It likewise bought Saudi Aramco’s 40-percent stake in oil refiner and retailer Petron Corp.

Philex primarily produces copper concentrates containing copper, gold and silver, which are transported via sea freight and smelted either in Kyushu Island, Japan, in the Sanganoseki smelter of Pan Pacific Copper Co., Ltd. (PPC), a joint venture company between Nippon Mining Co. Ltd. and Mitsui Mining and Smelting Co.

It is also engaged in oil exploration projects in Palawan and in the South Sulu through its unit, Philex Petroleum Corp.

The company owns the Padcal mine in Benguet province, its only operating mine.




Philex Mining demands ouster of Neri from board
By Zinnia B. Dela Peña (The Philippine Star) Updated December 17, 2008 12:00 AM

Philex Mining Corp. reiterated its demand for the ouster of Social Security System (SSS) president Romulo Neri from its board of directors for allegedly violating his “fiduciary duties” to the detriment of the publicly-listed mining firm.

In a letter to SSS chairman Thelmo Cunanan dated Dec. 11, 2008, Philex chairman and chief executive officer Walter Brown insisted that Neri’s move, questioning the sale of 20 percent of the mining company to Hong Kong-based First Pacific Co. Ltd., has cost Philex at least P35.7 million.

Brown said while the deal between Philex and First Pacific went through, the top Philippine gold and copper producer claimed that it lost P31.08 million in interest cost alone and incurred over P4 million in expenses “due to Neri’s actions.”

“Clearly, the actions of Mr. Neri jeopardized a transaction that is beneficial to the corporation and its stockholders, in violation of his fiduciary duties,” Brown said.

Neri, who was caught in the ZTE-National Broadband controversy prior to his transfer to the SSS, had opposed First Pacific’s purchase of 778.44 million of Philex’s common shares, saying the shares should have been offered first to the SSS as a major stockholder owning 18 percent of the mining firm. Neri is a representative of the SSS to the Philex board.

“It is ironic that Mr. Neri’s insistence on exercising the “pre-emptive right” in order to protect SSS members is in fact prejudicial to the SSS and its members. At the time Mr. Neri made his demand, the shares were trading at P7. Today, Philex shares are trading at about P5. The SSS would thus have bought shares at a price way above market and clearly wasting SSS money amounting to more than P700 million,” Brown said on behalf of Philex’s board of directors.

On Nov. 28, First Pacific completed its acquisition of a fifth of Philex for P6.17 billion through a block sale on the Philippine Stock Exchange.

Proceeds from the sale will be used by Philex to fund exploration and development projects, including the acquisition of Anglo-American’s share in the Boyongan property in Surigao del Norte.

Neri earlier said his actions were in accordance with the instructions from the Social Security Commission, which is the pension fund’s highest policymaking body. He said his mandate was to ensure the protection of the value of the investments, which were taken from the contributions of SSS’s 27 million members.




Benpres prepares to sell its stake in Rockwell Land
By Zinnia B. Dela Peña (The Philippine Star) Updated July 28, 2008 12:00 AM

Benpres Holdings Corp., the investment arm of the Lopez family, is in talks with two or three private equity fund management companies for the sale of its stake in upscale property firm Rockwell Land Corp.

Benpres president and chief operating officer Angel S. Ong said the sale is in line with the group’s overall strategy to trim debt which stood at around $367 million as of end-December last year from a high of $560 million in 2002.

Aside from Rockwell, Benpres is planning to sell its 33-percent interest in Manila North Tollways Corp. (MNTC) either through a secondary offering or private placement of shares. Macquarie Securities has been appointed as financial advisor for the divestment of its stake in MNTC which is expected to raise over $100 million in fresh equity.

The group’s objective is to reduce its debt by half over a period of two years.

Majority of the original debt was used to fund investments in Bayan Telecommunications Inc. and the failed operations of its then water unit Maynilad Water Services Inc.

Ong said Benpres remains optimistic it could win approval of its creditors for its revised debt restructuring plan which had been on the table since August 2007. The updated plan calls for the restructuring of debt payments over a period of 12 years.

Benpres earlier reported that its net profit for the first quarter of this year fell 91.8 percent to only P60 million, weighed down by the weak performances of its power and tollways holding firm First Philippine Holdings Corp. and ABS-CBN Broadcasting Corp.

Saturday, September 12, 2009

13 aspirants join run for clean election

13 aspirants join run for clean election
by Rey Joble

Manila Standard Today
August 31,2009 Monday

THIRTEEN candidates for President and vice president pledged to run for clean elections next year, but Makati Mayor Jejomar Binay could have won as President with plenty to spare if the elections had been decided by yesterday’s foot race.

Only Binay joined the event organized by GMA-7 in Taguig City, finishing the 5-kilometer segment—the other being the 10-kilometer run—in 47 minutes while his fellow hopefuls took their sweet time at the breakfast table.

The president of the United Opposition was drenched in sweat after joining the more than 5,000 runners who took part in the 5K and 10K events.

“Before, I could [finish 5 kilometers] in 18 minutes, but I lacked preparation,” Binay said.

Senator Francis Pangilinan put on his shorts and sneakers but didn’t run, saying he lacked sleep.

Senators Francis Escudero, Dick Gordon, Manny Villar and Mar Roxas, Metro Manila Development Authority Chairman Bayani Fernando, and Olongapo City Councilor JC delos Reyes appeared in casual attires.

“I hope everybody is in great shape for a clean and honest election,” Gordon said.

Escudero, a crowd favorite like former President Joseph Estrada, came in a little late.

“My age is not an impediment to my running in the election,” said Escudero, who turns 40 in October and is the youngest presidential aspirant.

“I’m not emulating [US] President Barack Obama. We need to find our own identity, and the youth will be behind me in search of that identity.”

Estrada wore a blue jacket and jogging pants with a red stripe. He jogged his way to the stage, showing he was in top form for another crack at the presidency.

Estrada was driven from power in 2001 and convicted of plunder in 2007, but was pardoned by his successor Gloria Arroyo within weeks.

The Arroyo administration says the Constitution and the conditions of his pardon bar Estrada from running for President again, but Estrada claims otherwise.

He sees no problems with the many presidential aspirants.

“The more, the merrier, [but] I hope we avoid what happened in the 2004 elections [that was marred by cheating],” he said.

Evangelist Eddie Villanueva of the Jesus is Lord Movement, who ran for president in 2004, had his jogging pants on—as had Nikki Perlas, an environmentalist and adviser of President Arroyo—but they did not join the fun run.

Senators Jamby Madrigal, who wore gray jogging pants, and Loren Legarda, who was in jeans and rubber shoes, came in a few minutes later.

The aspirants bonded during a ceremonial walk, took an oath, and signed affidavits pledging clean elections in 2010.

Commission on Elections Chairman Jose Melo led the oathtaking, while National Movement for Free Elections chairman Henrietta de Villa, and Philippine Bar Association chairman Federico Agcaoili witnessed the affidavit signing.

“This is good for the country,” a Comelec official said.

The aspirants who didn’t make it were Vice President Noli de Castro, Senator Noynoy Aquino, Interior Secretary Ronaldo Puno, Defense Secretary Gilbert Teodoro, Pampanga Gov. Ed Panlilio, and Isabela Gov. Grace Padaca.

De Castro was on a business trip to China, Aquino was still undecided, Puno and Teodoro were both sick, Panlilio was pre-occupied with the vote recount in Pampanga, and Padaca was on a business trip to Belgium.


8 presidential candidates
Mr.Expose --The Daily Tribune
09/10/2009

Sen. Benigno "Noynoy" Aquino announced yesterday at Club Filipino that he is running for President. Speaking in Tagalog he said:

"Tinatanggap ko ang hiling ng sambayanan. Tinatanggap ko ang bilin, at habilin, tagubilin ng aking mga magulang. Tinatanggap ko ang responsibilidad na ituloy ang laban para sa bayan. Tinatanggap ko ang hamon na mamuno sa laban na ito. Tatakbo ako sa pagkapangulo sa darating na halalan."

All the four sisters, Ballsy, Pinky, Viel and Kris were present at the dais giving full support to Noynoy�s decision. Ballsy spoke on behalf of the family. Kris left early to go to Balanga, Bataan to attend a mass for Cory.

He confirmed that he had offered the VP slot to Mar Roxas. He named four senatorial candidates, namely: Sen. Frank Drilon, Rep. Riza Hontiveros Baraquel, Rep. Ruffy Biazon and former Rep. Nereus Acosta of Bukidnon.

Sen. Kiko Pangilinan was present but significantly one of the few who did not wear a yellow shirt and he was not applauding at all. Will he still run for vice president if Mar Roxas accepts Noynoy�s offer?

In response to a reporter�s question, Noynoy again reiterated that since he was accepting a people�s draft, he expects them to campaign and raise the necessary funds for him.

When asked about his plan for Mindanao, Noynoy hedged and said "it is talk, talk, talk because otherwise, there will be war, war, war."

With Noynoy�s announcement accepting to be the LP standard bearer and with Manny Villar definitely running as NP candidate, it is now definite that there will be no opposition unity behind only one presidential candidate. There will be at least four opposition candidates.

It is now clear that Joseph "Erap" Estrada will be throwing his hat into the ring. It is also clear that Sen. Butz Aquino who was present and who earlier was announced as a senatorial candidate in Manny Villar�s lineup will now be with Noynoy.

In the administration ranks, the Lakas-Kampi-CMD has split with FVR, Speaker Joe de Venecia and 50 original Lakas leaders meeting and announcing they will field a separate standard bearer.

Sen. Mar Roxas in an ANC interview with Ron Cruz did not categorically say that he was accepting the VP slot. He did not even set a time frame on when he will decide. He sounded like he preferred to just be a campaigner for Noynoy and the Liberal Party candidates.

Since he is the first one to categorically declare his presidential candidacy, give the 1st round to Noynoy in this 15 round-bout. Now the hard work begins. Looks like there will be eight candidates running for president � two from the administration ranks, four from the opposition and two independents.

Saturday, March 15, 2008

Oil hits record of $111 on dollar slump --abs-cbnnews

Oil hits record of $111 on dollar slump
Business (as of 3/14/2008 1:15 AM)


Reuters


LONDON - Oil rose to a fresh record high on Thursday, hitting new peaks for the seventh trading day, as a weak dollar overshadowed an increase in US crude inventories.

US crude for April delivery struck a new high of $111.00 a barrel. It was trading at $110.93, up $1.01 by 11:02 a.m. EDT

London Brent crude for April, which expires on Friday, also hit a new peak at $107.88. It was trading at $107.77.

"We're looking at the US dollar, we're looking at speculation, we're looking at geopolitics.

Those three things tying together are defying fundamentals," said Peter McGuire, managing director of Commodity Warrants Australia.

The dollar dropped to a 12-year low against the yen and a record low versus the euro on Thursday on uncertainty about the long-term impact of the Federal Reserve's efforts to ease strained credit and money markets.

"Commodities are likely to have been the key beneficiary of the aggressive Fed rate-cutting cycle," Citigoup said in its research note.

Investors have rushed into commodities to hedge against inflation and the softening dollar. That has contributed to oil's rally, despite concerns over a recession in top oil consumer the United States and rising fuel inventories.

Oil prices rebounded after a drop on Wednesday caused by US government data that showed crude stocks rose more than expected last week and gasoline stocks were at a 15-year high


http://www.abs-cbnnews.com/storypage.aspx?StoryId=112104

Saturday, February 23, 2008

Merrill Lynch sees P42:$1 in March --PDI

Merrill Lynch sees P42:$1 in March


By Doris Dumlao

Philippine Daily Inquirer

First Posted 02:57:00 02/23/2008



Merrill Lynch sees P42:$1 in March


Teves wants BIR, BoC turned into GOCCs
US farmers rush to grains, avoid sugar, cotton
Gov’t sees record-high rice output in ’08
What is the best way to start an investment?
Wall St falls as financial shares weigh
Oil rises near $99 on Iraq, US weather
Gov’t rice plea a wake-up call for a hungry world
Asia mostly up, Singapore dollar at 11-year high
BIR pushes removal of excise tax exemption



MANILA, Philippines -- American investment banking giant Merrill Lynch expects the peso to pull back to 42.25 to the dollar in March but firm up at about 40 to the greenback by yearend.

In a forecast on global currencies dated Feb. 20, Merrill Lynch said it did not expect the peso, Asia’s best performer last year when it rose nearly 19 percent against the greenback, to rise past 40 to the dollar over the next two years.

For 2009, Merrill Lynch sees the peso firming up at 40 to the dollar in the first quarter and dipping to 41 in the second and third quarters before ending that year at 42 to the greenback.

Merrill Lynch said Asia’s emerging markets remained supported by strong economic fundamentals.

However, it noted that “markets and central banks appear wary of the decoupling theory,” which means that the dynamic region may still be vulnerable to some shocks arising from a slowdown in the US and other industrialized countries.

The peso is trading at eight-year highs but local currency dealers say political volatility has limited its upside potential.

Merrill Lynch forecast that the peso, after falling to 42.25 to the dollar, would rebound to 41.50 by June and 40.50 by September before ending the year at 40 to the greenback.

Its report also noted that local debt markets (LDM) in emerging economies had gained in popularity over the years. “More foreign investor flows have sought LDM exposure, either hedged or unhedged,” it said.

Merrill Lynch has expanded its coverage of emerging markets, adding eight more to the existing 11 countries, including recently launched government bond indices for the Philippines, Brazil and Indonesia.

Elsewhere in the Asia-Pacific region, Merrill Lynch said external and specific local developments would affect currency prospects.

It said Malaysia’s confirmation that there would be an election in March would be good for the ringgit, which it expects to rise from 3.20 to the dollar in March to 3.00 by yearend and 3.10 in 2009. It said the incumbent administration in Malaysia was expected to win comfortably and cut subsidies, noting that the prime minister was focused on making sure fiscal funds were freed up to get the planned projects up and running.

Merrill Lynch said the view on the Indonesian rupiah was positive but it might turn slightly cautious if former banker Agus were chosen as central bank chief. “The market sees him as a more able administrator than for his understanding of macro and monetary policy,” it said.

The investment bank forecast the rupiah to rally from the 9,100 levels to 8,800 to the dollar by yearend but returning to 9,000 by end-2009.

Merrill Lynch said the Thai baht might consolidate since the move to revoke the capital controls has been delayed to March or April. It forecast the baht to end 2008 at 32.25 to the dollar and falling to 33.50 at end-2009.

“The government’s growth preferences are evident, given that they are asking the Bank of Thailand to use monetary policy to stimulate the economy,” it said. “The BoT is expected to ease rates, though not at this policy meeting (Feb. 27), as growth remains strong and inflation high.” Edited by INQUIRER.net



Copyright 2008 Philippine Daily Inquirer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



http://business.inquirer.net/money/breakingnews/view/20080223-120672/Merrill-Lynch-sees-P421-in-March

Tuesday, December 18, 2007

Press Freedom

December 08,2010 Malaya , Saturday

Perils of the press (1)

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By JOSEPH ISRAEL M. LABAN

www.pcij.org


DILI, EAST TIMOR — What has been described as East Timor’s leading independent daily operates out of four small rooms and has a budget that threatens to disappear altogether every day.

The Timor Post also has staff members who have been in constant fear for their lives since last year, when two of them were attacked and left for dead right outside their rundown office. Then again, other journalists in this young nation have had similar experiences. Last August, another major newspaper had its office windows smashed while one of its employees was struck repeatedly with rocks and sticks and his motorcycle trashed after he acknowledged that he worked for the paper.

Ideally, this should not be happening in the world’s youngest democracy, which at one point had also been called by then United Nations Secretary General Kofi Annan as "a child of the international community." But as the media in other Southeast Asian nations have found out, keeping the press free is a constant battle that is fought daily – even in a supposed democracy.

Just last week, for instance, about 50 journalists covering a coup attempt were handcuffed with plastic luggage fasteners and hauled off for questioning by Philippine authorities. As of June 2007, the Philippines has also seen some 90 media practitioners killed in the line of duty since democracy was restored in 1986, according to the National Union of Journalists of the Philippines (NUJP). Fifty-three of the killings, adds the NUJP, took place under the administration of President Gloria Macapagal-Arroyo.

Meanwhile, in Indonesia, 58 cases of violence against journalists were recorded between August 2006 to August 2007 by the Alliance of Independent Journalists. According to the body, "government apparatus" has become the new enemy of press freedom, since it is believed to have perpetrated 10 of the recorded assaults.

Indonesia had occupied East Timor in 1975 and ruled it mainly through its armed forces. In August 1999, however, the Timorese voted for independence from Indonesia. That change was recognized by the international community in May 2002.

For sure the media here had expected press freedom to come with democracy. Instead, local journalists seem to have been under siege since East Timor – now also known as Timor Leste – broke free from Indonesia, with the most serious setbacks to press freedom taking place during last year’s tumult that nearly split the country in half.

Nobel Prize laureate and current Timor Leste President Jose Ramos-Horta maintains, "Timor Leste still has the freest media in Southeast Asia." Indeed, East Timor has ratified the major international human rights conventions that guarantee freedoms of speech and the press, and has even incorporated these rights into East Timorese jurisprudence.

Yet Virgilio da Silva Guterres, chairperson of the Timor Lorosa’e Journalists Association (AJTL), says that although there is no comprehensive survey yet of attacks on members of East Timor’s media, unverified reports of journalists being harassed or assaulted trickle in all the time.

He cites the case of an attack on a journalist covering the campaign in the first round of presidential elections earlier this year, and notes, "He had to stay in the hospital for three days due the injuries he sustained."

AJTL estimates that there are about 200 media practitioners in Timor Leste today. There are three major dailies and two weeklies, along with two magazines, one of which caters mostly to the youth. About 80 percent of these publications are at least partially dependent on funding from international development agencies.

"The public is still not well-educated in the role of the media in the society, which is why support in the community remains weak," says Guterres. He adds that there is a need for "extensive civic education" for the public so that people would realize "that their basic human rights include the right to information and that it is the duty of the media to inform."

Guterres and the rest of the country’s media hope, though, that there would be no repeat of the events of 2006 that even led to the shutdown of the local papers for almost a month. In May last year, the home of Timor Post editor in chief Jose Ximenes was also burned to the ground, as were those of two Post reporters, Domingos Freitas and Mouzinho Lopes de Araujo. The incidents were among those that prompted the International Federation of Journalists (IFJ) to officially express its concern over how Timorese journalists were becoming internally displaced persons because their houses were being torched.

Freitas had the added misfortune of being one of the two Post employees who were beaten savagely right in front of the paper’s office a few weeks later. He had been on his way home to a refugee resettlement camp where he had taken his family after they lost their home.

De Araujo says the burning of their houses and the attacks on Post employees had something to do with articles they published that were critical to the government of then Prime Minister Mari Alkatiri. The former premier’s party is also being blamed for more recent attacks on journalists.

Last May, a few days after he was sworn in as East Timor’s new president, Ramos-Horta was asked by this writer about the kind of guarantees and protection he would be extending to local journalists. He replied, "Timor Leste will honor all conventions and international treaties it has signed." He then went on to propose "government subsidies to privately owned newspapers," although he said that this would "not be attached to preconditions that could affect the independence of the media."

Ramos-Horta is widely respected in East Timor and in the international community. But his assurances about protecting the country’s media are apparently cold comfort to journalists here.

Freitas, for instance, has chosen not to file a court case against his attackers, believing that East Timor’s still frail judicial system will only let him down and expose him to more risks. "I do not think the Tribunal could resolve my problem," he says. "I think it will only aggravate the situation. Filing a case would only encourage even more retaliation."

Freitas may be thinking of his colleague who was attacked alongside him and later filed a case in court. Up to now, though, the case has not moved, even as Freitas’s co-worker receives anonymous threats against him and his family.

Freitas himself has opted to seek the help of a community elder to mediate between him and his attackers whom he says he can identify one by one. "I am not so sure about justice," he says. "I only want an apology."




December 10,2010 Malaya , Monday

Perils of the press (2)

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By JOSEPH ISRAEL M. LABAN

www.pcij.org


A new anti-defamation law has become yet another worry for Timorese journalists, warns Virgilio da Silva Guterres, chairperson of the Timor Lorosa’e Journalists Association (AJTL).

Deliberate misapplication of the law is a concern. "The legal framework is one of our biggest problems at the moment," says Guterres. "The stipulations of the law make it vulnerable to abuse by corrupt politicians." He also says that some reporters are already beginning to hesitate about writing critical stories.

"When the law is finally implemented," predicts Guterres, "members of the media may become too afraid to disclose the truth."

Observers have noted that the law imposes unlimited fines for those convicted of criminal defamation. Penalties for defamation through the media are also greater, as are the penalties (three years in prison) if those defamed are performing "public, religious, or political duties." The truth of the statements would not necessarily serve as a defense, leading legal analysts to comment that the penal code would grant greater protection to public officials compared to everyone else.

Media groups had tried to block the law’s passage. In February 2006, the East Timor and Indonesia Action Network (ETAN) also sent a letter to then President Xanana Gusmao to ask him to veto the criminal defamation provisions contained in the country’s new Penal Code. Argued the group: "One of the foundations of a democratic society is the ability of its people to speak truth to power. If Timor Leste’s government tries to suppress such speech, we fear for the future of your democracy and for the future stability of your nation."

The provisions were included in the Penal Code drafted by the Ministry of Justice despite the clear recommendation to East Timor’s Commission on Reception, Truth, and Reconciliation (CAVR) not to criminalize defamation.

At least, though, members of the Timor Post staff do not seem to be among those who have been intimidated by the new law. De Araujo, the paper’s coordinating reporter, does worry sometimes about the quality of their reports, but he says this is due more to other factors.

"Most difficulties are material," he says. "Like the equipment in our office, like computers. There are many journalists in the Timor Post but few computers so we have to wait for each other in writing articles. We have to wait a long time, sometimes five hours, just to be able to write our articles."

The paper currently employs 15 reporters who have to share four computers. Each reporter is required to file three articles for the newspaper. This causes a bottleneck in the writing process, and leads to significant delays in preparing the paper and sending it to the press.

The Post began operations in 2001, and relied heavily on funds from international donors for more than two years. These days, it is constantly trying to stay afloat through what it earns from selling copies of the paper (at 50 U.S. cents each, with a daily circulation of about 1,200) and advertising space. Chief editor Ximenes admits that their monthly revenues barely cover their overhead expenses.

Trouble with tongues

Language has also become a problem. From 2001 to 2005 the Timor Post published articles written in four languages: Tetum, Bahasa Indonesia, Portuguese, and English. Today most Post stories are in Tetum, one of East Timor’s two official languages. The other is Portuguese (East Timor used to be a Portuguese colony), but it is Bahasa Indonesia that is used for the foreign news section.

De Araujo says the decision to use Tetum as the primary language and Bahasa Indonesia as the secondary language in the newspaper was based on "marketing considerations" that could directly affect the long-term viability of the newspaper. "When you look at the market," he says, "Portuguese and English do not have many readers…because in this country most of the people only understand Tetum."

But the language problem has other more direct manifestations that could seriously impede the basic practice of newsgathering for the Post. Tetum, for instance, does not have enough technical and scientific terms to describe very specific details that have to be conveyed by the media from time to time. De Araujo also says that he himself trips over his tongue and becomes perplexed when interviewing older Timorese bureaucrats who were educated in Portugal.

"As a journalist I have a difficult time understanding Portuguese words," he says. "So sometimes after an interview I have to ask a senior reporter who understands Portuguese what it means."

Portuguese is no longer spoken widely in East Timor. At the Post, there is only one person who can understand Portuguese and that’s chief editor Ximenes, who at 45 is at least two decades older than many of the paper’s reporters.

Lack of skilled journalists is yet another of the paper’s difficulties. None of its reporters – more than half of whom are teenagers – graduated from a journalism course. Only a few have previous media work experience. The only journalism training that most of the current staff received is the annual basic journalism course the Post itself conducts. The paper holds a three-month training session for journalists each year. From the 30 to 35 trainees, the Post chooses a handful to invite to join the daily.

Although they need more manpower, Ximenes says they cannot afford to hire more people. This is despite what de Araujo considers as "very low salary" being given to the paper’s reporters. New reporters at the Post receive from $90 to $100 a month. De Araujo receives the highest salary among the reporters at $160 per month. But in a country where a liter of bottled water costs $1, this is hardly enough to support himself and his family.

"Money is a very real problem for Timorese journalists," says de Araujo, pointing out that the low media salaries lead to other problems. While some journalists augment their income by working as stringers for foreign news agencies, he says, some resort to shady "quick fixes."

"There is already some corruption in the local media," says de Araujo, although he asserts that he "cannot blame" his colleagues when "the survival of their families is on the line."

For all its problems, however, it is business as usual at the Timor Post. As the evening approaches, the sound of motorbikes stopping in front of the newspaper’s office signals the arrival of reporters coming in from their respective beats.

"I never had second thoughts about working for the Timor Post," say Freitas, when asked whether he considered resigning from his job after the attack. "I know we are fair and we shouldn’t be afraid of possible reprisals."

He does say that he initially considered asking for a temporary reassignment to the Post’s district office in Baucau. But today he feels safe enough to head home on his own, back to the refugee tent he continues to shares with his family.

"No matter what happens we must go on," says de Araujo. "We must keep the people posted."


***


Joseph Israel M. Laban is a senior producer at GMA-7. He wrote this piece as a participant in the 2007 Southeast Asian Press Alliance (SEAPA) Fellowship Program.





* * * * *





Maria Ressa’s position paper on media at the Pen
by Maria A. Ressa
Head, ABS-CBN News & Current Affairs Division

On November 29, 2007, more than 30 journalists were arrested, handcuffed and transported to Camp Bagong Diwa in Bicutan. 12 of the journalists were from ABS-CBN, detained as “witnesses and suspects,” according to the police. Others were told they would be released as soon as their identities were verified.

Head of Newsgathering, Charie Villa, went immediately to the Peninsula Hotel to identify our people; yet, she was told they would still have to be arrested and brought to Bicutan. We believe this move sets a dangerous precedence and erodes our nation’s democracy.

There are two points I’d like to make about the role of media in conflict situations like the Peninsula siege. First, our democracy rests on the principle that the people have a right to know. Section 7, Article III of the 1987 Philippine Constitution recognizes “the right of the people to information on matters of public concern.”

Law enforcement and government officials must be accountable to the public, and our history has shown there is no better means to do that during crisis situations than live television coverage. In a 2004 national survey by ABS-CBN, over 90% of adult Filipinos say that during any major event, they look for news, with 87% turning to TV to make sure they’re informed. After the 2007 elections, that increased, hitting 92% in the National Capital Region, according to Pulse Asia.

The clamor for information increases during times of uncertainty, highlighted during nearly a dozen coup attempts and withdrawals of support in the last two decades: in 1986 and 2001, military moves turned into successful people power revolts; while failed attempts were televised during Edsa Tres, the Oakwood Mutiny and the Peninsula siege. Since these three failed, it obviously doesn’t follow that television coverage automatically means success. During all these, 1986 excluded, ABS-CBN reported in a similar and consistent fashion, spurred on by the public’s right to know. In performing our duty, we accepted the risks, including overturned and burned vehicles and the mauling of reporters (not by the police but by a sector of the public we serve).

While the State has the right to protect itself, the public has the right to know – and as we have seen, the Filipino has always made a choice. Focus group discussions (FGDs) conducted by ABS-CBN between December 3-5 reflect that. They expressed an overwhelming sentiment that they want to be kept informed, saying live television coverage should continue. We believe this is critical because an uninformed public makes any democracy unstable; it is in this light that media should be considered partners in promoting democracy rather than the other way around.

It is important that the public has the information it needs to make an informed decision because that is the foundation of our democracy. Yet, by arresting our journalists, authorities effectively shut down ANC’s live coverage of the post-siege situation at the Peninsula Hotel. They tried to confiscate videotapes and equipment from reporters, photographers and cameramen. The police violated their own definition of the “crime scene” by approaching our transmission facilities outside the Peninsula to try to confiscate our videotapes and stop our coverage. This is effectively censorship – at a time when the conflict had all but been resolved. To date, they still have at least one videotape and two radios owned by ABS-CBN.

The second point which has clear ramifications for the future is the role journalists play in conflict situations like Edsa, Oakwood and the Peninsula. On December 5, DILG Sec. Ronaldo Puno called the Peninsula a “crime scene” and said that journalists violated two laws at the Peninsula siege. He cited Article 151 of the Revised Penal Code which has to do with “resistance and disobedience of persons in authority” and PD 1821 for “obstruction of justice.”

These statements have far-reaching consequences because now every journalist reporting on a conflict situation has to worry that he/she may be arrested and charged. Beyond that, if the journalist can be charged so can news organizations. This is no longer a threat but a reality and creates a “chilling effect” for working journalists, who can now be charged like common criminals.

Yet, we believe that the law covering the presence of journalists in conflict situations is very clear and supercedes any legislation cited by the DILG Secretary. Section 4, Article III of the 1987 Philippine Constitution states that “no law shall be passed abridging the freedom of speech, of expression, or of the press.”

“Was there an arrest? Yes,” said Sec. Puno, “Were they charged? No. Why was there an apology? Because all of us feel bad about the way the incident materialized. We are unhappy that our friends in media had to suffer inconvenience.”

In one move, the government trivialized and dismissed a violation of the Constitution as an “inconvenience.”

While we understand the position of the Philippine National Police, by its own admission, it is using “SOPs” created in 2006. PNP Memorandum Circular No. 2006-09-01 tells the police what to do with perpetrators, hostages and witnesses. It has no provisions for journalists, who are part of the landscape in conflict situations. This may be the first time these rules were used. It is also the first time that the PNP has been the lead agency in a political conflict situation – which is how many journalists would characterize the event, not just a “crime scene” complete with overtones of bank robberies and murder. Every other coup attempt or passive withdrawals of support in the past twenty one years were handled by the Department of National Defense. Perhaps this is part of the reason why the rules were changed in the Peninsula siege.

We journalists are by no means perfect. Some of us can be arrogant at times and that is how we have been portrayed by the police in this instance. But the reason we need to hold the line is simply because if we give in, we would have contributed to weakening our democracy by depriving the public of the information it wants and needs.

Having reported from numerous combat zones in Southeast Asia and around the world, I am very aware of the risks we face as journalists. In Indonesia, I barely survived a cross-fire between government troops and protestors. In Aceh, my team and I were detained but that’s to be expected given the authoritarian regime then. In East Timor, Pakistan, India, China - despite the dangers and restrictions, you calculate the risks and always make sure the odds are high that you will survive to tell the story. What I have learned from experience is that every situation is different, and what you do depends on the system of government you’re operating under, i.e. you would not make the same decision under a democracy that you would under a dictatorship.

Every journalists’ and news organizations’ assessment of risk varies. That is why I find it slightly ludicrous for the PNP to quote the Ethics Manuals of the CBC, BBC and ABS-CBN to bolster its point that all journalists should have left when requested – that there is a one-size-fits-all response. All these codes do in these instances is give guidance - the philosophy of the organization - but in the end, the judgement call and the decision to stay or to go – as well as the risks that entails – falls with the journalist. We balance the fear for personal safety with the duty to report the truth.

The police claim we were being used because they said some Magdalo soldiers changed clothes and put on press passes. Everyone tries to use us, including the police and military intelligence agents who were pretending to be journalists. During the crisis, we did not report that because we did not want to compromise their work, but their presence increased the danger for us. Those agents could have easily told their superiors who were the real journalists and who were only masquerading.
We categorically state that at no instance did any journalist “obstruct justice” at the Peninsula. Mere presence and reporting the news is not obstruction of justice. Recordings made by the police of our live coverage are now being used by authorities as evidence against those it charged in court. The police even acknowledged that there was a failure of communication within their organization. They mobilized only after they were “informed” of the event through TV and radio coverage. It is clear the police benefited from us doing our job. We cannot be both obstructing and helping justice simultaneously.

Our fear is that the arrests of journalists may herald a new, more dangerous time ahead. In recent years, many developments have eroded press freedom in our country. In 2003, there were more journalists killed in the Philippines than in Iraq, and today – despite pressure from the international community - the extrajudicial killings of journalists and leftist leaders continue with virtual impunity. Intimidation tactics, indirect pressure and libel suits have been used to attempt to control journalists. In 2006, Proclamation 1017 severely curtailed press freedom after authorities threatened to shut down news organizations and stationed tanks outside tv networks.

Last year, Freedom House, an international group which conducts an annual survey of political rights and civil liberties, downgraded its rating of the Philippines from FREE to PARTLY FREE.

Given this context, the arrests of journalists is extremely alarming, especially since it has now been elevated as policy by Sec. Puno, who warns journalists that the police would do it again. To add insult to injury, after authorities apologized for the arrests, they began to publicly question the motives of our journalists. Officials maligned us by implying we were working with Trillanes’ group despite the absolute lack of evidence for these statements. Now they say they will look at the franchises of television networks. All this only points out that the attempts to intimidate and harass journalists continue.

While it is inconvenient for law enforcement officials to have to contend with media in conflict zones, it is a necessity guaranteed by the Constitution and a check and balance of a vibrant democracy.

On November 29, the journalists who chose to stay and report on the Peninsula siege displayed tremendous courage and risked their safety for the public they serve. A colleague from the Foreign Correspondents’ Association of the Philippines captured the spirit of our thoughts: “if someone else can deliver the Truth better, we would give way. If we chose to leave at the request of the PNP, then we would have to swallow the PNP version of the Truth because we chose to give up the access we already had.”

That would be a disservice to the public we all serve.





* * * * * * * * * *


Malaya News
December 10,2010
Monday


Typhoon, poverty fail to stop Bicol lass from winning quiz bee


--------------------------------------------------------------------------------




BY MANILYN UGALDE

LEGAZPI CITY — Her family was one of those affected by super typhoon Reming last year but this did not prevent 15-year-old Cherry Gil L. Araojo, a high school senior, from topping the national quiz bee contest last Dec. 1 in Manila.

Araojo’s father is a tricycle driver. Her mother is a laundrywoman.

Legazpi city Mayor Noel Rosal said the winner is a product of his pet project, the four-year-old Legazpi City High School.

"What struck me was the situation of the Araojo family which lives a simple life in a small house squatting on private land in Sitio Renelizan, Barangay Bonot," the mayor said.

Rosal said Araojo boasts of impressive scholastic records.

He said she has been adjudged best student in science and technology subject since her first year. She graduated from the Ibalong Public Elementary School.

Araojo said she took the regional quiz bee contest on Nov. 28 without expecting to come out on top.

When she did, she and her coach rushed to Manila the next day to take the national quiz bee test.

"I was just very relaxed and even concerned more about my family situation because of threats of bad weather," she said.

Araojo said she intends to take up chemical engineering or accounting.

Rosal said the city government will give cash incentives to Araojo aside from what she will get from the national government.

Araojo will represent the Philippines in the International Quiz Bee Tournament in China.

Friday, November 16, 2007

Two Koreas to restart regular rail service after half-century --AFP





North Korean Premier Kim Yong Il, left, shakes hands with his South Korean counterpart Han Duck-soo, right, during their meeting at a hotel in Seoul, South Korea, Friday, Nov. 16, 2007. North and South Korea agreed Friday to launch cross-border rail service next month for the first time in more than half a century, with cargo trains running along a short railway just across the heavily armed frontier.

(AP Photo/Lee Jin-man, Pool)


photo courtesy of Yahoo News Photo(Associated Press)



Two Koreas to restart regular rail service after half-century

AFP

by Lim Chang-Won Fri Nov 16, 12:59 AM ET

SEOUL (AFP) - North and South Korea have agreed to start regular rail freight services across their heavily fortified border next month for the first time in more than half a century, it was announced Friday.

The services will begin on December 11, a joint statement said on the final day of a rare meeting of prime ministers from the two sides.

In other reconciliation moves, the two nations agreed to start creating a joint fishing zone in the Yellow Sea in the first half of next year. The aim is to prevent further clashes around the disputed sea border, the scene of bloody naval battles in 1999 and 2002.

Cross-border trains made test runs in May in what was hailed as a milestone for unification between two countries still technically at war after their 1950-53 conflict ended only in an armistice.

But the North's military had been reluctant to give security guarantees for a regular operation on the 20-kilometre (12 mile) section of track, which would service the Seoul-funded industrial estate at Kaesong just north of the border.

President Roh Moo-Hyun and North Korean leader Kim Jong-Il agreed at their historic summit in Pyongyang early last month to resume regular rail services.

This week's prime ministerial meeting, the first for 15 years, was tasked with implementing the sweeping summit declaration on promoting peace and co-prosperity.

"This accord will provide a major opportunity for South and North Korea to speed up exchanges and cooperation, and to advance peace and prosperity on the Korean peninsula," an upbeat Lee Jae-Joung, Seoul's unification minister, told reporters.

The issue of military security guarantees would be handled when defence ministers from the two sides meet late this month, he said.

Regular cross-border freight services would signal a marked opening-up by the hardline communist North, which is eager for help to revive its crumbling economy.

The border remains one of the most heavily mined areas on earth, and extensive demining had to be undertaken before the railway test runs.

In another sign of opening up, the North has agreed to let South Korean businessmen use the Internet and cellphones when visiting Kaesong, Lee said.

Prime ministerial meetings will be held every six month in future.

Last month's summit agreed on a variety of joint reconciliation projects costing billions of dollars, including the establishment of the joint fishing area as part of a "peace zone" in the Yellow Sea.

A special economic zone around the North's southwestern port and naval base of Haeju would be part of the peace zone. The two leaders also agreed to expand Kaesong, jointly develop shipyards in the North, upgrade the North's decrepit roads and railways and expand tourist and cultural exchanges.

On the joint fishing area, a committee grouping both sides will meet this year to discuss the project, said Friday's joint statement. The two sides will conduct a joint feasibility study on developing Haeju by year-end.

North and South agreed to begin repairing the highway between Pyongyang and Kaesong next year, along with work on a railway connecting Kaesong to Sinuiju on the Chinese border.

South Korea's government sees joint developments such as Kaesong as a way to narrow the huge wealth gap in preparation for possible eventual reunification.

Some 20,000 North Koreans earning about 60 dollars a month produce clothes, utensils, watches and other goods for South Korean firms.

A Hyundai Research Institute study has estimated the cost to South Korea of all the summit projects at 11 billion dollars. The Seoul government, which has less than four months still in office, says private businesses will pick up cost of the investment tab.


http://news.yahoo.com/s/afp/20071116/wl_afp/skoreankoreatalks_071116055031


Copyright © 2007 Agence France Presse. All rights reserved.

ASEAN single market faces obstacles:analysts --AFP






ASEAN single market faces obstacles: analysts

Agence France Presse

SINGAPORE - Southeast Asia's plans for a unified market by 2015 hinge on painful reforms that could be derailed by red tape, vested interests and foot-dragging, observers say.

Association of Southeast Asian Nations (ASEAN) leaders holding their annual summit in Singapore from Sunday are expected to approve a blueprint for an ASEAN economic community embracing more than half a billion people.

"Political will is the key. If countries don't have the political will to push through with these reforms, this will remain just a dream," said a Southeast Asian trade official, talking on condition of anonymity.

"Can governments, for example, resist pressure from domestic interests against allowing foreign airlines to fly domestic routes?"

Analysts have lauded ASEAN for moving forward by five years its timetable for economic integration, from 2020 to 2015.

But they said the 40-year-old organization faces a formidable task in establishing a unified market and production base that would help it compete against Asian giants China and India.

Some of the reforms could come up against entrenched domestic business interests and face resistance from officials in departments such as customs, a major source of corruption in some countries, they said.

Complicating the situation are disparities between the group's more developed members Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand, and lower-income states Cambodia, Laos, Myanmar and Vietnam.

As a first step to integration, ASEAN has marked 12 priority sectors for the elimination of tariffs and non-tariff barriers by 2010.

These are agricultural, rubber and wood-based products along with air travel, Internet linkages, automotives, electronics, fisheries, healthcare, logistics, textiles and apparel, and tourism.

ASEAN also plans to liberalize the services sector, open formerly-closed sectors to foreign investors, harmonize and streamline customs procedures, and ease the movement of professionals.

ASEAN transport ministers agreed in November that national airlines can fly between capital cities by the end of 2008 under an open-skies pact that could be expanded later to include secondary cities.

Mike Barclay, regional vice president of the industry trade body, the International Air Transport Association (IATA), said however that ASEAN still had a "long way to go" in freeing up aviation.

"We don't see any relaxation of foreign ownership controls... we don't see the opportunity for airlines to operate domestic sectors in another ASEAN country," Barclay told an aviation conference in Singapore last month.

Philippine Trade Secretary Peter Favila said in August there could be "unintended pockets of bureaucratic red tape" that could slow the blueprint's implementation, but voiced confidence this could be overcome.

The Asian Development Bank (ADB) Institute identified in a recent report the huge scale of some of the reforms ASEAN states must undertake.

"A shift to knowledge-based economy is crucial for Malaysia and Thailand and institutional and governance reforms and restoration of good investment climate should be priorities for Indonesia and the Philippines," it said.

Cambodia, Laos, Myanmar and Vietnam need to build infrastructure like transportation and telecommunication facilities. They also need legal, judicial and governance systems and a skilled work force, the ADB's research arm said.

"These countries are still not ready for the ASEAN economic community," said analyst Hiro Katsumata of the S. Rajaratnam School of International Studies in Singapore.

ASEAN's six wealthier states could form the core of an economic community by 2015, with the poorer members joining later, Katsumata suggested.

The ADB Institute paper highlighted the wide disparity within ASEAN in terms of market openness and urged financial and technical help for ASEAN's poorer members.

For example, ASEAN's average tariff import rate is 9.53 percent, ranging from zero tariffs in Singapore to 17.92 percent in Vietnam.

It takes an average 32 days to import an item in ASEAN, varying from three days in Singapore to 45 days in Cambodia and 78 days in Laos.

An average 64 days are required to start a business in ASEAN, ranging from six days in Singapore to 163 days in Laos and 97 days in Indonesia.

"The greatest challenge is to narrow the development gaps within ASEAN," the paper said.



http://www.abs-cbnnews.com/storypage.aspx?StoryId=99366


© ABS-CBNNews All Rights Reserved





ASEAN single market faces obstacles: analysts
AFP

by Martin Abbugao Fri Nov 16, 1:33 AM ET


SINGAPORE (AFP) - Southeast Asia's plans for a unified market by 2015 hinge on painful reforms that could be derailed by red tape, vested interests and foot-dragging, observers say.

Association of Southeast Asian Nations (ASEAN) leaders holding their annual summit in Singapore from Sunday are expected to approve a blueprint for an ASEAN economic community embracing more than half a billion people.

"Political will is the key. If countries don't have the political will to push through with these reforms, this will remain just a dream," said a Southeast Asian trade official, talking on condition of anonymity.

"Can governments, for example, resist pressure from domestic interests against allowing foreign airlines to fly domestic routes?"

Analysts have lauded ASEAN for moving forward by five years its timetable for economic integration, from 2020 to 2015.

But they said the 40-year-old organisation faces a formidable task in establishing a unified market and production base that would help it compete against Asian giants China and India.

Some of the reforms could come up against entrenched domestic business interests and face resistance from officials in departments such as customs, a major source of corruption in some countries, they said.

Complicating the situation are disparities between the group's more developed members Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand, and lower-income states Cambodia, Laos, Myanmar and Vietnam.

As a first step to integration, ASEAN has marked 12 priority sectors for the elimination of tariffs and non-tariff barriers by 2010.

These are agricultural, rubber and wood-based products along with air travel, Internet linkages, automotives, electronics, fisheries, healthcare, logistics, textiles and apparel, and tourism.

ASEAN also plans to liberalise the services sector, open formerly-closed sectors to foreign investors, harmonise and streamline customs procedures, and ease the movement of professionals.

ASEAN transport ministers agreed in November that national airlines can fly between capital cities by the end of 2008 under an open-skies pact that could be expanded later to include secondary cities.

Mike Barclay, regional vice president of the industry trade body, the International Air Transport Association (IATA), said however that ASEAN still had a "long way to go" in freeing up aviation.

"We don't see any relaxation of foreign ownership controls... we don't see the opportunity for airlines to operate domestic sectors in another ASEAN country," Barclay told an aviation conference in Singapore last month.

Philippine Trade Secretary Peter Favila said in August there could be "unintended pockets of bureaucratic red tape" that could slow the blueprint's implementation, but voiced confidence this could be overcome.

The Asian Development Bank (ADB) Institute identified in a recent report the huge scale of some of the reforms ASEAN states must undertake.

"A shift to knowledge-based economy is crucial for Malaysia and Thailand and institutional and governance reforms and restoration of good investment climate should be priorities for Indonesia and the Philippines," it said.

Cambodia, Laos, Myanmar and Vietnam need to build infrastructure like transportation and telecommunication facilities. They also need legal, judicial and governance systems and a skilled work force, the ADB's research arm said.

"These countries are still not ready for the ASEAN economic community," said analyst Hiro Katsumata of the S. Rajaratnam School of International Studies in Singapore.

ASEAN's six wealthier states could form the core of an economic community by 2015, with the poorer members joining later, Katsumata suggested.

The ADB Institute paper highlighted the wide disparity within ASEAN in terms of market openness and urged financial and technical help for ASEAN's poorer members.

For example, ASEAN's average tariff import rate is 9.53 percent, ranging from zero tariffs in Singapore to 17.92 percent in Vietnam.

It takes an average 32 days to import an item in ASEAN, varying from three days in Singapore to 45 days in Cambodia and 78 days in Laos.

An average 64 days are required to start a business in ASEAN, ranging from six days in Singapore to 163 days in Laos and 97 days in Indonesia.

"The greatest challenge is to narrow the development gaps within ASEAN," the paper said.


Copyright © 2007 Agence France Presse. All rights reserved.


http://news.yahoo.com/s/afp/20071116/ts_afp/aseansummittrade_071116054216

Wednesday, October 10, 2007

October 09,2007 - Dailies Front Page