TVIRD clarifies Inquirer report on IPs’ royalties

This is in reaction to the news report titled “More mine benefits for ‘lumad’ seen” (Inquirer, 6/10/12), which also appeared in Bandera, the Inquirer’s sister publication, under the title “Indigenous people can get more from mining.”

We deny that Joel Alasco, manager of TVI Resource Development (Phils) Inc. (TVIRD) Community Relations and Development Office, issued such statements during the open forum portion of the training hosted by the Mindanao Peace-building Institute Foundation.

In fact, Alasco’s responses to the query of Abel Moya, a training participant, on why mining companies can’t increase the royalty given to indigenous peoples were:

1. Royalties are given based on the Indigenous Peoples Rights Act.

2. The royalty was given after an agreement was reached and signed by the mining company and the indigenous peoples (IPs) during a series of negotiations. In the case of TVIRD, the 1.5-percent royalty even exceeds what the law prescribes and was decided and fixed by the company together with the tribal leaders. Any increase in the royalty will be based on the memorandum of agreement or on future agreements between the two parties.

Alasco tore a piece of paper into small pieces merely to explain that each small piece represented different types of expenses necessary to operate the mine (such as operating costs, capital cost, interests  on loans, taxes, royalties, etc.), and that a small piece is left for profit.  The participants nodded their heads in agreement.  Moya then asked how much royalty the tribal leaders were getting, and taking a piece of paper and tearing it in half, added, “How about the half to be given to the IPs?”

As a matter of policy, TVIRD is transparent both in its operations and financial dealings. There are no ifs, ands or buts about it because the firm is listed with the Toronto Stock Exchange and all our financial statements are audited by PricewaterhouseCoopers.

For every shipment of our products, we are required to secure an Ore Transport Permit (OTP) from the Mines and Geosciences Bureau (MGB) of the Department of Environment and Natural Resources. The OTP is a piece of document that contains information on the volume of the product being transported, its estimated value, its buyer, and its destination. The MGB sends representatives to supervise the actual loading, prepares copies of OTP, furnishing TVIRD its copy. OTP is a public document, hence, it is accessible to the public.

It was unfortunate that Onsino Mato used the tribal leaders’ royalty for dramatic grandstanding at the expense of TVIRD. Had he just read the OTP, he would have known how much revenue the company earns every shipment. With this, he would have known how much royalty they will received. Also, our finance department in Canatuan keeps a copy of this document.  Mato can have a copy of or a look at it upon request, verbal or written.

—YULO E. PEREZ,

vice president for operation/

chief operation officer, TVI Resource

Development (Phils.) Inc.

I welcome the reaction of TVIRD. I maintain that Mr. Alasco said that the royalty TVIRD gives is based on what the law provides. But when asked about whether the company could give more than what the law provides or whether the community could be a stockholder of the company, he said it depends on the negotiation. As to how the share of the community from the royalty is calculated and arrived at, Mato said that they do not know because the only information they get from TVIRD is when the royalty has been remitted to their the bank account.

—TITO NATIVIDAD FIEL,

correspondent, Inquirer Mindanao