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Palace defends award of Diwalwal
Gold Rush site to ZTE subsidiary


MALACAÑANG said yesterday the government is still open to doing business with ZTE Corp. and its subsidiaries despite the political storm created by the $329 million national broadband network deal with the Chinese telecom firm.

The Palace made the statement after Southeast Mindanao Gold Mining Corporation (SEMGMC), a mining firm in Mindanao, questioned before the Supreme Court the government's "cooperative agreement" with ZTE International Investments Ltd., the investment arm of ZTE Corp., to explore, develop and operate mining sites within the Mt. Diwalwal Gold Rush Area in Compostela Valley.

"We could treat ZTE just like any other company but this time we could be more cautious so hindi mangyari yung nangyari before. We would still be welcoming partners... especially if it's aboveboard," deputy presidential spokeswoman Lorelei Fajardo said in an interview at Clark economic zone after the National Food Summit.

SEMGMC has sought a reversal of the SC First Division's June 23, 2006 decision and referral of the case to the en banc.

The June 2006 decision gave the government full control and supervision over mining operations in Agusan-Davao-Surigao Forest Reserve known as the "Diwalwal Gold Rush Area" after it affirmed the cancellation of all exploration permits earlier issued to other private mining firms.

Proclamation 297, which was issued by President Arroyo on Nov. 25, 2002, excludes an area of 8,100 hectares, a rich tract of mineral land inside a forest reserve located in Monkayo, Davao del Norte and Cateel, Davao Oriental. - Regina Bengco

 


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