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Friday, 26th January 2007 (3116 views)

Some of the world's largest mining companies are facing people power in the form of local residents in the Philippines that are angry at plans to bring in overseas investors who will "take their only source of livelihood".

Franco Tito is the chief of a Philippino village called Diwalwal which contains a 100-metre mountain tunnel now being recognised as a new place to hunt for gold.

Currently the government allows local miners to prospect there as long as the state gets a cut of the income from it but now the government is trying to lure international mining companies to the site.

The president wants overseas investment to raise revenue for the state before its mineral reserves become valueless due to falling gold prices.

It is hoped that experienced firms would also be able to improve safety conditions for miners through their improved production equipment.

However, Mr Tito said: "You can't expect miners like us to give up to overseas investors our only source of livelihood. Miners may again take up arms."

Such security concerns seem to be bothering the large mining firms with Harmony Gold declining the site and few others showing interest in Diwalwal.

 

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