MPLA: JG Sablan has 7 more years on Pagan

J.G. Sablan has seven more years to mine pozzolan on Pagan, according to the Marianas Public Lands Authority.

“They still have seven years more to go [based] on the existing permit. We’ re just trying to settle a default in payment,” said MPLA board chair Ana Demapan-Castro when asked whether J.G. remains the mining permit holder on Pagan. “ Right now, they are in default per se based on the letter that we sent them.”

To date, she said J.G. Sablan has paid off over $100,000 in overdue base rent. The negotiation is now down to discussions on payment of royalty fees, which amount to some $300,000, she added.

“They [MPLA side] are now after the royalty, while they [J.G. Sablan] claim there was never a sale. JG said, ‘Wait a minute, how can you start charging us when we never [sold any products mined from Pagan],’” she said.

The board chair declined to give more details citing confidentiality of the matter. “As far as J.G. Sablan is concerned, it’s now between our attorneys.”

Local authorities, including Northern Island Mayor Valentin Taisakan and Gov. Juan N. Babauta, said that based on a review of J.G. Sablan’s contract, it should have been terminated because it violated contract terms since about 1997.

They cited that the quarry firm’s Sept. 8, 1995 permit clearly states that the permit shall terminate automatically “should permittee fail to generate and/or report any revenue to government from its activities on the premises for two consecutive years.”

Taisakan said that J.G Sablan’s continued presence in the area poses a great concern as the government promotes Pagan’s tremendous mining opportunities to capable investors.

At least two new investors are currently interested in mining Mt. Pagan’s pozzolan deposits: Azmar International and Texas-based Consolidated American Energy Resources.

Demapan-Castro indicated that MPLA can still entertain another mining company because J.G. Sablan has no exclusive mining rights on Pagan.

But she noted that MPLA wants “committed, serious investors.”

“That’s why it’s taking quite some time to do investigation and analysis as to whether or not there’s justification to give or not a permit to Azmar,” said the board chair.

Azmar officials led by Kenneth Moore showed up at the MPLA board meeting Thursday to push for its proposal.

Meanwhile, the board chair disclosed Thursday that CAER, which earlier withdrew its proposal, has changed its mind. “I was told a week ago that they want to rescind that, and go back,” Demapan-Castro said.

CAER notified the MPLA in May that it would pull out and wants a refund of its $5,000 application fee.

Authorities have estimated that there are some 200 million metric tons of pozzolan deposits on Pagan.