‘Let govt go into mining business’

The board chairman of the Commonwealth Development Authority urged the government yesterday to be directly involved in the mining and sale of mineral resources, particularly pozzolan, to reap optimal benefits, rather than relegate this rare opportunity to a profit-oriented middleman.

“Why allow a third party? Here we have an opportunity to boost ourselves from being a Third World economy,” said CDA board chair Tom Glenn A. Quitugua, referring to the economic potential of the reported 200 million metric tons deposit of pozzolanic ash on Mt. Pagan in the Northern Islands.

Pozzolan is a rare kind of volcanic ash that is used as a cement additive.

Quitugua said the CNMI government, led by the Executive Branch, can link up directly with manufacturers of cement in mining pozzolan.

“Why can’t the government do that? There’s no equipment? No skilled personnel? These manufacturers have them. These people are mining all around the world,” he said.

He said the government could sign an agreement directly with any of these manufacturers, and receive dividends or profits.

“If you really want to serve the public, get direct dividends. Why deal with pennies for royalty?” he said.

Quitugua cited that Alaska receives dividends annually from the exploration of its oil reserves.

“They get dividends annually and divide it among its citizens. Why can’t we do it here?” asked Quitugua.

He also cited that the Nauru government had benefited greatly by harnessing its phosphate deposit.

Press Secretary Charles P. Reyes Jr. believes, though, that the government “is not in the business of mining.”

He said the administration remains interested in the pozzolan project but it would be very careful in choosing a mining company.

Reyes said Gov. Benigno R. Fitial wants to qualify a company that “respects stakeholders and has a sense of social responsibility.”

Quitugua, whose term on the CDA board expires in May this year, said that, in his experience with CDA, “several companies” have expressed interest to deal directly with the CNMI government on mining activities.

In fact, he said, an international group wanting to do underwater mineral exploration in the CNMI had lobbied the previous administration and the Senate to approve the project.

As for pozzolan, he said that more companies would be more willing to get into it.

Authorities said earlier that about 200 million metric tons of pozzolan can be mined on Pagan for 40 to 50 years.

An investor earlier projected that it could mine and sell 4.55 million metric tons of pozzolan per annum by the third year of operations.

Pozzolan is believed to be worth $45 to $70 per ton in today’s prices.