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 Local News  -   Friday, December 10, 2004

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Board denies permit for mining on Pagan


Pacific Daily News; kworth@guampdn.com


The battle over the island of Pagan's potential mineral riches rages on, despite a decision last week by the Northern Marianas public lands board to deny a controversial mining permit to an Arizona-based company.

The Marianas Public Lands Authority board of directors' abrupt decision to end negotiations with mining-hopeful Azmar International Trading Company last week was at first celebrated by many Pagan and other Commonwealth of the Northern Mariana Islands residents who had been advocating for the commission to consider other offers as well as Azmar's, said Cinta Kaipat, founding member of advocacy group Paganwatch.

She said the group isn't letting down its guard.

"It's one of those things where we say don't cash that check yet. We've been down this road before where we think we have won something, but (Azmar) is very tenacious and they just won't give it up," she said.

As for their part, Azmar officials also have provided assurances that last week's decision isn't the end of their bid to mine the island, and are calling for the commission to return to the negotiating table once more.

The controversy surrounds the natural resources on Pagan, which is among the northernmost islands in the Mariana islands chain. Pagan, about 300 miles north of Guam and currently populated by only a handful of residents, is believed to be rich in the valuable volcanic ash pozzolan, a mineral used in very strong concrete. Some estimates have pegged the value of the resource at $10 billion.

Azmar had proposed to give the CNMI public lands authority 7 percent of the gross revenues of the pozzolan, plus other taxes, but some CNMI residents have said this arrangement is not generous enough to the commonwealth, and have raised concerns about Azmar's qualifications.

At the meeting last week, the public land board members said they were rejecting Azmar's application to mine Pagan because the company had repeatedly failed to provide key documents necessary for the permit, Kaipat said. In November, the MPLA board had agreed to a 15-day period to negotiate a draft mining permit with Azmar behind closed doors. However, the board said the draft that the MPLA had written and sent to Azmar's attorneys had come back with about 90 percent of the items crossed out and rewritten, Kaipat said.

In a letter to Saipan and Guam media, Azmar spokesman Don Farrell, who served as chief of staff for Guam's former senator and former Gov. Carl Gutierrez, said Azmar was at first surprised at the board's rejection, which he said "seemed totally irrational."

However, he wrote, Azmar officials had "discovered the rational reason" behind that action. He said Azmar officials had met with the CNMI governor and MPLA board Chairwoman Ana Demapan Castro at an economic conference in Los Angeles in September, where he said they had come to "an agreement that would ensure negotiations for a permit would be completed."

After the rejection last week, he said, "it slowly dawned on us that during that meeting, the members never once referred to the Sept. 29 agreement. It is now our belief that they were never informed of it."

As far as Azmar is concerned, he said, they are still at the negotiating table.

Castro and other members of the MPLA board and administration were not available for comment yesterday.

 

Originally published Friday, December 10, 2004

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