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 Local News  -   Wednesday, November 17, 2004

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Mining permit to be negotiated


Pacific Daily News; kworth@guampdn.com


Photo
Photo courtesy of Chamorro.com

Potential wealth: Part of Pagan's terrain is captured during an excursion to Pagan organized by the Northern Islands Mayor's Office in October last year.




In a win for a company that wants to mine the tiny island of Pagan for its wealth of valuable volcanic ash, the Commonwealth of the Northern Mariana Islands' public land commission yesterday voted to negotiate a draft permit with the company.

Arizona-based Azmar International Trading Company will have 15 days for the confidential negotiation of the draft, at which time the draft will be considered for approval by the Marianas Public Lands Authority's commission, said Azmar's spokesman Don Farrell.

However, those opposing Azmar's bid for the mining permit decried the decision, saying the proposed contract is a terrible deal for the CNMI and Pagan residents and that the entire process -- including the latest development -- has been done behind closed doors without opportunity for public input.

The island Pagan is about 300 miles north of Guam and is rich with the volcanic ash pozzolan, which is used to strengthen concrete. Some estimates peg the value of the mineral at $10 billion.

For more than two years, Azmar has been trying to acquire the permit to mine the island, but some members of the public have said Azmar's proposal -- to give CNMI 7 percent of its profits, plus tax -- is not fair. Other concerns have been raised about Azmar's alleged lack of experience in the mining business. However, Farrell has argued the deal is in fact generous, considering the commonwealth will not have to invest any money and stands to receive potentially tens of millions of dollars.

Yesterday, the MPLA commission met and then announced its decision to negotiate the contract with Azmar. Attorney and former Pagan resident Cinta Kaipat, who has campaigned against the contract, said only one of the five commissioners voted against the negotiations.

"The thing that really bothers me is they've agreed to conduct secret negotiations on this, and that leaves everyone else out," she said.

Farrell said the company is looking forward to moving on in the process. The next step will be securing a permit from Coastal Resources Management, which he believes will be a smooth process.

"We're very excited about working with the MPLA staff and legal council to quickly negotiate the final terms and conditions of the permit agreement, so it can be approved by the board as soon as possible, hopefully within a few days," he said.

 

Originally published Wednesday, November 17, 2004

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