Caritas Philippines opposes Maharlika Fund loan to mining firm

The Catholic Church’s social aid and development arm has expressed opposition to the move of the country’s sovereign wealth fund to finance large-scale mining in the Cordillera region.

According to a report of the Catholic Bishops' Conference of the Philippines (CBCP), Caritas Philippines said the decision of the Maharlika Investment Corporation (MIC) to provide a $76.4-million bridge loan facility to Makilala Mining Company Inc., (MMCI) “betrays the Filipino people’s trust.” 

MMCI is the Philippine affiliate of Australian mining firm Celsius Resources Ltd., which operates copper and gold projects in the country.

“Instead of supporting industries that promote development and sustainability, the government is channeling resources into extractive projects linked to displacement, deforestation, and human rights abuses,” said Bishop Jose Colin Bagaforo, president of the national Caritas.

In a message to GMA News Online, MIC President and CEO Rafael Consing said the fund respects Caritas Philippines' concerns about the social and environmental impact of large-scale mining.

"However, we believe our investment in MMCI is conducted with the utmost commitment to responsible mining practices, adhering to all relevant regulations and prioritizing sustainable development. We are committed to engaging in open dialogue with all stakeholders, including Caritas Philippines, to address their concerns and demonstrate our dedication to responsible operations," he said.

Caritas Philippines has opposed large-scale mining due to its social and environmental impacts, the CBCP said, with several dioceses across the country reporting cases of indigenous peoples losing ancestral lands, contaminated water sources, and communities suffering from irresponsible mining practices.

“How can we claim to work for progress when we fund an industry that destroys the resources God has entrusted to us?” said Bishop Gerardo Alminaza, vice president of Caritas Philippines.

“Economic development should not come at the cost of human dignity and environmental degradation,” he added. 

In February, a disclosure to the Australian bourse  showed that MIC and MMCI signed a binding term sheet, providing loan funding for the the feasibility study and the front-end engineering design of the Maalinao-Caigutan-Biyog Copper-Gold Project in the Cordillera Administrative Region. 

Yhe project site is located within Batong Buhay, the ancestral domain of the Balatoc Tribe, and is approximately 9 aerial kilometers to the southwest of the town property of Pasil at Amdalao and 43 aerial kilometers west-southwest of Tabuk City, Kalinga, according to the MMCI website. — Sundy Locus and Ted Cordero/BM, GMA Integrated News