Communist rebels attack mines in the Philippines

The sector is seeking to cash in on the global resources boom, industry players said Tuesday. The attacks by the New Peoples Army (NPA) also showed weaknesses in the governments capability to protect big-ticket investments in the mineral-rich countryside where the guerrillas operate, they said.Clearly, the message of the rebels is to create fear, said Emmanuel Samson, chief finance officer of Nickel Asia, the countrys largest nickel producer whose mine sites were among those attacked Monday.When you have disruptions such as the one yesterday, it would create a negative impact and something has to be done about it, especially since the thrust of the government is to generate more investor confidence.Police said about 200 New Peoples Army (NPA) rebels were involved in the coordinated attacks on three mine sites on the southern island of Mindanao, one of the countrys poorest regions but also home to vast mineral riches.At one of the mines, run by Nickel Asias Taganito Mining, the rebels briefly took several employees hostage, before burning trucks, excavators and a guest house.Another Nickel Asia-linked operation nearby and a mine run by Platinum Metals Group were also attacked, in what the NPA claimed was payback for years of alleged environmental damage and abuse by the firms.Operations at the two units of Nickel Asia, which is partly owned by Japans Sumitomo Metal Mining, have been indefinitely suspended, Samson said.The government reacted angrily to the attacks, which came at a particularly sensitive time amid a push for the Philippines to take advantage of skyrocketing global commodity prices.The country has untapped mineral wealth valued at more than $840 billion, with its copper, gold and chromate deposits among the largest in the world, according to the US government.After decades of relative inactivity in the sector, the government last month said it was aiming to see mining investments rise more than four-fold to $18 billion over the next five years.President Benigno Aquino immediately sought to reassure investors on Tuesday, ordering a national security threat assessment to determine targets vulnerable to NPA attacks, according to his spokesman, Edwin Lacierda.No one should doubt our commitment to the safety of investors and our fellow citizens, who deserve to be able to pursue their livelihood without threats of extortion and violence to disturb them, Lacierda said.However investment analyst Astro del Castillo, who heads the Association of Securities Analysts of the Philippines, warned that mining firms could shun the country unless concrete steps were taken to improve security.It is not a joke when rebels can shut down operations by one of the countrys leading nickel producers, he said.Philippine communists have been waging a rebellion since 1969 and the NPA, their armed wing, is believed to have about 5,000 fighters spread across mostly poor and remote areas of the countryside.The government is involved in on-again, off-again talks with the communists and is aiming to broker a peace deal by the middle of next year. But there is no ceasefire in place and the guerrillas frequently attack government and private installations.Rebel attacks last year killed 187 government forces and dozens of civilians were caught in the crossfire, according to the International Crisis Group.Presidential spokesman Lacierda said Mondays attacks jeopardised the peace process, but said the government remained committed to negotiations. Peace talks are scheduled to resume in Norway late this month.