15 September 2015

HON. ENGR. LEO L. JASARENO
Director, Mines and Geo-Sciences Bureau
Department of Environment and Natural Resources
North Avenue, Quezon City, Metro Manila

Thru:     HON. EDGARDO D. CASTILLO
OIC, Mining Tenements Management Division

Re:         Exploration Permit Application of Jabal Development Mining, Inc.;
EXPA-010-XII-96; 5,068.41 Hectares at Pigkawayan and Libungan,

Greetings:

              In a Memorandum dated July 24, 2013, your good office granted the clearance for the issuance of the said exploration permit subject to the final No Go Zone Map and the following conditions, to wit:

              “1. The attached pro forma Exploration Permit shall be used for the purpose:

2. Mines and Geosciences Bureau (MGB) Regional Office (RO) No. XII warrants that the area is free from conflict with any prior mining applications(s), and is not situated within old growth or virgin forest(s), proclaimed watershed forest reserve(s) and other area(s) closed to mining applications pursuant to the provisions of Section 4 of Department of Environment and Natural Resources Administrative Order (DAO) No. 2012-07, as amended, the Implementing Rules and Regulations of Executive Order No. 79; and
3. MGB RO No.: XII affirms that any other requirements in the grant of an Exploration Permit, pursuant to the pertinent laws, rules and regulations are fully complied with by Jabal.”

A copy of this Memorandum is hereto attached as Annex “A” for your easy reference.

In relation to this, MGB RO No.: XII issued a Certification dated May 25, 2015 with an attached Technical Description of the Retained Area and Sketch Map of the total area of 5,068.41 hectares that was retained after excluding the Libungan Watershed.

Copies of these certification and Technical Description of the Retained Area and Sketch Map are hereto attached as Annexes “B” and “C 1 to 3”, respectively.

However, in an earlier letter dated April 23, 2015, your good office reduced Jabal’s applied area from 5,068.41 hectares to approximately 1,950.22 hectares on the ground that based on your final evaluation, the applied area of 5,068.41 hectares is partially situated within the 1) Strategic Agriculture and Fisheries Development Zone (SAFDZ), particularly within Layer 1: Strategic Crop Sub Development Zone, and 2) Critical Watershed.

Thus, the coverage of this reduced area is indicated with bold pink lines in the Sketch Plan that is attached to the said letter. Copies of this letter and the Sketch Plan are hereto attached as Annexes “D” and “E”, respectively, for your easy reference.

While we highly appreciate the aforesaid grant of clearance for the issuance of an exploration permit covering an area of 1,950.22 hectares (out of the 5,068.41 hectares being applied for under EXPA-010-XII-96), we noticed however that based on aforesaid Sketch Plan (Annex “D”), there are areas covered by our application that are also within the “go zone” area (i.e. the pink area) but were, nevertheless, not included in the said grant.

For easy reference, we are attaching herewith a copy of the same sketch plan, showing with the use of diagonal lines these particular areas that were excluded despite the fact that they are within the “go zone” area and covered by our said application.

Moreover, it also observed that as per MGB RO No. XII, this whole area of 5,068.41 hectares being applied for, neither encroaches nor overlaps with the Libungan Watershed. This runs counter to the finding stated in your aforesaid letter of April 23, 2015 that Jabal’s applied area of 5,068.41 hectares is partially situated within a critical watershed.

In addition, it is humbly submitted that Jabal’s applied area of 5,068.41 hectares could not be the proper subject of the SAFDZ because the terrain of the area is generally steep, heavily eroded and that the topsoil thereof is very thin to enable it to sustain prime agricultural activity.

Wherefore, based on the foregoing, it is humbly requested of your good office that an appropriate Exploration Permit be now issued corresponding to the whole area that is identified as possible “Go Zone” in the Sketch Map (Annex “E”) and, thereafter, increase the area of coverage thereof to 5,068.41 hectares upon proper determination of the applicability of SAFDZ within the said area.

Your usual prompt and kind consideration of this matter is highly appreciated.

Very truly yours,

President

Cc:         Honorable Ramon Jesus P. Paje
Secretary, DENR

Annex A 13.07.24 MGB_EP_memoclearance

Annex B & C 15.05.25 Certification MGB_XII

Annex D&E 15.04.23 MGB CO Letter on GO ZONE