By Othel V. Campos

The Environment Department may take over the operations of the Pujada nickel project in Davao Oriental if BHP Billiton, the world?s largest mining company, and its local partner fail to resolve their differences.

?The local partner is insisting on the original timeline. BHP Billiton is standing by its investment schedule. So I?m having a hard time,? Environment Secretary Lito Atienza told reporters yesterday.

?I?m still clear to both sides that the government has the option here. If they do not agree, then government moves in,? he said.

Edwin Domingo, Mines and Geosciences assistant bureau director, said BHP Billiton remained interested in the project.

?They are not planning to move out. They want to move forward toward the resolution of issues between them and their local partner,? he said.

Atienza said that the mining agreement between local Asiaticus Management Corp., or Amscor, and BHP Billiton involves the government as owner of the mineral.

?The interest of the country hinges on the agreement. We want BHP Billiton to invest in the Philippines because they are one of the responsible mining companies in the world. This is an agreement not only between them but with the Philippine government, as well. We have to make it work,? he said.

Amscor president Peter Tan said his company was willing to work out the agreement entered into with BHP Billiton.

?We do not exacerbate issues. We know that BHP is a big company and should be protective of their reputation. We are going to try to settle this issue,? he said in a phone interview.

BHP Billiton sought international arbitration after Amscor won a court case to rescind the agreement. The local court case is pending with the Court of Appeals while the Singapore Arbitration court ruled in favor of BHP Billiton.

Attractive metal prices had prompted Amscor to ask the permission of BHP Billiton to dig a small portion of the mining area and ship the ores to recover investment.

Amscor offered to forge a nickel supply agreement with QNI Philippines Inc., one of BHP Billiton?s subsidiary in the Philippines.

Amscor has a 60-percent stake in the Pujada nickel project in Mati City, Davao Oriental following the possession of the mineral production sharing agreement with Hallmark Mining Corp. and Austral-Asia Philippines Mining Inc.

Hallmark and Austral-Asia are the mining firms created by BHP Billiton and Amscor for their joint venture agreement in the Pujada nickel project.

The Pujada nickel project has an estimated reserve of 150 million metric tons ore at a 1.3 percent recovery rate.