On November 25, 2012, a large silt spill occurred due to lapses of the mine foreman who was tasked to drain water from one pond to another. The water from the pond, containing toxic tailings, flowed into the Pinagduguan River river and irrigation canals affecting 6.8-hectares of farm lots and a fishpond. Consequently, the Mineral and Geosciences Bureau (MGB) suspended the mining operations from November 26 to December 9, 2012. CMDC had to pay penalties of 375,000 Philippine Pesos (around 8,500$) [2]. In June 2014, also Citinickel’s Pulot Sofronio mine (see related conflicts, below) caused a large silt spill, which according to environmentalist group Kalikasan PNE has led to heavy degradation of nearby rivers [3].

While the company operating both mines had promised progress and development, it brought large environmental destruction [4]. According to the local indigenous organization PKP, their required Free Prior Informed Consent (FPIC) for the mining sites and the related Memorandum of Agreement (MOA) was obtained in violation of indigenous rights. Following the large negative impacts of Citinickel’s mining, the indigenous want them to leave the area and stop mining [4], but as part of Citinickel’s long-term development program, the company wants to acquire further mining sites in the area [1]. However, as experienced by the two Citinickel mines, there is a continuous risk of further environmental disasters, due to large mining activities in the region.

As a sign of protest, on March 23, 2015, thousands of Palaw’ans marched in Sofronio Espanola, to oppose the mining operations [4]. PKP, Alyansa Tigil Mina (ATM), and other environmental groups are urging the MGB to stop the CMDC projects [5] as well as to revise the Mining Act of 1995 [4].

In 2011, Citinickel was reported to have invested 5.146 billion Philippine Pesos in their mining operations (around 1.16 billion USD) [7].

The mining concession (MPSA) in Narra covers a land area of 770ha ha [1].

During 2011, around 1 million tons of nickel ore, produced at both mining sites, were shipped. Target for 2012 was stated to be 4 million tons [6]. Shipped nickel ore has been of low grade (1%/ton) with 48% iron content [6].

CMDC is a subsidiary of Oriental Peninsula Resources Inc. As of March 31, 2014, the main shareholders (>5%) of Oriental Peninsula have been Citimax Group Inc. (33%), Golden Spin Realty, Inc. (29%), PCD Nominee Corp. Filipino (27%), PCD Nominee Corp. Non-Filipino (5%) and Billion Apex Development Ltd. (5%) [1]. In 2013, also King Crown Group Limited and Fuying Holdings Limited were reported to have invested in Oriental Peninsula [1].

According to reports released in 2013 by Oriental Peninsula [1], the PCD Nominee Corporation is a wholly-owned subsidiary of the Philippine Depository and Trust Corporation, Inc. (PDTC). Major capital players involved in the the PCD Nominee Corporation are the Philippine Stock Exchange; (31.75%), Bankers Association of the Philippines (31.75%), Financial Executives Institute of the Philippines (10%), Development Bank of the Philippines (10%), Investment House Association of the Philippines (6.5%), Social Security System (5%) and Citibank N.A. (5%). Major banks involved in the PDTC are Hongkong Shanghai Banking Corp. LTD (15.64%); and Deutsche Bank Manila (12.11%).

The company has planned to construct a smelting plant in Palawan to process their nickel ores from their Palawan operations. Investment size for this was reported to amount to 10 million USD [1].