On March 01, 2007, the Citinickel Mining and Development Corporation (CMDC) was granted two mining concessions in Palawan; one of them is the Pulot Sofronio mine, located in Barangay Pulot, nearby Sofronia Espanola town [1], covering an area of 1,408ha [2]. Palawan has a special law, the Strategic Environment Plan for Palawan Act RA 7611 that establishes a development framework in the province and should regulate economic activities, such as mining, in environmentally critical areas. Mining started in 2010, promising progress to the communities; but instead of progress, the mine brought large destruction to the island [3]. According to Queron, secretary of the local indigenous organization PKP, “Since 2010, the operation of Citinickel destroyed the environment, our livelihood, health, and culture [… ] because of this, we are being pushed deeper into poverty” [3].

According to PKP, the required Free Prior Informed Consent (FPIC) and the related Memorandum of Agreement (MOA) was obtained in violation of indigenous rights. Moreover, according to PKP, Citinickel did not even comply with the MOA, as the company did not pay agreed royalties; neither have they paid for the damages caused to their ancestral lands, rivers and crops. But the indigenous people do not want them anymore to pay royalties, but rather they want CMCD to leave the area and stop mining [3].

Following a large silt spill on June 5th, 2014 [4], the Mines and Geosciences Bureau (MGB) suspended operations of CMDC on June 2014 and CMCD were fined to pay 3 million pesos for 14 days of pollution of water bodies, due to violation of the Clean Water Act of 2004 [5]. The Pasi and Pulot River were heavily poisoned by the chemicals [3;6] and the group Kalikasan PNE, who organized in response an environmental investigation mission (EIM), spoke of a potential biological death of the rivers [7].

However, in an order from the MGB from December 22, 2014, the suspension of the mining activities was lifted and mining operations continued [5]. As part of Citinickel’s long-term development program, the company wants to acquire further mining sites in the area [2]. However, as experienced by the two Citinickel mines, such development, as well as other mining activities in the area, pose continuous risks of further environmental disasters to the communities.

Palawan’s indigenous people continue to strongly oppose the mine operated by CMDC, and on March 23, 2015, thousands of Palaw’ans marched in Sofronio Espanola, to oppose the mining operations [3]. PKP, Alyansa Tigil Mina (ATM), and other environmental groups have urged the MGB to stop the CMDC project [9] and oppose the Mining Act of 1995 [3]. However, it seems that under the pro-mining government of Aquino, environmental justice, will be difficult to be achieved [6].

The Pulot nickel mine is one of two mining concessions that Citinickel holds in Palawan, approved by the MGB on 01.03.2007. The second mining site is the Toronto nickel mine, located in Narra, Palawan, around 80km from Sofronio Espanola town; see related conflicts. Citinickel holds in total mining concession over 2,176ha [1].

In 2011, Citinickel was reported to have invested 5.146 billion Philippine Pesos in their mining operations (around 1.16 billion USD) [10].

The mining concession in Pulot covers a land area of 1408 ha [2].

During 2011, around 1 million tons of nickel ore, produced at both mining sites, were shipped and target for 2012 was stated to be 4 million tons [8]. Shipped nickel ore has been of low grade (1%/ton) with 48% iron content [8].

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%) [2]. In 2013, also King Crown Group Limited and Fuying Holdings Limited were reported to have invested in Oriental Peninsula [2].

According to reports released in 2013 by Oriental Peninsula [2], 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 [2].