It was reported by concerned citizen to the Mines and Geosciences Bureau, Regional Office No. XI that illegal development and mining extraction operation was going on at Barangay Kauswagan, Municipality of Banaybanay, Province of Davao Oriental.

Investigation/inspection conducted by personnel of MGB Central Office and Regional Office No. XI, as well as by the National Bureau of Investigation (NBI) and the Department of Justice personnel confirmed the presence of heavy equipments in the subject area doing activities related to development and mining extraction by Golden Summit Mining Company without the necessary permit, contract or mineral agreement with the government issued by the Mines and Geosciences Bureau (MGB) or the Department of Environment and Natural Resources (DENR) and the investigating team thus recommended the issuance of the Cease and Desist Order.

Subsequent reports indicated that at least three (3) shipments of PANAMAX size vessels with loads of at least 55 thousand metric tons each shipment of nickel laterite ore were already done contrary to earlier requests that only 70 thousand metric tons of accumulated stockpile of nickel laterite ore in the area will be removed because it poses danger from landslide during heavy rains.

Section 53, Chapter IX of RA # 7942 or the Philippine Mining Act and Section 118 of Chapter XII of DAO 2010-21 states that the “absence of a permit or contract or mineral agreement shall be considered as prima facie evidence of illegal mining” and the case of Theft of Minerals maybe filed against the persons involved.

The Philippine National Police (Provincial Director of Davao Oriental and Chief of Police of Municipality of Banaybanay), Municipal Mayor of Banaybanay and the Barangay Captain of Kauswagan were deputized to help enforce the said CDO. The Cease and Desist Order was served on July 31.

The National Bureau of Investigation, Department of Justice and Mines and Geosciences Bureau are gathering additional evidence in preparation for the filing of a case.