Filipinos in South Korea

Top US military executive now in Philippines over maritime, security issues

Navy Adm. Samuel J. Locklear III, commander of U.S. Pacific Command, arrives in the Philippines to meet with senior military officials in Manila, Sunday. The United States and the Philippines share a Mutual Defense Treaty, and the two nations work closely together through bi-lateral and multi-lateral training to enhance interoperability. U.S. NAVY PHOTO

The senior United States commander in the Pacific region is in the Philippines and is scheduled to meet with President Benigno S. Aquino and other top defense officials to discuss maritime and security issues.

Navy Admiral Samuel J. Locklear III, commander of US Pacific Command, arrived Sunday (July 15, 2012) "to reaffirm the strength of the U.S.-Philippines Mutual Defense Treaty and to explore how the US can support efforts to boost Philippine military capacity," the US Department of Defense said in a statement.

The pact between the US and the Philippines says that both countries will support each other when attacked by an external party.

"Now, as the security environment changes, many countries recognize that there has got to be more maritime domain awareness [and] more understanding of what is happening around them rather than [just] what is happening internally," Locklear said.

"So what we are looking for is to try to provide [the Philippines] assistance that builds the interoperability of our defense forces over time," he said.

"This is a reaffirmation that the Mutual Defense Treaty is still in place and still strong. And it is an opportunity for us to find places and missions were we can partner and exercise together in a way that will increase our overall security cooperation and increase security in this critical part of the Asia-Pacific."

Locklear's visit came amid tense maritime dispute among Asian countries in the South China Sea (West Philippine Sea).

He made it clear in an earlier statement, however that the United States does not take sides in territorial disputes and encourages peaceful resolution through international legal processes.

Unresolved "excessive maritime claims that cause friction among neighbors," he said, could lead to "miscalculation" that threatens stability.

Locklear, who will also meet with Defense Secretary Voltaire Gazmin and military chief General Jessie Dellosa, said he will "seek ways to expand the U.S.-Philippine military-to-military relationship in ways that promote regional stability and security."

"On the military side, a productive alliance requires us to be able to work together, to have connectivity with each other, to be able to share information, and to be able to bring our military systems together in a meaningful way across all aspects of military power – whether it's humanitarian assistance and disaster relief or a contingency or otherwise," he said.

"I'm looking forward to giving the message to the Filipino military and to the leaders there that the United States is a very reliable ally," he said. "We want the Filipinos to be a reliable ally to us as well."

General Martin Dempsey, chairman of the Joint Chiefs of Staff, also visited the country in June.

Inquirer Global Nation 

Goldfield operator blows the budget Up $220 Million USD on Philippines Mining project

The Didipio FTAA-001 straddles a mountainous region between the provinces of Nueva Vizcaya and Quirino in Northern Luzon ~270km north of Manila. Approximately 30 gold-copper prospects are known within the FTAA which have had varying levels of exploration over past years.

 

Employment

The company abides by the rules and regulations of the Labour Code as well as those set by Government Regulatory Agencies in the Philippines. Preference is given to local community members for employment opportunities at the project.

Australian and New Zealand Macraes goldfield operator OceanaGold said its Didipio gold and copper project in the Northern Luzon of the Philippines is now estimated to cost US$220 million, US$35 million more than the company announced in June 2011.

OceanaGold also said it has credit approvals from a group of large multi-national banks for a three-year US$220 credit facility, subject to final documentation.

The main reasons for the Didipio cost blow-out are "associated with increases in engineering design and procurement services, the Tailings Storage Facility (TSF) and infrastructure construction and site support costs," OceanaGold said.

"Working capital requirements on start-up are expected to be an additional US$27 million."

At June 30, the company had spent US$161 million on the project with a further US$24 million committed in contracts. Cash on hand was US$73 million.

"The Didipio project is going extremely well. We remain on track to achieve our goal set out in June last year to commence commissioning," in the December quarter 2012, said managing director Mick Wilkes.

"The increased capital cost for the project is consistent with industry cost pressures today, particularly for engineering design services," Wilkes said.

"We also made the very deliberate decision to engage with high-quality contractors in the Philippines which cost more money to ensure the project was built to a high standard and on time."

In June last year, Wilkes said Didipio had a "very robust" capital payback of one to two years, based on the then estimated capital costs of US$185 million.

Now Wilkes said construction at the Didipio project is more than 70% complete and is fully financed.

"Recruitment for Didipio permanent operations team and operations readiness plans are well advanced" with about 60% of the required positions already filled, it said.

Gold bars on display - Source: Reuters

Key outstanding items are the delivery of seven power generators and electrical switch rooms but all power equipment should be at the site over the next four to six weeks.

"Mining of the Didipio orebody has commenced on schedule this month in readiness for commissioning in the fourth quarter and to build ore stockpiles for production in 2013."

The credit facility will provide additional liquidity if necessary to repay the A$57.8 million of OceanaGold's convertible bonds maturing December 2012, repay the A$110 million of convertible bonds maturing December 2013 and provide US$50 million in working capital, Wilkes said.

Securing the facility is "a vote of confidence in OceanaGold and allows us to focus on successfully commissioning Didipio and generating strong cash flows from our operations in 2013," he said.

In June 2011, Wilkes said the December 2012 bonds would be repaid from cash flow.

OceanaGold shares, which are dual-listed on both the ASX and NZX, are up 3 cents at $2.40. While that's up from the year-low at $2.18 in May, the shares have been trending down from $5.20 in December 2010.

TVNZ News

WARNING! Japan, USA, China: South China Sea WAR - Ready to Explode

A U.S. Navy F/A-18E Super Hornet launches from the aircraft carrier USS George Washington during routine operations in the South China Sea last week. U.S. Navy photo / Lt. Cmdr. Denver Applehans

The South China Sea: From Bad to Worse

TOKYO – Territorial disputes in the South China Sea are about to get a whole lot worse — and at the worst possible time.

Whether the U.S. can avoid being dragged into a shooting match will depend on how far Beijing and its unruly mix of military, maritime and natural resources agencies choose to push their claims. And whether China's increasingly frustrated neighbors decide to push back.

Last week's regional security talks in Cambodia were a step in the wrong direction. China refused to look at a written code of conduct being drafted to govern navigation, resources and related issues in the South China Sea, one of the world's most important waterways. It also blocked discussion – let alone resolution — of the conflicting territorial claims in the region.

China claims exclusive rights to virtually all of the South China Sea, including its vast reserves of oil, gas and ocean resources; four other countries and Taiwan claim large parts of the region, as well. The disputes have led to increasingly tense standoffs between China and its neighbors.

The weeklong security talks, hosted by the Association of Southeast Asian Nations (ASEAN), dissolved amid charges of Chinese bullying, without even a customary closing statement. China made its point, but it may be a short-lived victory, says Mark Valencia, a Hawaii-based maritime policy analyst and senior associate at the Nautilus Institute for Security and Sustainability in San Francisco.

"What China is saying is, 'We have this historic claim to the South China Sea and we own everything within it – islands, reefs, submerged areas, resources, you name it. That's the way it is, and we're not even going to talk to you about it.' But they've painted themselves into a corner now, and that's very dangerous for everybody," says Valencia.

So far, the U.S. has stayed out of the territorial disputes. That's wise. The U.S. cannot referee the welter of legal, historical and emotional arguments that accompany each dispute (all or parts of the Spratly Islands, for example, are claimed not only by China, but also by Taiwan, Vietnam, Brunei, Malaysia and the Philippines, with evidence and documentation of varying degrees of credibility and relevance, dating back hundreds of years in some cases).

The primary U.S. interest in the region is in ensuring freedom of navigation. Half the world's commercial shipping passes through the South China Sea — $5 trillion a year — and U.S. warships regularly transit the region on their way to and from the Persian Gulf, Southwest Asia and the Indian Ocean.

China has promised not to interfere with any ships passing through region. But China has also signaled that it may require prior notice, and that military exercises and surveillance activities by foreign ships and planes may not be permissible. Those are hot-button issues for the U.S., which insists that under international law, nations cannot restrict activity other than economic development within most of their their 200-mile limits – assuming that those claims are internationally recognized to begin with.

An early test could be shaping up with Vietnam. In June, China issued an invitation for foreign companies to explore for oil in a region where Vietnam has already awarded exclusive contracts to U.S., Russian and Indian oil firms. The region is within Vietnam's standard 200-mile exclusive economic zone. China's move is likely in retaliation for a law enacted by Vietnam's parliament earlier in the month that asserts sovereignty over the Paracel and Spratly islands, which of course, China says it owns.

There's little love lost between the two countries, which fought a short but bloody border war in 1979. Last year, a Chinese fishing ship and government fishery patrol boats cut the cables of a Vietnamese exploration vessel in an area claimed by both countries.

Valencia says he won't be surprised if the latest dispute results in bloodshed.

"I don't think it will be war, per se. But Vietnam has shown that it's not afraid of China, so I can see them sending out their navy, and I can see China shooting back at them," says Valencia.

A far more dangerous confrontation could be shaping up outside the South China Sea, with an even older and better-armed rival.

On the same day that Japan's foreign minister was due to meet with his Chinese counterpart at the ASEAN security talks last week, three Chinese maritime patrol ships entered Japanese waters near the disputed Senkaku Islands.

The two governments have been sparring over the islands – which China calls Diaoyu – since 2010, when Japan seized a Chinese fishing vessel that it says rammed a Japanese patrol ship in territorial waters near the islands; the ship and crew were released only after intense economic and political pressure from China.

Japan Foreign Minister Koichiro Genba initially said he wasn't sure whether the intrusion last week "just happened, or was timed to coincide with the bilateral meeting." But all doubt seemed to disappear when another Chinese patrol boat entered Japanese waters the very next day. Tokyo summoned the Chinese ambassador and Genba complained again to Foreign Minister Yang Jiechi, who responded by repeating China's claim to the islands, located in the East China Sea near Taiwan,  were "inherently" Chinese.

Although Tokyo has been publicly trying to tamp down the dispute, it's clear that patience is wearing thin.

Tetsuo Kotani, a maritime security specialist with the Japan Institute of International Affairs, a leading Tokyo think tank, said at a forum in Washington DC in late June that it is time for Japan's naval forces to begin actively tracking Chinese submarines in the South China Sea, and to be prepared to intervene militarily.

China's Warship intruded July 11, 2012 and stranded to Half Moon Shoal of the Philippines near the tip of Palawan Island's northern part of Balabac island.

"If an armed conflict results between the South China Sea claimants – for example, China and the Philippines, or China and Vietnam – we have to protect our ships in the South China Sea. And what I am proposing to the government is that if anything happens in the South China Sea, we have to send our self-defense forces to the vicinity of the conflict area to protect Japanese ships," said Kotani, who is not affiliated with the government but who is believed to reflect government views.

Japan's Maritime Self-Defense Force is designed largely for anti-submarines and anti-mine warfare and generally operates in home waters and the Western Pacific. Venturing into the South China Sea could be seen as a provocative move not only by China, but by some of the regions smaller powers, which still view Japan with suspicion. Japan's constitution currently forbids military action except in self-defense.

The South China Sea already is heavily militarized and is certain to become more so as the "re-balancing" of U.S. forces in the Asia-Pacific gains traction. The U.S. Seventh Fleet, based in Yokosuka, Japan, routinely operates there. Three U.S. littoral combat ships are scheduled to begin operating from Singapore next spring.  Japan is supplying the Philippines with 10 patrol boats. China has completed construction of a major naval base at Yalong, on the southernmost tip of Hainan Island, which can hold nuclear-powered ballistic missile and attack submarines and large surface warships, including aircraft carriers.

Although the U.S. does not have a security treaty with Vietnam, it does with mutual defense pacts with other nations that have disputes with China. U.S. officials said earlier this month that a Chinese attack directed at the Senkaku Islands would fall under the U.S.-Japan Mutual Security Treaty, which requires the U.S. to come to the aid of Japan. The U.S. has a similar pact with the Philippines, which was involved in a months-long standoff with China earlier this year as the Scarborough Shoal, a collection reefs in the South China Sea.

The U.S. Energy Information Administration said in a 2008 report that the South China Sea has potential oil reserves as high as 213 billion barrels, larger than then Saudi Arabia.

In addition to the People's Liberation Army Navy, at least four other government agencies or ministries operate patrol craft or have a degree of authority over maritime-related issues. At a forum hosted by the Center for Strategic and International Studies, in Washington DC, one Chinese participant stated that even if a procedure were developed to resolve the territorial disputes, it is not clear which agency within the Chinese government would have the authority to settle the issue.

And that's how you go from bad to worse.

South Korea could be like a roasted piggy with Japan and China; Philippines must PRAY 24/7 for Peace.

Written by KIRK SPITZER of Time

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