Philippine rebels threaten mining operations

Maoist rebels in the Philippines are demanding that miners compensate communities and protect the environment and are threatening to attack and stop operations, a rebel spokesperson said on Sunday.

The Philippines has mineral deposits throughout the archipelago, estimated to be worth $1 trillion, but output has been small.

The sector was opened to full foreign ownership under a  1995 law and the government has been trying to attract foreign investment but rebel attacks and opposition from the Catholic church, also worried about exploitation of communities, have  stalled development.

"If we would only have our way, we will stop all mining operations in the country," Jorge Madlos, a spokesperson of the rebels' political arm, the National Democratic Front, told  reporters at a ceremony marking the 42nd anniversary of the founding of the Communist Party of the Philippines.

The communist rebels are active in nearly all of the  country's 80 provinces, and they often attack farms, mines, mobile phone relay towers and similar establishments as part of efforts to raise funds for their fight.

Madlos, a frail-looking 62-year-old who has been a guerrilla for more than 30 years, said the rebels were open to compromise with big mining companies if they would abide by their rules to protect the environment and take care of farmers, workers and communities.

"Compromise and accommodation means we can tax them, but  we will stop their operations once we have sufficient capability to enforce our own rules," said Madlos, who is also known as Ka (Comrade) Oris, at the ceremony in rice fields in Surigao del Sur province on the southern island of Mindanao.

The rebels raided and torched equipment at a copper and gold mine on a troubled southern island two weeks ago, ahead  of a 19-day Christmas ceasefire until January 3.

If the ceasefire holds it would be the longest in 10  years.

The rebels have several times attacked the $5.2 billion Tampakan mine on Mindanao, a project by Xstrata Plc, considered the biggest undeveloped copper-gold prospect in Southeast Asia and the country's largest foreign investment.

The rebels and the government have agreed to resume talks  early next year to find a solution to end more than 40 years  of conflict that has killed 40,000 people and stunted growth in rural areas of the poor but resource-rich country.

The talks will be held in Norway.

Thousands of rebel supporters gathered for the first time  in nearly three decades to mark the anniversary, with the  ceasefire allowing them to move freely.

An 80-member armed guerrilla unit marched as members of  the crowd waved rebel flags and placards that read "Support the peace talks" and "Long live the revolution". Revolutionary  songs blared out over speakers set up in the dried-out rice field.