LAKE SEBU, SOUTH COTABATO — Coal mining in Barangay Ned, Lake Sebu continues to expand as Daguma Agro Minerals, Inc. (DAMI) accelerates extraction operations and pursues a major production increase despite opposition from local communities, Indigenous groups, environmental advocates, and restrictions under South Cotabato’s environment code.
DAMI operates under the Department of Energy’s (DOE) Coal Operating Contract No. 126 and holds an estimated 95 million metric tons of coal reserves across roughly 2,000 hectares. Although San Miguel Corporation once owned DAMI and extended its contract to 2028, the company was sold in 2022 to an undisclosed buyer, raising questions about current ownership.
Reports from 2023–2024 show full-scale commercial mining, with daily 35-ton truck convoys transporting coal from Ned to Maitum. DAMI now seeks to expand production from 3 million to 5 million metric tons per year starting in 2025, prompting the Department of Environment and Natural Resources’ (DENR) Environmental Management Bureau to schedule a public scoping session for the proposed ₱500-million expansion and amendment of its environmental compliance certificate (ECC).
The project faces significant controversy. Critics argue DAMI’s strip-mining methods violate the provincial ban on open-pit mining. Barangay Ned’s location within the geohazard-prone Allah Valley watershed raises concerns over landslides, sinkholes, and environmental degradation. Indigenous T’boli and Dulangan Manobo communities report impacts such as ancestral domain intrusion, forest loss, dust pollution, road damage, and increasing vehicular accidents caused by large coal trucks.
Despite past provincial disapproval—including a 2018 vote rejecting the coal project—operations continue to expand. Residents have observed worsening environmental impacts, while DAMI asserts that its expansion will bring economic benefits. In response, Indigenous communities have strengthened reforestation efforts as a form of environmental resistance.
The company’s expansion still requires updated permits and an amended ECC, with regulatory oversight challenged by competing economic and ecological interests. As production scales up, concerns over environmental safety, community rights, and transparency remain unresolved.
Adding to the scrutiny, South Cotabato Vice Governor Arthur Pingoy announced that in January 2026, DAMI and various stakeholders will be called to a formal inquiry to assess the mining project’s real impacts. The provincial board aims to determine whether promised benefits and revenues are genuinely reaching affected communities.