It is reported that Ms Gloria Macapagal Arroyo president of Philippines announced the creation of a special army unit to protect mines, plantations and power transmission lines on the troubled southern island of Mindanao. The Philippine government wants to attract billions of dollars in foreign investment to its mineral sector and has offered to work with the mining firms to help improve security.

Ms Arroyo after inaugurating a road project on Mindanao said the new unit, to be called an investment defense force, would shield against attacks by communist New People’s Army rebels seeking to damage the country’s economy, particularly the power and mineral sectors.

She added that "We also have already identified additional investment assets in Mindanao that need more weapons and personnel as protective shields.”

Ms Arroyo and her National Security Adviser, Mr Norberto Gonzales, gave no further details on the new military unit.

Last month, General Hermogenes Esperon, the military chief offered to train, equip and supervise private security guards to defend mines and plantations across the archipelago.

The NPA, waging one of the world’s longest running communist insurgencies, is opposed to foreign and local corporations mining Philippine sites and often attacks their operations. Last month, the NPA attacked a mine majority owned by London listed Xstrata plc, setting fire to buildings in the south. Last year, the NPA attacked a gold mine in another area in Compostela setting fire to a bulldozer and a welding machine.