* Violence trend could delay peace talk resumption * Nearly 600 killed since August * Military says conducting "law-enforcemt operations" By Manny Mogato COTABATO CITY, Philippines, May 27 (Reuters) - Fighting between Philippine troops and rogue factions of a Muslim rebel group has spread beyond oil and gas-rich wetlands in the south, and more guerrillas could get involved, a rebel leader said. The violence on the southern island of Mindanao would also delay any possible resumption of peace talks between the government and the Moro Islamic Liberation Front (MILF), the country's largest Muslim rebel group, said Mohaqher Iqbal. "The conflict is no longer isolated because it has spread to areas where there is no known presence of renegade MILF forces," Iqbal told Reuters at an interview in a hideout near Cotabato City on Tuesday. Rogue MILF factions went on the rampage last August and attacked Christian-majority towns after a peace deal between the government and the MILF leadership was aborted. Nearly 600 people have been killed since then. The rump group has condemned the violence but tacitly acknowledged it no longer has control over the rogue factions. It says the spreading violence is a major threat. "The military offensive is starting to hurt some of our field commanders," said Iqbal, who sits on the rebels' seven-member jihad executive council and is a member of the central committee. "Many are losing their patience and may just take some action because the soldiers are shelling their positions. If the army further steps up the offensive, the situation will worsen." The 40-year-long war by Moros, or indigenous Muslims, for more autonomy in the south of the Christian-majority Philippines has derailed investment in the country's most resource-rich area. At least 120,000 people have been killed. The marshlands of central Mindanao, where the rogue factions are based, are rich in oil and gas reserves. Nearby mountains contain abundant deposits of copper, gold and other minerals. Experts say Mindanao could have $1 trillion worth of untapped natural resources. The military said it was not looking to spread the conflict beyond the rogue factions, but was prepared for any eventuality. "We're not targeting other MILF commanders, but if they try to hit us, our troops are ready for them," said Lieutenant-Colonel Jonathan Ponce, an army spokesman. "We're only conducting law enforcement operations, so we're limiting our actions to areas where we know the lawless elements are actively operating." DRAIN THE POND Tens of thousands of villagers have fled areas near the marshlands because of artillery bombardments, taking refuge in mosques, school buildings and gymnasiums elsewhere. At least 500,000 people are described as internal refugees. "They're trying to drain the pond to catch the fish, but that counter-insurgency strategy has been proven to be a failure," said Iqbal of the offensive. "I don't think the government can defeat us militarily. We have the support of the people." Iqbal said his group has not abandoned attempts to resume peace talks, but any deal was unlikely under President Gloria Macapagal Arroyo, who leaves office next year. "She has no political will and she cannot deliver," he said. "The chances for a political settlement of the Moro problem under the next president, however, is not also very encouraging." The conflict night even escalate into a full-blown war if politicians such as former president Joseph Estrada, Defence Secretary Gilberto Teodoro or Senators Manuel Roxas and Panfilo Lacson were elected president in May 2010, he added. Roxas and Lacson opposed the Muslim ancestral land deal that was the basis for last year's abortive peace deal. Estrada ordered an offensive against the MILF when president in 2000. (Reporting by Manny Mogato; Editing by Raju Gopalakrishnan and Jerry Norton)
People display placards during a protest along a main street of Manila May 26, 2009 on the 10th anniversary of the Visiting Forces Agreement (VFA) between the U.S. and Philippines. Calls ...