Dominguez named Lafayette Phils CEO

A group of international investors represented by former Agriculture, Environment and Natural Resources Secretary Carlos G. Dominguez is investing P39.54 million (A$1 million) into Lafayette Philippines Inc., operator of the Rapu-Rapu polymetallic project.

Dominguez who was formerly secretary of the Department of Agriculture and the Department of Environment and Natural Resources, and president of Philippine Airlines and Philippine Associated Smelting and Refining Corp., is taking over Rod Watt as the new Lafayette Phils. Inc. country chairman, president and chief executive officer by virtue of his group’s buy-in arrangement with the mother company, Lafayette Mining Ltd. of Australia.

The move to install Dominguez as the new country head, is intended to primarily improve its image in the Philippines, especially with the current controversy surrounding its Rapu-Rapu operations in Sorsogon. The mining company’s operations were suspended by the Environmental Management Bureau (EMB) in Region 5 after two mining spill incidents in October of last year wherein about five cubic meters of mine effluents containing cyanide into nearby creeks.

In a disclosure yesterday at the Australian Stock Exchange, Lafayette said the changes to its board and operational management structure form part of preparations to finalize the commissioning of its base metals plant.

"We have restructured and strengthened the operational management team with the introduction of a Filipino partner to oversee activities in the Philippines. Mr. Dominguez brings considerable expertise and experience to our local management team, and he adds a Filipino perspective to our board. He has an outstanding track record of achievement in the Philippines and across Asia," said Reg Gillard and Andrew Mcllwain, chairman and CEO, respectively of Lafayette’s mother unit, in a joint statement.

Dominguez’s group is investing one million Australian dollars in Lafayette through a placement of 10 million newly-issued shares at 11 cents per share, earning for the group a 1.6 percent interest in the parent firm.

Lafayette also appointed Robin Widdup, managing director of the Lion Selection Group which holds a 20 percent share in the company, as one of the board members, along with Dominguez. The Lion Selected Group is one of the stakeholders in Indophil Resources Ltd., another Australian junior mining company which is undertaking exploration work at the Tampakan Mines in South Cotabato inman Paul Dominguez, a prominent businessman and younger brother of Carlos.

In accepting his new post, Dominguez vowed to institute all systems and controls to ensure the safe and efficient operation of its mining project in Albay.

"We will not resume operations of the Rapu Rapu polymetallic processing plant unless we are absolutely sure that the project is operated in a responsible and environmentally sustainable manner. Mining is a partnership for the benefit of all parties: the surrounding communities, the government and the economy, and the company itself," said Dominguez.

Dominguez said his priorities would be to create a multi-party monitoring group to find out why the two spills happened last year at the mine site and introduce wide-ranging measures, including full transparency, to prevent their recurrence and ensure full compliance with environmental laws.

He said the group will be immediately formed and expanded beyond what is required by law with representatives from the community, the church, and other sectors to check the project’s compliance with all environmental and anti-pollution requirements.

The new management is also studying the feasibility of installing an on-line monitoring system to allow interested parties to monitor the plant’s operations in real time any time of the day through the Internet.