Philex to build 2 new tailings ponds

MANILA, Philippines - Philex Mining Corp. is considering the construction of two new tailings ponds to replace the broken tailings pond No. 3 of its copper-gold mine in Padcal, Benguet.

Philex spokesperson Mike Toledo said it would take between six to 12 months each to construct tailings pond No. 4 and No. 5. He said the company plans to start the construction of the first tailings pond within the year.

Each pond is expected to cost more than P300 million, including accessory structures such as monitoring infrastructure, embankments and roads.

He said technical experts assessing the damage are recommending the construction of two tailings dams.

“If tailings pond No. 4 is already nearing completion, the construction of tailings pond No. 5 may commence,” said Toledo. The new ponds would be constructed in the same tenement.

He maintained that operations in the Padcal mine would remain suspended until the mine is fit for operations.

The company formally announced the replacement of the pond to investors in a disclosure to the local bourse yesterday.

“We confirm that the company has decided that new tailings ponds for Padcal have to be built as long-term replacement for the current tailings pond 3 (TP3). Construction of the first new tailings ponds will be underway as soon as possible, even as the tunnel of penstock A of TP3 is to be concreted and condemned to prevent further tailings leakage from the tunnel. The spillway being completed for TP3 will augment the remaining penstock B as additional structure to drain water from the pond,” said Philex senior vice president Renato Migrino in the filing.

“The mine is also in the process of diverting some of the runoff from the mountains to reduce the flow of water going into TP3,” he added.

He said the discharge of water from penstock tunnel A of TP3 has been kept at a “significantly reduced and constant rate.”

“More boulders and gabions will be dropped into the sinkhole until the discharge has been completely stopped, at which time inspection of the tunnel will be made to locate the source of the leakage, determine the appropriate measure to permanently plug the sinkhole and seal the tunnel completely by concrete,” said Migrino.

He said the operations of the mine may be closed until the end of the year. The indefinite closure of the mine is expected to have a severe impact on the income of the mine. From the targeted P4 billion profit this year, Philex would only be able to rake in P1.5 billion to P1.7 billion.