Philex allots P1.06 billion for Padcal rehab, cleanup

MANILA, Philippines - Listed miner Philex Mining Corp. (PMC) is alloting an initial P1.06 billion for rehabilitation and cleanup efforts in its copper-gold mine in Padcal, Benguet.

In statement, the company said that of the initial amount, P870 million would be used for the cleanup of the tailings spill in the Balog Creek and its convergence with Agno River until April 2013.

The preliminary estimate of cost and timeline for the rehabilitation of the mine was included in the mine rehabilitation plan submitted by the company to the Mines and Geoscience Bureau (MGB) last week.

The 25-page report titled Philex Padcal Mine TSF3 Rehabilitation & Cleanup Plan states that medium-term and long-term environmental management program will be implemented in the mine.

PMC said it started the 26-week cleanup drive in mid-October, following the remediation phase done between Aug. 1 and Oct. 17, during which the company spent P190 million for food assistance and claims by affected families, the cleanup of the tributaries of Agno River, infrastructure, and medical mission.

“As we have repeatedly said, Philex Mining is more than willing to pay for anything and everything pertaining to its remediation effort and the cleanup and rehabilitation drive on the waterway affected by the accidental discharge of sediment in Padcal,” Michael Toledo, senior vice president for Corporate Affairs at Philex Mining, said.

Aside from the ongoing cleanup of the affected waterways and the construction of silt traps along the strategic areas in Balog Creek, PMC said it would also conduct a “full characterization” of the creek, reforestation, enhancement of terrestrial and aquatic ecosystems, and the improvement of monitoring procedures.

“The creek’s full characterization involves analyzing sediment and water samples based on critical values established for proper nutrition of the crops to be used in restoration, the company said.

Other actions included in the company’s rehabilitation plan include the construction of an open spillway and the sealing of Penstock B and Tunnel B. The spillway will replace the tailings facility’s existing underground drainage system while Penstock B drains water to Balog Creek through Tunnel B.

Penstock A and Tunnel A had already been plugged with concrete after the discharge of sediment on Aug. 1.

PMC attributed the accident to unprecedented heavy rains brought about by typhoons Ferdie and Gener as well as the southwest monsoon.

The Department of Environment and Natural (DENR) has upheld the imposition of a P1.034 billion fine on PMC for violation of the Mining Act of 1995.

The department rejected the firm’s argument that it should not be fined for the incident because it was caused by force majeure as characterized by the incessant rains leading to Aug. 1 when the leakage was first seen.

The P1.034 billion imposition excludes the fine of between P50,000 to P200,000  for violation of the Clean Water Act which would be imposed on a per day basis until the pollution is cleared from the waterways affected  by the discharge. The Pollution Adjudication Board (PAB) continues to deliberate on the total amount of fines to be imposed on the firm.

A fine of P50,000 was also imposed on the company by the Environmental Management Bureau (EMB) for violation of a provision of its Environmental Compliance Certificate (EC) which states that all mining wastes should be 100 percent contained.