Philex gets OK to continue Padcal rehab

MANILA, Philippines - Philex Mining Corp. will continue to operate its Padcal mine in Benguet beyond the July 7 expiry date of the temporary permit to operate issued by the government.

“In view of the urgent remediation measures required for Tailings Storage Facility (TSF) No. 3, Philex is hereby authorized to continue implementing such remediation measures in the meantime that this office is thoroughly reviewing the pertinent technical details,” Mines and Geosciences Bureau (MGB) director Leo Jasareno said in a letter to the mining company dated July 5.

Jasareno said that while the firm is being allowed to continue to operate in the meantime, weekly reports on the TSF 3 and the status of the remediation measures being implemented would be required.

Last month, Philex filed a request to the MGB to be allowed to continue to deposit fresh tailings at the TSF 3 after the four-month temporary permit to operate given by the government expires on July 7.

The request was filed by the company in order to continue to implement its mine rehabilitation plan.

The four-month temporary permit to operate was issued to Philex on March 8.

Philex voluntarily suspended operations in August last year, as heavy rains brought by typhoons Ferdie and Gener caused the accidental spill of tailings in the mine.

While Philex is allowed to continue operations in the Padcal mine, Environment secretary Ramon Paje said in a telephone interview, the department would still need to refer the miner’s request to the Mining Industry Coordinating Council (MICC) to come up with a final decision.

The MICC, Paje said, is set to meet on July 16 to discuss the mining firm’s request.

“We are very careful. We don’t want to make the decision on our own. We refer to the MICC so there is utmost transparency in the decision,” he said.

Core net income of Philex reached P132.4 million in the first quarter, down by 90 percent from the P1.33 billion in the same period last year.

The company’s net income declined to P403 million in the first quarter compared to the P1.27 billion in the same period last year, due to the suspension of Padcal’s operations.