MGB orders Greenstone Resources to fix damaged tailings pond

MANILA, Philippines - Gold miner Greenstone Resources Corp. has committed to rehabilitate its compromised tailings pond as demanded by the Mines and Geosciences Bureau (MGB) for the lifting of the suspension order on its mining and milling operations in Surigao del Norte, the MGB said yesterday.

MGB director Leo Jasareno said the company has been ordered to convert liquid tailings into pastes and construct a reinforcement for its broken tailings pond before the suspension order is lifted.

“They have appealed before the DENR (Department of Environment and Natural Resources) for the lifting of the suspension order because they will be implementing mitigation measures. So we informed them that we can lift the suspension order after these measures have been completed,” he said.

The company’s operations, he said, would remain suspended pending the completion of the rehabilitation works.

“The suspension order will continue to be enforced until they complete the rehabilitation works,” he said.

The MGB would asses the fitness of the tailings storage facility after the rehabilitation work has been completed.

“The completed work would still be subjected to validation,” said Jasareno.

The MGB suspended the milling operations of the mine on June 6 last year after a tension crack was found along the embankment of the tailings pond.

Red 5 Ltd. of Australia holds a 90-percent beneficial interest in the project through Greenstone Resources.

The Siana gold project, which was commissioned last year, is expected to produce a minimum of 849,000 ounces of gold at a cash cost of $400 per ounce over a 10-year life.