Lafayette fined P10.4 M for Rapu-rapu mine spills

The Department of Environment and Natural Resources (DENR) is imposing an initial fine of P10.4 million against Australian mining company Lafayette Philippines Inc. for the twin mine spills in Rapu-rapu Island, Albay last October.

The fine, which is considered the biggest penalty so far imposed by the agency, is sanctioned under Republic Act 9725, also known as the Clean Water Act.

DENR Secretary Michael Defensor said the imposition of the maximum amount for the violation "is solely for the purpose of deterring similar occurrence."

"The prevention of the incident is well within the capability of the respondent (Lafayette) should it only exercise prudence in the conduct of its business affairs," Defensor said.

The amount was based on the P200,000 per day maximum penalty provided for under the law.

The P10.4-million fine only covers the Oct. 11 to Dec. 14, 2005 period.

Environmental Management Bureau (EMB) Director Lolibeth Medrano said the amount would increase as government monitoring tests on Lafayette’s facilities continues. It won’t stop paying fines for as long as its operations has not normalized and performing within the standard prescribed by law.

Medrano revealed that their latest monitoring over the weekend showed continued above-normal contamination. As such, additional penalty could be imposed against the mining company.

While the government recognizes and promotes the mining industry, Defensor said mining companies should not interpret the government’s position as license to operate in a manner that will undermine the efforts of the DENR in protecting the environment.

"The preservation of the environment should not be bargained away for the sake of economics.

It is after all in the interest of the people that sustainable development, such as responsible mining is being promoted by this administration," Defensor noted.

Defensor said the operation of the P1.4-billion Rapu-Rapu Polymetallic Project remains suspended as the mining firm has yet to meet all six conditions set by the DENR to warrant the lifting of the suspension order.

Among the conditions set by the DENR is the application for the ISO 14001 certification for Environmental Management Systems, a surety bond equivalent to 25 percent of the total cost of the pollution control program, a comprehensive pollution control program, and detailed description of the interim remedial measure to be instituted in the mine project.

"No temporary lifting order shall be considered until the company has fulfilled all the requirements," Defensor stressed.

The DENR issued the suspension order and the six conditions after the second mine spill occurred last Oct. 31. The first mine spill was recorded on Oct. 11.

Both mine spills were blamed for the fish kills in the island’s three barangays and the contamination of bodies of water in the province.

Based on the water quality sampling conducted by the Mines and Geosciences Bureau (MGB) in Region 5 at the mouth of Alma and Pagcolbon creeks, the fish kills revealed cyanide contamination beyond DENR standard.

Aside from the P10.4 million, Defensor has affirmed the imposition of P300,000-fine against Lafayette for violating the terms and conditions of its environmental compliance certificate (ECC), including its wastewater discharge permit.

The Lafayette, however, has already settled the P300,000 fine earlier imposed by the government.