(Focus on Benguet operations)
by Arturo Boquiren, Assistant Professor in Economics
University of the Philippines-Baguio
For the Linis Gobyerno Incorporated and Alyansa Tigil Mina
(The work is an implementation of cooperation
between Linis Gobyerno and Alyansa Tigil Mina but the views expressed
do not necessarily reflect the views of the two organizations)
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Section
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I. |
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II. |
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III. |
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IV. |
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V. |
Wastes and risks to the environment |
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B. Wastes, tailings ponds, and route of waste (part1, part 2) |
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ABSTRACT
Philex Mining Corporation was established in Benguet in 1955 but mining operations started in 1958. As of 2009, it has been in Benguet for more than 51 years. Mineral production started at 800 tons per day although mill capacity has been at 2,000 tons per day. Philex Mining Corporation 2008 income from gold, copper, and silver was around P 9.7 billion (P5.4b from gold, P4.3b from copper, and P85.1b from silver). The total hectares of land utilized to generate the income were 39,440 hectares (covering 14,256 in Benguet and 24,184 hectares in Surigao). This implies that Philex mining yields only P246,174 of revenues per hectare.
Philex Mines has
mined and milled a total of 293.6 million tons of ore over 47 years, from 1958
to 2005. The Philex production generated a total of US2.6 billion through
exports. By 31 December 2006, total ore milled reached 311 million metric tons
and generated US$2.7 billion through exports. In contrast, Department of
Science and Technology-Philippine Council for Agriculture, Forestry and Natural
Resources Research and Development (DOST-PCARRD) sources say that gross income
from saluyot production is higher at P640,000 per hectare.
During the 47
years, the company produced 3.248 million dry metric tons of concentrate
consisting of 824 million kilograms of copper, 146.9 million kilogram of gold,
and 163 million kilograms of silver.
Based on
geology, product, and production process, the following are some of the
environmental risks and issues in Philex mine operations:
1. Environmental
impact and geohazard risks posed by mine ore body
2. Environmental
impact and geohazard risks posed by tailings pond 1, 2, and 3
3. Adequacy of
rehabilitation done for tailings pond 1
4. Existence of and
adequacy of plans and resources for post-mining management of tailings ponds 2
and 3
5. Risks posed by
possible effluents from the Banget milling plant
6. Impact of Philex
operations on the Albian Creek, Sal-angan Creek, Balog River, and Agno River
7. Details on and
soundness of the Philex mine rehab plan given Philex’s plan exit from Benguet
in 2012
8. Adequacy of the
Philex rehabilitation fund given its level at P26.639 million as of 31 December
2009
Action on the
eight (8) concerns and issues identified above is urgent given the possibility
that Philex may cease operating in Benguet or withdraw from some parts of Benguet
in 2012. Based on the stockholder profile of Philex Mining Corporation, the
following should be considered as possible pressure points or allies once
Philex reneges or fails on its claim of commitment to “corporate
responsibilities”, covering accountabilities related to the environment:
1. Social Security
System (owner of a significant share of Philex)
2. The Roman
Catholic Archbishop of Manila
Based on supply
and market structure, advocacy work can be undertaken in Canada, United
Kingdom, The Netherlands, and Japan.
artboquiren may 2009
Preface to the
2nd Edition
The first edition of this work was finished April 2009. At that time, the report of the Philex
Mining Corporation to the Securities and Exchange Commission was not available
to the researcher. This edition factors
in the report of the company to the Commission as well as improves the writing
style and content of the first edition.
The second edition failed to confirm the role of some banks in
Philex operations and so adjustments were made for this. There will be
succeeding editions of this work and works are ongoing to produce a sequel.
This edition as well as the first was unable to produce a deeper
analysis of the environmental, social, and economic of Philex operations
because of funding constraints---unfortunately notwithstanding the existence
institutions that have the resources and mandate to support studies related to
the environment. Hopefully, one of them can support the production of a sequel
as soon as possible especially because of the urgency of the concerns involved.
The author thanks the Alyansa Tigil Mina and the Linis Gobyerno for
making the study possible.
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