Thursday, September 29, 2016

Miners decry DENR audit findings, recommendations



by Jonathan L. Mayuga - September 28, 2016

BENGUET Corp. (BC) has expressed surprise over the findings and recommendation of the Department of Environment and Natural Resources (DENR) to suspend the company due to nonrehabilitation of the Antamok open-pit mine.
In a statement, BC, said it has not abandoned the mine and, in fact, has continuously exerted efforts to initiate projects, including converting it into a bulk-water project and a waste-to-energy facility.
The company was among the additional 20 mining companies currently operating in the country that face possible suspension for violations of mining and environmental laws. Prior to the announcement on Tuesday, the DENR had already issued suspension orders against 10 operating mines.
Environment Secretary Regina Paz L. Lopez and Senior Undersecretary Leo L. Jasareno said based on the findings and recommendations of the audit teams, only 10 of the 41 large-scale operating mines are fit to continue operation.
BC operated the Antamok Gold Mine in 1903 as the first commercial underground (U/G) gold operation in the Benguet Mineral District in Itogon, Benguet, with zero-mining accidents. In the early-1980s, in view of low gold price, high production cost and declining ore grades, the company developed the open-pit mining method to maximize the extraction of low-grade ore.
When the grades continued to decline, BC suspended operaions in the Antamok mine in 1997 due to declining market prices.  The   company said it started the rehabilitation efforts in the area and worked on the progressive rehabilitation of the mined-out areas.
It submitted to the Mines and Geosciences Bureau (MGB) and the DENR in 1997 a plan to convert the open pit into a water reservoir to supply treated bulk water to Itogon municipality and Baguio City.
The company participated and won the bidding for Bulk Water Project (BWP) conducted by the Baguio Water District (BWD) in 2003.  The local governments supported the initiative from the start.
Its feasibility study showed the open pit has the capacity to supply 59 million liters a day (MLD), which can greatly address the water-shortage needs of Itogon and Baguio City.
The BWP was accepted as rehabilitation for the Antamok Open Pit, and Benguet Corp. was ready to implement it when BWD canceled the contract it awarded, forcing the company to file a mandamus case against BWD.
Because of the delay, the economic parameters changed and affected the viability of the project as a whole.
In early 2015 the company revived discussions with the mayors of Itogon and Baguio regarding the bulk-water project.
Agreements with both local government units were signed to start the review of the project, with BC designated a member of the Technical Working Group (TWG) created by the Office of the Mayor of Baguio City.
Aside from the open pit, the company is finalizing with MGB-Cordillera Administrative Region  its rehabilitation plans for other areas  of Antamok, such as Engineered Sanitary Landfill (ESL) for Camote pit and Minahang Bayan for the Antamok UG. The projects will serve the waste-management needs and solve the small-scale mining problem of Itogon.
Meanwhile,  OceanaGold said it is currently seeking clarification and further details about the result of the mine audit on its Didipio operation.
The company said mining and processing activities are continuing at the Didipio Mine. “OceanaGold will consider all avenues, including working collaboratively with the DENR, to facilitate the immediate resolution of this matter to ensure no disruption to our operations and our valued local work force,”  said Mick Wilkes, president and CEO.
Wilkes said the Didipio Mine has a strong social license to operate.
Currently, OceanaGold’s Didipio operation employs over 1,800 people, 98 percent of whom are Filipinos, from local and regional communities.
The Didipio Mine’s economic contribution to the Philippines in the form of taxes and royalties is estimated at $70 million over the past three-and-a-half years.
Wilkes said the operation is a significant contributor to the continued social and economic development of the surrounding region, providing health and social infrastructure, establishing education programs and academic scholarships, developing training initiatives, and supporting locally sourced and run businesses.
The Chamber of Mines of the Philippines (COMP) decried the mine-audit results.
Eight COMP members reportedly face possible suspension after failing the mine audit. Filminera Resources Corp., Marcventures Mining and Development Corp., Agata, CTP Construction and Mining Corp., Hinatuan Mining Corp., Benguet Corp., Lepanto Consolidated Mining Corp. and OceanaGold Philippines Inc. were among the 20 operating mines that failed environmental standards, based on the latest mine audit conducted by the DENR.
Meanwile, eight COMP members passed the audit: Philex Mining Corp., Rio Tuba Nickel Mining Corp., Atlas Mining Corp., Cagdianao Mining Corp., Taganito Mining Corp., Platinum Group Metals Corp., Philsaga Mining Corp. and Greenstone Resources Mining Corp.
In a statement, COMP VP for Policy Ronald Recidoro lamented how the mining audit was done, calling it “in a punitive manner rather than objectively.”
“When you suddenly change the rules of the game, there should have been an earlier dialogue between companies and the DENR, given the audit report was already finished in August. As early as August, the alleged violations could have already been addressed, instead of setting a trap for suspension,” he said.
Recidoro said COMP member-companies will comply with the seven days given them to address these issues raised against their operations.
The DENR gave mining companies with “show cause orders” seven days to explain why their operations should continue following alleged violations against the environment and lack of social acceptability.
“We stand by our member-companies. We are optimistic that these alleged violations will be addressed properly and in a timely manner,” he said.

No comments:

Post a Comment