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.
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