DENR to slap Philex with steeper fines for mine leaks

MANILA, Philippines (UPDATED) – The country’s biggest listed mining firm may be slapped higher fines than the previously announced P325 million based on initial assessment for the tailings pond leaks in Benguet province.

In a press conference on Tuesday, September 11, Environment Secretary Ramon Paje said Philex Mining Corp. violated the Mining Act and other laws when its Padcal mine leaked.

“We are now computing the penalty but it is now much higher than P325 million. Now, there is a possibility that this would be doubled, even tripped,” said Paje.

He said this amount excludes the clean up costs and other fines that will be imposed on the company under the Clean Water Act.

Paje said the Department of Environment and Natural Resources (DENR) has decided to impose the maximum penalty of P200,000 per day for the mining firm’s violation of the Clean Water Act.

This will be imposed until pollutants that seeped into waterways have been cleared. The leakage from the Padcal mine’s broken tailings pond no. 3 began on August 1, after days of torrential rain in the area.

Since the initial incident, Paje said there have been 6 leakages that occurred.

Paje added that the leaks at Philex’s only operating mine spilled sediments that made their way to the Balog Creek and Agno River.

He said, however, that the tailings are not likely to contaminate the San Roque Dam, which gets water from Agno River and provides the power and irrigation needs of Pangasinan, Tarlac and Nueva Ecija.

He said Philex has thrown in cement mixers, tractors, even container vans into the tailings pond to plug the leak. Paje said that Philex has finished the target drilling to fill the drain tunnel with quick setting cement to prevent leakage into waterways.

“The leak has been fully stopped,”  said Paje.  
 
Philex has also constructed a flank spillway to replace the penstock. This will also ensure that flow of water from the tailings pond remains above ground.

Paje said there is still no time period for the resumption of the operations of the mine.

Philex has disclosed to the stock exchange that there were at least 4 incidences of leaks during the month of August, and that the suspension of operations at Padcal mine will hit its bottomline for the year. – Rappler.com

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