SSS hopeful govt will lift Philex mine suspension

MANILA, Philippines – The Social Security System (SSS) is hoping the government will lift its suspension order on the Padcal mine of Philex Mining Corp, where the state pension fund has invested over P18 billion.

In a press conference on Monday, July 1, SSS chairman Juan Santos said they are monitoring the operations of the Manuel V. Pangilinan-led firm and the government’s decision to temporarily close its mine in Benguet province following a waste leak.

“We are monitoring the operations of Philex. We are hopeful that the authorities will grant the continuance of the operations of the company in Padcal,” he said.

The pension fund for the private sector holds around one billion shares in Philex – one of its biggest investments in the stock market.

Since the closing of Padcal mine in August 2012, SSS has been deprived of some P173.5 million in potential cash dividends per quarter, according to a lawmaker.

In June, Philex formally requested the government to lift the suspension order, saying it already complied with the technical requirements laid out by the Mines and Geosciences Bureau.

One of the requirements was raising the dike of Padcal’s tailing storage facility no. 3 (TSF3) to 592 meters above sea level from the current 584 meters to ensure safety.

The mining site was given permit in March to temporarily resume operations. The permit will expire on July 8.

Santos said the state pension fund would continue monitoring the price of Philex shares, as well as developments in the stock market.

“Philex has remained there, trading regularly. We are hopeful but we will see what happens,” Santos said. – Rappler.com