MANILA, Philippines – After an August spill from a broken tailings pond, Philex Mining Corp. will construct two additional tailings ponds worth over P600 million in its copper-gold mine in Benguet.
In a September 24 statement to the stock exchange, the company said, “We confirm that the company has decided that new tailings ponds for Padcal have to be built as long-term replacements for the current Tailings Pond 3 (TP3).”
Following a heavy downpour, the 20-year-old tailings pond spilled at least 5 cubic meters of sediments into one of the country’s largest rivers, the Agno River, and a tributary.
Philex senior vice president for corporate affairs Mike Toledo said it will take 6 to 12 months each to construct Tailings Pond 4 and 5. The new ponds will be constructed in the same tenement.
Each pond is estimated to cost at least P300 million, including accessory structures such as monitoring infrastructure, embankments and roads.
The company plans to begin constructing the first tailings pond within the year, in line with the recommendations of technical experts, added Toledo. “If tailings pond no.4 is already nearing completion, the construction of tailings pond no. 5 may commence,” he said.
Toledo said production at Padcal mine will remain suspended until the mine is deemed fit for operations.
The indefinite closure of the mine is expected to have a “severe and substantial” impact on the company’s bottom-line, Philex chairman Manuel Pangilinan told Rappler.
Their targeted P4 billion profit for the year will likely drop to between P1.5 to P1.7 billion, “a significant decrease,” added Pangilinan. – Rappler.com
Read the Blog on the 2012 Mining Conference for a blow-by-blow account of issues being discussed.
For the existing mining contracts in the Philippines, view this #WhyMining map.
How does mining affect you? Are you pro or against mining? Engage, discuss & take a stand! Visit Rappler’s #WhyMining microsite for the latest stories on issues affecting the mining sector. Join the conversation by emailing whymining@rappler.com your views on the issue.
For other views on mining, read:
Yes to Mining | No to Mining |
More on #WhyMining:
- Shaping the future of mining
- EO: No new mining contracts
- The Mining EO: A mixed bag
- Mining E.O. not perfect, but very good
- CONVERSATIONS: What are your thoughts on the mining EO? #WhyMining
- Mining E.O. pits gov’t vs local execs
- Correcting lies and disinformation
- Stand for the environment
- How can mining work for Philippines?
- Mining is a social justice issue
- REPLAY: #WHYMINING
There are no comments yet. Add your comment to start the conversation.