MVP: Philex mine leak a force majeure

MANILA, Philippines – The chairman of Philex Mining Corp., the country’s biggest gold and copper producer, said they have yet to receive a formal notice regarding the mounting penalties for the mining leakage at its Padcal facility.

Following the announcement of Environment Secretary Ramon Paje on Tuesday, September 11, that the P325 million fines from an initial assessment will be “doubled or tripled,” Philex chair Manuel V. Pangilinan (also referred to as MVP) said that the leaks were a “result of force majeure.”

“I think it must be stressed that the accident was a result of force majeure. We didn’t want it to happen. There was a very unusual heavy rainfall so it was a force majeure situation for Philex,” Pangilinan said during the “Career Fest” for business units of the diversified conglomerate he leads.

“I just got in from Hong Kong. We haven’t received any formal notice from the DENR about that so we’ll just have to wait for that,” he said, adding that “Philex [has] to make its own independent assessment of the incident.”

Philex vice president Mike Toledo echoed Pangilinan’s sentiment. When reached for reaction after the press briefing of Paje, Toledo said the pronouncements of the energy secretary of higher penalties are “a violation of due process, which requires notice and hearing.”

“We have been transparent to the public. We will do the right thing and show that responsible mining is possible in this country by meeting head-on what is due under the law, and after due process and notice and hearing,” Toledo said.

Violations

Operations at the Padcal mine in Benguet province have been suspended after sediments from its only operating tailings pond leaked after days of torrential rain in August.

Paje said there have been about 6 incidences of leakage since August 1, adding that Philex has thrown in cement mixers, tractors, even container vans into the tailings pond to plug the leak.

Paje said the spilled sediments made their way to Balog Creek and Agno River, and the junction of the two waterways that flow into the San Roque Dam.  

The fines that will be imposed on Philex will be based on violations to the Mining Act and Clean Water Act, Paje said.

Hong Kong-based First Pacific Ltd, the parent firm of Philex, has earlier said they expect the suspension of operations and the fines to hit bottom-line this 2012.

Pangilinan has Philex’s actual and opportunity losses reach about P30 million to P40 million everyday the mine is closed.

Philex has hired local and international consultants to address their Padcal technical issues. – Rappler.com

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:

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