Philex faces possible cancellation of ECC

MANILA, Philippines – Philex Mining Corp. is facing possible cancellation of its Environmental Compliance Certificate (ECC) over an alleged violation of one of its conditions following the waste spill at the company’s mine project in Benguet province.

In a disclosure to the Philippine Stock Exchange on Tuesday, October 2, Philex said it has received a letter from the Environmental Management Bureau (EMB), informing it of the possible penalties, which also include up to P50,000 fine, for the ECC violation.

The letter signed by EMB-Cordillera Administrative Region Regional Director Oscar Cabayanan said Philex violated “Condition No. 2” of its ECC that states “pond effluent discharges shall conform with the standards set forth under RA 9275, otherwise known as the Clean Water Act, and its implementing rules and regulations.”

Non-compliance with any of the ECC’s conditions “shall be sufficient cause for suspension or cancellation” of the certificate “and/or imposition of fine” not exceeding P50,000, Cabayanan’s letter read.

However, in an interview, EMB Director Juan Miguel Cuna said he thinks there is still “no sufficient reason to revoke or cancel” Philex’s ECC.

The EMB has given Philex 10 days to respond to the notice. Cuna assured the company it will be accorded due process.

Philex Senior Vice President for Finance Renato Migriño told the exchange that the company will contest the EMB’s “adverse findings” and explain to the bureau why it should not be penalized.

“We would also like to inform the exchange that as of this time, the tailings leakage from TP3 (tailings pond 3) has already been effectively contained with the plugging of the sinkhole,” Migriño said.

P1-billion fine

The additional P50,000 fine is on top of the over P1-billion fine earlier slapped on the company for violating the Mining Act.

Philex Senior Vice President Mike Toledo said Philex would also contest the P1-billion fine.

“It is not the amount but the admission that we were negligent,” he said. “If you are liable to a fine, it supposes that you are negligent.”

Toledo said Philex put in place standard procedures in operating its tailings pond and that employees were not remiss in ensuring the integrity of the facility.

Toledo stressed that what caused the leak was force majeure; at the time the leak happened, the area was hit by a series of typhoons and monsoon rain.

He said their Mineral Producion Sharing Agreement with the government provides for force majeure incidents that are beyond their control.

Mines and Geosciences Bureau Director Leo Jasareno, however, said that Philex cannot avoid the fine by invoking “force majeure” since this principle is relevant only in so far as criminal liability is concerned.

Toledo, meanwhile, said they are willing to shoulder the costs of clean-up efforts in affected rivers and lost livelihood opportunities for communities near the mine. – 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:

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