Philex to claim $25-M insurance after mine leak
MANILA, Philippines - Philex Mining Corp. is set to collect US$25 million (about P1 billion) in insurance claims following its Padcal mine spill incident in August 2012.
In a disclosure to the stock exchange on Friday, February 8, the country's biggest gold producer said it has entered into a settlement, release and policy buy-back agreement with Chartis Philippines Insurance Inc.
The agreement calls for the full settlement of the insurance claims under its pollution legal liability select policy within 15 days.
Philex's only operating mine was shut since August when torrential rain caused its tailings pond to leak, which in turn resulted in a P1-billion fine from the government.
Chartis Philippines represents the fusion of the business portfolios of American Homes Assurance Co. (Philippine branch), AIU Philippines Inc. and the Philippine American General Insurance Co. (Philam Gen).
Previously, Philex chair Manuel V. Pangilinan said the mining firm has taken out a $50 million environmental insurance coverage and a $30 million business interruption insurance to cover the cost of the incident. - Rappler.com