MGB suspends Surigao Norte firm’s mineral processing

MANILA, Philippines – The Mines and Geosciences Bureau (MGB) has temporarily stopped the mineral processing operations of a Surigao del Norte gold miner after a crack was discovered in its tailings storage facility.

MGB Director Leo Jasareno issued June 6 a cease and desist order against Greenstone Resources Corp. after the MGB Regional Office XIII reported that it found a “tension crack” along the embankment of the tailings storage facility of the company’s mine in the municipality of Tubod.

Because of the imminent danger posed by the situation, MGB ordered Greenstone to immediately stop gold ore mineral processing in the contract area under Mineral Production and Sharing Agreement No. 184-2002-XIII.

The agency ordered Greenstone’s mineral processing suspended until remedial measures are instituted.

These measures should be certified by a third-party expert and validated by the Environmental Management Bureau.

The company should also submit a report on the remedial measures undertaken within 3 days of receipt of the order and every week thereafter until the stability and integrity of the tailings facility is restored.

Greenstone operates the Sianna gold project in the municipalities of Tubod and Mainit.

Red 5 Ltd. of Australia, through Greenstone, holds a 90% beneficial interest in the project.

The Siana gold project was commissioned last year. It is expected to produce a minimum of 849,000 ounces of gold at a cash cost of $400 per ounce over a 10-year life.

Jasareno said the exact cause of the tension crack is yet to be determined. A penalty would be imposed on Greenstone after the investigation, he added. – Rappler.com