Fines readied vs Philex after Padcal mine tailings leak

MANILA, Philippines (UPDATED) – Environment officials are now in the process of assessing the violations and corresponding fines slapped on Philex Mining Corp., the country’s largest mining firm, after leakage from the broken tailings pond at its Padcal copper-gold mine has been contained.

In an interview with Mines and Geosciences Bureau (MGB) director Leo Jasareno on Monday, August 6, he said a technical team will be sent to the mine site in Benguet in north of Luzon to assess the damage, as well as the cost of rehabilitation and the violations that Philex committed.  

“The MGB will assess the impact and determine the specific violation [committed by the firm] particularly the Clean Water Act and the ECC (Environmental Compliance Certificate) contract, and the Mining Act. This still does not include [the cost of] full clean up,” Jasareno said.

He cited the following:

• Mining Act penalties include P50 per ton of sediments that spilled from the tailings pond
• Clean Water Act (Republic Act 9275) imposes a minimum penalty of P100,000 per day to a maximum of P200,000 per day for seepage of pollutants into bodies of water

Toxic chemicals

Since the tailings pond is where the mining firm contain the sediment and other dumps from the process of extracting minerals from ore, Environment Secretary Ramon Paje has earlier expressed concern on the possible impact of the spillage on the living organisms from the neighboring water bodies, especially the Agno and Balog rivers.

“Definitely there is [damage to aquatic resources in Balog and Agno rivers]. But we are determining if the spillage has already reached the San Roque Dam. As of yesterday, it still hasn’t,” he said, adding that aerial surveillance of the affected areas will be conducted.  

“There is a need to conduct a science-based investigation here in order to allay fears and apprehensions of the public,” Paje stressed.

So far, no human casualties were reported. “Benguet governor Nestor Fongwan was able to issue an early warning to his constituents,” said Paje.

Jasareno said laboratory tests will confirm if the water and sediment that leaked out from the pond do not contain toxic chemicals. The joint team composed of technical staff from the MGB and the Environmental Management Bureau will conduct and complete the tests within a week.

“The sediment that leaked is non-toxic. They do not fall under toxic substances identified in the law. But even so, there will be an effect,” Jasareno said, citing initial investigation by the MGB last week.

“It is clear that the sediments have not reached the San Roque Dam which is the source of irrigation and power generation,” Jasareno said.

Overflow water from the tailings pond normally discharges into the Balog Creek, which in turn drains into the Agno River. San Roque Dam is situated downstream of the Agno River.

Suspended

The MGB has issued to Philex a cease operation order on Friday, August 3, after the company reported the leakages. The company said no tailings were added to the pond since August 1, following heavy rainfall from typhoons Ferdie and Gener.

In a statement on August 4, Philex said the release of water and sediment from the broken tailings pond No. 3 of its Padcal mine had been contained. Philex said the mine would be closed to allow the full assessment of the tailings pond.

“The leak has been plugged. It is holding on,” confirmed Jasareno on Monday.

Given the suspension, Philex’s last shipment will be on August 7.

The Padcal copper-gold mine is the only operating mine of Philex, the country’s biggest mining firm. The mine produces 150,000 tons of concentrate and 26,000 tons of ore.

In a press conference last August 3, Philex chairman Manuel V. Pangilinan said the suspension would result in losses estimated at P30 million to P40 million per day.

Whether the fines from the government have been included in these estimates is yet to be confirmed.

Pangilinan said Philex 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

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