dossier on - Philippine Indigenous Peoples Links

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DOSSIER ON
PHILEX MINES
Focus on Benguet operations
By Arturo Boquiren
An implementation of a cooperation between
Linis Gobyerno and Alyansa Tigil Mina
Views expressed in this documentation do not necessarily reflect
the views of Alyansa Tigil Mina nor the Linis Gobyerno
May 2009
ii
Table of Content
Section
Page
I.
Introduction
1
II.
History of operation
3
III.
Philex Mining Corporation today
6
IV.
Geology, reserves, and mining method/processing
V.
VI.
A. Geology
16
B. Reserves
19
C. Mining method/processing
20
Wastes and risks to the environment
A. Overview on Philex operation
30
B. Wastes, tailings ponds, and route of wastes
32
C. Risks to the environment
39
Conclusions and recommendations
43
Bibliography
45
iii
LIST OF TABLES
Number
1
2
Title
Philex tailings pond, expected useful life, area, capacity, and
status
DENR-EMB description on water quality of rivers threatened
by Philex
Page
36
39
LIST OF FIGURES
Number
Title
Page
1
2
3
4
5
6
7
8
9
10
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Incorporators and ownership of Philex Mining Corporation
Production in 1958 started at 800 tons per day
Philex Pacdal area in 1958
311 million tons milled in 48 years by Philex-Pacdal
Tax paid by Philex: P9.7 billion in 50 years, P485 million in 2006
Corporate structure of Philex Mining Corporation
Ownership of the Philex Mining Corporation over subsidiaries
Shareholders of the Philex Mining Corporation
Directors, officers, and staff of Philex Mining Corporation
Process flowsheet of milling and market outlet
Map showing land area covered by Philex mine operations
Map showing the MPSA and APSA of Philex mine operations
Assets and liabilities profile
Income profile
Taxes paid 1991-2006: P1.08 billion
Site of Philex mining operations and fault lines
Philex Mining Corporation illustration of Philex ore body
Vertical section of Sto. Tomas II ore body and milling plant
Location of Philex ore body
Reserves according to Philex mines
Characteristic of Philex ore body: massive
Overview on mining and milling method at Philex-Pacdal
Philex Mining method 1958-1963: open pit mining
Philex mining 1963-1996: block caving-slusher method
Philex mining 1996-present: block caving with load-haul-dump
3
4
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Number
Title
Page
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Overview on Philex mine development
Horizontal driving in Philex mine development
Vertical driving in Philex mine development
Installing rock support in Philex mine development
Drilling of fan holes in Philex mine development
Drawpoints for ore in mine development
Overview on block-caving in mine operations
Ore extraction method
Scooping, loading, and dumping of ore
Subsidence at the ore body in mine operation
Backfilling operations on subsidence
Backfilling above active mining area
Milling flowsheet and transport to Poro Point for Japan or Leyte
Philex Mining Corporation ore body and mill
Close-up on Philiex Mining Corporation ore body and mill
Map on Philex ore body, mill, residential areas, and tailing ponds
Philex open pit mine, tailing ponds, and nearby areas on Google
Earth
Tailing pond 1 undergoing rehabilitation as described by Philex
Philex open pit/ore body and tailings ponds 1, 2, and 3
Philex tailing ponds 1, 2, and 3 and link to body of water (Agno
River)
Philex tailings pond 1 then and now
2006 vegetation profile of decommissioned tailings pond 1
Mine waste management in tailings pond 3
Tailings pond 3 is reported by Philex as its “active tailings pond”
Decommissioned Philex tailings pond 1and fishponds
Tilapia fish pond terraces at Omistic
Philex Mining Corporation and company perception of its own
impact
A view on the Philex facilities and host community
23
24
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27
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v
ABSTRACT
Philex Mining Corporation was established in Benguet in 1955 but mining operations
started in 1958. As of 2009, it has been in Benguet for more than 51 years. Mineral production
started at 800 tons per day although mill capacity has been at 2,000 tons per day. Philex Mining
Corporation 2008 income from gold, copper, and silver was around P 9.7 billion (P5.4b from gold,
P4.3b from copper, and P85.1b from silver). The total hectares of land utilized to generate the
income were 39,440 hectares (covering 14,256 in Benguet and 24,184 hectares in Surigao). This
implies that Philex mining yields only P246,174 of revenues per hectare.
Philex Mines has mined and milled a total of 293.6 million tons of ore over 47 years, from
1958 to 2005. The Philex production generated a total of US2.6 billion through exports. By 31
December 2006, total ore milled reached 311 million metric tons and generated US$2.7 billion
through exports. In contrast, Department of Science and Technology-Philippine Council for
Agriculture, Forestry and Natural Resources Research and Development (DOST-PCARRD)
sources say that gross income from saluyot production is higher at P640,000 per hectare.
During the 47 years, the company produced 3.248 million dry metric tons of concentrate
consisting of 824 million kilograms of copper, 146.9 million kilogram of gold, and 163 million
kilograms of silver.
Based on geology, product, and production process, the following are some of the
environmental risks and issues in Philex mine operations:
1.
2.
3.
4.
5.
6.
7.
8.
Environmental impact and geohazard risks posed by mine ore body
Environmental impact and geohazard risks posed by tailings pond 1, 2, and 3
Adequacy of rehabilitation done for tailings pond 1
Existence of and adequacy of plans and resources for post-mining management of
tailings ponds 2 and 3
Risks posed by possible effluents from the Banget milling plant
Impact of Philex operations on the Albian Creek, Sal-angan Creek, Balog River, and
Agno River
Details on and soundness of the Philex mine rehab plan given Philex’s plan exit from
Benguet in 2012
Adequacy of the Philex rehabilitation fund given its level at P26.639 million as of 31
December 2009
Action on the eight (8) concerns and issues identified above is urgent given the
possibility that Philex may cease operating in Benguet or withdraw from some parts of Benguet
in 2012. Based on the stockholder profile of Philex Mining Corporation, the following should be
considered as possible pressure points or allies once Philex reneges or fails on its claim of
commitment to “corporate responsibilities”, covering accountabilities related to the environment:
1.
2.
Social Security System (owner of a significant share of Philex)
The Roman Catholic Archbishop of Manila
Based on supply and market structure, advocacy work can be undertaken in Canada,
United Kingdom, The Netherlands, and Japan.
artboquiren may 2009
vi
Preface to the 2nd Edition
The first edition of this work was finished April 2009. At that time, the
report of the Philex Mining Corporation to the Securities and Exchange
Commission was not available to the researcher. This edition factors in the
report of the company to the Commission as well as improves the writing style
and content of the first edition.
The second edition failed to confirm the role of some banks in Philex
operations and so adjustments were made for this. There will be succeeding
editions of this work and works are ongoing to produce a sequel.
This edition as well as the first was unable to produce a deeper analysis of
the environmental, social, and economic of Philex operations because of funding
constraints---unfortunately notwithstanding the existence of institutions that
have the resources and mandate to support studies related to the environment.
Hopefully, one of them can support the production of a sequel as soon as
possible especially because of the urgency of the concerns involved.
The author thanks the Alyansa Tigil Mina and the Linis Gobyerno for
making the study possible.
1
Dossier on Philex Mining in Benguet
I.
Introduction
The aim of this work is to establish a dossier on Philex mining operation in
Benguet. A dossier pertains to a database or sourcebook/source website/webpage that can
be updated or on which additional data can be added. The dossier will focus on the
environmental, economic, and social impact of Philex Mining Corporation.
The documentation will provide evidence whether or not large-scale mining is a
reliable engine of development. The dossier will be extremely useful for formulating
advocacy/pressure tactics and even a legal case against Philex Mines, whenever
warranted especially once the company leaves Benguet or portions of Benguet.
Philex is the largest mining firm in the country and an International Standards
Organization (ISO)-certified firm. If we are able to provide evidence that Philex did not
significantly improve the quality of life in Benguet and show that even an ISO-certified
firm degrades the environment in gold/copper mining, then we can argue that the smaller
mining firms and those without ISO-certification will probably not do any better.
We can also provide evidence that an ISO-certification will not guarantee a socalled responsible mining, assuming that responsible mining does exist.
The research results will also enable civil society groups like the South Cotabato
groups anticipate the likely impact of Sagitarius Mines when once it pursues mining in
Tampakan, South Cotabato. Sagitarius Mines plans to produce almost ten times the
annual output of Philex Mines in Benguet.
Philex Mines in Benguet has required 3 tailing ponds, a large tract of land for
milling and company operations, and a San Roque dam. Other than this, the site of the
ore body itself is probably a ground zero for ecological disaster. Thus, most likely,
Tampakan mining in South Cotabato would have an environmental impact ten times of
Philex mines. Therefore, data from this research are also urgent for the advocacy work of
groups seeking an environment-friendly path to development in South Cotabato and
elsewhere.
Research problem. The research problem that will be continually addressed by
the dossier are as follows:
What has been its impact to the host communities? Did large-scale mining
succeed in providing a good quality of life for its workers and host communities? What
does evidence say? What are their impacts to workers? What are their impacts to its host
communities? What are their impacts to the environment?
Being the largest mining company and being the company that is operated along
international standards, how can we compare the quality of life provided by Philex
ATM/LGI a. boquiren May 2009 [email protected]
2
Mining Company to its workers and host communities? Would other economic endeavors
have a better potential in providing a better quality of life for its workers and host
communities? What does evidence say on the matter?
What are the prospects for a post-Philex economy when Philex decides to leave
the community around 2012 or later? At the same time, what are accountabilities of
Philex to its host communities? Is the allocation for rehabilitation adequate given its
accountabilities?
Meanwhile, what is the firm, asset, liability, market, financial, and supply-chain
structure of Philex? What opportunities do the structure presents for advocacy and
pressure tactics of environmental-protection advocacy groups?
Scope and purpose of this initial edition. Although the research problem
described earlier is the one that will be addressed by this dossier, information will have to
be built up over time. The building up of dossier will be done through voluntary initiative
as well as through research funded by donors.
Funding for research will allow a quick address of the concerns of this dossier.
Further, it will allow an address of the research problem at a deeper level of inquiry as
resources will be available for review of literature, interviews, key informant interviews,
focus group discussion, data search, review of documents, and release time for an indepth analysis of data.
The immediate concern of this edition is to identify the environmental risks posed
by the mining operation of Philex based on a review of its mining operations as well as
data available based on company documents and sources of information.
Further, this edition seeks to apply the methodology of SOMO. The SOMO
methodology makes intensive use of internet sources to identify firm structure, market,
and firm financial condition for the purpose of identifying the appropriate pressure points
for lobby work.
In addition to the internet sources, however, maximized the use of company
information as well as information that can be gathered from company reports to the
Securities and Exchange Commission.
Of course, this edition will be updated and enriched through time. When possible,
resources will be acquired so research can be made in-depth especially given Philex
Mining Corporation possible exit in 2012.
3
II.
History of operation
Philex Mining Corporation was incorporated in 1955. It is one of the
relatively new large-scale mining companies in Benguet. Lepanto Mining
Corporation operating in the Municipality of Mankayan, for example, has been
in Benguet since 1936 while Benguet Corporation (known as Benguet
Consolidated Mining Company in 1906 and Benguet Gold Mines in 1903) has
been in Benguet for more than 100 years.
Figure 1. Incorporation and ownership of Philex Mining Corporation
(Source: PMC 2007a)1
From incorporation of Philex Mining Corporation in 1955, mill and mine
construction commenced. Mineral production started in 1958 at 800 tons per day.
However, mill capacity was at 2,000 tons per day. Company data reported to the
Securities and Exchange Commission say that ore extracted and processed from
1958 was 332.2 million tons by 2008 and produced 897.4 million kilograms of
copper, 162.2 million grams of gold, and 177.9 million grams of silver.
Company data say that, as of 31 December 2006, total ore milled reached
311 million metric tons and generated US$2.7 billion through exports. A 26
February 2005 report of The SunsStar says that from a deposit of 18 million tons
and after mine and mill expansion, Philex Mines mined and milled a total of
293.6 million tons of ore over 47 years, from 1958 to 2005. Philex generated a
total of US2.6 billion through exports during the period. Further, during the 47
years, SunStar also say that the company produced 3.248 million dry metric tons
of concentrate consisting of 824 million kilograms of copper, 146.9 million
kilogram of gold, and 163 million kilograms of silver.
1
PMC is Philex Mining Corporation.
4
The main site of Philex mining operations, from its establishment until
today, is the Sto. Tomas II ore body in Pacdal, Tuba, Benguet. Pacdal Mine, as the
mining site is also known, used to be a completely logged-out old sawmill.
Figure 2. Production in 1958 started at 800 tons per day (Source: PMC 2007b)
Figure 3. Philex Pacdal area In 1958 (Source: PMC 2007b)
5
Figure 4. 311 million tons milled in 48 years by Philex-Pacdal
(Source: PMC 2007b)
Figure 5. Tax paid by Philex: P9.7 billion in 50 years, P485 million in 2006
(Source: PMC 2007b)
Philex Mines is proud to be the first mining company in the Philippines to
have earned the International Standard Organization (ISO) 14001 certification,
making Philex the first Philippine mining company to earn the certification.
Philex claims to have successfully reforested watershed, open, denuded, and
poorly stacked forestlands with an area of 1,540 hectares as of 2005.
6
III. Philex Mining Company today
A. Corporate Structure
According to the 2009 report of independent auditors (SGV & Co/Ernst &
Young) and other documents of the Philex Mining Corporation:





Philex Mining Corporation (see www.philexmining.com.ph) was
incorporated in the Philippines in 1958. It is a parent company with the
following direct subsidiaries (the parent company and its direct subsidiary
are oftentimes referred to as the Philex Group):
1) Philex Gold Philippines, Inc.: PGPI is an 81%-owned subsidiary of the
parent company through holding companies and incorporated in the
Philippines. However, PGPI was incorporated under the laws of Alberta,
Canada and is primarily engaged in the exploration and development of
oil, gas, and minerals.
2) Brixton Energy & Mining Corporation: BEMC is a wholly owned
subsidiary of the parent company and incorporated in the Philippines
3) Philex Petroleum Corporation: Philex Petroleum is a 51%-owned
subsidiary of the parent company and was incorporated in the
Philippines
4) FECR (formerly Forum Energy Corporation, see www.fecresources.com
and www.sedar.com): FECR is a 50.67%-owned subsidiary of the parent
company and incorporated under the laws of Alberta, Canada.
The parent company or Philex Mining Corporation, Philex Gold
Philippines, Inc. (PGPI) and its subsidiaries, and Brixton Energy & Mining
Corporation are primarily in large-scale exploration, development, and
utilization of mineral resources.
The parent company (Philex Mining Corporation) operates the Padcal Mine
in Benguet. Philex Mining Corporation and subsidiaries derived their
income mainly from the Padcal Mine. Income from petroleum operations and
other sources are insignificant to Philex Mining Company and subsidiaries as
of March 2009. Padcal Mine is on its 51st year of operation producing copper,
gold, and silver as its principal products.
PGPI operated the Bulawan Mine in Negros Occidental until the second
quarter of 2002. PGPI appears to have its own subsidiaries and this is a
subject for further inquiry. PGPI has a number of mineral properties
throughout the Philippines at various stages of exploration. Its focus since
2001, however, has been on its “North property” where the Boyongan
deposit, a major copper-gold porphyry in Surigao del Norte, was discovered
in August 2000 through a joint venture with Anglo American Exploration
Philippines B.V. (Anglo). PGPI owns the Boyongan deposit.
BEMC has a coal property under pre-development in Zamboanga del Norte.
ATM/LGI a. boquiren May 2009
[email protected]
7

Philex Petroleum Corporation and FECR are engaged in oil and gas
operation and exploration activities. Both participate in oil and gas
production and exploration activities through investee companies.
Figure 6. Corporate structure of Philex Mining Corporation
(Source: www.philexmining.com.ph, April 2009)
In turn, the subsidiary companies of Philex Mining Company acquired the
following companies as their subsidiaries:



FECR owns 29.78% of Forum Energy Plc or FEP (FEP can be searched in
Google Finance and http://investing.businessweek.com. FEP is a United
Kingdom company incorporated in April 2005 through the consolidation of
the Philippine assets of Forum Energy Corporation and Sterling Energy Plc
(“SEY”) of the UK. FEP has just closed a US$6.2 million pre-IPO financing
and a US$19.35 million IPO financing and is listed on the AIM market of the
London stock exchange. FEP has a portfolio of oil and gas exploration
projects in the Philippines. The portfolio includes contracts with existing
infrastructure, production, and proven hydrocarbon potential. FEP also holds
coal operation contracts in Central and Southern Cebu.
Lascogon Mining Corporation (LMC) was incorporated in 2005 to engage in
the exploration, development, and utilization of mineral resources.
Philippine Gold Mining Company B.V. (PGMC-BV): incorporated in
Netherlands. This company has been the intermediary holding company of
Philex Gold Inc (source: page 5 of the SGV & Co/Ernst and Young
Independent Auditors Report to stockholders).
[email protected]
8
The other subsidiaries of Philex Mining Corporation are:
 Philex Land, Inc. (PLI): engaged in the business of owning, using,
developing, subdividing, selling, exchanging, leasing, and holding real estate
of all kinds covering buildings, houses, apartments, and other structure
 Fidelity Stock Transfer, Inc. (FSTI): agency firm for stock transfers.
 Philex Insurance Agency, Inc. (PIAI): general agent for domestic and foreign
companies in the non-life insurance business. However, this company was
reported to be dormant.
In its report to the stockholders of Philex Mining Corporation (the report was
also forwarded to the Securities and Exchange Commission in 2009), SGV & Co
and Ernst and Young in early 2009 reported that the following constitutes the
ownership of firms of the Philex group:
Figure 7. Ownership of the Philex Mining Corporation over subsidiaries
(for meaning of the acronyms, see 3-page discussion immediately before the table)
B. Shareholders and management
The April 2009 Philex Mining Corporation’s report to the Securities and
Exchange Commission of the Philippines indicates that the second largest owner
of Philex is the Social Security System (SSS) with 20.27% share. According to the
same document, there are 46,578 stockholders of Philex Mining Corporation, in
which 35.64% of the outstanding shares are owned by foreign nationals and
institutions.
As indicated in Figure 8, some shareholders utilize PCD nominees (or
nominees of the Philippine Central Depository system), but prerogatives remain
in the shareholder and not with the PCD nominee. SSS ownership in Philex
Mining Corporation can be higher because of its participation in the PCD. The
[email protected]
9
other participants in the PCD are the Asia Link B.V. (20.063%) and the Hong
Kong and Shanghai Banking Corporation, Ltd. (8.716%).
Figure 8. Shareholders of the Philex Mining Corporation in 2008
(Source: PMC Report to the Securities and Exchange Commission, April 2009)
The officers and directors leading the company Walter Brown, Albert
Awad, Thelmo Cunanan, Eulalio Austin, Renato Migrito, Guadaflor Malonzo,
and the rest (see Figure 9 next page) are believed to collectively hold no more
than 2% of the company. However, their collective control over the company can
be higher because only 82.32% of Philex has clear ownership and the rest of the
voting rights can be assigned to the board via a proxy assignment.
Walter H. Brown, in his late 60s, Filipino citizen is Board Chairman and
Chief Executive Officer of Philex since 2004. He was an officer of Philex since
2003. He is also the Chairman of PGI and PGPI. Eulalio B. Austin, in his late 40s,
has been a leading officer of Philex since 2004 and has been in the Philex
management since 1996. In May 2009, Philex revealed that Romulo Neri (Filipino
citizen), Robert Nicholson (English citizen), Roberto Ongpin (Filipino citizen),
and Manuel Pangilinan (Filipino citizen) joined the PMC Board of Directors.
[email protected]
10
Figure 9. Directors, officers, and staff of Philex Mining Corporation
(Source: www.philexmining.com.ph, accessed April 2009)
C. Market and Suppliers
Philex procure some of it its supplies through its host communities
However, according to www.mining-technology.com, Philex secures a large part
of its supply needs from the Crushing and Mining Equipment PTY Limited of
Perth, Sydney, and Brisbane of Australia.
The Philex produce from its Benguet operation are copper concentrates
that contain copper, gold, and silver. The copper concentrates are smelted by
other companies. In contrast, however, the Bulawan gold mine produce bullions
containing gold and silver that are refined either by the Bangko Sentral ng
Pilipinas Mint and Gold Refinery or sent by freight and refined by Johnson
Matthey Plc of England.
Figure 10 of the next page indicates that Philex produce from the Benguet
operation are shipped to Japan or Leyte. According to the
www.tradingmarket.com in April 2009, Philex primarily produces copper
concentrates (containing copper, gold, and silver) that are transported via sea
freight and smelted in Kyushu Island, Japan, in the Saganoseki smelter of Pan
Pacific Copper Co., Ltd. The latter is a joint venture between Nippon Mining Co.
Ltd. and Mitsui Mining and Smelting Co. Ltd.
[email protected]
11
A part of the Philex produce is shipped to L.D. Metals, Ltd., a firm
registered in the United Kingdom under registration number 04382295,
Companies House in 2002 (see www.ukdata.com/numbers/04382295.html).
Figure 10. Process flowsheet of milling and market outlet (Source: PMC 2007b)
Philex ships a portion of its copper concentrates to the Philippine
Associated Smelter and Refinery (PASAR). PASAR operates a copper smelting
and refining company in Isabel, Leyte Island, Leyte Province. According to the
Association for Mineral Economics (see www.ame.com.au), PASAR is owned by
Glencore and International Finance Corporation (IFC). Glencore is a Swiss
commodities firm while IFC is an arm of the World Bank group. Internet sources
say that foreign sales from copper concentrates from the Benguet operation are
divided almost on a 50-50 basis between Japan and England.
D. Offices, facilities, tenement area, and land utilization
Philex maintains its head office at:
Philex Building
27 Brixton Street, Pasig City, Philippines
The other contact details of the company are
Email: [email protected]
Website: www.philexmining.com.ph
[email protected]
12
Figure 11. Map showing land area covered by Philex mine operations (Source: PMC 2007a)
Philex mining covers a total tenement area of 14,256 hectare. Around 7,776
hectares are covered by a mineral production sharing agreement.
Figure 12. Map showing the MPSA and APSA of Philex mine operations (Source: PMC 2007c)
The other facilities of Philex Mining Corporation are the milling and mine
site in Padcal, Camp 3, Tuba, Benguet Province and the tailing ponds in Itogon,
Benguet. Of course, it has facilities in Poro Point, San Fernando, La Union.
[email protected]
13
Meanwhile, Figure 12 of the earlier page indicate that the mining contracts
covering tenements occupied by Philex that enable Philex to pursue its mining
operations are as follows:
1. Mineral Production Sharing Agreement (MPSA)-156-2000-CAR
2. Mineral Production Sharing Agreement (MPSA)-157-2000-CAR
3. Application for Production Sharing Agreement (APSA) 68
4. Application for Production Sharing Agreement (APSA) 29
E. Assets and liabilities profile
Figure 13. Assets and liabilities profile
(Source: SGV& Co/Ernst & Young 2009 independent auditor’s report)
Figure 13 indicates that a part of the assets of Philex Mining Corporation
consist of investments in shares of stocks (P260.28 million) and available-for-sale
(AFS) financial assets (P378.8 million). The two have a total of P639.08 million or
about 3 % of the total assets of the company.
Only P26.6 million is being allocated by Philex Mines for mine
rehabilitation.
[email protected]
14
F. Income profile
Figure 14. Income profile
(Source: SGV& Co/Ernst & Young 2009 independent auditor’s report)
Figure 14 indicate that the total 2008 income from gold, copper, and silver
of Philex Mining Corporation is around P 9.7 billion (around P5.4b from gold,
P4.3b from copper, and P85.1b from silver). The total hectares of land utilized to
generate the income is 39,440 hectares (covering 14,256 in Benguet and 24,184
hectares in Surigao). This implies that Philex mining yields only P246,174 of
revenues per hectare.
In contrast, Department of Science and Technology-Philippine Council for
Agriculture, Forestry and Natural Resources Reserarch and Development
(DOST-PCARRD, 20 March 2009) sources say (see http://blog.agriculture.ph)
[email protected]
15
that even saluyot production can beat the gross income realized from Philex
mining at P640,000 per hectare.
G. Taxes and LGU dependence
Figure 15. Taxes paid 1991-2006: P1.08 billion (Source: PMC 2007b)
Figure 15 above indicates that total taxes paid by Philex mines to the
government in 16 years reached P1.08 billion or about P68 annually.
Nevertheless, the data on Figure 14 page 14 of the earlier page indicate the
mineral product taxes, royalties, and income taxes are around only 11% of the
gross income from mining.
[email protected]
16
IV. Geology, reserves, and mining method/processing
A. Geology
The mountain ranges of Northern Luzon, of which the site of Philex
mining operation is part, belongs to a volcanic arc terrain. Gold and copper
mineralization is often associated with volcanic rocks as well as with faults in the
earth’s crust. In fact, the location of the ore body that is the main subject of
mining operations by Philex is actually crissed-crossed by fault lines. The most
notable of the fault lines are the Albian and Sta. Fe faults.
Thus, it is not be surprising for Philex gold and/or copper production to
be associated with geo-hazard risks vis-à-vis volcanic or earthquake activity.
Figure 16. Site of Philex mining operations and fault lines (Source: PMC 2006c)
ATI/LGI a. boquiren May 2009 [email protected]
17
Figure 14 below gives us a close-up of the Sto. Tomas Ore body that is the
main site of Philex mining operation.
Philex Ore Body
(Sto. Tomas II)
Figure 17. Philex Mining company illustration of Phlox ore body: Sto. Tomas ore
body is directly along the Albian and Sta. Fe faults (Source: PMC 2006c)
As indicated by the figure above, the Sto. Tomas Ore Body of Philex Mines
lies directly along the path of the Albian and Sta. Fe fault lines. A sharp
movement along the fault line can result to a geological disaster.
In the future, we will analyze Figure 14 further as we compare the map
with ground data. We will also analyze deeper all the figures in this work as they
are probably indicative of the risks to the environment posed by the Philex
mining operations. The figures in this work probably contain information more
than what are obvious.
Figure 18 on the next page indicate the proximity of the Philex milling
plant to the Sto. Tomas II ore body. The ore body is actually the site of the old
open pit mining of Philex. Underneath the site of the old open pit mine, Philex
underground mining continues.
18
Figure 18. Vertical section of Sto. Tomas II ore body and milling plant: blue blocks are
mined-out, red blocks are producing, and green block is virgin (Source: PMC 2006c)
Figure 19. Location of Philex ore body: Philex Mines’ PowerPoint (Source: PMC 2006c) above
suggest s that the Sto. Tomas ore body is approximately at N16º16’ E120º32’. However, as
discussed in Chapter 5, the ore body is likely at 16º15’45.62” North 120º37’18.87” East
19
B. Reserves
PHILEX MINING CORPORATION
STO. TOMAS II OREBODY
Padcal, Camp 3, Tuba, Benguet
Year Discovered
: 1955
Year Production
: 1958
Initial Ore Reserve
18.0MT @0.90%Cu; 0.98gAu/t
Initial Production
800TPD @0.80%Cu; 1.0gAu/t
Total Geologic Resource since start:
368 Million DMT @0.30%Cu; 0.60 gAu/t
Geologic Resource
Remaining as of January 1, 2006
95.8 Million DMT @ 0.28%Cu; 0.68gAu/t
Production History (from start to December 31, 2005)
Tons Milled
: 302.2 M DMT
%Cu :
0.33
gAu/t
:
0.56
Copper Conc. Produced
: 3.324 M DMT
Copper Kgs. Produced
: 840.6 M
Gold Gms. Produced : 149.5 M
Silver Gms. Produced : 165.9 M
Figure 20. Reserves according to Philex Mines (Source: PMC 2007b)
Figure 20 above comes from the public PowerPoint presentations of Philex
Mines. The figure claims that Philex will be operating only up to 2012 when no
new ore discoveries are made. This schedule coincide with the maximum mine
tailing pond life of 20 years of Philex tailings pond 3. Thus, if the company shuts
down by 2012, it is important to find out how the 3 tailing ponds (1, 2, and 3) will
be managed, especially tailings pond 2 and 3. Tailings pond 1 must also be
inspected for any instability.
20
C. Mining method/processing
Figure 21 on the next page that comes from a set of Philex PowerPoint
Slides indicates a bias of the company for open pit mining. An educational and
research site on precious metals, www.aboutpreciousmetals.com, defines open
pit mining as a method of extraction done by digging a large hole in the ground
and removing the ore. According to the educational site, the walls of the mine
are dug out in steps or benches to provide a stable structure to the pit walls and
allow maneuver for earth moving machinery as the pit is expanded. The site also
says that before ores can be removed, they need to be broken up into manageable
pieces by drilling holes into rocks and filling them up with explosives.
On the other hand, according to http://technology.infomine.com (April
2009), block-caving extends open pit mining in the underground through caving
and extraction of massive volumes of rock that translate into surface depressions.
In block caving, underground tunnels are constructed towards underground
haul points where the rocks above are broken down and dropped to haul points
below. From the haul points, the ore are transported into the milling plant.
Figure 24 and 25 (pages 22-23) illustrate block caving methods.
As admitted by Philex Mining Company through its PowerPoint Slides,
open pit mining was the method of mining used by Philex Mining Corporation
from 1958 to 1963 when ore was extracted at the rate of 800 million metric ton per
day (MTPD).
In 1963-1996, Philex mining used slusher-scraper machines in their blockcaving operations and so the mining method is called blocking caving-slusher
method today. This is illustrated by Figure 24 on page 22.
Finally, beginning 1996, the block caving system of mine operation used
load-haul-dump units and the mining methodology is called today as block
caving-load haul dump or LHD. This is illustrated in Figure 25 on page 23.
LHD refers to Load-Haul-Dump and is one variation of the block-caving mining
method. In particular, LHD refers to the loading, hauling, and transport of the
ore via dump trucks or transport vehicles.
According to the World Gold Council (www.trustingold.com, 2009)
composed of gold miners around world, block-caving is the one with the lowest
cost of all mining methods except when compared to open pit mining. Charles
Kubach (www.mine-engineer.com, 2009), world renowned mining engineer,
considers open pit mining as the mining method with the lowest cost.
21
Thus, Figure 22 (page 21) basically summarizes that the main products of
Philex operations are gold, copper, and silver. The mining method used is block
caving-load/haul/dump while the milling method used to turn ore into copper
concentrates is flotation.
Data are yet unavailable on how Philex Mines dispose of its gold and
silver as well as its other by-products: magnesium, iron, bismuth, manganese,
nickel, cobalt, cadmium, chromium, mercury, platinum, and palladium.
Figure 21. Characteristics of Philex ore body: massive (Source: PMC 2006c)
Figure 22. Overview on mining and milling method at Philex-Pacdal (Source: 2007a)
22
Figure 23. Philex mining method 1958-1963: open pit mining (Source: PMC 2006a)
Figure 24. Philex mining 1963-1996: block caving-slusher method (Source: PMC 2006a)
23
Figure 25. Philex mining 1996-present: block caving with load-haul-dump (Source: PMC 2006a)
SunStar (2 February 2005) describes the LHD or load, haul, and
dump of the Philex mining method this way: ore is drawn by the loadhaul-dump or LHD units then transported to the mill through cable belt
conveyor system, 2.7 kilometers away from the ore body. SunStar reports
further that the milling process of Banguet Concentrator utilizes three
stages of crushing that creates a final product of copper concentrate
described as “73% minus 10 mm.”
Developing mines from which ores can be gathered involves the
following processes: horizontal and vertical driving, installation of rock
support, drilling of fanholes, excavation of trenches, and undercutting.
Figures 26-31 on pages 23-26 are illustrative.
Figure 26. Overview on Philex mine development (Source: PMC 2006a)
24
Figure 27. Horizontal driving in Philex mine development (Source: PMC 2006a)
Figure 28. Vertical driving in Philex mine development (Source: PMC 2006a)
25
Figure 29. Installing rock support in Philex mine development (Source: PMC 2006a)
Figure 30. Drilling of fan holes in Philex mine development (Source: PMC 2006a)
26
Figure 31. Drawpoints for ore in mine development (Source: PMC 2006a)
After a mine has been developed, production commences.
Production involves scooping, breaking rocks to get the ore, handling the
ore, crushing the ore, and conveying the ore. Figures 32-34 of pages 23-27
are illustrative.
Figure 32. Overview on block-caving in mine operations (Source: PMC 2006a)
27
Figure 33. Ore extraction method (Source: PMC 2006a)
Figure 34. Scooping, loading, and dumping of ore (Source: PMC 2006a)
28
Figure 35. Subsidence at the ore body in mine operation (Source: PMC 2006a)
Figure 36. Backfilling operations on subsidence (Source: PMC 2006a)
As discussed earlier, Figure 17 of page 17 indicate that the Sto.
Tomas II ore body is along the Albian and Sta. Fe faults. Based on Figures
35 and 36 above and Figure 37 of page 29, it is clear that the block cavingLHD mining method currently used by Philex mines involve the
backfilling of subsidence areas. An important question to ask, therefore, is:
29
what are the risks and how can we monetize the value of the risks
involved in Philex mining given that the country lie along the Pacific ring
of fire that is vulnerable to frequent earthquakes and given that the Philex
ore body are crisscrossed by two fault lines?
Figure 37. Backfilling above active mining area (Source: PMC 2006a)
Figure 38. Milling flow sheet and transport to Poro Point for Japan or Leyte
(Source: PMC 2007b)
30
V.
Wastes and risks to the environment
A. Overview on Philex operation
Figure 39. Philex Mining Corporation ore body and mill (PMC 2007b)
As discussed earlier, the milling plant is around 2.7 kilometers away from
the ore body (Sto. Tomas II deposit). Philex reports that the ore body is in Pacdal,
Municipality of Tuba, Benguet Province. On the other hand, CADT (Certificate of
Ancestral Domain Title) holders report that the Philex tailings ponds are in the
Municipality of Itogon, Benguet. Thus, effectively, Philex mine operations are
not only in the Municipality of Tuba but also in the Municipality of Itogon.
Philex mining facilities or infrastructure straddle in the two municipalities: Tuba
and Itogon.
As indicated by Figure 40 of the next page (and also by Figures 18 and 20
of pages 18 and 19), the Philex ore body is below (or in the underground of) the
site of open pit mining done several years ago. Figure 20 page 19 of Chapter 4
indicate the outline of open pit mining operations vis-à-vis current mining
operations done underground.
31
Figure 40. Close-up on Philex Mining Company ore body and mill (PMC 2007b)
32
B. Wastes, tailing ponds, and route of wastes
Figure 41. Map on Philex ore body, mill, residential areas, and tailing ponds
(Source: PMC 2007b)
SunStar (2 February 2005) reports that in Philex operations, around 28,000
tons of ore are milled daily but only 200 to 230 dry metric tons of copper are
produced daily. The rest becomes the mine tailings impounded on the tailing
ponds. As mentioned, Philex Mines has three tailing ponds: tailing ponds 1, 2,
and 3.
Analyzing Figure 42 page 33, the earth position of the Philex ore
body/open pit mine is approximately in the vicinity of 16º15’45.62” North
120º37’18.87” East. Based on the shape of Philex tailing pond 1 on Figures 43 and
47, pages 33 and 35, as well as Google Earth picture on Figure 42, Philex tailings
pond 1 is in the vicinity of 16º15’53.08” North and 120º39’16.79” East.
Based on the location of Philex tailing pond 2 on Figure 41 above and
Google earth picture on Figure 42, tailing pond 2 is approximately in the vicinity
of 16º15’16.62 North and 120º39’43.84” East. Finally, based on Figure 41 and
Google Earth image on Figure 42, Philex tailings pond 3 is approximately in the
vicinity of 16º14’31.34 North and 120º40’45.48” East.
Figure 42 indicates that tailing ponds 2 and 3 are connected and Figure 45
page 34 indicates that both tailing ponds ultimately discharge into the Agno
River. As early as 2001, the Department of Environment and Natural ResourcesCordillera (DENR-CAR) has identified the three tailing ponds of Philex Mining
[email protected]
33
Company as among the seven geo-hazards of mining in the region of the
Cordillera, Philippines.
Figure 42. Philex open pit mine, tailing ponds, and nearby areas on Google Earth
(labels above are from Google Earth)
Figure 43. Tailing pond 1 undergoing rehabilitation as described by Philex
(Source: PMC 2007b)
[email protected]
34
Figure 44. Philex open pit/ore body (Sto. Tomas II) and tailing ponds 1, 2, and 3
Figure 45. Philex tailing ponds 1, 2, and 3 and link to body of water (Agno River)
[email protected]
35
Figure 46. Philex tailings pond 1 then and now: 26 hectares, expected useful life
was 10 years, closed in 1981 (Source: PMC 2007b)
Figure 47. 2006 vegetation profile of decommissioned Philex tailing pond 1
(Source: PMC 2007b)
[email protected]
36
Table 1 indicates the expected useful life, area, capacity, and status of
Philex Mines’ three tailings ponds.
Table 1 . Philex tailings pond, expected useful life, area, capacity, and status
Expected
Surface
Tailing Pond/
Designed Impounding
Years of
Area
Status
Dam
Capacity (in metric tons)
Useful Life
(hectares)
Closed in
Tailing Pond #1
10
26.16
85,259.975
1981
Closed in
Tailing Pond #2
11
28.19
72,067,331
1992
Tailing Pond #3
18-20
63.08
142,000,000
Active
Source: Boquiren 2006:63 based on DENR-CAR data in April 2006
Tailing ponds 1 and 2 are already decommissioned while tailing pond 3 is
reported by the company as its only “active” pond. Philex tailings dam 1 was
constructed in 1967 but decommissioned in 1981. DENR records say that its
useful life is only 10 years. On the other hand, the dam walls of Philex tailings
pond 2 (Padcal, Tuba, Benguet) collapsed in January 1992 because of “foundation
failure.” The collapse resulted to the release of 80 million metric tons of tailings
to the environment. Although Philex tailings dam 2 was already
decommissioned, Philex reported (April 2009) that tailings pond 2 toe dam has
been buttressed for stability. Philex brags that all the three ponds, including
those decommissioned, are regularly being monitored by a multipartite
monitoring team. Through www.philex.com.ph (April 2009), Philex reported that
a total of 9.07 million tons of mill tailings were impounded in tailings pond 3 in
2007, bringing total tailings impounded since the ponds’ commissioning in 1992
to 127.23 million tons. According to the company, the dam embankment of
tailing pond 3 is continuously being built-up by Philex Mines to maintain a
freeboard of 5 meters at the mine dike. The company also said that earthworks
for a 32-meter spillway of the pond were done in 2007 to serve as additional
drainage when the pond ceases operation.
Analyzing Figures 46 and 47 of page 35, we see that it took 20 years for
negligible vegetation to appear in the tailings pond 1 after being
decommissioned in 1981. Thirty years after and it is obvious that the tailing pond
continues to be unproductive and a wasteland. Counting approximately 10 years
during which the pond had served as a mine tailings pond, Figures 46 and 47
indicate that tailing ponds would be unproductive for at least 40 years when
used as tailing ponds. This documentation has no pictures yet of Philex tailings
dam 2 but we can expect that most likely the situation of Philex tailings pond 2 is
much worse than the situation of Philex tailings pond 1. Meanwhile, how are
mine tailings managed in Philex tailings pond 3? The figures on the next two
pages are instructive.
[email protected]
37
TAILINGS CONVEYED VIA PIPELINE
FROM TAILINGS TUNNEL
TAILINGS DEPOSITED IN POND
SEDIMENT SETTLES & CLEAR WATER
FLOWS TOWARDS PENSTOCK
DECANT WATER FLOWS
THROUGH DECANT TUNNEL
DECANTATION TAKES PLACE
Figure 48. Mine waste management in tailings pond 3 (Source: PMC 2007b)
The illustration above from Philex itself describes how mine tailings are
managed in tailings pond 3. Obviously, some of the environmental risks that can
be associated with Philex tailings pond 3 are the dissolved chemicals and heavy
metals in the effluents from the tailing pond as well as the chemicals and heavy
metals from the mine tailings deposited in the tailing pond.
[email protected]
38
Figure 49. Tailings pond 3 is reported by Philex as its “active tailing pond”
(Source: PMC 2007b)
Figure 49 above depicts Philex tailings pond 3. Boquiren 2006:63 says that
according to Department of Environment and Natural Resources (DENR)
documents, tailings pond 3 has a life of 18-20 years. If we mark 1992 as the start
of operation of tailings pond 3, then the tailing pond has to be decommissioned
in 2010 or around two years in 2012.
Philex has not reported any additional tailings pond and its mining
operations are likely to continue for at least several more years. This indicate that
in a few years’ time, it is highly likely that there will direct dumping of wastes
from Philex Mines into the Benguet rivers unless Philex cease operating.
Based on information from Philex Mining Corporation provided by Figure
20 page 19, Philex mining operation foresees that it may cease operating in 2012.
Philex by then will be leaving at least 3 tailing ponds with an aggregate size of no
fewer 117 hectares from the tailing ponds as wastelands, not counting a surface
area of several hectares covering the site of the Philex open pit and underground
mining.
[email protected]
39
C. Risks to the environment
Based on DENR-EMB data and Boquiren 2006:65-66, the rivers or water
bodies directly threatened by possible pollutants from Philex Mines are as
follows:
1. Albian Creek: at risk because the creek emanates from the subsidence
area of the open pit mine of Philex
2. Sal-angan Creek: at risk because the creek lies along the paths of two
non-operational mine tailing ponds (Philex tailings pond 1 and 2)
3. Balog River: at risk because effluents from Philex tailings pond 3
converge with this river
4. Agno River: at risk because the Balog River eventually drains into the
Agno River and San Roque Dam
Notes on the water quality of the said creeks and rivers are indicated by
the table below:
Table 2. DENR-EMB description on water quality of rivers threatened by Philex
River and
Location
Albian
Creek
Sal-angan
Creek
Balog
River
Agno
River
Features and water quality
A tributary of Agno River in Ampucao, Itogon, Benguet. Emanates from the subsidence area of Philex
Mining Company and underground water from Level 1170. The creek is nourished by the Bomolo creek and
other intermittent creeks converge with the Albian Creek. Water quality: still within the water quality
criteria for Class A freshwaters as to pH, DO, and TSS. Analyses on dissolved metals and total dissolved
solids on the river are unavailable.
A tributary of Agno River in Ampucao, Itogon, Benguet. Originates from the mountain ridges of Barangay
Ampucao; converges with the Albian creek at Sal-angan, Ampucao and discharges into Barangay Dalupirip
in Itogon. Within the criteria for Class A as to pH, DO and TSS. The river is along the two non-operational
mine tailings dam of the Philex mines: Philex tailing ponds 1 and 2. Data on total dissolved solids and
heavy metals on the river are unavailable.
A tributary of Agno River in Ampucao Itogon, Benguet. A number of creeks upstream converge with this
river. Effluents from tailings pond 3 of Philex Mining Company converge with this river and drains into San
Roque Dam. Nevertheless, the river is still within the criteria for class A as to pH, DO and TSS. Meanwhile,
pictures in the possession of the Cordillera People’s Alliance (CPA) indicate that pH levels are maintained
through lime treatments. TDS concentrations of the company’s effluents as well as those of the Balog
River are beyond the effluent standards for class A.
Biggest river system in Benguet. Headwaters: Loo River in Buguias and Baayan River in Kabayan, both in
Benguet. Meanders through Kabayan, Bokod, and Itogon, all in Benguet, then goes to the province of
Pangasinan and finally into the Lingayen Gulf. The tributaries from Itogon include the Albian and Salangan Creeks and Balog River. Visually clear waters are reported by the DENR-CAR to characterize the
main river, including the tributaries. The TSS, TDS, pH, and DO concentrations are reported to conform to
the minimum water criteria. Gold panning that affects water turbidity along Ambalanga river are reported
by DENR-CAR. There is recognition that the river is not only a source of gold but also of freshwater food.
Farming is major livelihood in upstream portion while fishing is a source of livelihood midstream and
downstream of the river.
Source: Boquiren 2006:65-66 based on DENR-EMB data
The risks of Philex mine operations can be assessed further if we study the
Albian and Sal-angan creeks deeper and identify the aboveground and
underground exit points of the creek waters. Hydrology studies will be helpful.
40
Sal-angan/Banget and Omistic Fishponds
In an attempt to project a positive image on its environmental impact,
Philex Mines funded the establishment of fishponds in Sal-angan and Omistic in
Itogon, Benguet Province. However, the fishponds are actually not along the
path of the active tailings pond 3 but along the path of inactive tailings ponds 1
and 2. The fishponds are not at risk to active mine operations but tailing ponds 1
and 2 may or may not be affecting fishpond water quality, depending on the
water source tapped for the fishpond. There is no study on this at the moment.
Inactive tailing ponds can have heavy metals or underground acid mine
drainage. Fishes can ingest the heavy metals and consumption by humans of
fishes that ingested heavy metals can result to the bioaccumulation of metals in
the human body. On the other hand, there are species of fishes that are resistant
to copper toxicity and some of the fish species can have adults that are resistant
to toxicity even if their larvae are not.
Figure 50. Decommissioned Philex tailings pond 1 and fishponds (Source: PMC 2007b,
note similarity of depiction of tailing pond with those in Figures 43 and 47 pages 33 and 35)
41
To have a deeper understanding of the impact of Philex mining to the
environment, we have to assess if the fishpond production at Sal-angan and
Omistic (both of Itogon, Benguet Province) are commercially viable, if fish
production in the said areas are as high as the fish produced in non-polluted
waters, and if fishes from the fishponds do or do not have large quantities of
heavy metals in their bodies that can be passed on to humans via
“bioaccumulation.”
Bioaccumulation is the process that takes place when heavy metals
accumulate in the body as humans or organisms that are up in the food chain eat
plenty of the fishes and plants or organism in the lower part of the food chain
with heavy metals in their bodies (see the March 2009 issue of Environmental
Science and Technology Briefs for Citizens in www.engg.ksu.edu).
Figure 51. Tilapia fish pond terraces at Omistic (Source: PMC 2007b,
source of water unclear if contaminated by Philex tailing pond 1)
Another that has to be investigated is the risk posed by the mining
method of Philex (see page 28 to 29) that backfills mining site. It is extremely
important to study the risks involved with the mining method given that the site
of ore is also along a fault line (see page 17).
42
Meanwhile, Figure 52 indicates that Philex also believe its greatest impact
will be in communities where the mill, tailing ponds, and ore body are located.
Figure 52. Philex Mining Corporation and company perception of its own impact
(Source: PMC 2007b)
Figure 53. A view on the Philex facilities and host community
(source: Philex Mines Corporation)
43
VI. Conclusions and recommendations for advocacy
Based on geology, product, and production process, the following are
some of the environmental risks and issues in Philex mine operations:
1. Environmental impact and geohazard risks posed by mine ore body
2. Environmental impact and geohazard risks posed by tailings pond 1,
2, and 3
3. Adequacy of rehabilitation done for tailings pond 1
4. Existence of and adequacy of plans and resources for post-mining
operations management of tailings ponds 2 and 3
5. Risks posed by possible effluents from the Banget milling plant
6. Impact of Philex operations on the Albian Creek, Sal-angan Creek,
Balog River and Agno River
7. Details on and soundness of the Philex mine rehabilitation plan given
Philex’s possible exit from Benguet in 2012
8. Adequacy of the Philex rehabilitation fund given its level at P26.639
million as of 31 December 2009
Action on the eight (8) concerns and issues identified above are urgent
given the possibility that Philex may cease operating in Benguet or withdraw
from some parts of Benguet in 2012. Based on the stockholder profile of Philex
Mining Corporation, the following should be considered as possible pressure
points or allies once Philex reneged or fails on its corporate responsibilities,
covering accountabilities related to the environment.
1. Social Security System (owner of a significant share of Philex)
2. The Roman Catholic Archbishop of Manila (0.07% ownership)
For advocacy work abroad, the following are some of the pressure points
based on market and suppliers’ profile of Philex Mining Corporation:
1. Canada
In Canada, FECR can be a target. FECR (formerly Forum Energy
Corporation, see www.fecresources.com and www.sedar.com) is a 50.67%owned subsidiary of the Philex Mining Corporation and was incorporated under
the laws of Alberta, Canada.
Another possible target is Philex Gold Philippines, Inc. or PGPI. PGPI is
an 81%-owned subsidiary of Philex Mining Corporation through various holding
companies that were incorporated in the Philippines. However, PGPI itself was
ATM/LGI
a. boquiren May 2009
[email protected]
44
incorporated under the laws of Alberta, Canada. The company is primarily
engaged in the exploration and development of oil, gas, and minerals.
2. United Kingdom
Forum Energy Plc or FEP is a United Kingdom company incorporated in
April 2005 through the consolidation of the Philippine assets of Forum Energy
Corporation and Sterling Energy Plc (“SEY”) of the UK. FECR (incorporated in
Canada) owns 29.78% of the FEP. FEP can be searched in Google Finance and
http://investing.businessweek.com. It has a portfolio of oil and gas exploration
projects in the Philippines.
Almost 50% of the foreign sales of Philex go to L.D. Metals Ltd. The firm is
under registration number 04382295.
3. Netherlands
Philippine Gold Mining Company B.V. (PGMC-BV) was incorporated in
The Netherlands. In turn, PGMC-BV has been the holding company of the
Canada-registered Philex Gold Inc.
or PGI (see page 5 of the
SGV&Co/Ernst&Young Independent Auditors’ Report to the Philippine SEC). In
turn, PGI is owned 81% by Philex Gold Holdings Inc. or PGHI (as per the
organizational church in www.philexmining.com.ph accessed April 2009).
Finally, Philex Mining Corporation owns 100% of PGHI.
4. Japan
Almost 50% of the foreign sales of Philex go to Kyushu Island, Japan, in
the Saganoseki smelter of the Pan Pacific Copper Co. Ltd.
5. Australia
As discussed earlier, Philex obtains some of its supply needs from the
Crushing and Equipment PTY Limited of Perth, Sydney, and Brisbane of
Australia.
ATM/LGI
a. boquiren May 2009
[email protected]
45
BIBLIOGRAPHY
Boquiren, A. [2008] “Mining is the wrong engine for growth” in Goodland, Robert and
Clive Wicks, Philippines: mining or food. The Working Group on Mining in the
Philipines: London, United Kingdom.
Boquiren, A. [2007] “Towards a basic methodology in the benefit-cost assessment of
mining”, www.geocities.com/artboquirenpaperone/bcminingjan07.pdf.
Boquiren, A. [2006] “Valuation of Benguet biodiversity and environmental cost of
mining: monetization, intangibles, and policy”, www.haribon.org.ph and
www.geocities.com/harbibonartboquirenreport/benguetmining2006.htm.
Deparment of Environment and Natural Resources (DENR). [2008]. An overview of
minerals potential and opportunity in the Philippines.
Philex Mining Corporation. [2007a] Philex Mining Corporation: The Padcal Mine. A
PowerPoint Slide Presentation of Philex Mining Corporation (August): Benguet,
Philippines.
Philex Mining Corporation. [2007b] Philex Mining Corporation Tuba and Itogon
Benguet: Social Development and Management Program (SDMP) and
Environmental Protection & Enhancement Program (EPEP). A PowerPoint Slide
Presentation of Philex Mining Corporation (August): Benguet, Philippines.
Philex Mining Corporation. [2006a] Philex Mining Coporation. A PowerPoint Slide
Presentation of Philex Mining Corporation (August): Benguet, Philippines.
Philex Mining Corporation. [2006b] Environment and community relations programs of
Philex Mining Corporation. A PowerPoint Slide Presentation of Philex Mining
Corporation (August): Benguet, Philippines.
Philex Mining Corporation. [2006c] Geology of Sto. Tomas II. A PowerPoint Slide
Presentation of Philex Mining Corporation: Benguet, Philippines.
Philex Mining Corporation. [2003] Banguet Concentrator. A PowerPoint Slide
Presentation of Philex Mining Corporation: Benguet, Philippines.
Philex Mining Corporation. [_____] Annual reports to the Securities and Exchange
Commission, Various Years. Philex Mining Corporation: Benguet, Philippines.
SGV & Co and Ernst & Young. [2009]. Independent auditor’s report to the Stockholders
and Board of Directors, Philex Mining Corporation. Philex Mining Corporation:
Benguet, Philippines. The report was attached as part of the official report of the
corporation to the Securities and Exchange Commission, Philippines.

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