Republic of the PhilippinesDepartment of Environment and Natural Resources

POLLUTION ADJUDICATION BOARDDENR Compound, Visayas Avenue, Diliman, Quezon City

:

IN THE MATTER OFWATER POLLUTION CONTROLAND ABATEMENT CASE

DENR-PAB Case No. CAR-00836-12

- versus-FOR: Violation of R.A. 9275 and ItsImplementing Rules and Regulations

PHILEX MINING CORPORATION,Respondent.

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NOTICE OF ISSUANCE OF RESOLUTION/ORDER

Sir/Madam:

Please take notice that in its meeting of 25 FEBRUARY 2013, the Board

issued a resolution/ order in the above-entitled case, a copy of which is attached.

Quezon City, Metro Manila, Philippines.

07 MARCH 2013.

. LEONESd Board Secretary

Copyfurnished:

The RegionalDirectorEMB-CARDENRCompound, GibraltarBaguio City

The General ManagerPHILEXMININGCORPORATIONPadcal, Tuba, Benguet

~--------------~~~----------------------------------------~~PO 0 ADJUDICATIO BOARDDE_~ Compound, Visayas Avenue, Diliman, Quezon City

THE MATTER OFATER POLLUTION CONTROL

AND ABATEMENT CASE

DENR-PAB Case No. CAR-00836-12

- versus-FOR: Violation of R.A. 9275 and ItsImplementing Rules and Regulations

PHILEX MINING CORPORATION,Respondent.

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ORDER-----

For consideration before the Board IS the respondent's "Motion to Lift"

dated 20 February 2013.

Records of this case will reveal that the Board issued a Cease and Desist

Order (CDO)against respondent last 28 November 2012. The dispositive portion

ofwhich reads as follows:

"WHEREFORE,after due deliberation and consultation, the

Board resolves to order respondent to Cease and Desist from

operating and using its Tailing Pond No.3. This order shall

remain in effect until the Tailings Pond No.3 shall have been

completely restored and its structural integrity ensured as

confirmed and certified by the Mines and Geo-Sciences

Bureau.

Xxx ... :

In said motion, respondent prays for the Lifting of the CDO issued last 28

November2012 and submitting the following documents in support thereof:

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(1)Philex Padcal Mine TSF3 Rehabilitation & Clean-Up Plan;

(2)Certificate of Accreditation of Respondent's PCO Forester RodolfoB.Sagud;

(3)Surety Bond; and

(4)Affidavit of undertaking executed by Engr. Libby R. Ricafort, the Vice

President and Resident Manager of Padcal Mine.

. Based on the documents submitted, the proposed Rehabilitation and

Clean-up plan includes the construction of the spillway which will replace the

penstock system, reconstruction of the offset dike and filling of the void created

b the tailings spill.

Respondent also prays that the CDO be temporarily lifted immediately

once the Mines and Geo-sciences Bureau (MGB)lifts its suspension order with

respect to the operations of Philex Padcal Mine without prejudice to its Motion

for Reconsideration dated 05 February 2013.

PHILEX MINING CORPORATION, respondent.DENR-PAB Case No.: CAR-00836-12Add.: Padcal, Tuba, Benguet

Page 2 of 4

During the deliberation last 25 February 2013, the Board noted the need

and urgency to issue the TLO in favor of Philex Mining Corporation to allow it to

operate the TSF3 based on the findings of the Mining and Safety Division of

MGB and the testimony of the MGB Director, Leo L. Jasareno. According to

MGB,Philex Mining Co. must be allowed to operate to immediately fill the void

which was created due to the scouring of the sediments resulting from the

collapse of Penstock A, in order to prevent the weakening of the main dike which

holds. the mine tailings. The MGB, further stressed that in the event the main

dike collapses, it will cause irreparable and catastrophic damage the

environment and to the communities since an approximately one hundred forty

million (140,000,000) tons of mine tailings will be discharged by the TSF3.

Please note that the incident last 01 August 2012 wherein Penstock A collapsed

discharged only a total of 20,689,179.42 tons of tailings which already brought

considerable damage to Agno and Balog rivers.

The Board also finds the proposed action ,by Philex Mining Co. to fill the

void and the reconstruction of the offset dike technically plausible as supported

by MGBin order to protect the main dike. The Board, nonetheless, directs Philex

Mining Co. to fabricate another sphere as a precautionary measure which shall

be used in plugging the remaining functional penstock in case the same will

collapse similar to what happened last 01 August 2012 to penstock A.

WHEREFORE, after due deliberation and consultation, the Board resolves

to Temporarily Lift the issued Cease and Desist Order last 28 November 2013

to allowrespondent to implement its Pollution Control Program by filling the void

with fresh tailings as well as reconstruction of the offset dike.

The temporary lifting shall only be effective for four (4) months which

shall be reckoned from receipt of this Order. Within the TLO period, the

respondent shall comply with the following:

1. Prior to the expiration of the TLO period, submit to the Board thru the

Regional Office a detailed report on the status of its compliance with the

commitments made and other directives of the Board;

PHILEX MINING CORPORATION, respondent.DENR-PAB Case No.: CAR-00836-12Add.: Padcal, Tuba, Benguet

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2. Fabricate another sphere as a precautionary measure to be used In

plugging penstock B in case the same incident occurs; and

3. Prepare and submit to the Board a monthly self-monitoring report (SMR)

duly received by the Regional Office.

The Regional Office is also directed to conduct a bi-monthly monitoring in

coordination with MGB to verify respondent's progress in the rehabilitation of

TSF3.

The issuance or. this order shall be without prejudice to the fines

previously imposed by the Board against respondent, the discussion of which,

shall be covered by a separate Order.

The Regional Office (EMB-CAR)or its duly authorized representative in

coordination with the Regional Executive Director is directed to serve this Order

within seventy-two (72) hours from receipt hereof. A report shall likewise be

submitted to the Board within forty-eight (48) hours from execution stating the

proceedings taken therein.

SO ORDERED.

Quezon City, Metro Manila, 25 February 2013.

LD.~OCHId Member

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ATTY.

Attested by:

R.LEONESe and Board Secretary

PROF. ONY S.F. CHIUoa d Member

Page 4 of 4PHILEX MINING CORPORATION, respondent.DENR-PAB Case No.: CAR-00836-12Add.: Padcal Tuba Benguet