Philex Mining Corp. on Thursday said that it will recommission its damaged tailings pond (TP) no.3 to allow the company to immediately resume operations at its Padcal mine in Benguet province.

In a media briefing, Libby Ricafort, Philex Mining Corp. vice president for operations and Padcal resident manager, said that they are currently undertaking some changes in the design of TP3—from a penstock to a spillway design—to buy time for the construction of a TP4.

“The fastest that we can resume operations of the mine is to use Tailings Pond no. 3,” said Ricafort.

The executive noted that the groundwork for the construction of the spillway is underway, saying that expect to complete the repair by April next year.

The spillway will help drain water from the tailings pond once the penstock tunnel is completed sealed, as well as divert runoff from the mountains away from the leaking pond.

“The recommissioned TP3 can be used for three to four years, during which time a new tailings pond may be built,” the official said.

With the construction of the spillway, Philex expects the Mines and Geosciences Bureau (MGB) to lift the suspension order, and allow its mining operations to resume within the second half of 2013.

Mike Toledo, Philex vice president for Corporate Affairs, clarified that they have yet to submit a formal proposal to the MGB for the recommossioning of TP3.

“I’m sure that the Department of Environment and Natural Resource will cooperate on the proposal,” he said, noting that MGB Director Leo Jasareno earlier confirmed that the damaged tailings pond may still be used.

Toledo earlier said that Philex has started the process of building a new tailings pond at its Padcal mine to replace the existing one that had caused several leaks since August this year.

He also said that technical people are now undertaking surveys for the new location of Tailings Pond no.4, and possibly TP5—while remediation and clean up efforts are being conducted in the area

Toledo also said that the commissioning a new tailings pond during the last three to four years of Padcal’s operations may even result to an extension of mine life beyond 2020.

“Depending on economic conditions, we are looking at 50 more years. Our geologists will keep on exploring. If they find new reserves, this will surely extend the life of the mine,” he said.

Philex has voluntarily shut down its Padcal operations on August 1, when an accidental discharge of water and sediment was discovered at its TP3. Since the initial leak, there have been at least six incidents of discharge, resulting into the spillage of excess water and sediments into the bodies of water adjacent to the site.

On Wednesday, the company has submitted its comment over the P1.034 billion penalty imposed against the company because of the tailings leak.

Contentions
Toledo said that in the letter, Philex maintained that it should not pay the penalty because the incident was force majeure.

“We’re saying that we should not be made to pay the fines because the incident was caused by force majeure, and that we are willing to pay for the cost of the cleanup, rehabilitation and damages to families,” Toledo said.

The MGB has seven days to deliberate on the company’s reply before then can make a decision.
“After that, we will make a decision, then they’ll have 15 days to comply,” Jasareno said.

The MGB slapped a P1.034-billion penalty against Philex for violation of the Mining Act, after several leak incidents occurred in one of the company’s tailings pond at the Padcal mine in Benguet.

MGB also informed Philex that the penalty was based on the 20.66 million metric tons of sediments discharged from Padcal’s Tailings Pond no. 3.

Jasareno also noted that the fine against Philex was just for “dirtying” the environment with the waste sediments that spilled in the surrounding environment.

Under the Mining Act, mining companies are required to fully contain within the tailings pond all mine waste and sediments.

“It must be 100 percent contained. From a technical point of view, Philex was not able to comply, so they must pay,” Jasareno said.

MGB director that there is no provision in the Mining Act of 1995 qualifying that such penalty/fee could be waived in case of force majeure.