The Mines and Geosciences Bureau (MGB) has denied the motion for reconsideration by Philex Mining Corp. to use the P1.034 billion penalty imposed by the government for the rehabilitation of the areas affected by the tailings spill at its Padcal mine in Benguet.

“Philex didn’t offer enough evidence to support their argument,” MGB Director Leo Jasareno said in a telephone interview.

Environment Secretary Ramon Paje, in a separate telephone interview, said that they stood pat on their decision to impose the penalty, stressing that the incident is not “force majeuer.”
“Force majeure or not, they have to pay penalty,” he said.

Paje also said that they have asked Philex to pay the fine on/before February 19, 2012.
”Our decision is final,” he said, adding that the company can lodge their final appeal before the Office of the President.

Not against fine
In a disclosure to the Philippine Stock Exchange on December 26, Philex said that it was no longer contesting the payment of the amount imposed, but petitioned that it should be used to finance the rehabilitation of waterways affected by the tailings spill in its Padcal mine.

”Please allow us, at the outset, to clarify that Philex Mining Corp. is not unwilling to pay the P1.034 billion on account of the discharge of sediments from Philex’s tailings Pond 3, considering that under your applicable rules and policies, the same shall be disbursed and utilized as compensation for damages of affected parties and for the rehabilitation and clean up of, monitoring and decommissioning strategies for, the areas affected by the spill to be undertaken by Philex pursuant to a rehabilitation and clean up plan that may be approved by the Mines and Geosciences Bureau,” the company said.

Philex had previously contested the imposition of the fine, saying that the spill incident was caused by force majeur as characterized by the incessant rains leading to August 1, when the leakage from the mine’s tailings pond (TP) no. 3 was first seen.

The MGB responded that the incident the incident was not a “fortuitous event” and that the company “failed to maintain the structural integrity of TP no. 3.”

Jasareno said that Philex and the government have different interpretations of provisions of the Mining Act on the imposition and use of fines.

Under the law, the fine paid by a sanctioned mining company would be placed in a trust fund for use in the payment of claims for affected families. The cost of rehabilitation of areas affected should be shouldered by the company.

Jasareno also said that the decision on Philex’s motion will be the last to be handed down by the MGB on the case. He said that Philex can still file an appeal before the Office of Paje, the Office of the President, Court of Appeals and the Supreme Court.

Paje earlier said that he had received marching orders from Malacanang to strictly implement the law on the issue.