HISTORICAL BACKGROUND OF MANILA MINING...

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Manila Mining Corporation Magsaysay, Placer, Surigao del Norte Contact Nos. 09177172909, 09177172064 1 HISTORICAL BACKGROUND OF MANILA MINING CORPORATION 1.0 PROJECT FACT SHEET Name of Company Manila Mining Corporation (MMC) Nature of Project Copper-Gold Mine Development and Processing Plant Project (Still on shutdown of mining & processing plant operations, while mine site is under Care & Maintenance Program and Mineral Exploration.) Project Proponent Manila Mining Corporation Head Office 20 th Floor BA-Lepanto Bldg., 8747 Paseo de Roxas, Makati City Tel. No. (02)815-9447 / Fax No. (02)812-0451 Mine Site Magsaysay, Placer, Surigao del Norte Contact Nos. 09177172909, 09177172064 Email Address: [email protected], [email protected] Project Area Total of 624.3606 hectares covering the existing mine site already issued with ECCs and now under amendment. Over all total of 4,920.18 hectares mining claim area as MPSA, APSA and EP within the province of Surigao del Norte. Products/ Commodities Copper Concentrate with Gold, Silver & associated minerals Contact Persons Bryan U. Yap President & Chief Operation Officer Segundo A. Villanueva OIC, Resident Manager Vernie S. Reyes Environmental Supt. & PCO II Estimated Life of Operation Initially 12 years with the ore reserves at MPSA No.253-2007- XIII and possibly up to more than 20 years with the indicated ore resources and on-going mineral exploration within MMC mining claim areas. 2.0 HISTORY OF MMC OPERATIONS Manila Mining Corporation (then East Mindanao Mining Corporation) located in Placer, Surigao del Norte started operation as an underground mine with a mill capacity of 100 tons per day (TPD) employing gold concentrator table and drum filter. This was later expanded to 200 TPD shortly before World War II. Post war exploration resumed in early 1970’s (re-named Lepanto Placer Project) and from 1979 to 1982 underground mining operations resumed bearing the company’s name Manila Mining Corporation (MMC) that produced a total of 82,683 tons of ore averaging 7 gm Au/t ore. Mining method switched from underground to open pit by late 1982.

Transcript of HISTORICAL BACKGROUND OF MANILA MINING...

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Manila Mining Corporation Magsaysay, Placer, Surigao del Norte

Contact Nos. 09177172909, 09177172064

1

HISTORICAL BACKGROUND OF MANILA MINING CORPORATION

1.0 PROJECT FACT SHEET

Name of Company

Manila Mining Corporation (MMC)

Nature of Project

Copper-Gold Mine Development and Processing Plant Project (Still on shutdown of mining & processing plant operations, while mine site is under Care & Maintenance Program and Mineral Exploration.)

Project Proponent

Manila Mining Corporation

Head Office

20th Floor BA-Lepanto Bldg., 8747 Paseo de Roxas, Makati City Tel. No. (02)815-9447 / Fax No. (02)812-0451

Mine Site

Magsaysay, Placer, Surigao del Norte Contact Nos. 09177172909, 09177172064 Email Address: [email protected], [email protected]

Project Area

Total of 624.3606 hectares covering the existing mine site already issued with ECCs and now under amendment. Over all total of 4,920.18 hectares mining claim area as MPSA, APSA and EP within the province of Surigao del Norte.

Products/ Commodities

Copper Concentrate with Gold, Silver & associated minerals

Contact Persons

Bryan U. Yap – President & Chief Operation Officer Segundo A. Villanueva – OIC, Resident Manager Vernie S. Reyes – Environmental Supt. & PCO II

Estimated Life of Operation

Initially 12 years with the ore reserves at MPSA No.253-2007-XIII and possibly up to more than 20 years with the indicated ore resources and on-going mineral exploration within MMC mining claim areas.

2.0 HISTORY OF MMC OPERATIONS

Manila Mining Corporation (then East Mindanao Mining Corporation) located in

Placer, Surigao del Norte started operation as an underground mine with a mill capacity

of 100 tons per day (TPD) employing gold concentrator table and drum filter. This was

later expanded to 200 TPD shortly before World War II.

Post war exploration resumed in early 1970’s (re-named Lepanto Placer Project) and

from 1979 to 1982 underground mining operations resumed bearing the company’s

name Manila Mining Corporation (MMC) that produced a total of 82,683 tons of ore

averaging 7 gm Au/t ore. Mining method switched from underground to open pit by late

1982.

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Both underground and open pit ores were initially treated in the old mill employing the

Gold Zinc Dust Precipitation Process then to Carbon-in-Pulp (CIP) Process starting at a

mere 250 TPD which gradually improved and expanded to maximum of 1,500 TPD. In

1993 Heap Leaching was later adopted to process the lower grade ore which was

issued by DENR Secretary with ECC, the Gold Heap Leaching Project of Manila

Mining Corporation on June 17, 1993. The Heap Leaching Plant maximum operating

capacity was 52,000 tons per month.

The Old Mill Processing Plant, that discharged tailings to Tailings Pond No.5 and No.6,

ceased commercial operation during the early part of 1995 due to high operating cost.

The Heap Leaching plant also stopped operation during the same year in order to

maximize ore delivery to the newly commissioned mill plant. The New Mill CIP plant

originally was designed for 3,000 TPD was issued with ECC, the 3,000 MTPD Mill

Expansion Project of Manila Mining Corporation. Major gold ore source was the

Heine pit supplemented by ores from Emma pit and Nellie pits. Mill tailings were

discharged to Tailings Pond No.7, a larger capacity tailings dam specially designed for

the impoundment of tailings from the expanded New Mill.

The New Mill used to exclusively process gold ore was revised in 1997 to take

advantage of the copper-gold bearing ore blocked by previous exploration activities

particularly the Suyoc and N-Tina Pit deposits. So, another ECC, the Copper Flotation

Project to Improve Gold Recovery was issued by the DENR Regional Executive

Director with the allowed maximum capacity of 3,000 MTPD. Total plant capacity then

was 6,000 MTPD. This became operational in the middle of 1997 up to 2001. The N-

tina pit solely provided the ores for the mill flotation plant until the company’s temporary

shutdown of operation on July 27, 2001.

At the start of the shutdown period MMC complied the Mines and Geosciences Bureau

Region 13 requirement to submit the Care and Maintenance Program (CMP).

The outlined works in the program were being implemented by the company during the

past fifteen (15) years (2001–2016) or until at present of temporary shutdown of mining

and milling operations. During this period the company was able to ensure that all its

property and commitments remained intact and protected. The remaining workforce

was tasked to respond and manage works related to maintenance and upkeep of

Company properties, compliance to regulatory requirements, social commitments and

mandates, environmental care, and most importantly guaranty safety and stableness of

structures within its control, such as tailings dam, waste dumps, silt dikes and mine pits.

These were validated by the regular Multi-Partite Monitoring Team (MMT) inspections

conducted since the past years until at present. Mandatory reports required by EMB 13

and MGB 13 such as the submission of Quarterly Self Monitoring Reports (SMR),

Compliance Monitoring Report (CMR), Environmental Work Program

Accomplishment Report, compliance with the applicable ECCs Conditions and

among others were satisfied by the Company. So far, during the shutdown period of

about 15 years not a single Pollution Control Law violation was committed by MMC.

However, during the past operations (prior to year 2002) there were few Notice of

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Contact Nos. 09177172909, 09177172064

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Violations (NOVs) and two (2) Cease and Decease Orders (CDOs) issued by DENR and

EMB Regional Offices but were already resolved.

On January 2007 the Company decided to revive its mining operation by blocking

additional reserves through Mineral Exploration, to supplement the remaining ore

reserves within its claims. In order to justify the re-opening of mining operation the

diamond drilling exploration activities were fully implemented during the last two years.

After the completion of the 2-year Revival Program, current activities were directed

towards quantifying the extent of ore mineralization based on the results of the program.

Meanwhile, exploration activities at Tailings Pond No.7 commenced on the second

quarter of 2009 which aims to test the gold and silver contents of the impounded tailings

that might be an additional ore reserve for future re-processing. Full blast exploration

activities are on-going until at present within the old mining pits and the adjacent areas.

At this point in time the Company is preparing to resume back its normal mining and

processing plant operations that might include the re-processing of impounded tailings at

Tailings Pond No.7. The Company desired to re-operate at 10,000 MTPD employing the

Copper-Gold Flotation Process at larger capacity making it feasible of treating available

lower grade copper-gold ore and after exhausting this copper-gold ore the Company will

operate the 3,000 MTPD Carbon-In-Pulp (CIP) Plant to process the remaining gold ore.

This CIP Plant operation alone will be much lower than the allowed 10,000 MTPD.

For the proposed expansion of operation, MMC on year 2011 started to prepare the

Mining Project Feasibility Study and undergo the Scoping Process of the EIA –

EPRMP required by EMB Central Office. Technical Scoping Meeting with the EPRMP

Review Committee was conducted last October 11, 2011. However, until the

suspension of ECC processing and issuance by DENR was lifted, the Public Scoping

proceeded on August 16, 2012. The succeeding year was the period for the Company

to comply all data required in the REVCOM procedural Screening. Finally, the Public

Consultation or Public Hearing was conducted on November 6, 2014 at the host

municipality of Placer. Separate host barangays Consultations about the project were

also conducted from October 26 to 30, 2014. Overwhelming positive mining

community response was confirmed. Hopefully, by year 2016 after accomplishing

the Declaration of Mining Project Feasibility (DMPF) and other required Permits will be

secured the mine pit rehabilitation and processing plant construction will commence.

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Contact Nos. 09177172909, 09177172064

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3.0 MMC PROJECT LOCATION MAPS

TECHNICAL DESCRIPTION

CORNER LATITUDE LONGITUDE

1 9°40’26.11” 125°36’22.11”

2 9°41’0.18” 125°35’40.29”

3 9°40’56.94” 125°35’24.15”

4 9°40’42.88” 125°35’9.68”

5 9°40’42.88” 125°34’59.84”

6 9°40’24.65” 125°34’59.92”

7 9°39’50.85” 125°34’40.36”

8 9°39’26.75” 125°34’40.37”

9 9°39’16.45” 125°35’7.55”

10 9°39’10.59” 125°35’47.17”

11 9°39’26.66” 125°35’55.49”

12 9°39’36.03” 125°35’55.50”

13 9°39’39.67” 125°35’47.43”

14 9°40’3.22” 125°36’0.30”

15 9°40’22.70” 125°36’0.44”

16 9°40’27.26” 125°36’8.45”

17 9°40’23.33” 125°36’19.79”

Figure 1 – MMC Topographic Project Location Map

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Figure 2 – Current (2016) MMC Google Earth View of Green Mine Site as a

Result of MMC’s Successful Rehabilitation Efforts

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4.0 MMC NURSERY, VERMI-CULTURE AND AQUA-CULTURE FACILITIES

MMC Mine Site Nursery Producing 20,000 Tree Seedlings Yearly

Nursery Plantable Seedling Stocks

Four (4) Large Bed of MMC Vermi Culture Composting Facility for Production of Organic Fertilizer

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MMC Aqua-culture Fishpond Project

5.0 MMC SUCCESSFUL REHABILITATION PROJECTS

A1 - MMC Bayatakan Waste Dump as of April 22, 2013 – Started Planting on Earth Day by MMC Workers

A2 - Bayatakan Waste Dump into Bayatakan Forest Park as of March 10, 2016

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B1 – Portion of Non-productive Suyoc Grassland as of March 10, 2012 – Started Planting Trees

B2 – Now Portion of the 10 Hectare MMC Suyoc Forest Park under the National Greening Program

C1 - Non-productive Suyoc Grassland as of March 10, 2012 – Started Planting Trees

C2 - Now Portion of the 10 Hectare MMC Suyoc Forest Park under the National Greening Program

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D - Reforested/Vegetated Top and Slope Portion of MMC Kinto-Limbo Waste Dump

E. Reforested/Vegetated MMC Waste Dump No.2

F. Stabilized and Fully Vegetated MMC Tinabingan Waste Dump

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6.0 SUCCESSFUL MMC MANGROVES REHABILITATION PROJECT

Four (4) Hectare MMC Bayatakan Mangrove (Rhisopora apiculata specie) Forest Project

Young Mangrove, Rhisopora apiculata at Bayatakan Mangrove Forest

About 2-Hectare Expansion Area as of June 2015 at MMC Bayatakan Area

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7.0 MMC SUBSISTING PERMITS & CLEARANCES

Table 1– Permits and Clearances from DENR – EMB

Date Issued Permit / Clearances Status (Date of Expiry)

June 17, 1993 ECC1: Gold Heap Leaching Plant Heap Leach Plant already

phased-out.

April 15, 1995

ECC2: 3,000 MTPD Mill Expansion Project To re-operate soon (Not yet

expired)

March 26, 1996 ECC3: Protective Dike

Project still in-use (Not yet

expired)

Aug. 14, 1998 ECC4: Copper Floatation Project Under ECC amendment to

10,000 MTPD Plant Project

June 11, 1999 ECC5: 4.5 Hectares Reclamation Project &

Loading Facility

Project still in-use (Not yet

expired)

March 16, 2001 DENR Hazardous Waste ID No. 16-67-0001 Under amendment on-line

Feb. 4, 2016 CCO-PCB-13-14-0055 / Note: 91 PCB Oil-Based

Transformers

Not yet expired

December 8, 2014 PO No. 2014-POA-L-1367-278 (MMC Standby

Power Generator Sets)

Dec. 8, 2019

May 10, 2012 2012-WDP-E-1367-065

N-Tina Mine Pit discharge to Placer Bay

NOTE: Temp. discharge only during pit

exploration.

May 10, 2013

(No more discharge)

Table 2– Permits and Clearances from DENR – MGB

Name of Claim / Exploration

Permit

Location

Area (Has)

Date Granted

Expiry Date

MPSA No.253-2007-XIII Placer, SDN 211.50 July 28, 2007 July 28, 2032

EP No.014-XIII AMD-A Mainit, Sison &

Placer, SDN

2,176.28 January 26,

2007

January 26,

2009

MLC No. MRD-322 (APSA No.

00107)

Magsaysay, Placer,

SDN

153.00 June , 1986 June 3, 2011

MLC No. MRD-323

(APSA No. 00107)

Magsaysay, Placer,

SDN

117.00 June 4, 1986 June 3, 2011

MLC No. MRD-324 (APSA No.

0083-XIII)

Magsaysay, Placer,

SDN

321.75 June 4, 1986 June 3, 2011

MLC No. MRD-480 (APSA No.

0083-XIII)

Magsaysay, Placer,

SDN

162.65 October 9,

1987

October 9,

2012

MLC No. MRD-67 (APSA No.

0083-XIII)

Magsysay, Placer,

SDN

198.00 April 17, 1978 April 16, 2003

APSA No. OOO6-XIII

Mun. of Sison,

Placer, Bacuag &

Tubod

1,580.00 -- --

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8.0 ENVIRONMENTAL PERFORMANCE MONITORING

In-house and Multi-Partite Monitoring Team (MMT) Mine Site Monitoring

The Environmental Department is regularly conducting weekly mine site structures

monitoring, a pro-active activity that will warn any problems/risks and to mitigate as early

as possible. Also to verify how effective is the implementation of the Company’s Care

and Maintenance Program (see attached CMP Document as Annex A), Environmental

Management and Rehabilitation Program. On the other hand, MMC Multi-partite

Monitoring Team (MMT) Quarterly or semi-annual inspection/monitoring was regularly

conducted. See attached MMT Reports as Annex B.

MMC Multi-Partite Monitoring Team In-house Regular Wastewater Sampling

Table 3 – MMC Environmental Performance Monitoring

Date Activity Summary of Findings

May 3-5, 2016 Multi-partite Monitoring

Team Inspection / Meeting

All Care & Maintenance Program (CMP)

commitments complied by MMC.

No environmental violations and complaints

Aug. 26-28, 2015 Multi-partite Monitoring

Team Inspection / Meeting

All Care & Maintenance Program (CMP)

commitments complied by MMC.

No environmental violations and complaints

May 27-29, 2015 Multi-partite Monitoring

Team Inspection / Meeting

All Care & Maintenance Program (CMP)

commitments complied by MMC.

No environmental violations and complaints

June 23-25, 2014 Multi-partite Monitoring

Team Inspection / Meeting

All Care & Maintenance Program (CMP)

commitments complied by MMC.

No environmental violations and complaints

March 19-21, 2014 Multi-partite Monitoring

Team Inspection / Meeting

All Care & Maintenance Program (CMP)

commitments complied by MMC.

No environmental violations and complaints

Oct. 16-18, 2013 Multi-partite Monitoring

Team Inspection / Meeting

All Care & Maintenance Program (CMP)

commitments complied by MMC.

No environmental violations and complaints

July 15-17, 2013 Multi-partite Monitoring

Team Inspection / Meeting

All Care & Maintenance Program (CMP)

commitments complied by MMC.

No environmental violations and complaints

Feb. 25-27, 2013 Multi-partite Monitoring

Team Inspection / Meeting

All Care & Maintenance Program (CMP)

commitments complied by MMC.

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No environmental violations and complaints

Sept. 19-21, 2012 Multi-partite Monitoring

Team Inspection / Meeting

All Care & Maintenance Program (CMP)

commitments complied by MMC.

No environmental violations and complaints

April 25-27, 2012 Multi-partite Monitoring

Team Inspection / Meeting

All Care & Maintenance Program (CMP)

commitments complied by MMC.

No environmental violations and complaints

Feb. 25-27, 2012 Multi-partite Monitoring

Team Inspection / Meeting

All Care & Maintenance Program (CMP)

commitments complied by MMC.

No environmental violations and complaints

Oct. 25-27, 2011 Multi-partite Monitoring

Team Inspection / Meeting

All Care & Maintenance Program (CMP)

commitments complied by MMC.

No environmental violations and complaints

May 11-13, 2011 Multi-partite Monitoring

Team Inspection / Meeting

All Care & Maintenance Program (CMP)

commitments complied by MMC.

No environmental violations and complaints

Feb. 8-10, 2011 Multi-partite Monitoring

Team Inspection / Meeting

All Care & Maintenance Program (CMP)

commitments complied by MMC.

No environmental violations and complaints

Oct. 5-6, 2010 Multi-partite Monitoring

Team Inspection / Meeting

All Care & Maintenance Program (CMP)

commitments complied by MMC.

No environmental violations and complaints

Nov. 4-5, 2009 Multi-partite Monitoring

Team Inspection / Meeting

All Care & Maintenance Program (CMP)

commitments complied by MMC.

No environmental violations and complaints

May 12-13, 2009 Multi-partite Monitoring

Team Inspection / Meeting

All Care & Maintenance Program (CMP)

commitments complied by MMC.

No environmental violations and complaints

Oct. 28, 2008 Multi-partite Monitoring

Team Inspection / Meeting

All Care & Maintenance Program (CMP)

commitments complied by MMC.

No environmental violations and complaints

Aug. 5, 2008 Multi-partite Monitoring

Team Inspection / Meeting

All Care & Maintenance Program (CMP)

commitments complied by MMC.

No environmental violations and complaints

Feb. 12-13, 2008 Multi-partite Monitoring

Team Inspection / Meeting

All Care & Maintenance Program (CMP)

commitments complied by MMC.

No environmental violations and complaints

NOTE: Since Year 2002 until at present (2016) all MMC Care & Maintenance Program

commitments were complied and no EMB and MGB record of violations with Environmental

Laws and Regulations.

Other MMC Environmental Performance Records:

1. Satisfactory Environmental Management & Community Relation Record – See CEMCRR issued on April 27, 2010 attached as Annex C.

2. Satisfactory Environmental Management & Community Relation Record – See CEMCRR issued on June 8, 2011 attached as Annex D.

3. Certification from MGB 13 of no adverse claim, protest, Notice of Violation or opposition file/docketed against MMC. See copy attached as Annex E.

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9.0 NOTICE OF VIOLATIONS

Since year 2002 until year 2015, or for the past thirteen (13) years MMC was not issued

a single Notice of Violations (NOVs) while on Care and Maintenance Program with on-

going Mineral Exploration. However, prior to year 2002 there were few NOVs but were all

resolved or corrective actions implemented. See the following summary of NOVs and

Resolutions. Detailed supporting documents on Resolution of these NOVs were already

submitted to EMB 13 and Central Office.

Previous EMB 13 NOVs from the Pollution Adjudication Board (PAB), MMC Responses and Resolutions

A. Notice of Violation released by EMB 13 on January 9, 2001.

1. Condition No.1 of 3,000 MTPD Mill Expansion Project ECC – The milling rate

shall not exceed 3,000 MTPD of gold materials. The average milling rate for

gold ore from July to November was 3,785 MTPD exceeding the specified

milling rate.

The Company has two (2) ECCs, one of its CIP plant and another for the Copper

Flotation Plant. (See Annexes “A” and “A-1”). Both ECCs are for 3,000 MTPD

capacities, therefore the total authorized milling capacity is 6,000 MTPD.

You will note that the MMC Multi-partite Monitoring Team (MMT), in its evaluation

report for the Second Quarter year 2,000 stated that MMC was in compliance with the

particular condition. This is because, after observing the actual operation of our

plants, they found out that the “excess” feed actually came out in the form of scats,

normal in sag mill operations, these were stocked piled and set aside and later on

recycling and feed back to the plant. Without these recycled materials, there would

have been no “excess” to speak off. Even at present some of these scats are in stock

piles and some were used in mine site road ballasting. In other words, the total

tonnage initially found by the MMT was based on the feed at the crushing plant, which

was much more than the feed that entered the mill plant circuits.

In the Company’s letter to EMB Regional Director Reynaldo R. Villafuerte dated

January 16, 2001 it was stated that to reflect the Fourth Quarter MMT Monitoring on

the average milling tonnage it should cover the months of October, November and

December. The average fourth quarter tonnage was exactly 2,422 MTPD based on

the actual milling tonnage considering all days of the last quarter year 2,000, whether

on maximum operation, or power failure and maintenance shutdown. Actually no

excess in tonnage. (See letter as Annex “B”).

It should be mentioned that our application for an ECC of the Copper Flotation Plant

actually specified and justified a capacity of 5,000 MTPD. The ECC that was finally

granted was for 3,000 MTPD. The day after we received the ECC, we submitted a

letter to the Regional Executive Director, Mr. Elias Seraspi, Jr. requesting for an

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amendment to the ECC to reflect the higher capacity as applied for. We explained

that for the project to be viable, the capacity should be at 5,000 MTPD. A technical

conference was therefore called during which we further explained our position. The

new DENR RED, Mr. Primitivo C. Galinato, Jr. denied our request in a letter dated

Sept. 21, 1999. (See attached letter as Annex “C”). A week later or on Sept. 28,

1999, the Company President, Engr. Artemio F. Disini wrote a letter and asked for

reconsideration. (See attached letter as “Annex D”). A follow-up letter dated March

9, 2001 was also forwarded to EMB 13 new Regional Director Mr. Reynaldo R.

Villafuerte.

(See attached letter as Annex “E”). Until at present the DENR RED nor the EMB

Director has replied to that request.

For that case, no Cease and Desist Order (CDO) was issued until six month later the

Company declared temporary shutdown of operation starting July 27, 2001. Subject

mill processing plants are already demolished and no longer operational.

2. Condition No.5 of 3,000 MTPD Mill Expansion Project ECC – Measures shall be

undertaken to prevent soil erosion/siltation and turbidity of affected

coastal/surface water body during construction, operation and

decommissioning of the structure. MMC committed to construct a rock

buttress during the Sept. 1, 2000 Technical Conference, however, by Sept. 4,

2000 the buttress has not been started, instead MMC initiated the construction

of drainage berm.

Practically, MMC cannot start putting in-place the rock buttress at Tinabinga/Banban

mine waste dump in the first four days because the normal construction procedure

should start first the re-shaping or re-contouring slope to desired safe angle and

installation of drainage run-off to avoid soil erosion and mud slide or the same

incident, then the toe rock buttress will be established.

This concern was properly addressed and resolved as explained in my report dated

Sept. 10, 2014. (see attached Report as Annex “F”).

3. Condition No.3 of the 3,000 MTPD Copper Flotation Project ECC – That the

proponent will construct another Tailings Pond for sufficient holding/storage of

plant tails coming from the system within six (6) months.

The MMT and EMPAS, DENR 13 verified that the required tailings pond (Tailings Pond

No. 8 or TP-7A) was not yet constructed. Our justifications were the following:

a. MMC was undertaking the environmental impact assessment (EIA) for the proposed

new Tailings Pond. In fact, a scoping session for the proposed project was already

undertaken last February 1999 wherein personnel of EMPAS, DENR led by Ms.

Luzviminda Osorio and Mr. Jaime Ubanos were present. That time the EIA was

being pursued by our consultants.

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b. Our efforts in the conduct of the EIA of the proposed TP-8 were redirected to other

pressing activities during the TP-7 decant tower incident last April 1999.

c. A letter, dated February 1999, of Mr. Acosta was filed with the DENR XIII requesting

for an extension of another six (6) months to fulfill the construction of the proposed

TP-8 (TP-7A). There appeared to be no action on the part of the DENR.

d. The provision stated in the ECC may be considered vague on the date of reckoning

the 6-month deadline since it failed to mention when the deadline will begin. The

DENR position is the start was on the day of the issuance of the ECC (on 14 August

1998), but another interpretation is that its reckoning may start when TP-7 will have

reached its designed capacity.

e. MMC was contemplating on other tailings disposal options such as: the full

utilization of the capacity of TP-7 to its designed and approved height of 70 m

above sea level which was issued by the DENR an Authority to Construct on 31

August 1993; submarine tailings placement; and tailings disposal in mined-out

areas.

It was agreed during the June 28, 1999 NOV Technical Conference that the Company

will present to EMPAS, DENR XIII the options for consideration on or before October

31, 1999.

So the DENR was informed that the Company was in favor of the following options:

a. Construction of New Tailings Pond No.8 (TP-7A) at barangays Amoslog and

Badas.

b. Utilization of Tailings Pond No.7 up to DENR permitted height.

c. Submarine Tailings Placement.

MMC was working on those options. For option “a”, MMC looked for another Tailings

Pond (TP-7A) and started the land acquisition, project site geotechnical study was

conducted by Energosystems & Geosciences, Inc.; the baseline data gathering and

EIA / EIS process with Henori Consultant. First EIA Scoping Process conducted at

EMB Central Office, the Public Scoping at the mine site with the host community and

stakeholders; the land negotiation and procurement amounted initially to PhP

519,814.00. Unfortunately, the undertakings were stopped because of strong

opposition from barangay Amoslog Irrigators Association and Department of Agrarian

Reform (DAR). EMB 13 Regional Director Reynaldo R. Villafuerte was informed of the

above efforts and result in the Company’s letter dated February 28, 2001, received by

EMB 13 on March 5, 2001. See letter attached as Annex “G”.

In said letter the Company seek for consideration for its past serious efforts and has in

due manner complied its commitments by using the existing Tailings Pond No.7 after

renewed Permit to Construct and Operate was issued by EMB 13. See March 8, 2001

Company letter and EMB Permit attached as Annex “H”.

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The OIC, DENR-RED, Mr. Constancio A. Paye, Jr. responded conditionally to MMC

request for utilization of the existing Tailings Pond No.7 in lieu of the construction of

Tailings Pond No.8 as compliance to ECC Condition. See March 8, 2001 DENR letter

attached as Annex “I”. The Director’s response quoted below,

“While we recognized your effort to comply the said condition, as born on the

documents attached to your letter, this office however, reserves its decision on your

request until the expiry of your Temporary Authority to Construct and Operate Tailings

Pond No.7 on July 25, 2001, issued by EMB, whose compliance of the regular Permit

largely depend on your faithful compliance to the conditions therein and other

environmental laws.”

Said Tailings Pond is indispensable to the Company’s mining operations. For reason

of non-renewal of Permit to Operate Tailings pond No.7 the Company sadly stopped

its mining and milling operations on July 27, 2001 until at present. See MMC notices

of shutdown attached as Annex “J”.

4. Condition No.8 of the 3,000 MTPD Copper Flotation Project ECC – That the

stripped-off overburden materials, mine waste shall be properly stockpiled

stable and disposed in designated stable areas and away from any water and/or

drainage systems and shall be maintained in safe and non-polluting conditions.

Appropriate control measures shall be provided in order to prevent

spilling/washing away of the impounded materials. Same violation of Condition

no.5 of ECC for 3,000 MTPD Gold.

Note: Already answered in Item No.2.

5. Commitment No.4 of August 16, 2000 Technical Conference – MMC to Submit

the Traverse Dike proposal next week and prepare an IEE.

Said commitment was complied by the Company. The Bayatakan Traverse Dike

Project Proposal was submitted to EMB 13 on September 22, 2000. Refer to DENR

received copy attached as Annex “K”.

MMC exerted efforts in the preparation of the Initial Environmental Examination (IEE)

document for the Traverse Dike ECC. However, during that time the IEE is not

complete without the proof of social acceptability, through Resolutions from LGU.

During the Public Scoping with barangay officials, stakeholders and community

representatives it was found out that they were not in favor of the Traverse Dike

construction and the issue should be brought out to Public Hearing.

The Tailings Pond No.7 (TP-7) condition on the Traverse Dike states, “that

construction will only commence after approval of the Community. It was cleared that

the Community do not want the dike, as it has no bearing on their safety. MGB and

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Third Party Experts opinion who conducted review of the TP-7 Embankment supported

the stability of the dam and thus the Traverse Dike is superfluous. For the Community

the completed Protective Dike fronting and far downstream of TP-7 was enough.

Above rationale was communicated to DENR RED, Mr. Constancio E. Paye, Jr. in the

Company’s letter dated Oct. 19, 2000. See letter attached as Annex “L”.

6. Commitment No.5 of August 16, 2000 Technical Conference – MMC should

catch-up the delay of Bayatakan rehabilitation activities/plan. MMC will

complete the construction of drainage along the Protective Dike by end of

August 2000.

On the same day, August 16, 2000 MMC submitted an explanation on this concern.

See letter dated August 14, 2000 attached as Annex “M”. Rehabilitation of

Bayatakan area was on-going in accordance with the Mine Rehabilitation Fund

Committee (MRFC) approved Plan. The rehabilitation is just at the second year period

which was scheduled for three (3) years. MMC submitted a Gantt Chart on the

progress of rehabilitation just within the time frame. See Gantt Chart attached as

Annex “N”.

MMC letter dated Oct. 19, 2000 also formally informed the DENR of delay delays and

how it was able to catch-up “backlogs”. After said communication no more comments

from the MMT and DENR until finally the Company started shutdown of operations on

July 27, 2001.

In summary the Company submitted reports to MGB 13 –DENR the expenses incurred

in the Rehabilitation of Bayatakan area from June 21, 1999 to Sept. 25, 2000

amounting to P 7,637,081.57. Not reported expenses from Oct. 2000 to July 2001 or

until shutdown was estimated to more than P 5,000,000.00. See expenses reports

attached as Annex “O”.

During the past 12 years of Company shutdown and while the mine site is under Care

and Maintenance Program, the remaining skeletal workforce with limited budget was

able to vegetate the whole area and partially turning the area into an Agro-forest Land

and that is compliance wit the MRFC approved Rehabilitation Plan. Refer to recent

photo pictures of rehabilitated Bayatakan area attached as Annex “P”.

7. Commitment No.3 of November 21, 2000 Technical Conference – Fast tract the

rehabilitation activities of Bayatakan area to catch-up “backlogs” in accordance

with the MRFC approved Plan until end of December 2000.

NOTE: This was already answered in Item A, No.6.

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8. Commitment No.6 of November 21, 2000 Technical Conference – Comply

MMC’s previous commitment to construct the Bayatakan Traverse Dike after

issuance of ECC.

NOTE: NOTE: This was already answered in Item A, No.5.

B. Notice of Violation released by EMB 13 on November 16, 2000.

1. Seepage at the 3rd berm of the southern section of the main embankment of

Tailings Pond No.7 (TP-7). See NOV letter dated Nov. 16, 2000 attached as Annex

“Q”.

To deliberate this particular NOV a Technical Conference was conducted on Nov. 21,

2000 at EMB 13 Regional Office. The Company made six (6) commitments to address

the concern environmental issues. See copy of the Technical Conference

commitments attached as Annex “R”.

All commitments were complied as reported by the Company in its letter to EMB 13

dated Nov. 25, 2000. See letter attached as Annex “S”. The seepage problem at the

3rd Berm of TP-7 was already addressed as reported in the Company’s letter submitted

to MGB 13, OIC Regional Director, Alilo C. Ensomo, Jr. dated November 13, 2000.

See letter attached as Annex “T”.

2. Rehabilitation of Bayatakan area in accordance with the approved time frame of

MRFC was not complied.

NOTE: This was already answered in Item A, No.6.

3. Final Effluent from Bayatakan area was between 0.30 - 0.40 mg/l of cyanide

which exceeds the DENR standard of 0.20 mg/l.

This issue was already taken during the Nov. 21, 2000 NOV Technical Conference at EMB 13 Regional Office and compliance report to commitments was also submitted on Nov. 25, 2000. Refer to Annex “S” and “T” the attachment for item B, No.1. That very small volume of 0.25 liter/sec effluent or seepage and very low cyanide concentration did not compromise the company to maintain the receiving body below 0.05 mg/l (standard) or nil cyanide. The fact that no “fish kill” happened at Mapaso Creek dwelled with fishes that time.

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10. OTHER ENVIRONMENTAL ACTIVITIES/ENDEAVORS UNDERTAKEN

1. MMC was Region 13 Nominee for Best Mining Forest for its excellent compliance with National Greening Program and Adopt a Mining Forest Program. See supporting documents attached as Annex F.

2. Certificates of Appreciation and Plaque of Appreciation from EMB 13 for MMC’s valuable contributions and supports in the implementation of “Adopt a Water Body Program”. See supporting documents attached as Annex G.

3. MMC’s Satisfactory Accomplishments in the Community Development Program (CDP) and CSR from year 2011 to year 2015. See supporting documents attached as Annex H.

11. OTHER ATTACHMENTS AS SUPPORTING DOCUMENTS

Annex I – Environmental Compliance Certificates

Annex J – MPSA No.253-2007-XIII

Annex K – Care & Maintenance Program Certificate of Approval

Annex L - Certificate of Registration – CCO on Polychlorinated Biphenyls (PCBs)

Annex M – Permit to Operate Air Pollution Source & Control Installations

Annex N – Wastewater Discharge Permit

Prepared by:

VERNIE S. REYES

Environmental Supt. & PCO II

Noted by:

SEGUNDO A. VILLANIEVA

OIC, Resident Manager

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ANNEX A (MMC Care and Maintenance Program)

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ANNEX B (Multi-partite Monitoring Team (MMT) Reports)

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ANNEX C (CEMCRR issued on April 27, 2010)

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ANNEX D (CEMCRR issued on June 8, 2011)

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ANNEX E (Certification from MGB 13 of no adverse claim, protest, Notice of

Violation or opposition file/docketed against MMC)

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ANNEX F (Region 13 Nominee for Best Mining Forest)

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ANNEX G (Certificates of Appreciation and Plaque of Appreciation from EMB

13 for MMC’s valuable contributions and supports in the

implementation of “Adopt a Water Body Program”)

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ANNEX H (MMC’s Satisfactory Accomplishments in the Community

Development Program (CDP) and CSR from year 2011 to year 2015.)

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ANNEX I (Environmental Compliance Certificates)

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ANNEX J (MPSA No.253-2007-XIII)

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ANNEX K (Care & Maintenance Program Certificate of Approval)

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ANNEX L (Certificate of Registration – CCO on Polychlorinated Biphenyls)

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ANNEX M (Permit to Operate Air Pollution Source & Control Installations)

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ANNEX N (Wastewater Discharge Permit)