DENR allows Lafayette to resume mining operations

The Department of Environment and Natural Resources (DENR) has finally lifted, after 15 months, the-cease-and desist order (CDO) it had imposed on the mining operations of Lafayette Philippines on Rapu-Rapu Island, Albay after two tailings spill in October 2005.

The CDO was issued againt Lafayette on Jan. 9, 2006.

In a press conference, Environment and Natural Resources Secretary Angelo Reyes announced yesterday the lifting of the CDO that will allow Lafayette to immediately resume mining operations.

However, Reyes said the lifting comes with stringent conditions that include implementation of the operational control measures identified by the Mines and Geosciences Bureau’s technical working group and third party experts, and the immediate expansion of the existing multipartite monitoring team (MMT) to include representatives from the academe, non-government organizations and other interested stakeholders.

Just before lifting the CDO, the DENR the other day imposed an additional fine of P6 milion for water pollution fines for the period Dec. 15, 2005 to Feb. 2, 2006 plus P300,000 for violation of the mining firm’s environmental compliance certificate (ECC).

The P6 million and P300,000 are on top of the previous P10.4 million that the DENR had imposed on Lafayette for violating Republic Act 9275 or the Clean Water Act.

MGB Director Horacio C. Ramos estimates that since the stoppage of mining operations in Rapu-Rapu, Lafayette has been spending about P150 million a month for rehabilitation and compliance expenses, thus, bringing up to almost $90 million, the mining’s firms capitalization for its Rapu-Rapu operations.

Reyes stressed that the DENR followed a thorough and transparent process in ensuring that Lafayette rectified and complied with all of the DENR’s conditions. He said the incident "should serve as a warning that we will not sacrifice our environment for development."

The Lafayette mine tailing spillage accident is closely being monitored by the mining industry, even though the firm’s operation is relatively small, because it was the first foreign firm to invest in the Philippines following the Supreme Court decision upholding the Mining Act which allows the entry of foreign investors in the mining sector.

Lafayette started mine development and construction in the third quarter of 2003 but actual mining and extraction of gold bearing ores started only in April 2005.