Mines bureau imposes P1.034-B fine on Philex

MANILA, Philippines - The Mines and Geosciences Bureau (MGB) of the Department of Environment and Natural Resources (DENR) has officially imposed a fine of P1.034 billion on Philex Mining Corp. (PMC) for the tailings spill in its copper-gold mine in Padcal, Benguet. 

This still does not include the penalties that will be imposed for violation of the Clean Water Act and the provisions in its Environmental Clearance Certificate (ECC), both of which are still being determined. PMC was furnished a copy of the report on Wednesday.

PMC said it would contest the imposition of the fine, saying it should not be penalized for events outside of its control.

“Philex is contesting the unfair imposition of the fine this will not in any way affects its fundamental commitment to remediate the effects of the spill on the environment and surrounding communities even if caused by an event outside its control,” said PMC spokesman Mike Toldedo in a filing to the local bourse yesterday. 

“It is grossly unfair to penalize Philex and impose a huge fine on it when the government agency imposing the fine itself has confirmed that Philex is just a victim of force majeure event or an act of nature over which it had no control,” he added.

PMC, in a disclosure to the Philippine Stock Exchange yesterday, has confirmed receipt of the penalty notice and that it would contest the fine imposed by the DENR-MGB.

Philex has seven days to respond to the letter from the day of receipt.

In a letter dated Sept. 26, MGB director Leo Jasareno told Philex president Eulalio Austin Jr. that according to the findings of the multi-disciplinary team created to determine the fines to be imposed in connection to the incident, the total volume of discharged sediment to the Balog River has reached 13, 513, 507 cubic meters as of Sept. 6.

With the sediments having a bulk density of 1.531 metric tons of solids per cubic meter, the total weight of discharged solids is 20, 689, 179.42 metric tons.

Under the Mining Act of 1995 a penalty of P50 per metric ton of tailings “discharged into areas other than the approved tailings disposal area.”

“As such, the tailings fee of P1,034, 358, 971 has been computed to be payable by PMC, based on the 20,689, 179.42 metric tons of discharged solids to Balog River,” Jasareno said in the letter.