Philex pays P1.034-B fine

MANILA, Philippines - Philex Mining Corp. paid yesterday the fine of P1.034 billion imposed by the Department of Environment and Natural Resources (DENR) for the tailings spill incident that occurred in its copper-gold mine in Padcal, Benguet last year. 

A manager’s check from the Manila branch of Mizuho Corporate Bank Ltd. was issued to the Mines and Geosciences Bureau (MGB).

The issuance of the check was witnessed by officials from the DENR and Philex in a turnover ceremony held in Quezon City yesterday. 

“This will serve as a benchmark to the industry that the government means business and for cases like this, we will not sacrifice the environment for economic gains,” said Environment Secretary Ramon Paje upon receipt of the check.

The fine will be remitted to the mine waste reserve fund held by the national treasury to be used for claims by persons affected by the spill.

Philex Mining last week received the insurance claim of $25 million from Chartis Philippines Insurance. Inc. under its Pollution Legal Liability Select Policy to defray the expenses incurred due to the incident. 

Philex president and chief operating officer Eulalio Austin Jr. said the claims proceeds covered only a portion of the P1.034-billion fine.

He said $25 million is the only insurance claim that would be made by the company.

The company still faces a fine of at least P92 million imposed by the Pollution Adjudication Board  (PAB) for violation of the Clean Water Act.

Austin said Philex is so far spending an estimated P4 billion “for all the expenses related to the tailings spill.”

The official is still optimistic that the company would be able to resume regular operations by the second half of the year.

“If we can finish all the rehabilitation requirements, we would appreciate it very much if the MGB can allow that,” said Austin.

Philex has a pending request for the approval of its rehabilitation and clean up plan, under which is it is asking permission to use a part of the fine to finance the clean up of certain areas.

Philex is also petitioning the MGB to be allowed to temporarily resume operations to produce fresh tailings to fill the void in tailings pond no. 3 and flush out the water in the pond. The concentrate produced by the tempoarry resumption of operations would not be sold until the mine has been given the permit to resume regular operations and would only be added to the stockpile.