SSS hopeful of continuous Padcal operation

MANILA, Philippines - The Social Security System (SSS), the state-owned pension fund for private employees, said it is hopeful the government would finally lift the suspension order on Philex Mining Corp’s Padcal mine operations in Benguet.

SSS, which has over P18 billion in investments in Philex Mining, said the company is closely monitoring developments surrounding the mine.

“Philex has remained there, part of our investments. We are monitoring developments and whether Philex would continue its operations. We are hopeful that authorities will grant continuance of operations in Padcal mines,” said SSS chairman Juan Santos.

The government has ordered the closing of the Padcal mine in August 2012 because of a tailings pond overflow caused by heavy rains.

SSS holds around one billion shares in Philex and according to a lawmaker, the pension fund is being deprived of some P173.5 million in potential cash dividends every quarter that the Padcal gold and copper mine is closed.

“The sooner Philex gets back on its feet, the better for all concerned, including the Padcal mine’s more than 2,200 full-time workers and their families as well as the communities that thrive on the site,” said Cebu Rep. Eduardo Gullas, whose home province is host to the country’s other major gold and copper producer, Atlas Consolidated Mining and Development Corp.

Gullas said from August 2011 to August 2012 when the mine was ordered to temporarily close, Philex aid shareholders a cumulative cash dividend of P0.67 per share, according to Philippine Stock Exchange filings.

“This implies that SSS which holds more than one billion shares in Philex received some P694 million in cash dividends from the mining giant over the same period alone,” Gullas said.

Santos said for now, SSS is keeping its investments in Philex until further developments.

The Mines and Geosciences Bureau (MGB) will decide within the week on the request of Philex Mining Corp. to extend mining operations in its copper-gold mine in Padcal, Benguet.

According to MGB director Leo Jasareno, they are now evaluating Philex’s appeal for an extension of operations to raise the elevation of tailings in Padcal’s tailings storage facility No.3 (TSF3) and allow water to reach the mouth of the newly constructed open spillway.

“Within the week, we will come up with an official decision on the matter,” Jasareno told reporters in a teleconference.

The MGB chief said that based on the results of a recent technical conference, Philex needs at least two years to finish the beaching process.

 â€œOn Thursday, MGB personnel met with its counterparts from Philex during a technical conference to discuss the conduct of the ongoing beaching process in TSF3, and they have mentioned that it would take them at least two years to complete the process,” he said.– With Czeriza Valencia