Latest Stories

Philex vows to work with gov’t on Padcal

By ,

A miner monitors quarrying operations at Philex Mining’s old open pit mine in Benguet. Philex Mining Corp. promised to cooperate with the Mines and Geosciences Bureau of the Department of Environment and Natural Resources, which ordered the company to pay the P1.03-billion fine for tailings leak at its mining site in Benguet. PHOTO BY ELMER KRISTIAN DAUIGOY/INQUIRER NORTHERN LUZON

MANILA, Philippines—Gold and copper producer Philex Mining Corp. promised to cooperate with the Mines and Geosciences Bureau of the Department of Environment and Natural Resources, which ordered the company to pay the P1.03-billion fine for tailings leak at its mining site in Benguet.

The company, led by businessman Manuel V. Pangilinan, also said it would submit a work plan as the basis for using the fund.

“We will work closely with the MGB on this, as we welcome its decision that the amount to be paid would be used for remediation and rehabilitation of the affected areas,” said Michael Toledo, the mining company’s senior vice president.

On Tuesday, MGB acting director Leo Jasareno affirmed the bureau’s earlier decision ordering the Pangilinan-led mining company to pay the government P1.03 billion following the Aug. 1, 2012, accident.

“We maintained the earlier decision that the mining company was negligent and the August incident was not a case of force majeure,” Jasareno said in an interview.

According to Jasareno, the money would be made payable to MGB and remitted to the Mine Wastes and Tailings Reserve Fund.

The fund will then be used to compensate for the damages caused by the accident and for the rehabilitation of the affected areas as may be determined by MGB.

In earlier interviews, Philex said it had started a 26-week cleanup of the Balog creek near its Padcal mine. The company estimated the cleanup to cost P1 billion.

“The details of how the P1 billion will be spent, we still don’t know. But since October last year, we have spent money for the cleanup, hired foreign and local consultants and experts,” Toledo said.

Toledo said they still planned to reconcile the figures based on their work plan.

Philex Mining voluntarily suspended operations at its Padcal mine in Benguet last Aug. 1, when its Tailings Pond No. 3 in Itogon discharged sediment following back-to-back typhoons. The leaks brought sediments from the tailing ponds flowing into the Balog River, a tributary of the Agno River, which is connected to the San Roque Dam in Pangasinan.

Philex targets to complete the rehabilitation by April this year. “We have been very consistent with our position. We will not run away from our obligations,” Toledo said.

Pangilinan, who sits as Philex chairman, noted that they were now agreeable with the fine “provided that the funds [will be used] for the rehabilitation program, which we have submitted to the government last year.”

“As far as I am told, the penalty we’ll pay could be used to fund the rehabilitation cost of the Baloc Creek and the river, that’s my understanding,” Pangilinan said on the sidelines of the International Electric Research Exchange-Technological Issues and Solutions Asia Meeting 2013 yesterday.

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

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Benguet , Environmental Issues , fine , Mines and Geosciences Bureau , Mining and quarrying , Padcal mine , Philex Mining , Philippines , tailings leak

  • http://www.facebook.com/people/Charles-Lynel-F-Joven/685946584 Charles Lynel F. Joven

    shut up you guys at Philex Mining, you’ve already caused irreparable damage to the environment….I hope you guys can bring your billions to HELL…..

  • http://joboni96.myopenid.com/ joboni96

    singilin na yang penalty
    ni pangilinan

    tama na dada at
    sira na agno river

  • ofwme2807

    Mr MVP show you’re a responsible businessman by paying the fine imposed on Philex Mining…Akala ko matatalino kayong mga tao nagpapaniwala ka pa sa defense nyong force majeure na walang basis sino ba ang lead defense counsel nyo si Mike Toledo…It is only right that Philex pay the fines after gaining billions of profits from gold and copper resources of the Philippines..Its 2013 na and yet ang palusot nyo is no longer acceptable gaano na ba kayo katagal nakatira at ngcoconduct ng business sa Pinas at hanggang ngaun ignorante at mga tanga pa rin ang mga techincal people engineers included ng Philex Mining at mas lalo naman ang mga company lawyers nyo na hanggang ngaun ang alam na defense ay force majeure…After years of profiiting from Padcal Mines ngaun sasabbihin nyo hindi nyo kasalanan yan…Mga irresponsable lalo ka na dummy MVP na sinisipsip lahat ng pagkakitaan sa Pilipinas par sa amo mong si Salim…Greedy is simply not enough to describe you and your companies MVP…

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • Camilla’s brother dies of NYC head injury
  • Nepal officials go to Everest to try to end crisis
  • Escudero ready to defend self should name appear in Napoles’ list
  • Obama calls for peaceful end to island dispute
  • Russia not abiding by agreement on Ukraine—Obama
  • Sports

  • Promoters Dela Hoya, Arum in talks for Pacquiao-Alvarez—report
  • Benzema guides Madrid to 1-0 win over Bayern
  • Suns’ Goran Dragic win NBA’s Most Improved Player award
  • Heat go up 2-0, hold off Bobcats 101-97
  • Ronaldo shakes off injury fears to play Bayern
  • Lifestyle

  • Photos explore dynamics of youths’ sexual identity
  • 12th Philippine Food Expo set at the World Trade Center
  • No tourist draw, Malang the croc will remain wild
  • The best flavors of summer in one bite, and more
  • Homemade yogurt, bread blended with pizza, even ramen
  • Entertainment

  • Has Ai Ai fallen deeply with ‘sireno?’
  • Sony developing live-action Barbie comedy
  • California court won’t review Jackson doctor case
  • Return of ‘Ibong Adarna’
  • Practical Phytos plans his future
  • Business

  • Facebook profits triple as mobile soars
  • Insular Honors Sales Performers at Testimonial Rites
  • Apple increases stock buyback, will split stock
  • Cost-recovery provisions for affected gencos urged
  • This time, BIR goes after florists
  • Technology

  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Opinion

  • Editorial cartoon, April 24, 2014
  • Talking to Janet
  • Respite
  • Bucket list
  • JPII in 1981: walking a tightrope
  • Global Nation

  • PH-HK relations repaired, but families of victims still being courted
  • Filipinos in Middle East urged to get clearance before returning
  • PH seeks ‘clearer assurance’ from US
  • China and rivals sign naval pact to ease maritime tensions
  • What Went Before: Manila bus hostage crisis
  • Marketplace