Philex says Napocor seeking P6.42B
Philex Mining Corp. has received monetary and other demands from the state-owned National Power Corp. (NPC) in connection with the accidental discharge of tailings from the Padcal mine in Benguet province last year.
In a disclosure to the Philippine Stock Exchange, Philex Mining said Napocor has demanded payment of P6.42 billion and the removal of mine waste in its reservoir, opportunity loss payment of P6.3 million a year until the mine waste has been removed from the reservoir, compensation for damaged vegetation of more than P1 million and a penalty of P500,000.
Philex Mining said it could take the demand “seriously” and has requested Napocor to provide legal and factual basis for its demands.
The publicly listed mining firm also said that even if Napocor’s claims all had valid legal and factual basis, as Napocor’s claims consisted of two principal monetary claims that were alternative, and not cumulative, the company’s “ultimate liability in the event of non-payment of the P6,418,915,825 alleged cost of removing the tailings from the reservoir is the payment of P6,266,000 per year representing alleged opportunity cost, in addition to P1,040,345.75 and P500,000 being demanded for damaged vegetation and penalty, respectively.
“Accordingly, the company is of the opinion that [Napocor’s] claims are not material,” Philex Mining said.
A copy of the Napocor letter dated May 10 said that the failure of Philex Mining to comply with the demands within 15 days from receipt of the letter would compel the latter to initiate “appropriate measures” to protect the interests of the government.
Napocor said the tailings spill damaged the vegetation within the San Roque watershed reservation and deposited more than 13.5 million cubic meters of mine wastes into the reservoir of San Roque multipurpose facility (SRMFF). Napocor has complete jurisdiction, control and regulation over this facility.
“Please be informed that the 13.5 million cubic meters of mine wastes occupy significant space in the reservoir of the SRMFF that reduced the volume of water to be used for power generation,” Napocor wrote.
