Philippine gold miner says shutdown to hit profit

Manny V. Pangilinan. FILE PHOTO

MANILA, Philippines — The Philippines’ largest gold and copper producer says its full-year earnings will drop as its mine in northern Benguet province remains shut after waste leaked from a storage pond.

Philex Mining Corp. said Thursday operations at its Padcal mine will remain suspended for some time, until the safety and integrity of its tailing pond is assured.

The company says each month of suspension will cost 220 million pesos ($5.3 million).

Mine operations were suspended on August 1 and the leak was plugged within 48 hours.

Insurance would mitigate losses but Philex Chairman Manuel Pangilinan says full-year earnings would be “materially impacted.”

Philex’ made a net profit of 2.11 billion pesos ($50.6 million) in the first half of the year. Net profit for 2011 was 5.57 billion pesos ($133.6 million).