Philex mulling over options on Padcal mining resumption

Philex Mining Corp. is studying ways to restart operations at the Padcal copper-gold mine in Benguet, including reusing its existing tailings pond with a plugged drain and/or creating a new tailings dam, officials said.

The mining giant may reuse the existing tailings dam with a spillway constructed and one of its drains (which was breached on August 1 amid heavy rains) plugged, Philex vice president for operations and Padcal mine resident manager Libby Ricafort said Thursday in a briefing.

“The fastest that we can resume operations of the mine is to use tailings pond No. 3 (TP3),” said Ricafort.

The recommissioned TP3 can be used for three to four years, during which a new tailings pond may be built, he said.

Assuming that all remedial measures are completed early next year and the government allows operations to resume, the Padcal mine can again start operations within the second half of 2013.

However, Philex has yet to submit a proposal to the government and there is no definite target date for resumption, said Philex senior vice president for corporate affairs Michael Toledo.

Besides reviewing options for resumption, the Philippine miner is also grappling with penalties imposed by the government for violation of The Mining Act and environmental laws in relation to the tailings spill.

The Mines and Geosciences Bureau received on Wednesday the response of PMC on the P1.034 billion in penalties imposed for violation of the Mining Act for water and sediments spilled from TP3.

Jasareno has declined to comment on the letter pending its evaluation. Toledo, however, said that in the letter, Philex maintained that it should not be made to pay the fines because the incident was caused by force majeure.