Philex temporarily stops Padcal operation

MANILA, Philippines - Philex Mining Corp. has temporarily stopped the operations of it Padcal Mine in Benguet province to prevent further spillage from its tailings pond.

The firm said heavy rains brought by typhoons Ferdie and Gener resulted to an “unusual and heavy accumulation” of rainwater in the tailings pond.

In a press conference, Philex Mining chairman Manuel V. Pangilinan said the suspension of the operations in the Padcal copper-gold mine would entail losses of P30 million to P40 million per day.

The company would also not be able to make shipments by September. The last shipment that will be made by Philex will be on August 7.

The Padcal mine produces 150,000 tons of concentrate and 26,000 tons of ore.

“It’s unlikely that we will have anyshipment in September,” said Pangilinan. 

He said, however, that the primary concern of the company right now is to fix the minor leakage from the tailings pond. The leakage was caused by a breakage in the middle of the tailings pond causing waste water to spill to Balog and Agno River.

“Right now, we are not concerned about the lost revenues. We want to address the situation,” he said.

“We think the continous heavy rains must have added heavy weight to the tailings pond,” he said.

Pangilinan said the company is setting aside a fund for the rehabilitation of the tailings pond but no estimate has been made yet.

“We are setting aside a fund for the rehabilitation of the tailings pond but we don’t have an estimate yet,” he said.

Philex Mining can also tap a $50 million insurance facility.

Pangilinan said Philex had already informed its buyers and bankers of the situation.

He also also assured the public that the wastewater that leaked from the tailings pond is non-toxic because the the comonay uses biodegradable chemicals.

Mining and milling operations in the Padcal mine were stopped at around 12 midnight on Aug. 1 to assess the condition of the tailings pond and the surrounding areas.

The Mines and Geosciences (MGB) has issued a cease operation order to the mine until the integrity of the tailings pond is assured.

Philex said the mine would be closed to allow the full assessment of the tailings pond.

Initial inspection showed that water and sediment were being discharged from one of the two underground tunnels that drain water from the penstock in the tailings pond. 

“Philex is exerting its maximum effort to address the accidental discharge and has mobilized the requiste resources in this regard,” the company said.

Philex said it is coordinating with Benguet governor Nestor Fongwan as well as the municipal boards of Itogon and Tuba.

The company said it would issue regular updates on the matter.

For the meantime, Philex assured the public that the water and sediment from its tailings pond is non-toxic.

It said no injuries or deaths have so far been reported as a result of the incident.

Philex Mining was incorporated in country and is listed in the Philippine Stock Exchange in 1995.

The company as well as its subsidiaries, Philex Gold Philippines Inc. (PGPI) and Silangan Mindanao Exploration Co., Inc. (SMECI), are primarily engaged in large-scale exploration, development and utilization of mineral resources.

Philex Mining operates the Padcal Mine in Benguet.

PGPI operated the Bulawan mine in Negros Occidental until the second quarter of 2002.