Philex Mining says new waste pond to replace damaged, leaky one

A Philippine miner plans to build a new waste pond as replacement for the one damaged by heavy rains about two months ago in Padcal, Benguet.   “We may have to build a news tailings pond if it is indeed proven that the first tailings pond is really a goner,” Philex spokesperson Mike Toledo told GMA News Online Monday.   “If it entails a new tailings pond, so be it. We will build a new tailings pond,” he added.   In a disclosure to the Philippine Stock Exchange, Philex on Monday said “the company has decided that new tailings ponds for Padcal have to be built as long-term replacement for the current tailings pond.”   Philex Mining suspended operations at its Padcal Mine after heavy rains from Tropical Depression Ferdie and Typhoon Gener flooded an underground tunnel last August.   Because of the threat against the environment posed by the leak, the Department of Environment and Natural Resources (DENR) announced that Philex may pay as much as P975 million for damages according to the penalties under the Mining Act and an additional P8.4 million for pollution based on the Clean Water Act.   Toledo said they would spend over P300 million for the new waste pond, which would be built “within the tenement area.”   The miner intends to build the new waste pond “as soon as possible. We wanted to operate as soon as we can,” Toledo said, noting that Philex has been experiencing P30 million to P40 million a day in production losses after the Bureau of Mines – a DENR agency – ordered the miner to halt operations at Padcal mine.   Philex Mining said it is now building a spillway to drain water from the waste pond cementing the leaking pond’s tunnel to arrest the leakage.   “The mine is also in the process of diverting some of the run off from the mountains to reduce the flow of water going into the (tailings pond),” the                                                miner added in its disclosure.   Because of the situation in Padcal, “which will (likely) continue up to the end of the year,” the company revised its net income estimates for 2012 to P1.7 billion from the P4.8 billion.   “The revised budget is before any significant costs and expenses, related to the repair of the tailings pond and cleaning up of the tailings leakage, and any fines and penalties that may be lawfully imposed upon the Company…” the miner noted. — VS, GMA News