DENR, MGB order Philex Mining to pay P1-B penalty for Padcal disaster in 45 days

By ROUCHELLE R. DINGLASAN, GMA News

Published November 22, 2012 2:58pm

(Updated 4:52 p.m.) Philex Mining Corp. must pay the penalty of P1.034 billion for the tailings pond disaster at its Padcal operations that dumped at least 20.6 million metric tons of mine waste into the environment, the Department of Environment and Natural Resources said Thursday. Only once the penalty has been settled can Philex Mining resume operations in Padcal, Environment Secretary Ramon Paje told reporters in a briefing Thursday. He said the order – in the form of Nov. 21, 2012 letter – was relayed to Philex Mining on Thursday, informing the miner that a DENR and Mines and Geosciences Bureau has come up with a joint resolution giving the company 45 days to settle the penalty. “We told them that we are denying their petition not to pay the penalty,” said Paje. “The state has determined the impact to the environment and there is value to it and the state should collect that. They have 45 days to comply upon receipt of the letter,” the Environment chief added. —

The Mines Bureau billed the Padcal mine spill as the “biggest mining disaster” in the country for spilling ten times the volume of mine waste during the Marcopper incident in 1996.

Philex Mining to appeal directive

Michael Toledo, Philex Mining senior vice-president for corporate affairs, told GMA News Online the company will ask the DENR secretary take back its latest directive.

“We will file an appeal against the decision of DENR and MGB. We will exhaust all administrative remedies provided for by law,” said Toledo.

However, Mines Bureau director Leo Jasareno told GMA News Online in a separate interview that the government will stand firm on the decision.

“Under the law, there are remedies available for them to appeal. They may appeal over the DENR secretary, Office of the President and the courts.”

Philex Mining is continuing efforts to clean up spill. “We are committed to the clean up. We have allocated close to P1 billion for the clean up operations,” said Toledo, noting that they hope to finish the clean up by the second quarter of 2013.

The mine spill started at the height of enhanced monsoon rains in early August that broke the tailings pond used in the Padcal mining operations, a situation used by Philex Mining in arguing that it should not be held accountable for the disaster that was caused by nature.

In the letter to Philex Mining, the Mines Bureau noted that typhoons and monsoons are indeed “Acts of God,” but that these are the usual weather characteristics expected in the Philippines being situated in a tropical zone.

“Philex can be ignorant of the aforesaid weather phenomena and of climate change. The Philippines is now facing a new normal in weather and climatic disturbances. This has become public knowledge and therefore, Philex should have already prepared the appropriate contingency measures,” the letter read. — VS, GMA News

Tags: mining, companies, philex, padcal