Philex settles insurance claim on Padcal tailings spill

Listed Philex Mining Corp. has inked a $25-million settlement deal with Chartis Philippines Insurance. Inc, over the tailings spill incident at its Padcal copper-gold mine in Benguet last year. Pending collective agreement on where the insurance claim will be spent, company officials said settlement funds will be first funneled into the company's general fund for general corporate use. "Philex Mining Corporation has entered into a settlement, release and policy buy-back agreement with Chartis Philippines Insurance, Inc for the compromise settlement of the company's insurance claims under its Pollution Legal Liability Select Policy with Chartis," read the company's disclosure to the Philippine Stock Exchange. "The claims pertain to the discharge of tailings from the tailings storage Facility 3 of the company's Padcal mine that occurred commencing in August 2012." Under the agreement, Chartis shall pay the $25 million in full settlement with 15 days from the date of the agreement. "It [the funds] will be part of the company's general fund for general corporate purposes," Philex spokesman Mike Toledo said. Philex has said it will comply with the Feb. 19 deadline set by the Mines and Geosciences Bureau (MGB) for the payment of the P1.034 billion fine imposed for the spill, but will continue to discuss with the government how the amount will be used. Some of the 20 million metric tons of mine waste have collected in the dead storage of the San Roque Dam in Pangasinan. Philex also faces a P92.8-million fine imposed by the Pollution Adjudication Board (PAB) for the contamination of the Agno River and Balog Creek. Philex has obtained P2.1 billion in financial assistance from First Pacific to fund the ongoing cleanup and restoration of Balog Creek which leads to Agno River. The company has, likewise, asked the government permission if it can resume operations of its Padcal mine. Philex voluntarily shut its Padcal mine in Itogon, Benguet on Aug. 1, 2012, following leakage from its tailings pond due to unusually heavy rains brought about by typhoons Ferdie and Gener. — SOA/BM, GMA News