Philex gets $25-M insurance settlement for Padcal spill

Philex Mining Corporation on Monday received the $25-million insurance settlement from Chartis Philippines Insurance Inc. for the accidental tailings spill at its Padcal mine that leaked 20.6 million metric tons of the dam’s impounded sediments into nearby waterways and areas. "Further to our diclosure letter of Feb. 8, 2013, we would like to inform the Exchange that today, Feb. 12, 2013, the company has been credited for the amount of US$25 million in full payment of the amount agreed upon under the Settlement, and Policy Buy-Back Agreement entered into by the Company with Chartis Philippines Insurance, Inc. on Feb. 8, 2013," Philex president and COO Eulalio Austin, Jr. said in the company's disclosure to the Philippine Stock Exchange. Philex has said it will comply with the Feb. 19 deadline set by the Department of Environment and Natural Resources 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. The funds will be diverted to Philex's general fund for general corporate use pending this decision. Philex is petitioning the DENR's Mines and Geosciences Bureau for the temporary resumption of operations at Padcal Mine to allow the process of "beaching," or collecting millions of tons of solid tailings in the pond to fill it and push water away from the dam, increasing its stability in time for the rainy season. The process will take three to four months. The company said that the copper concentrate that would be produced would not be sold until the DENR lifts its suspension order on the mine. — BM, GMA News