PAB Resolution IN THE MATTER OF WATER POLLUTION CONTROL AND ABATEMENT CASE DENR-PAB Case No. CAR-00836-12 - versus- PHILEX MINING CORPORATION, Respondent. FOR: Violation of R.A. 9275 and Its Implementing Rules and Regulations 25 February 2013

1. Republic of the Philippines
Department of Environment and Natural Resources
POLLUTION ADJUDICATION BOARD
DENR Compound, Visayas Avenue, Diliman, Quezon City
:
IN THE MATTER OF DENR-PAB Case No. CAR-00836-12
WATER POLLUTION CONTROL
AND ABATEMENT CASE
- versus-
FOR: Violation of R.A. 9275 and Its
Implementing Rules and Regulations
PHILEX MINING CORPORATION,
Respondent.
2(- - - - - - - - - - - - - - - - - - - - - - -1t
NOTICE OF ISSUANCE OF RESOLUTION/ORDER
Sir/Madam:
Please take notice that in its meeting of 25 FEBRUARY 2013, the Board
issued a resolution/ order in the above-entitled case, a copy of which is attached.
Quezon City, Metro Manila, Philippines.
07 MARCH 2013.
. LEONES
d Board Secretary
Copyfurnished:
The RegionalDirector The General Manager
EMB-CAR PHILEXMININGCORPORATION
DENRCompound, Gibraltar Padcal, Tuba, Benguet
Baguio City

2. ~--------------~~~----------------------------------------~~
ADJUDICATIO
PO BOARD
0
DE_~ Compound, Visayas Avenue, Diliman, Quezon City
THE MATTER OF DENR-PAB Case No. CAR-00836-12
ATER POLLUTION CONTROL
AND ABATEMENT CASE
- versus-
FOR: Violation of R.A. 9275 and Its
Implementing Rules and Regulations
PHILEX MINING CORPORATION,
Respondent.
x- - - - - - - - - - - - - - - - - - - - - - -x
ORDER
-----
For consideration before the Board IS the respondent's "Motion to Lift"
dated 20 February 2013.
Records of this case will reveal that the Board issued a Cease and Desist
Order (CDO)against respondent last 28 November 2012. The dispositive portion
of which reads as follows:
"WHEREFORE,after due deliberation and consultation, the
Board resolves to order respondent to Cease and Desist from
operating and using its Tailing Pond No.3. This order shall
remain in effect until the Tailings Pond No.3 shall have been
completely restored and its structural integrity ensured as
confirmed and certified by the Mines and Geo-Sciences
Bureau.
Xxx ... :
In said motion, respondent prays for the Lifting of the CDO issued last 28
November 2012 and submitting the following documents in support thereof:
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3. (1)Philex Padcal Mine TSF3 Rehabilitation & Clean-Up Plan;
(2)Certificate of Accreditation of Respondent's PCO Forester Rodolfo B.Sagud;
(3) Surety Bond; and
(4)Affidavit of undertaking executed by Engr. Libby R. Ricafort, the Vice
President and Resident Manager of Padcal Mine.
. Based on the documents submitted, the proposed Rehabilitation and
Clean-up plan includes the construction of the spillway which will replace the
penstock system, reconstruction of the offset dike and filling of the void created
b the tailings spill.
Respondent also prays that the CDO be temporarily lifted immediately
once the Mines and Geo-sciences Bureau (MGB)lifts its suspension order with
respect to the operations of Philex Padcal Mine without prejudice to its Motion
for Reconsideration dated 05 February 2013.
During the deliberation last 25 February 2013, the Board noted the need
and urgency to issue the TLO in favor of Philex Mining Corporation to allow it to
operate the TSF3 based on the findings of the Mining and Safety Division of
MGB and the testimony of the MGB Director, Leo L. Jasareno. According to
MGB, Philex Mining Co. must be allowed to operate to immediately fill the void
which was created due to the scouring of the sediments resulting from the
collapse of Penstock A, in order to prevent the weakening of the main dike which
holds. the mine tailings. The MGB, further stressed that in the event the main
dike collapses, it will cause irreparable and catastrophic damage the
environment and to the communities since an approximately one hundred forty
million (140,000,000) tons of mine tailings will be discharged by the TSF3.
Please note that the incident last 01 August 2012 wherein Penstock A collapsed
discharged only a total of 20,689,179.42 tons of tailings which already brought
considerable damage to Agno and Balog rivers.
PHILEX MINING CORPORATION, respondent. Page 2 of 4
DENR-PAB Case No.: CAR-00836-12
Add.: Padcal, Tuba, Benguet

4. The Board also finds the proposed action ,by Philex Mining Co. to fill the
void and the reconstruction of the offset dike technically plausible as supported
by MGBin order to protect the main dike. The Board, nonetheless, directs Philex
Mining Co. to fabricate another sphere as a precautionary measure which shall
be used in plugging the remaining functional penstock in case the same will
collapse similar to what happened last 01 August 2012 to penstock A.
WHEREFORE, after due deliberation and consultation, the Board resolves
to Temporarily Lift the issued Cease and Desist Order last 28 November 2013
to allow respondent to implement its Pollution Control Program by filling the void
with fresh tailings as well as reconstruction of the offset dike.
The temporary lifting shall only be effective for four (4) months which
shall be reckoned from receipt of this Order. Within the TLO period, the
respondent shall comply with the following:
1. Prior to the expiration of the TLO period, submit to the Board thru the
Regional Office a detailed report on the status of its compliance with the
commitments made and other directives of the Board;
2. Fabricate another sphere as a precautionary measure to be used In
plugging penstock B in case the same incident occurs; and
3. Prepare and submit to the Board a monthly self-monitoring report (SMR)
duly received by the Regional Office.
The Regional Office is also directed to conduct a bi-monthly monitoring in
coordination with MGB to verify respondent's progress in the rehabilitation of
TSF3.
The issuance or. this order shall be without prejudice to the fines
previously imposed by the Board against respondent, the discussion of which,
shall be covered by a separate Order.
PHILEX MINING CORPORATION, respondent.
DENR-PAB Case No.: CAR-00836-12
Add.: Padcal, Tuba, Benguet ~ ~'P~b'" ••• ~. ~n"'pp'" ••
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5. The Regional Office (EMB-CAR)or its duly authorized representative in
coordination with the Regional Executive Director is directed to serve this Order
within seventy-two (72) hours from receipt hereof. A report shall likewise be
submitted to the Board within forty-eight (48) hours from execution stating the
proceedings taken therein.
SO ORDERED.
Quezon City, Metro Manila, 25 February 2013.
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/ Bo d Member
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PROF. ONY S.F. CHIU
oa d Member
Attested by:
R.LEONES
e and Board Secretary
PHILEX MINING CORPORATION, respondent. Page 4 of 4
DENR-PAB Case No.: CAR-00836-12
Add.: Padcal Tuba Benguet