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liSE Program Strategy for the Adoption ofEnvironmental Management Systems

By the Philippine Mining Sector

Investigation Results and Work Plan

Technical Report No. 00/3

July 2000

Submitted by:

Chemonics International, Inc.

Under Contract No. 492-C-00-98-00029-00Associated Number 492-0444

United States Agency for International Development

I'Ic/!<lng \"th Industry to Proteal The £r:vuonment

'iiiI July 24, 2000

Ms. Priscilla P. RubioCognizant Technical OfficerOffice of the Environmental ManagementU.S. Agency for International DevelopmentRamon Magsaysay Building1680 Roxas Boulevard, Malate 1004Manila, Philippines

Subject

Project

Dear Ms. Rubio:

lISE Program Strategy for the Adoption of EnvironmentalManagement Systems by the Philippines Mining Sector

Industrial Initiatives for a Sustainable Environment (lISE)Contract No. 492-C-OO-98-00029-00

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In accordance with the requirements of the subject contract, we are pleased to submit the"lISE Program Strategy for the Adoption of Environmental Management Systemsby the Philippines Mining Sector".

If you have any questions regarding this report, please do not hesitate to contact me.

()hJjJohn A. Dorr, Ph.D.

hief of Party

Enclosures

REPORT DISTRIBUTION LIST

...Funding Agency

.. US Agency for International Development

Government PartnersDepartment of Environment and Natural ResourcesDepartment ofTrade and Industry

Other IISE Intermediate Results Team Members **Academe (AEMC, UP; NEC, UP)Industry (CCCI; PCCl)NGO (PPDHRRA; GOLD PHIDDRA)

•• = notified of report availability; furnished upon request

••

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...lISE Program Strategy for the Adoption of Environmental

Management Systems by the Philippine Mining Sector

Investigation Results and Work Plan

Prepared by: ~EnviroNet Management Systems LLC,1530 N Key Blvd., Suite 822Arlington, VA 22209phone (703) 528-4583EnviroNet@compuserve.com

Under contract to: Chemonics International, Prime Contractor to the Industrial Initiativesfor a Sustainable Environment (lISE) Project, Philippines1133 20th St., NW, Suite 600Washington DC, 20036

Prepared for: United States Agency for International Development

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Prime Contract Number:Subcontract Number:

492-C-00-98-00029-00492-C-00-98-00029-EnviroNet-00

March, 2000

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Background and Acknowledgements

Chemonics International was awarded the Municipal Coastal Environmental Initiative,now called the Industrial Initiatives for a Sustainable Environment (lISE) contract by theUnited States Agency for International Development on 24 July 1998. lISE operates inthe Visayas and Mindanao regions of the Philippines, with national policy andinstitutional strengthening to be supported by Manila-based operations. The objective oflISE within 4 years is twofold: (I) implement environmental management systems(EMS) in 40h companies/organizations,2QO'of which will be certified to ISO 14001 oranother recognized international EMS (e.g., EMAS, BSI 7750 and others), and (2) reducepollution from industrial and other discharging facilities. To accomplish these objectives,the lISE team works closely with partners to create a self-sustaining, multi-stakeholderprogram that will encourage adoption of environmental management systems andapplication ofcleaner production technologies.

This report is based on observations made and information gathered by US and localconsultants during a three-week effort in October1November of 1999 to examine thepotential for assisting the mining industry. .... ' "

Dr. Maya Villaluz of the lISE project office served as local Senior EnvironmentalEngineer and technical coordinator ofactivities.

Mining Engineer Archimedes Reroma served as local mining expert, providing strategicassistance as well as background and technical advise throughout the activity.

The US contingent of the consulting team and authors of this report consisted of JamieSturgess, mining and environmental management expert, and Jan Mueller-Vollmer,pollution prevention engineer and industrial environmental management specialist, bothof EnviroNet MaIl9gement Systems.

The team would like to express its deepest thanks to the insights and openness of thefollowing individuals:

Nelia Halcon, Executive Vice President, Chamber of Mines of the PhilippinesHoracio Ramos, Director, Mines and Geosciences BureauMichael Cabalda, Chief Science Research Specialist, Mines and Geosciences Bureau

Finally, the team wishes to express its gratitude to the lISE support staff for itsdedication, professionalism, patience and good humor in receiving and assisting the USteam.

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TABLE OF CONTENTS

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1.0 Executive Summary .2.0 Report and Program Objectives .3.0 Opportunities to Assist the Mining Sector. .

3.1 Justifying Sector Selection ..3.2 Risks and Rewards .3.3 Leveraging USAIDIIISE Monies '" ..

3.3.1 In-kind Contribution by Industry .3.3.2 Capitalizing on Similarities in the Mining Sector. ..3.3.3 Use of Existing Pool ofIISE Consultants .3.3.4 Orouping of Participating Mining Companies into Clusters .

3.4 Partnering with the Chamber of Mines of the Philippines .3.5 IISE Responsiveness to Sector Demands .3.6 Absolute versus Representative Results .3.7 Risk Reduction .3.8 Links to Watershed Management. "7:" .

4.0 Technical, Social and Regulatory Issues .4.1 Key Players .4.2 Regulatory Framework .4.3 Social Pressures Affecting the Industry .4.4 Industry Attitudes and Awareness .4.5 Balancing Interests .4.6 Non-government Organizations (NOOs) .4.7 Setting a Precedent for IS014000 in the Mining Industry .4.8 Oeographical Distribution of Mine Sites... 13

5.0 IISE Strategy for Assisting the Mining Sector .6.0 Barriers to Implementation .7.0 Proposed IISEWork Plan for the Mining Sector .

7.1 Support to Mining Companies ..7.1.1 Unveil Opportunity to Chamber Member CEOs .

7.1.1.1 Develop and Sign MOA with Chamber .7.1.1.2 LetterlPhone Campaign Sponsored byChamber .7.1.1.3 OwnerlManager"Buy-in" Session -

(Manila) .7.1.1.4 Participating Companies Sign MOA with

ChamberIIISE '" " .7.1.1.5 Participating Companies Divided into 3

Clusters.......................................... 177.1.1.6 Participating Companies Select Champions... 18

7.1.2 Training in 1ER, EMS, and IER Execution/Completion ofIER... . . . . .. . . . . . .. . .. . 18

7.1.2.1 Develop Template and Deliver Training toChampions of Participating Companies. 18

7.1.2.2 Companies Complete IERs 18

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7.1.3 Adoption of Objectives and Policies, and Identification ofAspects and R2 Potential.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ...... 19

7.1.3. I Develop Template and DeliverTraining... 19

7.1.3.2 Companies Formulate Objectives and Policies,and Identify Aspects and R2 Potential. . . . . . 19

7.1.4 Developing and Implementing BMPs, Procedures andGeneral Systems... 19

7.1.4.1 Develop Template and Deliver Training toChampions of Participating Companies..... 19

7.1.4.2 Companies Develop and Implement BMPs,Procedures, General Systems................. 20

7.1.5 Final Audits - ISO 14000................................. 207.2 Support to Mines and Geosciences Bureau..................... ...... 21

7.2.2 Help develop/review Off-shore mining Implementing Rulesand Regulations (IRR)...... 21

7.2.3 DeveloplReview Occupational Health and Safety.Guidelines..................................................... 2I

7.2.4 Review National Minerals Policy.......................... 227.2.5 QAlQC Support for Laboratory Sampling and Analysis 22

7.3 Other Training Programs............ 22

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. Appendices

I.II.III.

IV.V.VI.

rISE Mining Work Plan Time TableRelated Press ClippingsMining companies that have signed agreements with the Mining andGeology Bureau to contribute to the Mining Rehabilitation Fund (MRF)Meetings AttendedRecord of ContactsChamber of Mines "Code of Conduct for the Environment"

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1.0 Executive Summary

This report proposes a Work Plan defining IISE initiatives aimed at supporting improvedenvironmental management within the Philippine mining sector through March 2001.Conclusions are based on observations made and information gathered by US and localconsultants during a three-week effort in OctoberlNovember of 1999 to examine thepotential for assisting the mining industry.

lISE support to the mining sector in the Philippines would capture an opportunity tofacilitate the adoption of an Environmental Management System at a minimum of25mining companies in the Philippines and would lead to a reduction in human risk of20%.Activities outlined in the Work Plan address technical needs associated with Activities 3and 4 under Intermediate Sub-Result l.1b of the IISE Annual Work Plan.

The impacts of mining activities in the Philippines have attained national attention asevidenced by the recent toxic discharges from the Atlas Mine into the Tanon Strait, highlevels of heavy-metals in fish tissues in nearby coastal areas, and elevated levels ofmercury in the Davao Gulf and in the blood of people living in gold mining/processingareas in Mindanao. Indications are that operating, suspended, and closed mines in thePhilippine archipelago pose a serious threat to human health, ecological viability, andeconomic stability of the nation.

Since most mining activities tend to occur at the headwaters of the watershed, health risksand ecological impacts can be felt at every stage downstream, extending all the way tocoastal zones. On many islands, available water resources are dwindling while waterquality deteriorates. Population density is frequently high on islands and humansettlements and activities can be found downstream of most mines in the country. Thisamplifies human and ecological risk in the face of poor or absent environmentalmanagement of mining operations.

Similar risks from this sector have been reduced in other countries through theimplementation ofenvironmental management systems (EMSs) by the responsibleparties. In the Philippines, the opportunity to implement EMS is currently enhancedbecause the mining community has recently developed a new environmental code.A program and corresponding Work Plan are proposed here to take advantage ofopportunities to support the mining industry in the adoption of systematic andpreventative approaches to environmental management, breaking the existing pattern ofreactive, disaster-based responses. The magnitude and nature of mining operations makereactive approaches to environmental management prohibitively expensive andtechnically infeasible.

As a package, the proposed program would lead to the EMS certification of25 miningcompanies and the 20% reduction in risk after one year of project assistance I. The

I The tenn "EMS certification" refers to either ISO 1400 I certification, liSE EMS certification, or otherinternationally recognized certification. liSE will strive to promote ISO 14001 as the preferred certificationvehicle for participating mining companies.

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program would leverage lISE resources to the greatest extent possible withoutcompromising these targets. Forms of leveraging proposed include in-kind contributionsby the mining industry and the grouping of participating mining companies into clustersfor the purpose of the EMS attainment process. In addition, the proposed program wouldhelp develop and enlist existing lISE-trained local consultants, using expatriateconsultants only where they are critical to project success.

Two principal areas of project assistance are proposed in the Work Plan: (i) support tothe mining industry, and (ii) support to the Mines and Geosciences Bureau (MGB) andtraining for other government agencies, NGOs, local government units (LGUs), andbanks. It is envisioned that 80% of the budget for this activity would be allocated to thefirst activity of supporting the mining industry directly to achieve in quantitative termslISE project objectives, while 15% of the budget would be allocated to assisting theMGB, and 5% would go for training of other groups.

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Report and Program Objectives2.0

A Memorandum of Agreement (MOA) with - and sponsorship by - the Chamber ofMines of the Philippines (CMPjis central to the lISE program of support to the miningindustry. CMP members will be invited jointly by the CMP and lISE to participate in theprogram leading to EMS certification. Selecting companies in this forum will helpensure access to top levels of company management while also providing additionalencouragement for companies to participate, as the activity is sanctioned by an entityfamiliar to and trusted by the industry. Furthermore, the CMP provides an opportunityfor mining companies to be guided through the EMS process as a group, leveraginglimited IISE resources. A timeline of the proposed Work Plan is supplied in Appendix I. '{Jr.. '.

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The purpose of this report is to define lISE initiatives aimed at supporting improvedenvironmental management within the Philippine mining sector for the year 2000 andbeyond.

The objectives of the proposed Work Plan are divided intoqualit~ti~~.and quantitative Vmeasures. In quantitative terms, the proposed program wouliftargefthe EMScertification of at least 25 mining companies and the 20% reduction in risk after one yearof project assistance.

While quantitative measures are important, the program is also designed to catalyze alasting change in the environmental management of mining operations in the Philippines.To accomplish this, the lISE program would seek to develop sufficient momentumthrough its assistance to industry, government agencies, NGOs, LGUs, and consultants,to bring about a permanent change in awareness and ethos regarding mining operations.It is this change in ethos that will ultimately help to improve industry performance, andsubsequently, public sentiment towards the industry. This will pave the path forinvestments in properly managed expansions or re-commissioned operations that arecrucial for addressing the existing environmental time bombs ticking on some of thesuspended or abandoned mine sites throughout the country.

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Activities outlined in the proposed Work Plan address technical needs associated withActivities 3 and 4 under Intermediate Sub-Result l.lb of the rISE Annual Work Plan.

3.0 Opportunities to Assist the Mining Sector

.... 3.1 Justifying Sector Selection

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USAIDIIISE support to any sector must meet at least two conditions: i) the need forsupport within that sector, and ii) the ability to affect change through the application ofUSAIDIIISE resources. Need alone cannot serve as a determinant of project support­results must also be demonstrable. The mining industry meets both of these criteria.

With respect to need, several factors specific to the nature of the industry or to the uniquegeography and historical context in the Philippines have produced one of the greatestenvironmental risks of any sector there.

1. Mining sites in the Philippines frequently pollute headwaters ofriver systems, threatening the water supply at every stagedownstream, into the coastal zone. Working with the miningindustry to reduce discharges constitutes true source reduction thatwill have multiple beneficial effects.

11. Mining in the Philippines involves the generation oftoxic metalsas by-products or principle products that have a tendency to persistin the environment, so-called conservative substances. Manyproducts and by-products from mining operations that are releasedto the environment are on the rrSE adopted list ofhigh priority

-. toxic substances (Toxic & Hazardous Waste Identified under DAO34/RP 28 and POPs and RA 6969, e.g. high acidity, chromium,cadmium, arsenic, mercury, cyanide, silver, lead, aluminum,copper, zinc, and sulfates). Again, preventive efforts directed atmining operations would have multiple beneficial effectsdownstream.

111. All three main phases of mining (development, operations, andclosure/abandonment) can have perpetual impacts on theenvironment and affected populations. Closed and abandonedmines can pose as much of a threat to human and ecologicalsystems as those still operating. Risk reduction will requireresources that, in many cases, can only come from reopening of themine sites ""ith appropriate management practices (i.e., EMSadoption).

iv. Single large and medium sized mining operations can havepolluting effects on a watershed that are orders ofmagnitude

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greater than from individual manufacturers in other industrialsectors, due to the immense scale and the inherent nature of miningpractices.

The second criterion is that an IISE sponsored initiative could expect to have an impact.There are several reasons to believe that IISE support would be both well placed and welltimed.

Adoption of an EMS with emphasis on investigation,prevention and/or mitigation of pollutant discharges is aproven tool to reduce discharge of harmful pollutants that israpidly being adopted by other sectors internationally.

ii. By supporting the mining sector, IISE would be able toinduce not only representative (or exemplary) change, butalso have an absolute impact within the duration of theproject. It is estimated thar25 medium and large miningoperations will have adopted an EMS and implementedimproved management practices after one year of IISEsupported assistance. IISE consultants obtained a list of 99mining companies that had signed agreements with theMining and Geology Bureau to contribute to the MinesRehabilitation Fund (MRF) (see Appendix III). According tointerviewed MGB officials this list includes most majormines in the Philippines that have the potential to havesignificant environmental impacts, since potential bigpolluters were under heavy pressure from the MGB to signon. Participation of 25/99 mines would constitute 25% of

'. major producing mines. After the first year, it is expectedthat some number of additional mines would also movetowards EMS adoptions as a result of momentum in theindustry induced by the IISE program and additionalencouragement by government agencies.

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iii. Leaders of the industry whom the IISE team met with at theCMP expressed a need and a strong interest in being part of ajointly sponsored (IISE and Chamber) program to moveChamber members towards EMS adoption andimplementation. The industry is missing a mechanism forthe objective evaluation and endorsement of environmentalmanagement at mining sites. As a result, it has becomeextremely difficult for mining companies planning newoperations or reopening of existing operations to win thesupport of organized community groups. Over 25 CMPmembers have already signed a newly established "Code of

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Risk and Rewards

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IV.

Conduct for the Environment". These 25 companies presentan ideal staring group to participate in the IISE program.

IISE would have the full support and cooperation of theMGB, further encouraging the mining industry to movetowards better environmental management. In addition, theIISE activities would leave the MGB a technically betterequipped organization to regulate and support the miningindustry.

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Against a standard ofguaranteed success through IISE assistance, no sector is withoutrisk, including the mining sector. Some of the main risks of working \vith this sectorinclude:

• Heavy social/public pressures facing the industry• Numerous high-profile cases involving environmental neglect by the

industry• Current sluggishness of the industry as a whole in the Philippines• Low level of awareness of environmental issues within and outside of the

industry

But these risks also provide the very reason for supplying assistance to the sector.Helping the industry to overcome its environmental problems would bring with itsubstantial rewards. The proposed Work Plan defines a program leading to the EMScertification of25 mining companies and a 20% risk reduction after one year ofprojectassistance. The program would leverage IISE resources to the greatest extent possiblewithout compromising project targets. Adoption of EMS by a significant number ofmining companies in the Philippines would serve to improve the general perception ofthe industry by local communities, NGOs, government agencies, and the internationalinvestment community. A more knowledgeable and tightly focused program on the partof industry and government in managing the environmental performance of mines wouldlead to greater stability. Greater stability would help encourage more investments,economic development, and wealth creation, with a more cleanly run and modernizedmining sector.

3.3 Leveraging USAIDIIISE Monies

Several mechanisms for leveraging USAIDIIISE resources have been built into the WorkPlan.

3.3.1 In-kind Contribution by Industry

It is proposed that in order to participate in the IISE program, mining companies mustagree to cover the expenses and salary of staffmembers who are sent to training sessions

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as well as those at the mining site who would be required to implement the environmentalmanagement system. In addition, the mining companies must bear all costs associatedwith implementation, such as performing teclmical studies on mitigation and preventionof polluting discharges. Finally, the mining companies will also be asked to pay all feesassociated with the certification process at the end of the program.

3.3.2 Capitalizing on Similarities in the Mining Sector

The inventory of issues faced in the adoption and implementation of an EMS in themining sector tends to be very similar across commodities mined for the medium andlarge-scale mines that would be targeted by the IISE program. This will allow manystages of training and technical assistance to be consolidated, reducing IISE investment ininternational and local consulting services.

3.3.3 Use of Existing Pool of Trained IISE Consultants

The program will enlist the existing IISE-trained local consultants, using expatriateconsultants only where they are critical to project success. Several IISE consultants whohave successfully graduated form IISE's IER, P2, and EMS training programs have abackground in mining and would make ideal candidates to support many of the activitiesin the proposed mining assistance program.

3.3.4 Grouping of Participating Mining Companies into Clusters

It is proposed that participating mining companies be grouped into geographical clustersof 8-1 0 companies each. This will allow for efficient use of IISE consulting and trainingresources.

3.4 Partnering with the Chamber of Mines of the Philippines

A proposed MOA with - and sponsorship by - the Chamber of Mines of the Philippines(CMP) is central to the IISE program of support to the mining industry. Chamberofficers and members whom the IISE team met with expressed a need and a stronginterest in being part of a jointly sponsored (IISE and Chamber) program to moveChamber members towards EMS adoption and implementation. CMP members would beinvited jointly by the CMP and IISE to participate in the program leading to EMScertification. Over 25 CMP members have already signed a newly established "Code ofConduct for the Environment" (see Appendix VI). These companies present an idealstaring group to participate in the IISE program. Selecting companies in this forum willhelp ensure access and support from top levels of company management while alsoproviding additional encouragement for companies to participate, as the activity issanctioned by an entity familiar to and trusted by the industry. Furthermore, the CMPprovides an opportunity for mining companies to be guided through the EMS process as agroup, leveraging limited IISE resources. It is expected that the number of participatingcompanies would increase further to 30 or more once the joint program is announced toChamber members.

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3.5 lISE Responsiveness to Sector Demands

Specifically, mining industry representatives that the lISE team met during its visit inOctoberlNovember, expressed frustration at their inability to re-open, or open newmining sites because of the poor environmental reputation of the industry in the eyes ofneighboring communities, NGOs, LGUs, and the Philippine public in general. Thissituation, in tum, prevents any new inflows of foreign capital desperately needed torevitalize the industry. Foreign investors are unwilling to take the risk of having theirplans for operation curtailed by the protests of various interest groups, or in havingunknown environmental liabilities surface after begin of operation. Ironically, from atechnical standpoint, converting abandoned mine sites back into operating mines is oftenthe best step that can be taken to thwart many ofthe environmental problems occurring asa result of inappropriate closures/abandonment and general lack ofenvironmentalmanagement. Industry representatives indicated that they clearly recognized how lISEsupport in adopting EMS could help break the current vicious cycle of poorenvironmental track records impeding the very investments that are needed to remedy thesituation. Some NGOs also supported any efforts to improve the awareness and technicalcapabilities of the various stakeholders in the country in the environmental aspects ofmine operations. A few NGOs, however, oppose all future mining in the Philippines,regardless of the circumstances.

3.6 Absolute vs. Representative Results

The mining sector is unique when compared to conventional manufacturing sectors inthat it lends itself well to a project such as lISE which has limited resources. Because thenumber oflarge and medium sized mines is relatively small, lISE could hope to havedirect interaction with a significant number of mines in the industry. Project results couldbe measured not onJy in representative terms, but in absolute terms. A brief estimatewould indicate that"somewhere between 25% and 50% of the large and medium problemmines in the Philippines could be directly influenced to improve environmentalperformance as a result ofIISE intervention2

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3.7 Risk Reduction

A primary target of the lISE project is to reduce risk caused by industrial pollution by20%. Again, the mining industry offers unique opportunities to achieve results of20%with a much smaller per facility investment in resources than might be required for someof the other manufacturing sectors. Also, the 20% reduction in risk will correspond to

2 lISE consultants obtained a list of99 mining companies that had signed agreements with the Mining andGeology Bureau to contribute to the Mines Rehabilitation Fund (MRF). According to interviewed MGBofficials this list includes most major mines in the Philippines that have the potential to have significantenvironmental impacts, since significant potential polluters were under heavy pressure from the MGB tosign on. Participation of25/99 mines would constitute 25% of major problem mines. Some number ofadditional mines would also move towards EMS adoptions as a result ofmomentum in the indusny inducedby the lISE program and additional encouragement by government agencies.

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much larger affected areas and populations than would usually be the case for mostindividual manufacturing plants.

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The lISE method for establishing the baseline and measuring progress is to "measure" thelevel of potential risk for each chemical appearing in any of a facility's waste streams.Two models are proposed for utilization. The first model, the Risk ReductionMeasurement Model (R2M2), would be used where the waste streams of the processcontain lISE-targeted chemicals. All processes would be investigated using the R2M2unless the waste streams in the process do not contain target chemicals or chemicalslikely to be added to the list of targeted compounds. Targeted chemicals include those onthe Philippines list of28 chemicals (RP 28) from RA 6969 and the Priority OrganicPollutants (POPs) list. Additional chemicals may be added to the target list later asneeded to expand the use of the risk reduction model. Chemicals on the RP 28 and POPlists and RA 6969 commonly found in mining operation waste in significant quantitiesinclude: high acidity, chromium, cadmium, arsenic, mercury, cyanide, silver, lead,aluminum, copper, zinc, and sulfates. Since environmental management of miningoperations in the Philippines is in its infancy for most mines, the baseline for many of themining operations that would receive lISE assistance would entail high potential forreduction. Achieving a 20% reduction in risk (as a result of reductions in discharges)from an operation that has had very limited emphasis on environmental management inthe past is therefore realistic and feasible.

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3.8 Links to Watershed Management

Key Players4.1

. Te~hni~al, Social, and RegUlat~~Y'IS~~S~--'----~-, ' ....1'~

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Since most mining activities tend to occur at the headwaters of the watershed, health risksand ecological impacts can be felt at every stage downstream, extending all the way tocoastal zones. Population density is high on most islands in the Philippines and humansettlements and activities can be found downstream of virtually every mine in thecountry. This ampJ.ifies human and ecological risk in the face of poor or absentenvironmental management of mining operations. Any initiative intended to improvewatershed management in the Philippines cannot escape addressing discharges stemmingfrom mining activities.

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The list of the main stakeholders with interest and/or influence on mining operations inthe Philippines includes mine owners, mine workers, the Chamber of Mines of thePhilippines, LGUs, NGOs, local and foreign investors, and government agencies (Bureauof Geology and Mines, Department of Health, and the DENR). Each of these entities hasbeen incorporated into various sections of this report or the Work Plan.

4.2 Regulatory Framework

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..While several agencies are responsible for some aspects of the mining sector, theDepartment of Environment and Natural Resources (DENR), and within it, the MOB arethe two main agencies regulating the Philippine mining sector. The DENR has aPollution Adjudication Board, which can be used to halt operations of a mine, however,the MOB still reserves the power to stop a mining operation independently ifit so \Vishes.According to the MOB, companies tend to be compliance oriented, if at all, and notconcerned with best management practices. At present, the MOB wants to move beyonda command and control system, preferring to support and encourage the cleandevelopment of the industry. The MOB also sees a need for socio-economic guidelinesto complement the existing environment regulations.

The basis for regulation of the mining industry in the Philippines (for mines that beganactivities after 1995) is the Philippine Mining Act of 1995. It allows 100% participationofforeign owned companies in exploration and mineral processing. Additional perksincluded 100% profit repatriation and exportation of extracted resources, investmentguarantees, and tax incentives for pollution control devices. By most accounts, theWlilippine Mining Law and its subsequent environmental regulations form a fairlymodem and complete regulatory tool - on paper. In practice, however, the regulatingagencies lack the resources and skills to be able to enforce the regulations adequately.While there was an initial flood of applications from foreign investors, fewer than 10 nowremain. This is due, in some part, to the volatility of the metals markets, but also in largepart to the difficulty in obtaining cooperation of local groups in opening miningoperations, even when all legal documentation and permits have been granted.

The EPEP (Environmental Protection and Enhancement Program) is the primarymechanism for the MOB to regulate mines on environmental performance. The mainregulatory tool of the EPEP is the Environmental Compliance Certificate (ECC), that allcompanies who began operations in 1982 or thereafter must obtain. MOB officials statethat many operations still operate without ECCs.

The MOB has recently started a new program called Contingent Liability Rehabilitation·Fund (CLRF). It serves as an umbrella fund for several environmentally related fundsintended to preserve and/or restore the environmental condition of mine sites. Theyinclude the Mining Rehabilitation Fund (MRF), Monitoring Trust Fund (MTF), andEnvironmental Ouarantee Fund (EOF). Under the new program, companies mustcontribute to the CLRF. The corresponding regulation stipulates that 10% of start capital(or 5 million Pesos) must be used for environmental protection and control. In addition,2% of annual revenue must be used for the environment. These funds only cover actualoperation of the mine. Any damages caused by the mining operation are to be paid forthrough the Mine Waste and Tailings Special Fund (MWTSF). The MRF Committeeapproves EPEP agreement applications and must also approve how the CLRF money isused. The MRF committee for a mine in a given region is composed of the regionalexecutive director of the DENR (first of two chairman), regional director of MOB(second of two chairman), LOU officials (members), the Church (member), and NOOs(members). DENR is responsible for checking the quality of the monitoring systembased on information in the ECC. If there is no ECC, a mine must have a certification of

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exemption and monitoring is then based on conditions attached to the permits to operate.lISE consultants obtained a list of 99 mining companies in all of the country that havesigned or are soon to sign agreements with the MGB to contribute to the MRF (AppendixIII).

4.3 Social Pressures Facing the Industry

The mining industry has become increasingly politicized in recent years due to thefriction between mine operators and local communities, usually represented through localgovernment units (LGUs). NGOs interviewed during this study complained of the poorenvironmental track record of the industry that has led to the heavy opposition todevelopment and re-opening of mining operations (see attached press clippings inAppendix II). According to sources interviewed at the MGB, 80% of mineral reserves inthe Philippines lie in indigenous peoples' areas. Mining companies interviewed duringthis study indicated that, in practice, local communities have the power to impededevelopment of mine sites even after all official government approvals and permits havebeen granted, briflging many developments to a standstill. This issue has resonated intointernational circles, causing overseas investors in the mining industry to shy away frominvestments in the Philippines.

The goal of the proposed lISE support would be to support environmentally responsiblebehavior through better practices on the part of the mining industry and other entitiesinterested in improving mining operation practices. The proposed lISE project wouldtake no political position regarding mine development, however, the highly chargednature of the subject would call for clear, objective, and open practices on the part ofIISEfocused on providing technical support to several parties including government, industry,and NGOs. The bulk of support, however, would be channeled directly to the industry.In particular, the issue of responsibility for environmental damages already caused bypast mining activiti~s due to improper practices during and after operations will no doubtbe central to any public discussions prevailing on the subject of mining into the nextseveral decades. The proposed lISE project would need to maintain an objective stanceas specific cases unfold. The fundamental assumption behind lISE work is that thePhilippines will be better off with improved awareness and skills pertaining to theadoption of environmental management systems in the mining industry.

4.4 Industry Attitudes and Awareness

From the interviews conducted with mining companies in Manila and during site visits,several themes emerged regarding industry attitudes and awareness. Most notably,awareness of social pressure resulting from public interest groups is high, but knowledgeof the technical and scientific aspects of environmental management and theconsequences of mining, are low. There are, however, signs of change from someoperations with overseas interests.

Clearly, many mine owners are anxious about the possibility of being held responsible forpast mining activities. The authors of this report expect that accountability for past

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activities will become an increasing important issue, given the already heightenedsensitivities of local and national groups towards the environmental impacts of themining industry. How the Philippine nation will come to terms with the potentiallyimmense environmental impacts that have resulted and wiIl continue to result from pastmining operations is not yet clear. On all sides, however, there will be need for technicaleducation pertaining to the causes and mechanisms of environmental impacts stemmingfrom the industry.

Leaders of the industry whom the lISE team met with at the Chamber of Mines expressedinterest and willingness to engage in proposed lISE activities including educationseminars and direct assistance to selected mine sites. The industry is missing amechanism for the objective evaluation and endorsement of environmental managementsystems at mining sites. As a result, it has become extremely difficult for miningcompanies planning new operations or reopening of existing operations to win thesupport of organized community groups. There is a great deal of distrust and lack ofawareness on all sides. A program such as that proposed by lISE could help make stridesin the direction of a fact-eased decision making process for the industry as a whole, byhelping to educate all involved parties and providing the basis for an objectiveinternationally recognized environmental certification system such as ISO 14000.

4.5 Balancing Interests

Bringing about improved environmental management within the mining sector in thePhilippines will require an infrastructure that includes not only the mining industry itself,but associated government agencies, NGOs, LGUs, and the financial sector. Each ofthese parties will be more effective if they are well informed and well educated in thefundamentals ofenvironmental management of mines. To this end, it is proposed thatIISE deliver a training seminar in the basics of environmental management of miningoperations to mem~ers ofthe parties listed above. The effort on the part of lISE, wouldcapitalize on the other on-going activities involving the mining sector by making use oflISE consultants (local and international) who are working with the sector. Theadditional preparation required by consultants to give such a topical course would only bea matter of days, while the impact would be far reaching, giving all involved parties a

... stronger foundation from which to act.

Both government agencies and the private sector have specifically requested assistance"" from lISE in the area of environmental management of mines. Since the interests of the

private sector and the government may not always be alike, lISE could be compromisingits ability to assist either the government or the private sector if it was seen as favoringeither party in the type of assistance and support it delivers. As a result, IISE shouldstrive to maintain the neutral role of technical advisor and educational resource to bothparties, being careful not to support either party in specific adversarial actions such as

... regulatory enforcement on the part of government or litigation defense on the part of theprivate sector...

11

)

lISE would respond to three specific requests made by the MGB for assistance; I) todevelop/review offshore mining IRR (Implementing Rules and Regulations), 2) tosupport the development/review occupational health and safety guidelines, and 3) toreview the National Minerals Policy. The additional resources needed for lISE torespond to the three specific requests made by the MGB are relatively small, since therequired tasks can be neatly coupled with the work lISE would already be doing tosupport industry. Support would consist oflocal and/or international expert guidancegiven on-site or from the US by the same mining consultants already supporting the otherlISE mining project activities proposed in the Work Plan.

4.6 NGOs

NGOs in the Philippines play an active role in helping to shape public sentiment withregards to the mining industry. The lISE consulting team was exposed to a spectrum ofopinions and needs in the NGO community with regards to mining. Some of the moreextreme groups oppose all mining activity in the Philippines, others want an end only tolarge scale mining, while still others calHor stricter regulation and enforcement ofenvironmental practices, greater regard for rights of indigenous peoples, and greaterdistribution of income in the towns and regions where mining takes place. Over 80% ofmineral reserves in the Philippines lie in indigenous peoples' lands. The NationalCommission for Indigenous Peoples (NCIP) was established to help consider the interestsof indigenous groups in the decision making process of government agencies, but NGOscomplain that the NCIP tends to side with industry and is therefore not impartial inadvocate the interests of affected communities. Although a complete investigation ofNGO opinions was beyond the scope of the mission, the lISE consulting team concludesfrom its meetings that there is also a need among NGOs for education and betterawareness in the technical and scientific aspects of environmental risks that miningoperations pose. This will help create an informed basis from which all parties canengage in a more ~aningful and productive debate.

4.7 Setting a Precedent for ISOl4000 in the Mining Industry

Although the number is increasing, so far ISO 14000 has been embraced by only ahandful of companies in the mining industry globally. A foremost reason for this hasbeen that mining companies are fundamentally different from typical manufacturingsectors in terms of processes and scale of operations, and they tend to view themselvesthat way. This makes mines less likely to be influenced by management trends and toolsembraced by other manufacturing sectors. For guidance in environmental management,mining companies have typically turned to national regulations and guidelines out ofnecessity for compliance, or they have developed their own corporate policies. Aspressure on mining companies grows, forcing greater accountability for theirenvironmental performance, the demand for internationally certifiable standards such asISOl4000 will increase. Particularly in the Philippines, where there is frequently conflictbetween the mining industry and the government and public, the need for an external,third party certification system is substantial.

12

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4.8 Geographical Distribution of Mine Sites

The Philippine MGB divides the country into 13 numbered regions plus the Caragaregion. Complete information on the distribution of all mines in these regions could notbe obtained in this first stage of the project. MGB officials advised the IISE consultingteam that each of the regions would need to be visited to obtain a complete profile ofmines in the country.

Detailed information was obtained for the Mindanao Province in an internal MGB reportentitled "Mining Industry Profile in Mindanao", which encompasses Regions IX, X, XI,XII, and XIII. IISE consultants were also able to obtain a list of 99 mining companies inall of the country that have already signed, or will soon sign, agreements with the MGBto contribute to the Mines Rehabilitation Fund (MRF) (see Appendix III). According tointerviewed MGB officials this list should include most major mines in the Philippinesthat have the potential to have significant environmental impacts, since significantpotential polluters were under heavy pressure from the MGB to sign on. A first priorityfor the IISE project should be to obtain additiotml information to be able to assemble acomplete profile of the mining sector. Budget cuts prevented IISE staff from completingthis work in January.

,. :---.',....... ",-

.' -',

--

13

-Number of Mining Companies by Region that have or will sign MOAs with MGB

I'li

I."

-..~0-::.._--........:....~--~-

... -_.-._---- _....- -- .

Source: MGB (see Appendix III)

Region Location of Region Number of companiesI Pangasinan, Llocos 7

Norte, La UnionII Nueva Viscava, Isabela 2III Bulacan 8IV Rizal, Batangas, 33

PalawanV Camarines Norte, 2

AlbavVI Negros Occidental, 6

IloiloVII Cebu, Negros Oriental, 16

BoholVIII Eastern Samar 2IX Zamboanga del Norte, 2

MindanaoX Misamis Oriental, 2

MindanaoXI Davao Oriental, 4

Compostela, MindanaoXII Kiwalan, Mindanao 3XIII Surigao del Norte, 8

Hinatuan Is., MindanaoCaraga Caraga Region 4Total 99-lISE Strategy for Assisting the Micing Sector "________ -. --:-~"J"~"--- ~.This report proposes a program To'takeadvantageOfOpportunities to support the mining

industry in the adoption of systematic and preventative approaches, breaking the existingreliance on reactive, disaster-based responses. The magnitude and nature of miningoperations makes reactive approaches to environmental management prohibitivelyexpensive and technically difficult.

-5.0

The aspects and impacts of mining activities in the Philippines have attained nationalattention as evidenced by the recent toxic discharge from the Atlas Mine into the TanonStrait and associated high levels of copper in fish tissues, and elevated levels of mercuryin the Davao Gulf and blood of children living in the area from gold mining/processing inMindanao. The activities and pollutant discharges from the mining sector poses seriousand high profile risk to the environmental and human health.

)

,-,

14

...Similar risks from this sector have been reduced in other countries through theimplementation of environmental management systems (EMSs) by the responsibleauthorities. In the Philippines, the opportunity to implement EMS is currently enhancedbecause the mining community is in the process of writing a new environmental code.

...

The work plan proposed in this report offers nSE a package leading to the EMScertificati<?n of 25 mining companies and the 20% risk reduction after one year of projectassistance'. The proposed program would leverage lISE resources to the greatest extentpossible without compromising the goal of certifying 25 companies and affecting 20%reduction in risk. Forms of leveraging proposed in the Work Plan include in-kindcontributions by the mining industry and capitalizing on similarities in the EMSattainment process that span various types and sized of operations within the miningsector. In addition, the proposed program would help develop and enlist existing nSE­trained local consultants, using expatriate consultants only where they are critical toproject success.

A strategy for improving the environmental performance of the mining~ctor in thePhilippines has been translated into the proposed work plan below. An MOA with - andsponsorship by - the Chamber of Mines of the Philippines (CMP) is central to the nSEprogram of support to the mining industry. CMP members will be invited jointly by theCMP and nSE to participate in the program leading to EMS certification. Selectingcompanies in this forum will help ensure access to top levels of company managementwhile also providing additional encouragement for companies to participate as theactivity is sanctioned by an entity familiar to and trusted by the industry. Furthermore,the CMP provides a forum allowing mining companies to be guided through the EMSprocess as a group, leveraging limited nSE resources.

6.0 Barriers to Implemen~t:-:a-:;ti-:-o-:-n-------::c:....,- ::'----

Basedon m~etings"tviththe~ ;ask of identifying companies willing to participatein the joint nSE/CMP program does not present a barrier. The primary barriers toimplementation are seen as lack ofcontinuous dedication on the part of participatingmining companies or abandonment of the goal partway through the project. Completing

iiiI an EMS from planning to implementation within one year requires full and totalcommitment by mine management. Lapses or suspensions ofparticipation in theprogram will dramatically decrease the chances of success for those companies. nSEwill also need to be able to show participating mining companies that it, too, is preparedand able to follow through on its commitment to supply assistance over the periodcovered in its MOA with the mines.

Further barriers could arise involving companies that may discover that significantinvestments are required just to investigate specific BMPs for their site(s). nSE will need

... to make an effort to identify and confront participating companies that may face this issue

3 The term "EMS certification" refers to either ISO 14001 certification, lISE EMS certification, or otherinternationally recognized certification. lISE will strive to promote [SO 14001 as the preferred certificationvehicle for participating mining companies.

15

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during the first stage of the project when MOAs are being signed. lISE internationalconsultants should be able to consult with potential participating companies on the costsof comparable investigations that have been conducted in the Philippines or elsewhere, sothat the companies will have at least a rough estimate of the costs that they arecommitting themselves to.

A final barrier worthy of mention concerns the potential for lISE to lose its credibility in ...the eyes of the mining industry if information from on-site assessments is leaked togovernment agencies, NGOs, or other groups and used against the industry in legalinitiatives or other campaigns. lISE must be able to demonstrate its neutrality and ..·-_ce .",,- -

security as a technical consultant to the industry and keeper of potentially sensitiveinformation. In general, the record of other USAID funded projects supplying directindustrial assistance in environmental management has been good, and there is no reason ...to believe that safeguards employed would not be effective in this case.

7.0 Proposed lISE Work Plan for the Mining Industry

)

Two principal areas of project assistance are proposed in the Work Plan: (i) support tothe private sector mining companies, and (ii) support to the MGB, and training for othergovernment agencies, NGOs, LGUs, and banks. It is envisioned that 80% of the budgetfor this activity would be allocated to the first activity of supporting the mining industrydirectly to achieve in quantitative terms lISE project objectives, 15% would be allocatedto assisting the MGB, and 5% would go for training of other groups.

A timeline of the proposed Work Plan is provided in Appendix r.

7.1 Support to Mining Companies

7.1. r Unveil opportunity to Chamber member CEOs

The purpose of this set of tasks is to capitalize on the existing group of25+ companieswithin in the Chamber of Mines who have already signed on to the Code of Conduct forthe Environment. Chamber officers and members with whom the lISE team metexpressed a need and an interest in joining a jointly sponsored (lISE and Chamber)program to move Chamber members towards EMS adoption and implementation. It isexpected that the number of participating companies would increase further to 30 or moreonce the joint program is announced to Chamber members. The steps outlined belowbegin with the signing of an MOA with the Chamber and end with participatingcompanies having been briefed, cornmitted to the program, organized, and selectedchampions from within their organizations to spearhead their program implementation.The lISE consulting team feels that the Chamber should be given full shared "ownership"of the program together with lISE to help in winning the confidence and participation ofits participating members. To avoid idle time and discontinuous commitments on the partof the participating mining companies, each training session and each visit to mining sitesby lISE consultants has been planned in such a way that the mining companies wilIalways have a set of tasks to perform in preparation for the next occasion where the

16

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company champion will have contact with the program (either at a training session orthrough visits by IISE consultants).

It is also proposed that the local MOB offices be invited to host and attend most of theactivities described below, provided that this is in agreement with the mining companies.Interviews with mining company managers on-site during the IISE visit in Novemberrevealed that relations between the MOB and mining companies is generally good andthat their participation should not present a barrier. MOB participation is an essentialcomponent for educating the government counterparts overseeing the mining industry'sactivities in the future, after the adoption of EMSs by the industry. Through itsparticipation, the MOB will emerge with a better understanding of the environmentalmanagement of the mines under its jurisdiction.

7.1.l.! Develop and Sign MOA with Chamber

Chamber officers have already met with IISE team and staff on three separate occasionsand have confirmed their interest to sign an MOA as soon as possible. The Chamber isawaiting a draft version of an MOA to review and comment on.

7.1.1.2 LetterlPhone Campaign Sponsored by Chamber

The Chamber would be responsible for contacting its members by mail and phone andintroducing them to the opportunity to join the IISE/Chamber program. IISEstaff/consultants would help the Chamber prepare materials describing the plannedprogram.

7.1.1.3 OwnerlManager "Buy-in" Session (Manila)

This would be the first face-to-face occasion for IISE and the Chamber to explain theobjectives and advantages for Chamber members ofjoining the program. IISEstaff/consultants would assist the Chamber in the preparation of the meeting (wnnenmaterials, visual aides, etc.) and in guiding the meeting.

7.1.1.4 Participating Companies Sign MOA with ChamberlIISE

At the close of the "buy-in" session, or shortly thereafter, Chamber members interested inparticipating in the program would be asked to sign an MOA outlining their obligationsto the project and IISE's contribution over the course of the program. This MOA wouldneed to be prepared by IISE staff/consultants and reviewed by the Chamber prior to the"buy-in" session.

7. I .1.5 Participating companies divided into 3 clusters based onlocation (8-10 per cluster)

Assuming participation ofapproximately 30 mining companies in the joint lISE/Chamberprogram, the group would be divided into three clusters of roughly 10 companies each.Clusters would be formed based on geographical proximity and distribution within MOB

17

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geographical regions. Division into clusters will leverage lISE resources to the greatestextent possible by minimizing the need for repetitive on-site training by lISE consultants.This system will also serve to promote greater sharing and cooperation among nearbymining companies with regards to environmental management, ultimately providing thebeginning of a lasting ethos of greater corporate responsibility.

7.1.1.6 Participating companies Select Champions (1-2 percompany)

After owner/management commitment has been achieved, the most important predictorof success for the adoption of an EMS will be the selection of dedicated and committedstaff that can champion the cause. Each participating company will be asked to appointat least one, but preferably two staff members who will be expected to interface with theprogram, participate in training sessions, and most importantly, execute the necessaryday-to-day steps to move toward the adoption and implementation of EMS.

7.1.2 Training in IER, EMS and IER Execution

7.1.2.1 Deliver training to champions of all participatingcompanies (general introduction to EMS process plusspecialized training on IER, Cebu, 3-5 days)

All of the champions nominated by each company attend a training workshop in Cebu,giving them a comprehensive overview of the EMS system as well as specialized trainingin conducting an IER. Since the extreme geographical distribution of mining sites in thePhilippines makes frequent visits by lISE consultants difficult, the product of the this firstvisit will be both a combination IER/gap analysis which will serve as the starting pointfor the EMS. The authors understand that the lISE IER and an EMS gap analysis aregenerally treated as":two separate entities. For this program, however, it is recommendedthat a fusion of the two be created to serve both purposes. A supplement to theconventional IER template currently used by lISE for other types of manufacturing wouldneed to be prepared by a mining specialist to cover those areas germane to mining thatare not in the existing IER and to raise it to the level of a full EMS gap analysis.

7.1.2.2 Companies Complete IERs

For this set of tasks, activities have been grouped by cluster. To leverage lISE resources,an international expert in environmental management of mining operations will conductthe IER/gap analysis at only one site per cluster (each cluster will have about 10companies). This international expert will be accompanied by one or two trained lISElocal consultants who have experience in the mining sector. There are several consultantsfitting this profile who have already been through the lISE IER, P2 and EMS trainingseries. The lISE local consultants will then visit the remaining sites in each cluster tosupport the IER/gap analysis. The designated company champion(s) at each site will beexpected to take the lead for completing the IER/gap analysis, while the lISE consultantwill offer technical guidance. All IER/gap analyses will be reviewed by lISE

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international consultants to ensure that the quality of the products is sufficient to form thestarting point for meeting IlSE standards and potentially ISO 14000 standards. Based oncomments from the international consultants, local rrSE local consultants will assist thosecompanies who require more work in completing a satisfactory IERfgap analysis.

7.1.3 Adoption of Objectives and Identification of Aspects and R2Potential

7.1.3.1 Develop Template and Deliver Training (Cebu, 3-5 days)

All of the champions nominated by each company attend a training workshop in Cebu;giving them the specific skills they will need to formulate objectives and policies,identifY aspects, and evaluating R2 potential. rrSE consultants will develop a generalizedtemplate for the mining industry to assist in formulating objectives and policies, andidentifYing aspects and R2 potential.

7.1.3.2 Companies Formulate Objectives and Policies, and IdentifYAspects and R2 Potential

To leverage rrSE resources, an international expert in environmental management ofmining operations will help develop objectives and policies and identifY aspects and R2potential at only one site per cluster. This international expert will be accompanied byone or two trained rrSE local consultants who have experience in the mining sector. TherrSE local consultants will then visit the remaining sites in each cluster to support thedevelopment of policies and objectives, and in the identification of aspects and R2potential. The designated company champion(s) at each site will be expected to take thelead for hislher company in writing policies and objectives and in identifYing aspects andR2 potential. All completed products resulting from this endeavor will be reviewed byrrSE international consultants to ensure that the quality of the products are consistentwith IISE standards and potentially ISO 14000 standards. Based on comments from theinternational consultants, local IISE local consultants will assist those companies whorequire more work in completing this first step.

7.1.4 Developing and Implementing BMPs, Procedures and GeneralSystems

7.1.4.1 Develop Template and Deliver Training to Champions ofParticipating Companies (Cebu, 3-5 days)

All of the champions nominated by each company attend a training workshop in Cebu,giving them the specific skills they will need to develop and implement BMPs,procedures, and general systems of the EMS. In preparation for this task, IISEconsultants will develop generalized template for identifYing and implementing BMPs,procedures, and general systems in the mining sector.

19

7.1.4.2 Companies Develop and Implement BMPs, Procedures,General Systems

This set of tasks forms the technical foundation for the development of an EMS. As aresult, international technical support is expected to be most critical and most extensiveduring this phase of EMS completion. In some cases, IISE may not be able to providesufficient technical support to investigate the details of a particular issue. In those cases,the participating mining company would be expected to hire its own technical consultingresources to complete the work towards EMS development. As in the previous tasks, aninternational expert in environmental management of mining operations will help developBMPs, procedures, and general systems at only one site per cluster. This internationalexpert will be accompanied by one or two trained USE local consultants who haveexperience in the mining sector. The USE local consultants will then visit the remainingsites in each cluster. The designated company champion(s) at each site will be expectedto take the lead for hislher company in preparing these documents. Based on experience,completing BMPs, procedures, and general systems requires several months, and dependson the resources requirect-and available by the facility. USE consultants will help jumpstart this process at each facility, but ultimately, completion of the documents will be theresponsibility ofeach company. All completed products resulting from this endeavorwill be reviewed by IISE international consultants to ensure that the quality of theproducts are consistent with IISE standards and potentially ISO 14000 standards. Basedon comments from the international consultants, local IISE consultants will assist thosecompanies who require more work in completing this first step.

Also in this phase, company champions will need to train their employees on the meaningand application of the EMS that they will be instituting. Under the guidance ofIISEconsultants, each company will be responsible for developing its own training program,although USE consultants will provide a model for companies to use as a starting point,as well as providin!i guidance during the seminar.

7.1.5 Final Audits - ISO 14000

For those mines that are pursuing ISO 14000 certification, USE will assist mines incontacting ISO 14000 certifying consultants with experience in the mining industry. IISEwill work with the Chamber of Mines to build incentives into the program forparticipating companies to meet requirements for IISE or ISO 14000 certification. Morelikely than not, interest in foreign investment and easy relationships with the PhilippinesGovertUnent agencies will be the principal reasons for participating companies to join theIISE/Chamber of Mines program. Another reason may also be improved relations withneighboring Gommunities. Numerous mining companies whom the IISE team met withhad expressed frustration at their inability to proceed with projects due to localcommunity opposition. ISO 14000 certification will provide both a mechanisms fordealing with local community interest groups and for attesting to a well constructed planfor managing environmental impacts.

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oil

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7.2 Support to Mines and Geosciences Bureau

lISE would respond to three specific requests made by the MGB for assistance; I) todevelop/review offshore mining IRR (Implementing Rules and Regulations), 2) tosupport the development/review occupational health and safety guidelines, and 3) toreview the National Minerals Policy. The additional resources needed for lISE torespond to the three specific requests made by the MGB are relatively small, since therequired tasks can be neatly coupled with the work lISE would already be doing tosupport industry. Support would consist of local and/or international expert guidancegiven on-site or from the US by the same mining consultants already supporting the otherlISE mining project activities proposed in the Work Plan.

7.2.1 Help DeveloplReview Off-shore Mining Implementing Rules andRegulations (IRR)

This activity would respond to a specific request made by the MGB to lISE to support thedevelopment of its Off-shore MiIring IRR. Support would consist of local and/orinternational expert guidance and review of draft MGB documentation in this area. Thistask would lend itself well to being performed on-site or from the US by the same miningconsultants already supporting the other lISE mining project activities proposed in theWork Plan, rather than warranting separate scopes ofwork.

lISE support would consist of 10 days of local and 10 days of international expertise inthe environmental regulation of offshore mining.

7.2.2 DeveloplReview Occupational Health and Safety Guidelines

This activity would respond to a specific request made by the MGB todevelopment/review of occupational health and safety guidelines pertaining to the miningindustry would consist of local and/or international expert guidance and review of draftMGB documentation in this area. This task would lend itself well to being performedon-site or from the US by the same mining consultants already supporting the other lISEmining project activities proposed in this Work Plan, rather than warranting separatescopes of work. lISE support would consist of 10 days of local and 10 days ofinternational expertise in the occupational health and safety within the mining industry.This task would also include a training seminar on the principal elements of theguidelines. The training would consist of a 2-3 day course in Cebu delivered by local andUS consultants already involved in other tasks of the project.

7.2.3 Review National Minerals Policy

This activity would respond to a specific request made by the MGB to review the newlydeveloped National Minerals Policy. It would consist oflocal and/or international expertguidance. This task would lend itself well to being performed on-site or from the US bythe same mining consultants already supporting the other lISE mining project activitiesproposed in the Work Plan, rather than warranting separate scopes of work. lISE support

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7.2.4 QA/QC Support for Laboratory Sampling and Analysis

MGB has requested support in upgrading its QAiQC program of its sampling andlaboratory analysis program. IISEis"C!fvelopinga separate program with EasternResearch Group to supply assistance in the area to several laboratories in the Philippines,possibly including laboratories used to sample water and soil samples from mining sites.The IISE mining effort would coordinate efforts with the laboratory QA/QC programwherever feasible and useful.

7.3 Other Training Programs

Bringing about improved environmental management within the mining sector in thePhilippines will require an infrastructure that includes not only the mining industry itself,but associated government agencies, NGOs, Loos, working groups (e.g. the Atlas MineWorking Group4), and the financial sector at the least. Each of these parties will be moreeffective if they are well informed and well educated in the fundamentals ofenvironmental management of mines. To this end, it is proposed that IISE deliver atraining seminar in the basics of environmental management ofmining operations to asmembers of the parties listed above. This need not be a costly, inflated effort on the partof IISE, but rather one that could capitalize on the other on-going activities involving themining sector by making use of IISE consultants (local and international) who areworking with the mining sector. The additional preparation required by consultants togive such a topical course would only be a matter of days, while the impact would be farreaching in terms of giving all involved parties a stronger foundation from which to act.

",

4 The Atlas Mine Working Group was fonned in October of 1999 to coordinate efforts of severalgovernment agencies concerned with the downstream environmental and health impacts ofsurface waterdischarges from the Atlas mine. Focus areas ofthe group included sampling and analysis strategy, meeting

.I human health objectives, mitigation efforts, and coordination with Atlas mine management.

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APPENDIX I

lISE Mining Work Plan Time Table

...

liSE MINING WORK PLAN TIME TABLE

ACTIVITY 200Q.2001A M J J A S o N OJ F M

1.0 Unveil opportunity to Chamber member CEOs1.1 Develop and sign MOA with Chamber ;11.2 Letter/phone campaign sponsored by Chamber "'-~~

?~1.3 Owner/manager ~buy-in" session (Manila)1.4 Participating companies sign MOA with ChamberlllSE ....~

~;'1.5 Participating companies divided into 3 clusters based on location (8-10 per duster) ~

1.6 Participating companies select Champions (1-2 per company) ~~

2.0 Deliver first round of training to champions of all participating companies (Cebu, 3-5 days) ..~(general introduction to EMS process plus specilized training on lER) f'~

3.0 Complete IERs at each participating company site3.1 Cluster 1

3.1.1 Conduct JERIgap analysis with inter. mentor and liSE consultants (1 per cluster)

f~ ~3.1.2 Conduct IERIgap analysis at remaining sites in each duster with liSE consultant3.2 Cluster 2

3.2.1 Conduct IERlgap analysis with inter. mentor and liSE consultants (1 per cluster) --~~

?3.2.2 Conduct IERlgap analysis at remaining sites in each cluster with liSE consultant ~ :7]

3.3 Cluster 33.3.1 Conduct IERlgap analysis with inter. mentor and liSE consultants (1 per cluster) ~

3.3.2 Conduct IERlgap analysis at remaining sites in each dusterv.ith liSE consultant ~~ 1-

4.0 Deliver second round of training to champions of participating companies (Cebu. 3.05 days)(Developing objectives and policy, identifying aspects and risk reduction potential) E5.0 Companies develop objective, policy, aspects and risk reduction potential5.1 Cluster 1

5.1.1 Identify obj's, policy, asp's and R2 potential with inter. mentor and liSE consultant (1 per cluster) .$~ 35.1.2 Identify obj's, aspects and R2 potential at remaining sites in cluster YitUlIISE consultant h

5.2 Cluster 2

~5.2.1 Identify obj's, policy, asp's and R2 potential with inter. mentor and liSE consultant (1 per cluster)

~5.2.2 Identify obi's, aspects and R2 potential at remaining sites in cluster with liSE consultant Ei5.3 Cluster 3

~5.3.1 Identify obi's, policy, asp's and R2 potential with inter. mentor and liSE consultant (1 per cluster)

I~5.3.2 Identify obi's, aspects and R2 potential at remaining sites in cluster wfth liSE consultant

6.0 Denver third round of training to champions of participating companies (Cebu, 3-5 days)

~(Developing and implementing BM~Ps, procedures, and general systems)

7.0 Develop and implement BMPs, procedures, general systems7.1 Cluster 1

~7.1.1 Develop BMPs, procedures, and general systems with inter. mentor and liSE consultant (1 per cluster)7.1.2 Develop BMPs, procedures, and general systems at remaining sites in cluster with liSE consultant ...., -7.1.2 Companies implement BMPs, procedures, and generat systems - :~

7.2 Cluster 27.21 Develop BMPs, procedures, and general systems with inter. mentor and liSE consultant (1 per cluster)7.2.2 Develop BMPs, procedures, and general systems at remaining sites in cluster with liSE consultant7.22 Companies implement BMPs, procedures, and general systems

7.3 Ouster 37.3.1 Develop BMPs, procedures, and general systems with inter. mentor and liSE consultant (1 per duster)7.3.2 Develop BMPs, procedures, and general systems at remaining sites in cluster with liSE consultant7.3.2 Companies implement BMPs, procedures, and general systems

~8.0 Audtt ·150 or liSE

8.1 Aualt preparation for ISO 14000 or liSE certfication8.2 Certification aud"rts

9.0 Support to MGB

~9.1 Develop/review off.-shore mining IRR (Implementing Rules and Regulations)9.2 Develop/review occupational health and safety guidelines9.3 Review National Minerals Poficy9.4 Support those liSE laboratory QAJQC upgrade activities pertaining sampfing of mine sites

10.0 Other training seminarse.a. for related aovernment aaencies NGOs LGUs wandna arouos. and the financiat sector) ,

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APPENDIX II

Related Press Clippings

- .... '. .

letter .CHAMBER OF MINES OF THE PHILIPPINES

"'VOLUME 11 NO.15 Jan.- Mar. 1999

...2.3.

...5.

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Gerard Brimo Chaiman of the Chamber of Mines of the Phi5ppines ~sses 1M !/"Jlf!:fiJi fnd:;s:ry ecce cf Conduct tor tileEnvironment during the ·,'.Aimng Philippines "99 Conference~ held at the Westinp~ P".aza_ ;.;so shawn from lett are MGSCirector Horacia Ramos. DENR Secretary Antonio Cerilles and Chamber~ Ar:e.m:O Cisinr..

Cerilles Signs SecondGeneration FTAA

vey semi-detailed geologic surveytmapping and detailed geologicmapping and geo-chemical surveyincluding subsurface investigationactivities such as diamond drillingand test pitting. The total budget forthe two- year exploration period isP 10 million.

The area applied for explo­ration is not in conflict with otherexisting mining rights and is outsideof mineral reseivation in Region 8.No existing ancestral domain orland claims have been filed in thearea. Cl

D ENR Secretary Antonio H. Cerillessigned during the last day of "Mining

Philippines '99" the FTAA application ofAsturias Chemical Industries, Inc., a 100%Filipino owned corporation registered withthe SEC. The company is headed by Anto­nio E. Buenaventura. The application wasfiled for the exploration, development andutilization of copper, gold and silver miner­als within an area of 28,279 hectares lo­cated in the municipalities of San Isidro,Tabango. Calubian and Villaba in Leyte.

The activities approved for two­year exploration period consist of surveyand data compilation of previous works inthe area; reconnaissance I regional sur-

Develop mineral resources following thegoals of sustainable development.Be environmentally responsible.Be socially committed and people-centered.Eliminate or minimize industrial risks andhazards through risk management.Be transparent when informing and educat­ing the pUblic.Practice continual improvement.Integrate rehabilitation and decommission­ing strategies in all projects.Utilize mineral resources for the people'swelfare.

. r'he Chamber of Mines adopted a Mineral Industryiii!. Code of Conduct for the Environment during thelast day of "Mining Philippines '99 Conference" held

the Westin Philippine Plaza Hotel last February1-12,1999.

"'" Gerard Brimo. Chairman of the Board of ther.hamber in reporting the proceedings of the two-day

>nference summarized the outcome as follows:The Philippines is indeed a mineral rich country

'IlLt considered largely unexplored.~. The mining industry is a prime example of country-

de development through employment: infrastruc­..,;~e development, local taxes and ancillary enter­l'rises while exports of mineral products have theootential to eventually match annual remittances~m overseas contract workers.

lit To achieve the industry's potential and given thescarcity of local funds for such a risky and capital',tensive undertaking, foreign capital is required un-

=r the Financial or Technical Assistance Agree­....ent. (FTAA).4. Likewise to achieve the industry's potential, theconstitutional challenge to the Mining••Act of 1995ld the FTAA pending in the Supreme Court must be

"",tisfactorily resolved as well as issues surrounding1lie Indigenous Peoples Rights Act (IPRA)). Mining can be undertaken in a sustainable man-

er.Iii As industry iniative and as indication ofmdustry's commitment to best Environmental Man­,gement practices, majority of the members of thehamber of Mines signed the Mineral Industry Code

'till Conduct for the Environment which contains thefollowing broad principles:

MOMONGAN. The DENR 7 director clari·fies that the ECC does not signal the pro­ponent to go ahead with the project's imple­mentation, saying it contains only condi·tions for the undertaking. tSUJI.STAR RlEJ

T~y. N~,2 "'9 ITOP STORI ES I8Sun.Star Daily

DOD't blame us for ill effect Iof projects,-10moDgaD says \He Clarifies ECC merely contains conditions for projects IANENVl'RONMENTAL in the implementation. He pointed ,.compliance certificate (BCe) Aside from looking into out that one ofis not a penni!, so DENR all the project's aspects- the ECe's condi- .should not be blamed for ac- from the. pre-construction tions is for·· the .cidents·related to the imple- stage to completion-the proponent to se­mentation of development consultant is supposed to cure pennits fromprojects, said DENR 7 Direc- identify its adverse effects other government .tor Augustus Momorigan. and how to address these. agencies.'He said. the ECC merely If something Wrong hap- A project is.contains conditions that are., pens, this may be the con- requiredanECCifdesigned to mitigate the· sultant's shortcoming, he it is in an environ­adverse effects of a project said. mentally criticalon the environment. But the Department of area (watersheds,The ECC conditions are Environment and Natural protected areas,based on the project's envi- Resources (DENR) is the sanctuaries). Otherronmental impact study one blamed for issuing the . projects that re­(EIS). The study is a requi- ECC, Momongan said. He quire an ECC in­site for the proponent to added that when something cludethose con­secure an ECC. . goes wrong, people say the sidered "environ:Usually, a proponent project should not have mentally critical,"hires a consultant to prepare been issued an ECe. such as golfcour­an EIS. The ECC merely contain ses, nuclear plants,Momongan said the con- conditions, it does not sig- power plants, ce­I sultant who prepared the EIS nal the proponent to go ment plants, min­should be held liable when ahead with the project's ing and quarryingtechnical matters go wrong implementation, he said. activities. LAP...

...

I. l I. ( [ I. I: I. I. Ii I. Ii I- I, I. E ( Ii (

'-

CLOSED. This silica mina in Ayungon, Negros Oriental wa's closed by the OENR because the firm.operating it lacked an ECC. ICONTRIBUTED FDTO)

., ·;.;V:;~~~~it;,:,,,. .

lIlenl of plant and animallilein Ayungon, following re­ports of massive deloresta­lion in the area.

Marisol dO. Pedregosa orCHeF said several ~ndcmic

animal species nrc found intlw lasl remaining forests orAyungon. The mine Ihreat­ens these species.

(jnodyicld also operutesa Hllll.'slolle lJuarry in I.azi,Siquijor pl'Ovincc,

(joodyield's limeslonetillany pn~jcct ill Siquijur wasalso cited Ill!" violating ils CIl­vimlllllClllnl COlllplialH:c cer­tiliealc,

The EM Il cile" Illree vio­latiolls: Ooodyicld lhilcd h.eSlahlish :l progressive re~

habililtltiun program; nomonitoring rcporl WilS sub­mitted; and groundwatersources at the mine site were

. _.. not monitored either, LAP

A SILICA mining projeel Aug. 6, said Goodyield Re­in Ayungon, Negros Orien- sources, owned by Josephtal has been ordered dosed K, Ln, violated Presidentialby the Environmental Man- Decree 1586, the Environ­agement Ilureau (EMil). menial Impact Statemenl

The EMil discovered Syslem l.aw.that lhe silica mine of 1\11 EMil reporl revealed(ioodyield Iksourccs Dc- lhat (ioooyicld is oJlerating.Vclopllll'ni 1111:. ill Ayungoll, oil one hlock covered by l.l

Ncgros (lriL'lIlal is ()'1l:nJl~ milling lease cOlllrm:1 isslleding. wilhoul ;11\ L'Hvironll1cn~ to l~dllardo T. Arroyo, <.l rcsi-1:11 cOl1lplianc.:c ccrtilkah: dellt or Ayungon.(FCC'). Olle block eonlaills 81

The pn~il.'ci j" considered In:clafcs. Arroyo's kasccllvimnlllclll:llly critical, said ClHllract covers lhrec blocksFMII Ilircclllr Peler An· or a lolallll' 243 hectares.(hOlly Ahay:!. (ioodyichl Nature cOllservationistsheglln opci'atinu the silic:1 ill Ncgms Oriental :Ind themillc hltl: lilSI YC:lr. Cchu Biodiversity COIll'icrvl\-

Fur npcr:lling witholll all tion Foundation (CIH:F)E('(', AhaYil illlposc:d :I lille ha\'c expressed concern ovel'uf Jl50,()()(1 alld ordered the mining activities inOoudyield to conduct an Ayullgoll.environmenl,,1 impact as- Field biologists in Silli·sesslllenl lor the project. man University in Dwnaguete

Ahaya, in an order dated city eonduetc(1 ~n ~~~,..~~-

~ ======= -------~---~ ~';:;';'-';" ,... --_ .._---- , ..~..- _----..,

~.

~ T""'---'~~~--- '., 't (~'-)svi"&--r--

.0..'

S-u '" r- f ..r- (~~,\:t Tu e- s: J":J ': f\J 0 \1, '2- I t (F'i 9

.Environment body closes minein Negros Or. for laek ofECC

-?.fJ

IUIIILIl WEDNESDAY, NOVEMBER 3. 199'.:.

1M

...

...

..," :·~';:~:~.~iit~~:~~~:~~~~.t~R.~p~"'" "';~'-SJ'S'ij f ' .......~.i;i;r'"'E,]:""":,·

•. ,o+,~~~~l~*_ft~~~j' INCOME-EARNER. Capitors finance committee says proceeds from sand and grand quarrying. for the South Reclamation Project will reach P3.5 million next year. f$UII..STAA flU:

Quarrying for SRPgood for Province

WEDNESDAY, I\!0VEMSEA 3 •...,.999

WITH the South Recla-mation Project (SRP) still

I halfWay to completion. the

I Provincial Government's 10-o cal finance commiltee

projects that Ihe Capitol will

Public will have sayon offshore mining,Momongan vows

...

.J

THE public will be con~

suited before any offshoremining activity.

Regional 0;"""",AuguslUs

Momongan of the Depart.ment of Environment andNalWal ResoUlCCS (DENR) 7said every offshore miningproject will be required anenvironmental compliancecertificate {ECC} and willneed the endorsement ofconcerned communities.

He said aU offshore min­ing projects. whether bygovernment or private enti­ties, will be coveted by theenvironmental impact as.sessment (EIA) system.

The EfA. under Presiden­tial Decree 1586, requiresproponents of"environmen_tally crilical projects" andthose in "environmentallycritical areas" to secure anECC.

The ElA system pro­vides for a "social accept­ability" compuncnt for allprojects. requiring appro\'al

of the undertaking by theconcerned community.

The need for public cOn­sultation before offshoremining was raised by someenvironmental groups alar­med by the issuance of Ex.ecutive Order 153 by Presi­dent Estrada.

Executive Order 153 au­thorizes the conduct of off­shore mining--extraction ofsand from the seabed-toprovide filling materials forgovernment reclamationprojects and similar under­takings by authorized privateentities.

Sources said environmen­lal groups and other con­cerned individuals will becoming up with a positionagainst the order.

Despite concerns raisedby environmental groupsand conservationists. the'DENR said ,offshore minhtgdoes not contradict their'programs on the protection .of~ne~~. LAP

conlinue reaping incomefrom the venture next year.

In its certified statementof income, the committeeestimated the proceeds fromsand and gravel quarrying 10

increase from P2 million in1998 to P3.5 million next }"e3f_

The Province's statementF; of income was attached to

the governor's proposed?udget.

Gov. Pablo Garcia said thecclamalion project has ere­_led a demand for sand andgravel. and will continue todo so.

"Besides, the businessconslruction boom, whichslowed down because oftbeAsian crisis, might perk upagain.... said Garcia.

Cebu Provincial Environ.ment and Nanual ResourcesOfficer Glen Baricuatro hassaid that the increased de­mand for filling materials forthe SRP led to a rise in thenumber of applications for

).. river. foreshore and moun­,-1 lain quarrying.

The number of small·scale miners applying forquarry pennits rose by 50percenl Ihis year.

The Province posted atotal income ofP639 millionin 1998, more ~ half ofwhich came from 13.Xes.

If the Provincial Boardapproves this year lite pro­posed gentt31 revision in thefair market value ofreal prop.erties. the committee alsoprojects an increased incomein real property taX from Pilmillion last year to PIS mil­lion next year.

The committee wiU alsodtaw up a straIcgy to effec·tively collect franchise taxesfrom companies such as Vecoand PLOT. t(\ get the Plo­million estimated maxne fromft:mchisc !a.'<es ne."l:t year.

.i APPENDIXID

Mining Companies that have Signed Agreements with the Mining andGeology Bureau to Contribute to the Mining Rehabilitation Fund

(MRF)

--

t I; I l Ii I[ II I; t I; t ii, i. i i. t I t. Il

M0A Dale

Si2ued

:\lOA

SlaWs

~OSM3\'9S

180.:.:911Aflr96

'.~

\\ith'ECC

2·U

loW

S27.3733 I pendingl16Ap&97

Arta lh:al I DateDate18Jul96

14M/lr9613Apr93

Shhic.Li,

'."..' ":~':i:":';': .'.

Or3\'w~!Poz./cIC.1 20N,w9784.00

with MPSA!ITAi\,'IO)'.

192.00129.69701

397.6759 I L,tlS~(cu;:.

Aru tba) I f\,liucraIsNo.

09J.97·VII

~OIl·9)·VII

047·96-XII

<

LO('lItionLugllit, Mis:amil Oncnl/ll/DllipUB/I, IliSsn City "x

x ILu.RlIit:Mlsamis Or.

Vll P;;;-dll-~~-N; II echu 7XI Nun. Cumposl,dll, CnmrU\ll~13 Vall.: ...

VII ITioa-aRilnoburan, Na'll, ecbu

Rell;inn

MDIOKANI),\ Of AG1U:I::M£i'iT ON ESTADLISIlMENT OF CLRJt

Proj~1 Name

G,,!d Mnl!. Pt(1i~et

LII &: PouolarIA QuilT)' Ptojcctl2·MMTPY Cement PI",ol Complu

C~lllelll ~Inrl!. PI)nt &. OIl3rr~' Ofl~u;illn

Quany E:w.p/lllsion ProjcctIRch/lb o(tl'.(l Exilling& Constt\lclion or a New Cemenl PllPt

Minim/. CmuPIlR~'

l. Alluos Cern.:nt Corp.

4. APC Groul', In.:,

2. Aro Ccmcnl ~orp..

VII Gin~tiIGn~l3lahu ...o.:. C~hu IOO·97·VII ~49.00 b"~t~. 190~~97

_.__ I i VII Ginlltil3n/f\bbhu\,o.:, C~bu IOI-97.VII 501.:U b"cl~. 29D~~97~\ I r---i I~. A'IIJri3S Ch~llli~allnllll~lri':J, In~. ~,9~MMTPY C~nl. Plant CO~llI.I~~ __ . IV B3h'lrrariha"'I,~IPunlaflluk:1\'. CaialaC3n, a313ne3~ 011-97-lV 2.336.80 b,"'Shiet~. 191ul97 50 2911,n9R •

VII cebu_ll!iJ#>;, ptJfA1/'t.--/f'TJJrJ!!; 038-96·VII 2,383.55 LSI 07f\13r96

---_.---.------_.-_.3. AtOo13': r.rin.:t31~ CClr'J'.

I

6. Beol/:uel COrti.1..BCIC~nsolidaled Minn, Inc.8. BmeoOlan C<lm<lnl Corp.

Benauet An'3mol;. Gold Operation I CAR IAn13mol;.. fioion. Benguet006·91·m 618.00 c, 27t..h...92?

27Jun90 019·98191 ("'l1hn99

9. B31<1 Met3b Minel'1ll R~s. Corp.

10. Climax A"meo Mining Corp.II. Conetcle ABBt~BIICICorp.

Lit &. Sh.l<I Quarrv Project IMubile Gold 9Pe'n1lions Ptoieel IDidipio Copper/Gold Ptoleel I

095·97·V

032·95·(V

289.9466

3I:QQQ.:..OO209.00

AuiA~ .;', "·1 20No...97

CJ/AU' ~ 20Jun94

Bai.il~oclC 29Dee9S(AR'lInll'IIU

4H761

19Jun98

IIAu i!99004·98041 19Au298 I

..Hb.~?.1L,.1.Q!4.9915

lot2,081.26 I067·97·VII

lIomonhon Is., G~i-uan, E3;IIC;-S~-~;~'-

Iij2J~~971 I 99 -, 03S·9916 JOApr99

091ul96 -/

~ ~.,,_,91 '

-- --- ---- 810 p~Il\Jinrl

08Mar93

III .. IMllietleLNon.8~tlIY~e~~_ ....__ . •. t_Q£i;~- ~H}~I~ -_~LltlSh _ l!~l:'2.! 390 ..Q.4IJee97 032·9913 O&lun99XIII TII.na'ln, lIlnllusn h., Sun'30 del NaRc CNC 009·9809 I3No.,,98

10"uJl91

VIII

25. IIinltu.n Minlna COIP'.24. iii C~mcnl COrti.

A"teaalCS quirt)' PtOj~etl IV 53n J",idtO, Az!Jono, Rbal OSS·96·fV 19.99 .d·o·· 230el96 19.00 19J3n961

AlllIrct'lcs ciu.rrv &. Crushinll Pro'eel . 21i-.'hr94 I I Ii2. Conlin;';i.i Opetatint Corp. Exp. 0' Ltl &. Silieeoul M.I. Qu.rt)' Op~tlltionl III Biel<l, Pina.~I;.,m3Iia.n, NOrZ4'arlY and OS6·96-111 362.33 Lst 23Oct96 pendingl IOn·9914 08Juo.99

• C~ment Pl.nt Exp.nsion Projeev Minuy.n, Sin JOI~ del Monte, Bul3e.n 220ee9S1IOu.m n. erallon I7No...93 I I I

I3":OI...ao Union C~ment Corp. Mile. Quemlnll Pto'eelS XI T"nffiotlDaw3o.. M.ti. Oa....o Ot. 079·97-XI 166.02 Sil/ete. 19No 97 end~ ILit &. Sh.re Quant Expansion Ptojeell XI M3h.y.a/Bun.w.nlS.n Itidro. Bunaw"n Oistriel, 080·97·XI 6S7.32 LSl/ete. 19No 97 0510.1.)'981 I3S00.nO Cement Pllnl BXp'Mion! Dav.o Cily. IIApr961 I ISh.le 41. LII Ou.rrv Proj~et •. ~_"...", 00•• 22Apr82 I

XI 113nll'. Bun"wao. Di'triel C.VIO City 0&2·97·XI 148.44 L,llele. 19No...97 I14. Eaale C~-;ent Corp. 2·MMTPY Cement PI.nt Complex wiLh Lit 1U Akle, Safi'iiiMonso, Bul.eln - _-' __e~. S,040 29Apr98 I

100lrrvin &. 30·MW Powet Plant :!~~ ~...!I!!_f~a!!}!i!!etal Resoun:es. loe. ( Nickel Mine &: F.eilities , XIII ""Ienei". CI<>di.o30. Oin,"" II•• Suri<>so del I'l. 078·97-XlII 697.05 CtINl/ele.'· '-I;;iN'~~97 229 \4:;;;-199 029·9910 181"'0.9916. FR C~m.:nl Corp. 3300·MTPD Kiln Line 'D' Expsnlicll;Ptojcell IV Oulumba13n, Ter~u, Riul 04Jun961 016·9816 090e~98

._ C~menl PIUII &. Lit &. sa OUIt'N Proleet _0__•• _ 131uo941.7, f~r ~sl_<;e~r;t!t. C:<;ltp, • VII Asturial. C~bu .. " ... ,__. 1-----:---:-:-- . ~~__ •.I~. FOl1ufK. _C:~mcnt Corp. . _ ,_.__ ....._, I-...JX:.- Mapulo,_!!,tI3n. Bal. o.&31 029·95-1V 321.00 L,IISh ~_ 29S~n9.sI~. Glob~1 C~Olent In~. 5ibonll' Ccmetll Plant Proicci V~I ~. Ccbu

n__ _, "_. ".~"._. ~_ _ nendinll

20. C;;oldlun Ce~ellt ~o,ryl. (2~~~ Curp.) A"M Ccm.:n! Plant.n'" OU3m" Pro'e~t I ~!\O, Pan8!.1j~.!!'-_. .__."".'_" _._~~_~!:L... 1.225.76 L'~~hJSil{~ ~5Ju~~!..I------~Q ... 29f,1~f)9

21. Goollround ChcmieQllndullrial Corp.1 Cement Pl.nt &: Qu.rry Op~rltions Proj~~1 V Psl~noa, C3m~Ii,.•nd QuibunebonllaniMlurato, _.98.V 1.061.9087 bllet~. _Scp911 08Apr98

1b~lonl: Rcsoll~e~, _I?<'!'. CO!}). • Guinob.tan. Alba\' _21. Orand C~mcnt Mnr,. COIp. C~mcnt Mnr" Planl Ellpanlion Proj~etJ VII Ssn Fernando. Cebu

~o.MW Bun\.:er Oil·Fired Puwcr Planll

_.___ ILt! Minin, 41. C!.m~I1!M'.Ir.t, Pr..ojW _~ _.n. Jf~lits~.: RCIOurccs &. Millin, Corp. lIunlOMlln Chlomil<l PtoJeetl

AI.m"" li...elihood Minlna PrOI_m!L_Ouany &. Ccment Plsnt Expanlion _rt~e~l

NI Sillea.. Oro Mo.,. &. Benen;i.tion ProJoet

"I:i§.l..llil!.'lU;l:'lMI'l!I1lS2lP~"'·' '<oJ _ ...... J~i.r-t!!I, .4'rcX:c1f1na(, ,. -_•• ~M.nIO.nIIS.• Oulll.n. £.Illcm SAmar ~._. :··:.'1P.I.2.?2:Xiij-I,~.ij~~QQJ"~·"A· ..Ni~-__:_=_r}8Q;l9.1

/ • 1.#- ~7.J .~I .~. 'P\ .. "

3/

II .. II ( [ I: l.- t I I, i. I .. t ( ( ( I- .."-

,i\IEl-.IORANDA OF AGREEMENT ON ESTt\BI.1SIIMENT OF CLRF m

\lith l\IP$AlFTA,\ (0) \\ilb ECC ;\10'" ;\10,\ D"lt

i\lInill Com 1l111\' rrniKC "'IUU~ Rl'tlloll tOCI1.fUll Nil. Aren bal i\ltutrals Dale Arealba) Dale Stntus Si"u/Xl

27. nllan COnll{\l~lll,lnCo III28. U~'und~i N~iro. CC(lttnl Corp.l Cement PI~nl. Quarrici. &:. Whur Fatili.its VII BonB:llonan. Dasay, NC'fos Or. OH·9.j·VII 16950 bllSh IIM3}"9.j '0 030,:.:97 003-9S03 OJAu,i98

Or. H\'undai nUHr\' &:. Dev. Co

29. lIi¥an C.:mcnl Corp. Shill,: Q1I3rr~' Proje.:11 XII SIll. FilominllOOWlilanlBun3\\'lln. lliilln Cil)' 10-4·93·XII 519.09 LsllSh 23Fcb9S 17S(pSllShalt Ouarr\' Pro·e.:1 I.jFcbSJ

JO. 1I0coi N,m,: ~lin;n. Co.! III Qu:my ElI:plorllion &: EXlrllction ProjMI I E,piriluJPinili/Nucvll Era/Bllillt, IIIXol Norte 068-97-1 1.2M.5077 Ln 06Jun97 1,28-1,5077 01..I,pr98fMllrbl~ Minin~ E.~n'orGlion Com, R~d,. LSI Crushint Pbnl &. Pi~r F:a~ilili~s 12!'.br98

]1. IIOllon-Suya.: Min~., In.:. Mil', d: Millin, M~lhlld. Espansion &. CAR S'4ngilo, !t080n. 911n,u~1 9H IIJun98 005-9805 21A.u1l911!'.lod~I'niulion Pro'e~1

32. Kromin~o. In.:. XIII Oi0421111s .. Surino d~1 NOI'': - 010·9810 13Nov98U. Lui 84)' R.:rour.:u Dll\'" 'nll. Ltt QU4rr)' Exp4n~ion Projelli/ VII Simnllnlon,. l.4zi/!'.I"'ri4, Siq,uijor OJO·95·VII ]92,00 L" 16Jun9S II..I,pr97 007·9807 IIS~p98

Lil Ollnrr\' 8:. Pi~r Proi~~l 130e.:95" H, Lll 4nlO Cf>nl. 1-1ininv C..." Pro.:enlliodifi.:atinn o( MnnkD\'nn fooliJl Plnnl CAR l~ anlo, Mlmk4\'an. Ben u~1 060e.:96 002·9802 '18Jun98

JS, Lllpnnlu Cons. foolinln¥ C.:J,/ Fllr Soulh £:aSI Gold Minin~ Projeci I CAR Pn.:o, foolnnl:a~'nn, B~nlud 001-90-CAR 9-18,969$ AufCu 191-131'90 27Dc~90

F"r Snulh Ensl Gold R~lourc~s. In~,

36, 1I0\'ds Rillhfield Indusllhl Co Cenlenl Pbnl Ex "nlion Project VII Dun o·lln. Dllnllo City Cebu

31. MCCI Co Linlellonll EXlrllclilln Pro eel XII Kiwllilln, Ilicolln City 105·98·:<11 26.79 L" 2JF~b98 26.79 07No\'96

- 38. Mllnilll 1-..linin, Corp. Cu FlotDlion Project/ XIII Pilletr. Suria:ao dlll Non~ 14AUJ981 011·9811 IJNo\'98Construction "r Ptol~ctillt Dike/ 26Mnr96 .,3000 MTPD "'liII Expllnlion ProjtCI/ [SApr951Au .1~1l0 luchinco Proi~cl l7Jun9J

" ]9. Mllfi.:llium Min;nll COLlI, S;~IlI;H' Min~ VI Cllbndi"'n IlnlMllnluc"ho.:. Si 111111. NClI:ros Q.::.:. 120·98·VI 2.673,00 Cu/Au/A lele. 17Jun98

-10. "'lindllfl30 POf1bnd C~ment Corp, 2.0 MMTPY C~m~nt Plllnl. QUlrry, 4:. \Vharr XII Ki.....lllnolK"lubih~nfT~luibo, lIi,lm City OJI-9S·XII 323,095] lli/Sh 26De~9S 16J,)n97 03::1·9919 ?Au199 •Prok.:t

.ii, Nuor RR C.:m.:nl COin. VII Guihulo2llolla libulad. N':'lrol Or. , 052-96·VII J.loo.12 LII/Sh 020,;196 .--12. NU.lh.:rn Cemt:nl COin. III 8:. Shlll~ OUllru'inlt Pro'eel I bb~vur. Silon. Pllntasinan 106·98·1 6]0.50 lil/Sh/el.:. 12~br98 15hn9J - 018-981·8 16D~,9S

4], Plldlic Ccm.:nICo., In~. E~p.nlion J.: PCo.:UI Conv.:uion Pl'Oj~~(/ XIII Qu~zonITrlnidadJM4pawn. SmilllO Cit)· 084.97-f lll !.062.]6 LsI/Sil/~I~. 20Nov97 1.062,J6 pendin:' 012·9812 13Nu...98:Silkn 8:. Lil Ouurv Prol~';1 08JuI96

.... 44. Philex Gold Phili incs. Ine, Bulll\\'lln 1-[11 • Pro·.:el VI Hinobun, He rOlo.:.:, 096·97·VI 2,268.00 A, 05De~97 IONo\9j 008·9808 210':198

~.s. Philex Gold Phili in~l. In.:. Sibullld Mn . Pro'al L'< Sibllilld/Dn ilanJRizlllinll. Zllmbonnu d~1 Nort~ 06]·97.['( ].515.00 AulAIL lOA 1'97 13hn97

~ 46. Philcx Minin. Corp. QUlIrr), Projc.:l1 , CAR Tuba/hoion, B~nillcl 17Jun981 020·9901 IShn99CILPlllnll i OJ ....ug9~!Quarry 0",_, °so, 8:. -C-/ I 2S....pr9~/f1'linin\! Prole':l I 09No...S7

47. Philippin~ "'lining S~" ill': I VII AI,;o\·. C~bu

48. PhilirlPint Sinl~r COrll, I VII Ollrdll·Hernllndez. Bohol ~.

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26F.:b99

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(02F.:b93) 1021·9902

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124·98·1V HAl "'llrbl.: 17Jun9S

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....__ - 1-San Rllfll.:J. Rodri,u.:z, RiZllI .

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rv Aotino!o. Rizal

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61. Tlldor "ti~;r~1 E~p[o,alion Corp M;-;~;Q~~rr)'l!1!__ _ . "JY_.. bi.!!!r1:1d. Anti"u.:

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(As.:nlio-Pi.~O". "nr.:.al.: Corp.) QU:lrr~in. 6:. CNlhin. Plant (E1<pan1ioo) Proj I IIV IsCNlhin. Pbnt! I

I----------~__ ._._._ _ (A.\!lrtlll~ Quanyin.l ~ Cnuhinlt Ptoj':":I) ~

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'.

APPENDIX IV

Meetings Attended

""

Meetings Attended

10/21Orientation meeting at hotel in ManilaPresent:

David Nelson, IISEMaya Villaluz, IISEArchie Romero, consultant to IISEJamie Sturgess, EnviroNetJan Mueller-Vollmer, EnviroNet

10/21Philippine Mines and Geosciences BureauPresent:

Michael Cabalda, Mines and Geosciences BureauHoracio Ramos, Director Mines and Geosciences BureauMayi'lillaluz, IISEArchie Romero, consultant to IISEJamie Sturgess, EnviroNetJan Mueller-Vollmer, EnviroNetDavid Nelson, IISE

10/22Philippine Mines and Geosciences BureauPresent:

Michael Cabalda, Mines and Geosciences BureauHoracio Ramos, Director Mines and Geosciences BureauWayne Badulis, ERA for mining, MGBMani Ban6l, Marine tailings disposal, MGBSeril Vistamo, Mine safety, MEGMaya Villaluz, IISEArchie Romero, consultant to IISEJamie Sturgess, EnviroNetJan Mueller-Vollmer, EnviroNet

10/22Chamber ofMines of the PhilippinesPresent:

Nelia Halcon, Executive Vice President, CMPArchimedes Reroma, consultant to IISEMaya Villaluz, IISEJan Mueller-Vollmer, EnviroNetJamie Sturgess, EnviroNet

10/24Internal Technical Meeting at IISE - Coordination ofactivities

)

Present:David Nelson, USEMaya Villaluz, nSEJan Mueller-Vollmer, EnviroNetJamie Sturgess, EnviroNetOther USE staff

10/25199Site visit to Philippine Mining Service Corporation (Dolomite Mining)Present:

Maya VillaluzArchimedes ReromaJan Mueller-VollmerJamie Sturgess

10/26/99Site visit to APO Cement Co.Present:

Maya Villaluz, USEArchimedes Reroma, consultant to USEJan Mueller-Vollmer, EnviroNetJamie Sturgess, EnviroNet

10/26/99At Coastal Resource Management Project Office - Atlas Mine Working GroupAttended by several from DENR, DOH, CRMP, and USE

10/27/99Site visit to Atlas MinePresent:

Art Marto - MetallurgistHilario A. Farcon, VP, 35 years with AtlasAdrigo Cal, geologist, 14 years with Atlas/HexagonArchibald Romero, consultant to USEMaya Villaluz, USEJamie Sturgess, EnviroNetJan Mueller-Vollmer, EnviroNet

10/28/99Merit Stinus-Remonde (NGO against mining)Present:Merit Stinus-RemondeDavid Nelson, USEMaya Villaluz, USEJan Mueller-Vollmer, EnviroNetJamie Sturgess, EnviroNet

-

""

10/28/99Mine Watch Philippines (NOG with 15 regional associations)Present:

Mr. Virgilio Reoma, National CoordinatorGlenn Fornes, Research, Information and Communication OfficerJan Mueller-Vollmer, EnviroNetJamie Sturgess, EnviroNetArchibald Reroma, consultant to IISE

10/29/99Chamber of Mines of the PhilippinesPresent:

Nelia HaIcon, Executive Vice President, CMPArchimedes Reroma, consultant to IISEDavid Nelson, IISEMaya Villaluz, IISEJan Mueller-Vollmer, EnviroNetJamie Sturgess, EnviroNet

10/29/99Mines and Geosciences Bureau Office, ManilaPresent: .

Michael Cabalda, Chief Science Research SpecialistArchimedes Reroma, consultant to IISEDavid Nelson, IISEMaya Villaluz, IISEJan Muellc::r-Vollmer, EnviroNetJamie Sturgess, EnviroNet

10/30/99Internal Technical Meeting with US consultants to IISE focusing on laboratories andsampling/testing QAlQC in the PhilippinesPresent:

Raymond Merrill, Eastern Research GroupJoan Bursey, Eastern Research GroupJan Mueller-Vollmer, EnviroNet

11/4/99Surigau (Region 13) Regional Office for Mines and Geosciences Bureau, SurigauPresent:

Josefino J. Bernalez, ChiefMining Environment and Safety DivisionArchimedes Romero, consultant to IISEJan Mueller-Vollmer, EnviroNet

11/5/99

)

Atlas Review Committee Meeting at IISE Office in MactanPresent:

Maria Victoria Rocania, DENR - Environmental Manage. and Protection ServiceTerisito Cazarita, Bifar - Regional Fisheries LabRuth Magno, Bifar - Regional Fisheries LabDavid Nelson, IISEDale Rice, Millennium Science EngineeringJan Mueller-Vollmer, EnviroNetMaya Villaluz, IISE

11/03-11/04Site visit to Krominco, Inc.Present:

Reynaldo Gaspe, Mine SuperintendentJovenal Relativo, Resident ManagerArchimedes Romero, consultant to IISEJan Mueller-Vollmer, EnviroNet

11/6Meeting at IISEPresent:

Stan Rogers, EMS consultant to IISEJan Mueller-Vollmer, EnviroNet

11/8Mines and Geosciences Bureau, ManilaPresent:

Rudolfo Velasco, Mines and Geosciences BureauJan Mueller-Vollmer, EnviroNet

'.

11/8Meeting at Krominco headquarters in ManilaPresent:

Jesus Vinco, President, Krominco Inc.Jan Mueller-Vollmer

-...

• APPENDIX V

Record of Contacts

I

Virgilio B. ReomaNational COordinator

14 Mabait Sl.. Teacher's VillageDiJiman. Q.c.Phone/fax: 925-7777

Email: Balllay-Mina ''0 phil.gn.apc.org

Mine Watch Philippines-Bantay .... Mina

Glenn M. ForbesResearch. Informalion and

Commullicalian Officer

G :K l.l.. 0 M l: N () 0, l: N ().

REYN,\ I./lO M. GASPE.lllm'SlIjJl'l'illl'·//f/t'1/I

i ,.",~,"ci~~~~i;i'-' •Iym...,"i~~~l/':'l:,cl'~Mr5Nbli"Jl' ,.:~~r ·Ifl;'l",t,pbi,;c>',,'··fl,~",".. ". f~iFiVe.':ii.nj1.~~;.'.\''f~'t~'~'I~'.N~.T'\':'''''';"'''''.' :,: I ' .... : ~,'J,o<MiJi;d" }"" b"'";""""" "'.'.' ..~i'\. ;..p .... "'.'~....~.'~J~., ",!'o' ,~~~t!ti'.~tfll}.J:.f fl ;;~1eJlFdX~'(';"';/ :/,:r;: .; ..:.. '...,'IP!U:~IIJlM\iii\ct''''''lrdP99." .',,'. ~2) 2!i46 ..(~"~i~)~~$~(~;';4~P~!'i~pl\~;:C~1.,0l>18-772S'fJs..."" ~..::;:. ,~:/,:;",::;\:.:,~:..'; >/' ....'. ,'; ;';' ::, .. :.-. -- --- . ..'.,~_.

.r------..- __ .. .. _

MINEWATCI{ PIIIUPINES ·BANTAY MINANo. J4 Mabait SI., Teachers VillageDiliman. Quezon City. Philippines

Telefar: (63·2) 925.7777Email:banlay.mina@Phil.gn.apc.org

L_ . .

21/19 He,ly Name Slrt'I":Mailolo, CeRllI CilV

'lir 23l.9~m /23'1.1,43'1

M/IIJna; Eno.itonmental and Safuty OMsion.mal1l ~~@quldwob.c:om.ph

.-...

rJ?sid'olfo £. 'Velasco, Jr.'. Mining Engl~r .

MICHAEL V. CABALDAWei ScIence Research ,Specialist

as MIning fllgineering. MS ElMronrnen:laJ Sden~

. ',\.~ of Envirol'\lf1efltand Nama!~«lS

MINES AND GEOSCIENC.ES BURfAU. MGB Canpound, North AvonUlt, DiilNn Qucuon City. Philippill(lS 1000

..:.,E .

----.---·-·---:-~~.~=_:_:~7.-=-~~

,S ~li' "SCi. .,is i......:Jtl"~CarSlla Region, RXIIII<rn.'l. SlIri(180 Cily

@ oW,·1058 / H'2~f.)2:."h

EIlf.1r. Pelel1rme B. r:emande;1-[J~lufist<1 "l.alaille"SF::CRllTAllY

Acldre1l9:c/o Surlilao Mlldlcal Cr'nl:el"

Km. '1, Surl11~o Cnyit' Jl26·1114

r.a. No. 16' 2 926454'ToW'D. 1 63 2 926-093'

it 163 +21926-55-451IJI/J163 +21926-09-35 Q). (631 0 916-86072.2

~~~

I'

Afa.. nepill1incnl of rmvirolunent and Natural Resources~. MIN~S AND GEOSCIENCES BUREAU~ NOrth Av:nu~ Dillman. Quezon CUy. Philippine., 1]00

_________1:

---_.---'---------=--........-,-----..:..

S.E.C. Reg. No C199600287

C I .ii ljj ~::> ~..

lil !I IIh~ln it H<l~ii~ 11 hhi!ll!~ i l ~1l!i:ijj!.!!~ ... l j

..._-.-- ---"...-----,~

.....- l!

i~I

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Archimedes E. Reroma(Mining Engineer)

OPERATIONS MANAGER

Ground floor CRM Building.

INK EscarJo Cor. Molave Streets.Lahug. Ccbu City. PhlUpplnes.

PHILIPPINES INC.

Phone: (63 32) 272 6528A Member of the Prop Link CorporaUon

.

.io~iii::.'O:.!:'C:'C:

;:!sJ:'t;I"''''.s~:t5:::ti'~~!

. J~I

...)G~

jj ljj g·::ai ::> •'t:!: :! ~ 15

; U Ii-"-0!~;.; J5:!=.s !I d.lIi !~ jI~a:::.1) f i'S~U Ii ~I';::/. f 1M l!ilfj!.!!~!t I

'ROJECT CONSULTANTS

)ROi

~..Hnl',\SOIlO(; '1",\,\10 \ \ I , ,.\1.\1,,\/1, ,'1,.\1. l'IIJI.II'J'I,\'I:S

n:I,S.:III'}l!JU, IIIUIII~I·IO~~. UH'MtJ,IIIJZ?87

1'\\'''JlJ~''}IIJ~

...::r

Ropubllc 01 tho PhilippinesOupertment of Environment

and Natural RosourcosMINES & GEOSCIENCES BUREAU

HORACIO C. RAMOSDirector

~ RepUblic 01 the Phllippinos&f~ O,partmonl 01 Envlronm.nl and Natural Roaourcos........."", MINESANDGEOSCIENCES8UREAU--e.a. Caraga Rogfonlll OUlce No, XIII

AULO C. ENSOMO, JR.ENGINEER IV

Ae.:ING MINERAL OPERATION OFFICER

~lillcSik:

I\IT. UJ-:NONI)O. 1.0IU:TOSPHI(;,\() I>EL NOItTE

Ih'~:

.\(',\11)(' I/'\I'I'\' \',\I.u:r (O,\IJlOlJ,"m_ 1.1 ''1'01''\,''\, nil ,EUe> Cl'I'r.('EIJI:

North A"".nu., OlllrNlnOU.lon CltV. Phlllppin..

71J

T'I. No, .2..a.....2/.2HI-20Fax (6:12) 020-11351 (632) 828·1544

(632) 821).8132

Km. 2 National HighwaySurigao Cily

~--~-_ .._- --- - ----. _.. -

)t.2v515(,Olllce Tel. No, Qfl.Q.iZ

ResIdence" 96952

,,-,..._._.'~--,_ .._~_.,,---~_.~ ..._-- _._----I. It I I. I tl E. - .. -. -. -, " -.

ROBERT GREGORYVice Presldent~M1neDevelopment

....., ,-. '----. ----.---11

~ PHILIPPINE MINING SERVICE COI{PORATIOi'<

PHILIPPINE MINING SERVICE CORP.

ANTONIO B. CASTILLO .1It.Asst. Dept. Manager - Operations

"~£tQ PHILIPPINE MINING SERVICE CORPORATION

ALCOY MINE OFFiCe'$1"9'10 Altoy.ClbuTIl rlo. 25)·1600F,. No 2S)"SOO

CEau LIAISON OffiCE:Ground Floor, Room ACapitol Centnlm Bldg.N. Eluno St., Cabu CityTel. No,. (032)255.2864

(03212530<2«FIX No. (032) 253·3293

TEL. NOS.: 019-1130; 810·01~1(54)

013·2988: 893·3278F/J\X. NO.: (632) 019.1125; 810.1130

CEBU LIAISON OFFICE:O,ou"d 1'100', Rm. AC~pllol Clnuum£JUlio SI.. C'bu Cll~

T,I. lio•. 253'4244'253·1311FuNO 2S)·nn

ENGR. SAMUEL O. TAGSIPSafely I MEPEO-Officer

HEAD OFFiCE:11 th FIr., AlUed Bank Cenlet87M Ayal. "'~tnue, Makatl CityTel•. (02)11SOU53

(02)81&.7221fill: (02) .10·2-'21

JOVENAL A. RELATIVOResident Manager

1\~(),"IIloi/{;(). liloi/L

FAIRVIEW VllI.I\GF.lAWA·AN, TALISAY, CEnuTEL, 296.2028CI:LFON 0918.4030529

2232 PASONO TAMO AVE., MAKATI CITY, 1'B1lIPPrNES'rCLS.: 8191130· 8\001SI TO 54 • 8132986·8132987

FAX (632) 8191125

MINE SITE,MT. REDONDO, tORETOSURIOAO DEL NOHTE

HEAD OFFICE:I1lh FI,..AtIIld D~nk Clnl..41H Ay~l~ A~.,,'"

M~bh.MillO U~nU~

Tor. NOI I1S27s)·n024Z1

G 1\l?(),"I~C()" I~C.

JESUS A. VINCaPRESIDENT

ALCOY MINE OFFiCE:Pugllo, Alcoy, CebuTelt. (032)2530&600

(032) UI-9137fu (032) 253·1500Cell 1091.) 1151355

2232 PASONG TAMO AVENUEMAKATI, METRO MANILAP~lILlPPINES

(Xl[?~~@

1---

.if)

----T l

-

CEBU LIAISON OffICE.Ground Floor. Room ACapitol Centrum Bldg.N. flurio St.. Cebu CityTel. NOl. (032) 255·2864

(032) 253-42.401fu No. (032)253-3293

Tol.phono '16321 63700460Local 270

Dlrocl Lin. : (6321 637-3073Facslmll. : 16321631-4876Cellular : 0916·9029476Beeper : 150-343632E-Mail: jOlomcjill@p0rlalinc.com

HEAD OFFICE11th FIr.. Allied 8anl\ Center67M Ayala Avtnue, Makall CityTell. (02) a1~2753

(02) 1'1-1221Flit (02)110.2421

SHIGEKIIKEDAVice· Pres./Res. Manager

......... 01fi0e: GtOU'ld RoOl' Smllh s.u Bulldi1g 2284 P.-ong Tamo Ex1en~n1221 MakatICit)'. PHIUPPINCS Tel. NO':(&32} 8923050 F-milo: (&32) 8187&ll8Cordon OMoe; 30 HidI_y. Turod Sb'HC, Cordon, laobelaTeI"'Gll No.: (078) 6827410 '(078) 082863'

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W·1903B West TowerPhll1pplne Stock Exchango CentreExchange Rood, Ortiga9 ControPo.lg City. PHILIPPINES

TVI Paci!i£ Group of_Companies

JOSE "Jojo" V. MEJIAVice PresidentPublic & Regulatory Aff81rsand General Counsel

TVI Pacific Gr()u()of CompaniesW-19038 West Tower Telephone: (6321 637-0450Philippine Stock Exchange Centro Local 200Exchange Road, Ortlgas Centro Direct line : (632) 637·0464Pllsig City, PWLlPPINES Direct Fox : (632) 637·3065

Facsimile ; (6321631·4876E-Mail: jrogors@portalinc.com

JOHN S. ROGERSCountry Manager

ALCOY MINE OFFiCEPugalo, Alcoy, CebuTels. (032)253-1600

(032) 413-9137fait (032) 253-1500

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AVELINO P. SUAREZSenior Vice·Presidenl

Operations

Dale A. Rice, P.E.Vice President

Tel: 61 (0) 352 614 687Fa.: 61 (0) 352 613 578Mohlle: 61 (0) 418 520 671

2283 Pasong Tamo Ext.. Makah, MM.Telephones: 8167161 To 72Mine: Sipa1ay. Ncgros Occidental

~MARICALUM~MINING

CORPORATION

MSE..,-_..__._--,

1364 Beverly Road. Sulle 302McLean. VA 22101Phone 703.734.1090 J. 'Fax 703.734.1093 <\..,- \ ( c.e?''1S e -a-mall mse@erols.com t!.,.VI;.." ..... ,..,,"~~.l.

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STAN RODGERSPrincipal Consultant

Millennium Science & Engineering, Inc.

AVTEQConsulting Services

Stan RodgersPrincipal Consultant

t::I,.,I:"":!),,f,SAFETY, HEALTH &ENVIRONMEN11U.

MANAGEMENTSER~CESINTERNATIONAL

P.O. Box 1718. Geelong.Victoria, 3220, Auslralla

vim,aHEMSI SON SHD

II, 1" Floa. Jln USJ 101lETlIiplln Tllangle, 41620SUBANG JAVA

iiitIWJJ13Z«110 V 7370146 alo1212000613 fN( (00311370144 o.MoI: q tr': h'hg m ,

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>iled J;FiWIJGld 006OtOl ><OS 'O'd

KERIN DONOVAN

J<l3euew PdIOJd/~5Iluaps JOluaS

'O'4d ',(aSJng '1 ueor

Raymond G. Merrill, Ph.D.Senior Program Manager

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'ERGEastern Research Group. Inc.

MANILA OFFICE:Phelp Dodge Annex BldgNo.2 Pianesl 51.. Mandaluyong CllyMetro Manila, PhilippinesT'I. No. (632) 635.23S7Fax No. (632) 633·3759

Alias Consolldaled Mining& Development Corporation

Tell,FIX: (632) 8971155

Mobile: 0917 528 9836

E·mall: kdonovanC!Jpwo~d.nil.ph

9267C DrrA SrREEI'SAN ANTONIO VILLAGE

MAKAT' CITY 1200PHIUPPINES

HILARIO A. FARCONVice President & Res. ManagerCebu Copper Operations

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..ACMDC Mineslte:Don Andres SorianoToledo City. Cabu. PhilippinesTol. Nos. (6332) 467·1406T,I./Fax Nos, (6332) 325·2215

P.O. Box 20101600 Perimeter Park

Morrisville. NC 27560-2010Phone: 919 468-7887

Fax: 919 46B·7801E-mail: rmerrill@erg.com

•._-----_ .. _-._-- .._---CHAMBER OF MINESOF THE PHILIPPINES

IENELlA C. HALCON

EXECUTIVE VICE PRESIDENT

Ccbu Qtf'lCO: Room213, KRC Bu~dlng. Subangdaku, Mandauo Clly, Cebu, PhlbpplnesTd,:(63321345-4623 •Toklloll: (6332) 345--4624

Cecil O. Corloncito I:tJi.Pmidmt .,..~

Aquauom Consultants, ble.Gloond Floor, OoY'llloprncnl Ac8dcmyoflhe Philippines (OAP)

&In Mlguol Avenuo. Paslg Cil)'. Melfo ManUa, Pt~lIppinol

Td.: (832) 6)1-6199 •Tolo/olx: (832) 636-60t4o-fMll: equogllm_on""'OCholrrwil

.------------ . ---.---_._-_._--

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promoting leadershipfor slistainablecoastal resource managemem

MICHAEL ROSSField Operations Managsr

-Rm. 204, Ortlgas BUilding, Ortlgas Ave., Pas'g CIIy, Phlllppinas 1605Phones: (632) 635-4123 to 24· 835-4159. Telerax: (632) 835-4160

E -mall Address: comp@vasla.com'" .".".-._-.---

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£.mail: mi~foll@mr)1(Om,(om I

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APPENDIX VI

Chamber of Mines "Code of Conduct for the Environment"

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THE PHILIPPINE MINERALS INDUSTRY'S

CODEOF

CONDUCT

FOR THE

ENVIRONMENT

yY~ CIIAMBEH 01' MINES OF TilE PIIILIPPINES

76---

This Code of Conduct for the Environment is the embodiment of majorsocial and environmental commitments which signatory industry mem­bers, such as exploration companies, operating mines or quarries, andmineral processing plants, will respect and pursue in all phases ofoperations. In brief, these commitments go beyond the statutoryrequirements and are two-pronged: environmental excellence andgreater openness and accountability to the pUblic.

Without doubt, a challenge has been posed for the minerals industryto be environmentally and socially responsible. With firm resolve, theindustry accepts the challenge. It is in this spirit that a Code ofConduct to guide signatory member companies in their environmentaland social affairs has been developed. The Code profits from theexperience of the industry members and the Inputs of govemment andnon-government organizations.

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Adopting a culture of continuous monitoring of impacts and review ofobjectives, policies, systems, technology, and procedures 10 suitchanging needs and expectations.

Maintaining a pro-active and sustained campaign to inform and edu­cate the community on the company's economic, environmental, andsocial performance and implementation of the Code.

2.6 Continual Improvement

Recognizjng the environmental impacts of all phases of operationsand committing, as a corporate priority, to the minimization or mitiga:tion of such impacts.

Integrating risk assessment and management in all aspects of opera­tions.

2.4 Risk Management

Adherence to a policy of openness, honesty, and equity with thecommunity with respect to the operations and their environmental andsocial impacts and consulting with the community to understand theirconcerns, aspirations, and values regarding development and theoperational impacts of mineral projects.

2.3 Social Responsibility

2.2 Environmental Responsibility

2.5 Information, Education, and Communication

2.1 Sustainable Development

Ensuring the supply of mineral products and the generation of weallhfrom minerals to enhance people's well-being in a manner which doesnot compromise the ability of the future generations to meet their ownneeds and integrating economic, environmental, and social considera­tions into decision-making and management.

Signatories to the Code are committed to the following:

~ . Ii. Ii. t I (2. MAJOR COMMITMENTS•Ii.••I

The Code is a framework of how the activities of signatory companies,from exploratibn and development to closure and rehabilitation, will beconducted, reported, and evaluated. The Code unifies the compa­nies' objectives, principles, systems, processes, and procedures inenvironmental management. This unification of the individual envi­ronmental management systems will allow an Industry-wide self­regulation.

The Code Is by no means rigid. It will continue to evolve in light ofchanges in the needs and expectations of the community, govern­ment, and Industry.

Now more than ever, the Philippine minerals industry is under publicscrutiny. Issues encompass environmental degradation, social in­equity, and displacement of communities including indigenous peo­ples. Concems are being raised notwithstanding the environment­and community-friendly management systems now permeatingthrough the entire industry.

The industry recognizes the new standards and expectations of soci­ety. Legally, these are contained in the Mining Act of 1995 and itsimplementing rules and regulations as well as the EnvironmentalImpact Assessment System. Socially and morally,tt\ese are ex­pressed in the criticisms aired in community meetings and otherforums inclUding the print and broadcast media.

I I ( I •to INTRODUCTION

3.1 Sustainable Development

3. ELABORATION OF COMMITMENTS

Ensuring that decommissioned sites are safe, stable, and brought to astate previously agreed upon with the stakeholders,

(I.IIItIIf

3.4 Risk Management

The environmental risks of the project or any business course of actionshould be recognized, assessed, and managed. Avenues for stake­holder participation must be provided. Signatories to this Code will:

1. Integrate risk assessment and management inlo every facet andstage of operations.

2. Develop and implement lines of defense against r.eleases oraccidents such as standard procedures for the proper operationand maintenance of equipment or process, containment mecha­nisms, control and mitigating systems during an accident, andemergency plans.

3. Educate employees and contractors on the risks and ways ofpreventing or managing them through the lines of defense.

1 Identify and develop social, economic, and cultural profiles of thestakeholders.

2 Determine the community concerns and implement plans, inciud­ing information programs, which will address such concerns takinginto account the social, economic, and cultural systems. .

3 Encourage a climate of openness, honesty, and partnership incompany-community interactions.

4 Consult with the community on operational matters which affecttheir health, safety, properties, and livelihood.

5 Anchor the employment and community development program onthe principle of equity between risks and benefits.

6 Implement development programs which seek to enable ratherthan render dependent the community.

The mineral-based operations impact on the social, economic, andcultural systems of the community. Such impacts should be recog­nized and the adverse impacts minimized or mitigated. Signatories tothe Code will:

3.3 Social Responsibility

5. Provide employee motivation and. ,incentive for environmentalperformance.

I,

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I1

..&I I I • & ~

Rehabilitation and Decommissioning

1, Support the search and development of minerals.

2. Promote the efficient and cleaner production of mineral goods.

3. Encourage its employees, contractors, other beneficiaries, and thecommunity to judiciously use the fruits of mineral development

4. Develop and monitor Indicators of sustainable development

3.2 Environmental Responsibility

Environmental responsibility emanates from management commit­ment, a sound environmental management system, well-trained em­ployees and contractors, and adequate time and resources for envi­ronmental management work. Signatories to this Code will:

1. Develop and implement an environmental policy consistent withthe Code.

2. Establish an environmental management system which defines,among others, the environmental impacts, objectives and targets,environmental management program, organizational structure andresponsibilities, emergency preparedness and response, andchecking and corrective action.

3. Strive for best practice in environmental management.

4. Implement a comprehensive training program in environmentalmanagement for employees and contractors.

Minerals serve society's needs, The wealth generat.~d from theproduction of minerals translates into taxes, foreign exchange earn­ings, livelihood, and community development The supply of mineralsand the generation of wealth must be sustained, These must impactpositively on the livelihood and welt-being of present and futuregenerations, Signatories to the Code will:

I2::T

iL iL " ~ I I [ ~ •must be treated as an integral part of all mineral projects. Signatoriesto the Code Will:

'iL iL IiIi,... c§i,:>uot Wit~ tne confmunity o'lhe out~utsof riS~ studies including''- the risk management plari.

3.5 Information, Education, and Communication

Mineral-based operations are technically complex. They are govemedby laws, rules, and regulations which are equally complex. To preventmisunderstanding or allay fears of the community, an information,education, and communication program is needed. Signatories to thisCode will:

1. Implement a pro-active and sustained campaign to inform andeducate the community on the environmental baselines; the na­ture of operations; the benefits, risks, and Impacts, and theenvironmental and risk management plan.

2. Immediately respond to social or environmental issues which maybe raised against the company.

3. Regularly report to all stakeholders the company's economic,environmental, and social performance.

3.6 Continual Improvement

Over time. technologies. processes, and practices change. The samedynamism applies to the standards, needs, and expectations of thecommunity and government. These changes require an organiza­tional culture of continual improvement. Signatories to the Code will:

1. Continuously monitor the environmental and social impacts andeffect required changes in policies, systems, technology, andprocedures.

2. Keep abreast with industrial, economic, and social developmentsand strive for best available technology or practice.

3. Undertake researches and studies on cleaner production, wasteminimization, allernates and substitution, and impact mitigation.

4. periodically review the environmental management system.

5. Provide stakeholder feedback mechanisms on environmental andsocial performance.

3.7 Rehabilitation and Decommissioning

Minerals are depleting assets. Rehabilitation and decommissioningyy

•

••

1. Incorporate plans for rehabilitation and decommissioning into theproject feasibilily study.

2. Minimize disturbance of landforms and ecosystems.

3. Develop rehabilitation plans and consult with the government andcommunity on the final land use, performance targets, and moni­toring requirements.

4. Implement a program of progressive rehabilitation.

5. Provide funds for rehabilitation taking inlo account the life ofoperations and the schedule of rehabilitatiJn.

6. Accelerate abandonment decisions to allow early rehabilitation ofdisturbed areas.

7. Regularly review the rehabilitation and decommissioning plans to 'incorporate changing government requirements, community ex­pectations, socia-economic trends, and rehabilitation technology.I

4. MECHANICS OF IMPLEMENTATION

4.1 Eligibility

Members of the Chamber of Mines of the Philippines engaged inexploration, mine or quarry operation, or mineral processing arequalified to become Code signatories. .

4.2 Registration

Companies which want to be governed by the Code shall notify theCode Secretariat in writing. Qualified companies will be added to thepublic register. Commitment to the Code as demonstrated by perfor­mance is necessary to maintain the registration,

4.3 Secretariat

The Chamber of Mines of the Philippines will provide tlle Secretariatfor the Code.

I[ E. I. II' I. II' II I' I. ; t I cI iii ~J i J ~ J i- I I. I ( I I. I I.. I""4.4 Environment Committee

The Environment Committee of the Chamber of Mines of the Philip­pines is responsible for monitoring and assessing the implementationof this Code. For this purpose, it will examine the annual reports ofCode signatories and provide feedback as warranted.

The Committee, at the request of a Code signatory, will assist in theresolution of any social or environmental issue. In carrying out thisfunction, it may conduct site investigations and touch base withgovernment and non-govemment organizations as necessary. Theconcerned signatory shall be guided by the findings and recommenda­tions of the Environment Committee.

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In pursuit of the objectives of the Code, the Committee shall dissemi­nate to Code signatories information on social and environmentalmatters as well as government rules and regulations. It shall encour­age the sharing of information on social and environmental practicesand experiences among Code signatories.

4.5 Reporting Requirements

Code signatories are required, at the end of each calendar year, tosubmit to the Environment Committee an annual report on compliancewith the major commitments of the Code. The annual report willcontain, among others, a profile of the operations, the social andenvironmental organizational set-up, social and environmental man­agement processes, environmental benchmarks, environmental per­formance, problems, and outstanding issues.

4.6 Code Review

Since continual improvement Is a major commitment, the Code willcontinue to evolve. The Environment Committee may recommendchanges or improvements for consideration by the signatory compa­nies or it may initiate a formal review of the Code by the signatories.

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