Gov't allows Australia's Lafayette to reopen mine
First posted 03:46pm (Mla time) June 13, 2006
By Cecille Yap, Blanche Rivera
Xinhua Financial News Service, Inquirer
http://news.inq7.net/archive_article/index.php?ver=1&index=1&story_id=4726
(2ND UPDATE) THE GOVERNMENT has allowed Australia's Lafayette Mining Ltd. to reopen a zinc and copper mine on Rapu-Rapu island in central Philippines for a 30-day test run following two mine tailings spills in October last year.
In a statement, the Department of Environment and Natural Resources said it "feels that the best option to take is to allow Lafayette to resume operations subject to certain stringent pre-conditions."
Environment Secretary Angelo Reyes said that a temporary lifting order would be issued for the Australian mining firm to resume operations on Rapu-rapu island, 380 kilometers southeast of Manila, only if it would put up the 10.7 million pesos as an escrow deposit.
"Before, during and after the test run, certain conditions would have to met," Reyes said. "After the company complies with all these conditions the final lifting order shall be issued to Lafayette for it to resume full operations."
The DENR had slapped Lafayette with a fine for violating the Clean Water Act when it released wastewater with mine tailings after its dams could no longer contain the volume during the rainy season in October and November last year. Fish in the waters in and around the Rapu-Rapu island-municipality died.
The DENR said the two tailings spills in October could have been prevented and were due to human error.
Aside from paying fines, the government also requires the company to extend the validity of its surety bond and install a storm drainage canal to prevent tailings from spilling over the dam in the event of heavy rain.
Dam monitoring instruments must be installed and emergency control mechanisms must be put in place to prevent or minimize damage in case of accidents during the test run.
The DENR said the test run must be open to the public and that the company must commission third party experts to observe the trial.
The government said Lafayette must submit a final mine decommissioning and rehabilitation plan by December and deposit 50 percent of the budget for the plan within six months of its being approved. Regular sampling of water and tailings must be conducted after the test run.
In a written statement, Lafayette's Philippine unit said it welcomed the decision of the government.
"We are confident that our remedial measures will pass all tests. After this, we shall seek permission to resume full operations," Lafayette said.
Lafayette's Philippine unit has said the mine has been losing 150 million pesos a month for the past six months.
However, Rapu Rapu is expected to produce copper, gold, silver and zinc valued at 350 million dollars over six years. It employs around 900 workers.
Last year, the Supreme Court here opened the mineral exploration business to foreign investors, ending a seven-year legal battle by striking down a challenge to the Mining Act that questioned its compliance with the Constitution.
(1 dollar = 53.308 pesos)
By Cecille Yap, Blanche Rivera
Xinhua Financial News Service, Inquirer
http://news.inq7.net/archive_article/index.php?ver=1&index=1&story_id=4726
(2ND UPDATE) THE GOVERNMENT has allowed Australia's Lafayette Mining Ltd. to reopen a zinc and copper mine on Rapu-Rapu island in central Philippines for a 30-day test run following two mine tailings spills in October last year.
In a statement, the Department of Environment and Natural Resources said it "feels that the best option to take is to allow Lafayette to resume operations subject to certain stringent pre-conditions."
Environment Secretary Angelo Reyes said that a temporary lifting order would be issued for the Australian mining firm to resume operations on Rapu-rapu island, 380 kilometers southeast of Manila, only if it would put up the 10.7 million pesos as an escrow deposit.
"Before, during and after the test run, certain conditions would have to met," Reyes said. "After the company complies with all these conditions the final lifting order shall be issued to Lafayette for it to resume full operations."
The DENR had slapped Lafayette with a fine for violating the Clean Water Act when it released wastewater with mine tailings after its dams could no longer contain the volume during the rainy season in October and November last year. Fish in the waters in and around the Rapu-Rapu island-municipality died.
The DENR said the two tailings spills in October could have been prevented and were due to human error.
Aside from paying fines, the government also requires the company to extend the validity of its surety bond and install a storm drainage canal to prevent tailings from spilling over the dam in the event of heavy rain.
Dam monitoring instruments must be installed and emergency control mechanisms must be put in place to prevent or minimize damage in case of accidents during the test run.
The DENR said the test run must be open to the public and that the company must commission third party experts to observe the trial.
The government said Lafayette must submit a final mine decommissioning and rehabilitation plan by December and deposit 50 percent of the budget for the plan within six months of its being approved. Regular sampling of water and tailings must be conducted after the test run.
In a written statement, Lafayette's Philippine unit said it welcomed the decision of the government.
"We are confident that our remedial measures will pass all tests. After this, we shall seek permission to resume full operations," Lafayette said.
Lafayette's Philippine unit has said the mine has been losing 150 million pesos a month for the past six months.
However, Rapu Rapu is expected to produce copper, gold, silver and zinc valued at 350 million dollars over six years. It employs around 900 workers.
Last year, the Supreme Court here opened the mineral exploration business to foreign investors, ending a seven-year legal battle by striking down a challenge to the Mining Act that questioned its compliance with the Constitution.
(1 dollar = 53.308 pesos)
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