Lafayette mining gets DENR go signal Test run boosts firm’s mining shares in Sydney
First posted 05:25am (Mla time) July 11, 2006
By Blanche Rivera
Inquirer
http://news.inq7.net/archive_article/index.php?ver=1&index=1&story_id=9166
Editor's Note: Published on page A2 of the July 11, 2006 issue of the Philippine Daily Inquirer
IT’S ALL systems go for the test run that could pave the way for the resumption of operations of Lafayette Mining Ltd.’s P1.4-billion project on Rapu-Rapu Island, Albay.The Department of Environment and Natural Resources has ordered the issuance of all necessary permits for the operation of the Australian mining firm’s facilities, which was suspended in November last year due to two mine spills.
In a resolution dated July 9, the Pollution Adjudication Board, a quasi-judicial body under the DENR, certified that Lafayette had met all the conditions set by the DENR in its temporary lifting order (TLO) that allowed the test run of the facility.
The PAB instructed the Environmental Management Bureau to issue a wastewater discharge permit and to lift the suspension of the chemical control order registration certificate which would allow Lafayette to buy cyanide for its mining operations.
“The board was unanimous in recommending to the DENR Secretary to allow respondent to operate its processing facilities for 30 days for the conduct of the test run in accordance with the stages as mentioned in the June 16 order,” the PAB said.
Environment Secretary Angelo T. Reyes issued a TLO on June 16 that would allow Lafayette to operate its facilities for 30 days to check the viability of its remedial measures.
The test run to be done in three stages required first the payment of P10.4 million in fines by Lafayette, the completion of structures including a storm drainage canal, bigger tailings dam, and emergency control mechanisms that would prevent or minimize any damages during accidents, and the treatment and control of acid mine drainage.
Lafayette chair and president Carlos G. Dominguez welcomed Reyes’ order, saying: “[This is a] watershed milestone for the company that is determined to prove it stands for responsible mining and is a sincere partner in the growth of its host communities and the country in general.”
After passing all tests, Dominguez said the company expects to be allowed to resume full operations after a lull of eight months.
In Australia, meanwhile, Lafayette shares jumped as much as 13 percent to A$1 ($0.75) before retreating slightly. At 0251 GMT (8:47 p.m. Manila), it was 10.2 percent up at A$0.97 ($0.72). The stock sank to a three-year low of A$.08 ($.06) in early June.
Lafayette, the first foreign firm to develop and run a mine in the Philippines in almost 40 years, estimates the lode will generate revenues of $350 million a year from annual production of 10,000 tons of copper in concentrates, 14,000 tons of zinc, 50,000 ounces of gold and 600,000 ounces of silver.
A team from the EMB and the Mines and Geosciences Bureau conducted an on-site validation of the measures installed by Lafayette to meet the conditions for the test run from June 30 to July 6.
“The findings during validation as well as the favorable recommendation from the Undersecretary for Policy and Planning, MGB director, MGB regional director and EMB regional director are adequate to warrant the approval of the request and allow the conduct of the test run for a period of 30 days,” the PAB said.
With a report from Reuters
By Blanche Rivera
Inquirer
http://news.inq7.net/archive_article/index.php?ver=1&index=1&story_id=9166
Editor's Note: Published on page A2 of the July 11, 2006 issue of the Philippine Daily Inquirer
IT’S ALL systems go for the test run that could pave the way for the resumption of operations of Lafayette Mining Ltd.’s P1.4-billion project on Rapu-Rapu Island, Albay.The Department of Environment and Natural Resources has ordered the issuance of all necessary permits for the operation of the Australian mining firm’s facilities, which was suspended in November last year due to two mine spills.
In a resolution dated July 9, the Pollution Adjudication Board, a quasi-judicial body under the DENR, certified that Lafayette had met all the conditions set by the DENR in its temporary lifting order (TLO) that allowed the test run of the facility.
The PAB instructed the Environmental Management Bureau to issue a wastewater discharge permit and to lift the suspension of the chemical control order registration certificate which would allow Lafayette to buy cyanide for its mining operations.
“The board was unanimous in recommending to the DENR Secretary to allow respondent to operate its processing facilities for 30 days for the conduct of the test run in accordance with the stages as mentioned in the June 16 order,” the PAB said.
Environment Secretary Angelo T. Reyes issued a TLO on June 16 that would allow Lafayette to operate its facilities for 30 days to check the viability of its remedial measures.
The test run to be done in three stages required first the payment of P10.4 million in fines by Lafayette, the completion of structures including a storm drainage canal, bigger tailings dam, and emergency control mechanisms that would prevent or minimize any damages during accidents, and the treatment and control of acid mine drainage.
Lafayette chair and president Carlos G. Dominguez welcomed Reyes’ order, saying: “[This is a] watershed milestone for the company that is determined to prove it stands for responsible mining and is a sincere partner in the growth of its host communities and the country in general.”
After passing all tests, Dominguez said the company expects to be allowed to resume full operations after a lull of eight months.
In Australia, meanwhile, Lafayette shares jumped as much as 13 percent to A$1 ($0.75) before retreating slightly. At 0251 GMT (8:47 p.m. Manila), it was 10.2 percent up at A$0.97 ($0.72). The stock sank to a three-year low of A$.08 ($.06) in early June.
Lafayette, the first foreign firm to develop and run a mine in the Philippines in almost 40 years, estimates the lode will generate revenues of $350 million a year from annual production of 10,000 tons of copper in concentrates, 14,000 tons of zinc, 50,000 ounces of gold and 600,000 ounces of silver.
A team from the EMB and the Mines and Geosciences Bureau conducted an on-site validation of the measures installed by Lafayette to meet the conditions for the test run from June 30 to July 6.
“The findings during validation as well as the favorable recommendation from the Undersecretary for Policy and Planning, MGB director, MGB regional director and EMB regional director are adequate to warrant the approval of the request and allow the conduct of the test run for a period of 30 days,” the PAB said.
With a report from Reuters
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