Stock News 2013: Philex agrees to pay in full P1.034B fine for mine spill

Philex Mining Corp. will pay in full the P1.034-billion fine imposed by the government over the mine spill at its Padcal mines a day ahead of the deadline.

The gold and copper producer has promised to comply with the Mines and Geosciences Bureau (MGB) penalty following the spill of 20 million metric tons of tailings from its Tailings Storage Facility 3 in Padcal in August last year, even if it claimed that there was no negligence on its part.

“We believe it was a result of the elements of nature—an event of force majeure. But even as we are not at fault, we share the concern of the government for the environment, thus we are paying the fee, as set by regulators, to cover the costs of remediation and rehabilitation activities,” said Michael Toledo, senior vice president for corporate affairs at Philex Mining.

Philex contested the fines twice at the Department of Environment and Natural Resources, arguing that the mine spill was a result of a historically unprecedented heavy rainfall. Its appeals were denied by the MGB, which insisted that Philex was negligent.

Nonetheless, Toledo said the company would continue cooperating with government regulators to ensure the safety and integrity of its TSF3 and the rehabilitation of the areas affected by the accidental discharge of water and sediment from the pond at Padcal mines in Itogon, Benguet.

Philex had to pay the full amount of the penalty on or before the Feb. 19 deadline as MGB director Leo Jasareno announced yesterday that the agency had rejected the request of the mining company last Feb. 13 to pay the fine on an installment basis.

The payment, according to Jasareno, would be remitted to the National Treasury and accrue to the Mine Wastes and Tailings Reserve Fund, which will be used to pay claims for compensation for the damage caused by the mine spill.

Apart from the P1-billion fine for violating the Philippine Mining Act of 1995, Philex is facing P92.8 million in fines for polluting two water bodies—Balog creek and Agno River—and violating the Clean Water Act or the Republic Act 9275.

http://business.inquirer.net/107843/philex-agrees-to-pay-in-full-p1-3-b-fine-for-mine-spill

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Stock News 2012: Philex posts record income

Photo of Manny (Photo credit: Wikipedia)Philex Mining Corp. said its net earnings surged to a record P5.77 billion last year, up 46 percent from P3.96 billion in 2010, on increased metal production and unprecedented global metal prices.

Core net income likewise hit an all-time high of P5.57 billion, 34 percent higher than a year ago. Operating revenues also reached a historic high of P16.13 billion or an increase of 20 percent as gold continued its 11-year bull run in the world market.

Revenues from gold operations climbed 29 percent to P9.29 billion with prices rising 26 percent to an average of $1,536 per ounce.

Revenues from copper production, on the other hand, amounted to P6.09 billion, six percent more than the P5.7 billion recorded a year earlier.

Copper price per pound also improved from $3.63 in 2010 to $3.70 in 2011.

Ore milled slightly went up to 9.49 million tons from 9.36 million tons. The company registered a seven-percent growth in volume of copper to 37.955 million pounds and a five percent rise in gold to 140,113 ounces.

“Philex Mining will continue to lead and will focus on exploring additional revenue streams to maximize the opportunities presented by the world’s growing requirements for gold and copper,” said Manuel V. Pangilinan, chairman of Philex.

Pangilinan declined to give an income guidance for the year but said he expects “global demand and supply for metals are expected to be fundamentally strong throughout 2012.”

For this year, the company has budgeted P2.4 billion for its capital expenditures this year, P1 billion of which will go to the exploration and development of the Silangan mine, which contains the combined Boyongan-Bayugo deposit located at the Surigao mineral district in Mindanao.

Pangilinan said the company continues to scout for new acquisitions given its strong balance sheet. “We’re looking at a broad range of opportunities to see continued growth,” he said.

When asked whether Philex is setting it sights on Apex Mining Corp., Pangilinan said all firms engaged in gold and copper operations are on the company’s radar.

“Our main focus shall continue to be on gold and copper. Anything that will come into operations before the Silangan mine, we are interested,” Pangilinan said.

Pangilinan said the company is also interested in acquiring a stake in Manila Mining Corp. if given a choice.

http://www.philstar.com/Article.aspx?articleId=782500&publicationSubCategoryId=66