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TWO INCIDENTS

TWO INCIDENTS. PROJECT LOCATION. PROJECT SITE. GENERAL MINE AREA. Open Pit. Processing Plant. Camp Accommodation. Sitio Mirikpitik. Settling Pond 1. Polishing Pond. Settling Pond 2. Incident 1. EVENTS POND OVERFLOW October 11, 2005. Incident

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TWO INCIDENTS

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  1. TWO INCIDENTS

  2. PROJECT LOCATION PROJECT SITE

  3. GENERAL MINE AREA

  4. Open Pit Processing Plant Camp Accommodation Sitio Mirikpitik Settling Pond 1 Polishing Pond Settling Pond 2

  5. Incident 1 EVENTS POND OVERFLOWOctober 11, 2005

  6. Incident At 2:36 AM 11 October 2005, excess process water with slurry overflowed from the CIL detoxification circuit of the gold processing plant Of the 20 cubic meters that overflowed to the events pod, approximately 5.0 cubic meters (about 25 drums) of slurry material flowed to Alma Creek and Pagcolbon Creek but were contained in the series of gabions (stone filters) and filter cloth silt traps installed across the creeks. NOT mine tailings but only process water eventually flowed into the receiving body

  7. Process water with slurry overflow Flow Pagcolbon Creek Alma Creek

  8. Cause & Effect • The discharge pump malfunctioned between midnight and 2:30 AM • The event (catchment) pond was filled to capacity and process water with slurry overflowed into the Gold Plant Area. • Approximately one to two kilos of thumb-sized fish and other small marine creatures were found dead near the mouth of Alma and Pagcolbon Creeks late in the afternoon

  9. About 20 dead small crabs and fishes (approximately 2 kg) were found scattered at the mouth of Alma Creek. However, the sea was observed to be free from dead fish during the time of inspection (4:00 – 5:30 PM)

  10. Immediate Actions • Voluntarily stopped operation of the grinding section of the plant • Reported the incident to MGB and EMB • Placed sandbags, earth bunds, and cement bags around the gold processing plant area • Placed sandbags along Pagcolbon Creek and Alma Creek • Continuously monitored water quality of both creeks

  11. REMEDIATION / PROTECTION • Operationalized SOPs for emergencies/establish operating limits like stoppage of the grinding circuit once the level of the events (catchment) pond reaches 30% of capacity • Constructed additional concrete bunds/retaining wall around the Gold Plant to contain process water in case of overflow • Increased the frequency of MMT inspection to at 2x a week • Collected slurry material trapped in the sandbags, silt fences and gabions • Conducted daily monitoring of marine life in the receiving body

  12. 30% mark Additional 120 m3 impounding capacity Bunded areas’ containment capacity is 7,000 m3 – design based on 100-year rainfall

  13. On the 7th day after the incident, DENR – MGB through the MRFC allowed resumption of operation

  14. Incident 2 RELEASE OF EXCESS RAIN WATER CONTAINED IN THE TAILINGS DAM October 31, 2005

  15. Incident UNUSUALLY HEAVY AND CONTINUOUS RAINFALL (1 IN 25 YEARS) BEFORE AND UP TO OCT. 31, 2005 CAUSED THE WATER LEVEL TO RISE AT THE LOWER TAILINGS DAM WHICH NECESSITATED DISCHARGE OF RAINWATER THROUGH THE ENVIRONMENTAL PONDS TO PROTECT THE INTEGRITY OF THE DAM

  16. Lower tailings pond Ungay Creek Hollowstone Channel

  17. Cause & Effect Excess rain water from the dam flowed through the temporary earthen spillway into Settling Pond 2. Overflow of Settling Pond 2 goes to Ungay Creek. Excess rain water flow carried down silt but were contained in the silt traps along the Ungay Creek Two residents of Barangay Binosawan submitted about 10 pieces of dead finger-size fish and marine creatures contained in a glass and a plastic bag. Approximately 15-17 kg fish and marine creatures were confirmed affected.

  18. Immediate Actions Voluntarily stopped operation of the gold processing plant Reported the incident to MGB and EMB Investigated the claims of the two Barangay residents. Met with the Barangay Council of Binosawan to provide update on the release of excess rain water Conducted prompt cleanup of the Ungay creek and Hollowstone Channel Added lime at the environmental (settling and polishing) ponds to maintain neutral pH Added cyanide-neutralizing chemicals (Calcium Hypochlorite and Hydrogen Peroxide) at the ponds. Siphoned off water from SP2 to the Polishing Pond to control possible overflow Analyzed water quality at the discharge areas, ponds and affected creeks.

  19. REMEDIATION/PROTECTION • SEALED SP2 OUTFLOW TO UNGAY CREEK AND DIVERTED FLOW TO POLISHING POND • RAISED THE EMBANKMENT OF TAILINGS DAM (FROM 124 mRL TO 135 mRL) • CONSTRUCTED STORM WATER COLLECTION CHANNEL TO REDUCE RUNOFF INTO THE TAILINGS DAM • DE-SILTED AFFECTED CREEK • FURTHER DETOXIFIED WATER FROM THE TAILINGS DAM

  20. AFTER BOTH INCIDENTS, THE COMPANY VOLUNTARILY STOPPED THE PROCESSING OPERATION IMMEDIATELY AS A PRECAUTIONARY MEASURE TO PROTECT THE ENVIRONMENT AND VOLUNTARILY REPORTED THE EVENTS TO THE DENR AND CONCERNED RESIDENTS. • THE NEW MANAGEMENT COMMITS THAT IT WILL RESUME OPERATIONS ONLY AFTER IT IS ASSURED THAT IT CAN BE CONDUCTED IN AN ENVIRONMENTALLY RESPONSIBLE AND SUSTAINABLE MANNER. Compliance Status

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