Philex studies construction of 4th tailings dam

PHILEX Mining Corporation is strongly eyeing the construction of Tailings Pond 4.

Mike Toledo, senior vice president for Corporate Affairs, said work for the new tailings pond of the firm is now underway.

The new tailings pond will replace the leak ridden tailings pond 3, which stopped operating August.

Philex is in the heat of contesting the P1-billion fine slapped by the Mines and Geosciences Bureau (MGB) recently, saying the bureau freed the mine firm from any negligence pertaining to the leaks.

Toledo said the company is set to answer the report filed by the MGB but there are no legal measures at moment to be taken.

Toledo argued that despite the report absolving the mine company from negligence, the billion peso fine was still imposed.

A study team has been deployed by Philex weeks ago to make plans for the construction of TP4.

The MGB cannot give the mining firm a clean bill to operate without the assurances a new tailings pond will be constructed, forcing the company to find a new area to build the new tailings pond.

The lifespan of the defective TP3 has exceeded its 20-year span.

Rehabilitation of the defective TP3 will also be addressed by the company before any operation will continue.

If the company cannot find an area to build the new tailings pond, the MGB has no choice but to stop the operations of the firm.

Suspension of operations may take several months until all safety requirements are met resulting to over P200 million in losses per month with losses per day estimated to reach 40 million.