Copper firm stops operations after fire incident

Monday, January 9, 2012

TACLOBAN CITY – The Philippine Associated Smelting and Refining Corp. (Pasar), the only copper smelter and refinery in the country, has stopped its operations after a fire damaged its acid plant located within the Leyte Industrial Development Estate in Isabel, Leyte.

But Pasar management has assured its 800 regular employees and 1,500 service contractors will continue to report to work and will be paid although will be temporarily assigned to different tasks.

Have something to report? Tell us in text, photos or videos.

“We foresee a challenging time ahead due to the shutdown as we repair and rebuild the damaged portions of the acid plant. We are not yet sure how long this will take, but we are assessing what needs to be done in rebuilding the EP (electrostatic precipitator), to keep the shutdown as short as possible and to restart operating at full speed as soon as possible,” Pasar president Sias H. Els said.

Els added that Pasar is doing everything in exploring all the possible options and actions to recover immediately.

“Everyone will therefore continue reporting for work as usual until further notice, although perhaps with different work assignments, and everyone will get paid. We need to use the opportunity to do housekeeping and properly clean and do repairs where needed,” Els said.

Pasar’s acid plant, where the EP was located, was burned down in the morning of January 2. It took five hours for fire fighters to contain the fire.

The extent of the fire was severe but no fatalities and no direct injuries were reported. Minor burns were suffered by an employee, Orland Matuguina, who was involved in the fire fighting operations.

Fire probers initially estimated the damage at P15 million. But according to J. Paul Tan, Pasar’s assistant vice-president for industrial and community relations department, the damage could reach as $1 million.

“We could not immediately determine the actual damage. Our assessment continues. The acid plant alone costs a little over $1 million. But right now we are sending people to China and Japan to find for replacements of the burned machineries. We need it custom-built and that is why it will take us sometime to resume operations,” Tan said.

Tan admitted that Pasar’s operation is “not normal” and has affected the production of electrolytic copper cathode and refined copper anode where markets are very high in China, Korea, Taiwan, Vietnam, Thailand, Malaysia, Indonesia and Japan.

Tan said the company wants to restart operations by February.

“What happened was an integral risk of smelting. With the full support of our shareholders, we will overcome this challenge,” Tan said.

Tan added the company could continue operating but electronic precipitators is vital to its anti-pollution measures. (Leyte Samar Daily Express)