Philex to cooperate with gov't over P1B fine

Posted at 01/16/13 12:06 PM

MANILA, Philippines - Philex Mining Corp. on Wednesday vowed to cooperate with the government after the Mines and Geosciences Bureau rejected its appeal and ordered it to pay the P1 billion fine for a tailings leak incident.

"We will work closely with the MGB on this, as we welcome its decision that the amount to be paid would be used for remediation and rehabilitation of the affected areas," Michael Toledo, senior vice president for Corporate Affairs at Philex, said in a statement.

The MGB on Tuesday night ruled with finality that Philex should pay the P1 billion fine on Feb. 19 for the tailings leak that occurred after typhoons devastated its Padcal mine.

The government agency has said the amount Philex will be paying will be remitted in the Mine Wastes and Tailings Reserve Fund, which will be used to compensate damages caused by the tailings leak.

Aside from the monetary fine, Philex has also been required to submit a rehabilitation plan for areas affected by the tailings leak.

Operations at the Padcal mine has been suspended since August 1 last year due to the leak incident.