Wednesday, March 21, 2007

Experts find no scientific basis for Rapu-Rapu reopening

March 22, 2007

Experts find no scientific basis for Rapu-Rapu mine re-opening

Unscientific, haphazard, and fraught with technical loopholes.

Thus concluded a member of the four-person panel of independent experts which recently scrutinized the DENR's basis for the Permanent Lifting Order (PLO) issued for the Lafayette mine in Rapu-Rapu, Albay.

The panel was convened last February by the Center for Environmental Concerns-Philippines (CEC-Phils) and is composed of four scientific and environmental experts who reviewed and critiqued the reports that have informed the DENR's decision to reopen the RRPI mine to full commercial operations:

l Dr. Carlito R. Barril: Retired Professor of Chemistry, University of the Philippines in Los Banos
l Engr. Efren Favila (mining engineer)
l Dr. Emelina G. Regis: Director for the Institute for Environmental Conservation and Research (INECAR) of the Ateneo de Naga University
l Mr. Ricarido M. Saturay, Jr: Geologist, Faculty at the University of the Philippines Diliman National Institute for Geological Sciences (UP NIGS), and a member of Samahan ng Nagtataguyod ng Agham at Teknolohiya Para sa Sambayanan (AGHAM)

At a forum sponsored by the CEC-Phils, AGHAM, and Defend Patrimony alliance, the four experts identified major deficiencies and inadequate action on four respective areas of immediate concern, all of which were not considered in the DENR evaluation. These are:

a. Acid Mine Drainage (Dr. Barril, et al)
b. Biophysical Consequences (Dr. Regis)
c. Geological Factors (Mr. Saturay)
d. Mine Structures (Engr. Favila)

The four issued separate reviews of various DENR documents evaluating the test runs. Dr. Barril reviewed on the Final Report of Carlos Primo c. David and Rustica G. Romero on The Evaluation of RRPI's Acid Mine Drainage (AMD) Abatement And Control Strategies. Mr. Saturay reviewed the 2006 Test Run of the Rapu-rapu Polymetallic Project. Dr. Regis reviewed the Evaluation Report of the Mines and Geosciences Bureau (MGB), on the Rapu-Rapu Polymetallic Project under the test run conditions (dated Dec. 19, 2006).

All of experts generally concluded that the RRPI to date lacks the capability to effectively manage, abate, and remediate the damage caused by Acid Mine Drainage.

Engr. Favila said that the RRPI mine lacks important emergency infrastructures that are crucial to preventing another disastrous mine spill. The studies also failed to consider geological factors that may adversely affect land areas surrounding the mine site and water supply systems, Mr. Saturay said.

Dr. Regis stressed that the unmonitored and unregulated presence of physico-chemical and trace metals (particularly toxic heavy metals) in the mining-affected areas, waterways, and ground had an adverse effect on marine species and will continue to pose a threat to marine and human life in the small island ecosystem.

"We find the study made by Dr. David and his partner as unscientific, carried out haphazardly and superficially, and fraught with technical loopholes and shortcomings, so much so, that the results generated are not only so limited but also of doubtful and unreliable quality. We find the results of the study inconclusive and unreliable and should not have been used as one of the bases for lifting the suspension order, " Dr. Barril said.

On the basis of the existing studies' technical flaws, methodological shortcomings and inconclusive results, the team strongly recommended a repeat of the DENR study and the pursuit of more detailed studies on the RRPI's mining operation in Rapu-Rapu.

"[More] detailed studies may be exhaustive and expensive but it is a justified pre-requisite for mining in a small tropical island with a significant population depending on the island's limited resources ," Mr. Saturay said.

Dr. Regis also urged the RRPI's remediation of the Acid Mine Drainage now seen in waterways in mining-affected areas and a responsibility and accountability from the concerned public and company officials in the event of mining-related and untoward incidents that may occur.

"The deficiencies noted by the experts indicate how RRPI and the DENR rushed the opening of the Lafayette mine in Rapu-Rapu. This undue haste to open the mine to commercial operations has put the lives of the island's residents and its marine and terrestrial ecysystems into more danger than before ," Kalikasan-PNE National Coordinator Clemente Bautista, Jr. said.

Bautista stressed that "the unremediated deficiencies and unresolved problems with the mine (such as the lack of emergency infrastructure noted by Engr. Favila) practically guarantees another mine spill ".

"The experts have also noted that Acid Mine Drainage has already started in some mining-affected sites and will continue to worsen. This will eventually poison the island's waterways and may even seep into the freshwater supply and adversely affect marine and terrestial organisms and even human life. The DENR does not seem to understand nor care about the alarming implications of this development ," Bautista said.

"The people of Rapu-rapu are living next to an environmental time bomb with the mine's reopening and with the onset on AMD. We could be dealing with another environmental disaster as large if not larger than the Marcopper tragedy in Marinduque in the mid-90s," Bautista warned.

"We demand the suspension of RRPI's operations in Rapu-Rapu," Bautista stressed.

CEC-Philippines convened the panel shortly after the DENR issued the PLO based on the test run evaluation this February, and refused to approve requests from NGOs and people's organization to launch an independent probe in the mine site. ###

Monday, March 12, 2007

Chiz Escudero slams DENR for Lafayette mining resumption

House Minority Leader Francis “Chiz” Escudero on Saturday denounced the Department of Environment and Natural Resourcs (DENR) for its decision to allow Lafayette Philippines to resume operation on Rapu Rapu Island in Albay.

“It is unfortunate that DENR has given this Australian-controlled firm the green light to extract gold ores on the island over the objections of residents, who live in fear of cyanide poisoning,” Escudero said.

In October 2005, Lafayette was directed by the government to suspend its operation after its dam that held the cyanide laced wastewater overflowed twice and contaminated rivers and waterways downstream. A dangerous chemical, cyanide is used in gold processing.

“The two accidents occurred after only three months of operation” Escudero noted. “Apparently, Lafayette takes its environmental responsibilities very lightly. I can therefore understand the people’s concerns.”

Justifying the decision, DENR said the firm had fully complied with the requirements. It added the firm had expanded the impounding area from 126 meters to 145 meters. To prevent accidental spills especially during heavy rains, Lafayette had also constructed an 840-meter long drainage canal.

But Escudero would not be mollified. He noted that an independent fact-finding commission, headed by Bishop Arturo Bastes of Sorsogon, had recommended the permanent shutdown of the firm.

The Bastes Commission was created by President Gloria Macapagal-Arroyo following widespread condemnation of the spillage and fear of environmental degradation.

“What’s the use of creating an investigating body if the government won’t heed its recommendations?” Escudero asked. As regards claims of compliance as basis for the reopening, he noted that “no independent body had made the appraisal to determine their validity or falsity.”

Defend Patrimony!, a nationwide movement that calls for an amendment of the Mining Act of 1995, said DENR and Lafayette refused to allow any independent fact-finding mission into the mining site to authenticate compliance for the duration of the two test runs.

Until its operation was suspended, Lafayette Philippines was producing an average of 2,500 ounces of gold a month. Aside from Lafayette of Australia, LG International Corp. of South Korea and Korea Resources Corp., which is government owned, make up the main stockholders of the firm.

10 February 2007

Sunday, March 11, 2007

Lafayette Strengthens Board with New Appointment

The Directors of Lafayette Mining Limited are very pleased to advise that Mr Steve Wood has accepted an invitation to join the Board of the Company as a non-executive director, with immediate effect.
Mr Wood is currently an executive director of CIMB-Standard Strategic Asset Advisors, advisors to the South East Asian Strategic Asset Fund who recently purchased US$15,000,000 of convertible notes in Lafayette.
Commenting on Mr Wood’s appointment, the Chairman of Lafayette, Mr Reg Gillard, said that Steve Wood brings a wealth of technical and commercial experience to the Board of Lafayette. He has a very detailed and relevant knowledge of the resources industry in the South East Asian area which we expect will be very valuable to the Company in the years ahead.
He has professional qualifications including an undergraduate degree in geophysical engineering and an MBA, and an extensive track record established over a twenty-year period as both an operator and as an investor in the resources sector in North and South America, Africa as well as South East Asia.
Mr Wood’s appointment brings the number of directors on the Board of Lafayette to five, including the Managing Director and Chief Executive Officer, Mr David Baker, non-executive directors Mr Robin Widdup and Mr Sonny Dominguez, and non executive Chairman Mr Reg Gillard.

Press release here (with thanks to ATM for hosting)
To paraphrase the partner who alerted this to us: "the corporate pie is being cut into thinner and thinner slices."