Philex Mining fined more than P1 billion for tailings leak

Philex Mining, the country's largest mining company, has been slapped a fine of more than P1 billion by the Mines and Geosciences Bureau (MGB) for the leak of more than 20 million tons of solid wastes from the Tailing Ponds 3 of its Padcal mine in Benguet.

Photo Courtesy: Inquirer

Philex contested the billion peso fine saying that the report of the MGB showed no negligence was committed in its part in the leaks that happened during the unexpected intense rains generated by typhoon Gener..

After discovery of the first leak in August, the mining giant shut down operations in the mine. It said that it plans to create more tailings ponds.

Meanwhile, the copper-god miner may face additional penalties for possible violations of other environmental laws which could range from P10,000 to P200,000 for each day violation was made. Failure to conduct clean-up operations could be punishable by two to four years of imprisonment and a minimum fine of P50,000 per day of violation.. 

The company expects its performance to slow down, with revenues sliding down to P1.5 billion from an estimated P4 billion this year.

- with supporting articles from Inquirer.net, Sun Star Baguio, and Business World Online