Philippine Resources Journal - Issue 1, 2022 by Brimble Publishing

PENARROYO:

Mining Trends 2022: Will the outlook remain positive?

BUNYE: 2022 presidential candidates:

Who truly walks the talk?

RICHIE BROS: PROVIDING PH WITH

A WORLD OF CHOICE

Corporate Headquarters MMG Fojas Compound, Km 29 National Highway San Antonio, San Pedro, Laguna, Philippines 4023 T: +63 2 886 3170 | +63 2 833 6304 F: +63 2 886 3244 Papua New Guinea HBS Compound 11 Mile-Okuk Highway. PO Box 1538, Lae, Morobe Province, 411 Paupua New Guinea Tel: +675 7373 4013 I +675 7373 4015

THE LINER THAT LASTS LONGER

The best mill liner has a green strip and lasts longer than ever. With more abrasion resistance and a better wear life, Vulco® R67 liner keeps your mill running at capacity longer. That means a measurable reduction in mill downtime, as well as a reduction in installation, maintenance costs and total cost of ownership. It’s all thanks to the unique patented material that forms our innovative premium rubber compound. The R67 mill liner is the most wear-resistant we’ve ever made. Which for Vulco is pretty impressive. So, if you don’t see that green strip, you know you’re not working with the best.

Get more from your mine with Vulco®. Visit https://info.global.weir/vulcor67 today. Copyright © 2018, Weir Minerals Australia Ltd. All rights reserved. The trademarks mentioned in this document are trademarks and/or registered trademarks in the name of The Weir Group PLC and/or its subsidiaries. Certain features of the technology in this publication may be protected by pending and granted patents and designs in the name of The Weir Group PLC and/or its subsidiaries.

CONTENTS MINING 22

PASTE BACKFILL SYSTEM: MINE SAFETY GAME CHANGER

SAFETY PERFORMANCE MEASURED IN PH MINE SITES

QED CELEBRATES SAFETY MILESTONE IN MASBATE

NAC-HINATUAN ASSISTS TYPHOON ODETTE VICTIMS

COMMENTARY

DE LIMA FILES BILL VS. LIFTING OPEN-PIT MINING BAN

By Fernando Penarroyo / page 6

ONE TOTAL SOLUTION FOR MINING AND MINERAL PROCESSING

TMC BAGS 4TH PRESIDENTIAL AWARD FOR GOOD MINING

WILL MINING OUTLOOK REMAIN POSITIVE?

COMMENTARY PRESIDENTIAL CANDIDATES: WHO WALKS THE TALK? By Patricia A.O. Bunye / page 14

PH DUCKS THRIVE IN TVIRD’S SULPHIDE DAM

CONSTRUCTION 40

BINONDO-INTRAMUROS BRIDGE OPENS IN APRIL

EXECS OPTIMISTIC OF ‘BUILD, BUILD, BUILD’ CONTINUITY

‘CREATE’ LAW PUSHES DMCI’S EARNINGS HIGHER DOTR: METRO MANILA SUBWAY PROJECT 30% COMPLETE

MINING

Mining gold for a better future / page 18

Innovations in battery-based mining gear / page 34

OCEANAGOLD ON PH MINING CLUB

SUSTAINABILITY CHARGES AHEAD

ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

RESOURCES COMMENTARY

PHILIPPINE RESOURCES THE MAGAZINE FOR MINING AND CONSTRUCTION Philippine Resources is published independently for executives in Philippine mining, construction, resources and associated business sectors. Publisher Elizabeth Galura Consulting Publisher Greg Brimble Editor Jimbo Owen Gulle Sales and Marketing Manager Matt Brimble +63 927 721 6622 Matthew@philippine-resources.com Account Manager Merian Jay Fallan +63 955 738 0266 merian@philippine-resources.com Administration Cecilia Pamular +63 917 308 1971 cecille@philippine-resources.com Design/Production Elizabeth Galura Journalists Marcelle P. Villegas Abe Almirol Contributors Patricia A.O. Bunye Fernando Penarroyo Manila Publishing Office Suite 6, 2nd Floor Corinthian Plaza Building 121 Paseo de Roxas Legaspi Village Makati City, Philippines 1226 Phone +632 8251 5599 Digital Online Edition www.Philippine-Resources.com ON THE COVER: Photo courtesy Richie Bros. Premier Global Auction in Orlando See related story, “Ritchie Bros.: Providing the Philippines a World of Choice” on page 57

Mining Trends 2022: Will the outlook remain positive?

ast year saw miners experiencing record profitability and revenue. While the industry continues to benefit from relative high metal prices and opportunities from the clean energy transition and digital transformation, there are identified risks arising from COVID-19’s resurgence and disruptions, poten-tial for weaker-thanexpected global economic growth, government intervention, and community op-position. Meanwhile compliance with environment, social and governance (“ESG”) standards will ob-ligate mining companies to protect the environment, contribute to community development, and be-have ethically. On the local front, Department of Environment and Natural Resources (“DENR”) Secretary Roy Ci-matu lifted the four-year-old ban on the open-pit method of mining for copper, gold, silver, and com-plex ores. Enforced in 2017, the ban was one of the high-impact measures taken by the late DENR Secretary Regina Lopez. The former DENR secretary also ordered the closure of 26 mines. Howev-er, with the completion of the Mining Industry Coordinating Council audit which started in 2019, only 3 out of the 26 mines were deemed unsafe and the other closures were reversed. The Chamber of Mines of the Philippines deplored the lost opportunities in the mining sector in the last decade. The chamber believed that the industry has been unjustly scrutinized and subjected to unfair publicity, which cost billions in lost revenue. Foreign direct investment (“FDI”) will remain stag-nant for the industry unless regulations are eased, and barriers are lowered. The ban also delayed FDIs in open pit mining projects like Sagittarius Mines Inc.’s $5.9-billion Tampakan copper project in South Cotabato and St. Augustine Gold and Copper Ltd.’s $2-billion King-king coppergold project in Compostela Valley. The lifting of the ban according to the DENR order, is meant to “revitalize the mining industry and usher in significant economic benefits to the country by providing raw materials for the construction and development of other industries and by increasing employment opportunities in rural areas.” With the

lifting of the ban, the Department of Finance said the mining industry can become a key contributor to the nation’s economic recovery per DENR’s projection that openpit mining will lead to the immedi- By Fernando Penarroyo ate development of 11 pending projects. These projects are expected to generate about PHP11 billion combined in yearly government revenue, increase annual exports by PHP36 billion, and provide employment to 22,880 people living in remote municipalities. Economists see the Philippine economy’s continuing rebound this year after registering a 5.6 percent GDP growth in 2021. However, the outlook is threatened by the emergence of new COVID-19 vari-ants and how the government handles them. Based on the World Bank’s Global Economic Pro-spects, despite the spike in infections from the omicron variant, the Philippines is poised to register the fastest growth in ASEAN this year and the second highest growth in 2023. According to the World Bank, the projected economic growth rate of 5.9 percent for 2022 will be the fastest growth expected in ASEAN, while the 5.7 percent expected next year will be second only to Vietnam’s 6.5 percent. ESG will dictate investments in mining Miners are under increasing pressure to integrate ESG into corporate strategies, investment decisions, and stakeholder reporting. Demands from shareholders, financial institutions, local communi-ties, national governments, customers, and the sector’s own workforce are requiring miners to ad-here to ESG standards. Sustainability in mining means minimizing the consumption

Page 8 >

ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

THE POWER OF AUTOMATION TAKING YOU MILES FURTHER AutoMine® for Trucks continues to set the industry standard with autonomous seamless truck haulage from underground up to the surface. They help to reduce equipment damage and repair work, add the highest levels of efficiency and fleet utilization, giving a lower cost per ton and make your operation more productive and safer. They are scalable for different mining applications and can be supervised from remote locations. It turns Sandvik’s intelligent mining trucks into unmanned robots, robots that keep running.

ROCKTECHNOLOGY.SANDVIK /AUTOMINE-FOR-TRUCKS

COMMENTARY

< Page 6 of resources, reducing the use of energy through new technologies, and the use of alternative energies. Mining operations must utilize cost-effective and environmentally sound extraction alternatives, and efficient biodiversity and water management. Green transition leads to a low-carbon economy The green transition will accelerate amidst global pressures to reduce carbon footprints. At the latest UN Climate Change Conference (COP26) summit, many mining countries pledged to bring down their methane emissions. The rise in sustainable finance and tighter ESG criteria set by financial institutions on mining projects have led to an upcoming rise in GHG emission costs due to carbon pricing. Reducing emissions will require companies to invest in renewables to energize operations and advanced technologies in their decarbonization efforts. Renewable energy technologies, green buildings, electric vehicles, solar panels, wind turbines and battery storage will rely to a great extent on minerals and metals. Project developers and governments are moving away from investments in thermal coal. Major mining companies, driven by ESG targets, will remove thermal coal projects from their portfolios and

coal mining will be dominated by small-cap, pure-play and stateowned mining companies. Coal projects will be mostly self-funded, private equity-funded or statefunded as international banks reduce their financing of coal assets. Miners will have to contend with license to operate (LTO) Miners are under intense scrutiny on how they contribute to the social and economic well-being of local and national governments, engage with host communities and indigenous peoples, and protect water resources and heritage sites. Needless to say, LTO is also linked to a company’s ability to access capital and financing. While metals are a critical input for green transition technology, the mining sector’s social license to operate is contending against the rising public opposition to mines arising from environmental pollution and loss of diversity. The difficulty in acquiring LTO could lead to a slowdown in new project development. New COVID-19 variants will be a game changer Hopefully, COVID-19-linked operational disruption will ease with increased vaccinations. However, new wave of restrictions with the omicron variant or subsequent waves will be a challenging environment for mining operations in

2022 and will cause a setback in economic recovery. Lockdowns not only hamper mine site operations but also slow down the movement of products and services in the supply chain and affect consumption of goods. The COVID-19 pandemic resulted in the increase of costs of inputs, shipping, talent and decarbonization programs. COVID-19 has challenged the deployment of investments in 2020 and to some extent in 2021. Hopefully with the roll out of vaccines especially in emerging economies, COVID19-related operational disruptions will most likely ease in 2022, helping exploration, construction and mine works to pick up. Mineral demand will continue to grow but metal prices to weaken Global demand for minerals and metals especially arising from the green transition, will continue to grow despite slowing growth in 2022. The outlook for auto manufacturing, machinery, appliances, and consumer electronics sectors is positive. Households with huge savings realized during the pandemic are eager to go into revenge spending. All eyes will be on China’s property development sector woes which will put a cap on overall metal demand in 2022. Evergrande’s financial difficulties and a general slowdown in Chinese construction activity will put pressure on ferrous

Page 10 >

ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

LoadIQ - A simple addition to your grinding circuit, a big impact on your operation.

KEY BENEFITS ■

■

LoadIQ Smart Sensor technology accurately measures volumetric filling and ore trajectory -- in real-time Combines with data about the ore type and liner profile to determine the optimum mill load

The theory is simple; to maximize the efficiency of a grinding mill you need the optimal load. But, in practice, the challenge has been to calculate the optimal mill load with precision. Not anymore. With LoadIQ you can typically increase throughput by 3 – 6%, with some even greater than a 10+% increase in tonnage.

For more information: Tel: +1 801 871 7000 flsmidth.com

RESOURCES COMMENTARY

< Page 8 metal prices. Meanwhile, iinvestments in infrastructure is expected to remain relatively stable. Fitch Solutions forecast that most metal prices to average lower in 2022 but will remain high compared with 2016-2020 averages. Looking at 2022, slowing economic growth, slow normalization in fiscal and monetary policy, and China’s property sector woes will push metal prices lower in 2022. However, prices will still average at elevated levels, higher than pre-COVID-19 levels as the market balance for most metals remain extremely tight and stocks are historically low. Existing deposits that are known or held by the majors are being depleted and new ones will be required. Investments in mines and oilfields have dropped sharply over the past five years. The result is “greenflation” in commodity prices, which have had their biggest yearly increase since 1973. Access to capital will be a challenge amidst upward trend in global exploration budget Access to capital for new projects or expansions will continue to be a challenge for the industry, as investors are deterred by risks associated with ESG, LTO, resource nationalism and geopolitics. Higher ESG ratings can enable access to

a larger pool of attractively priced capital. Still, elevated metal prices coupled with an increase in production across commodities in 2022 will help mining and metal companies’ financial performance to remain strong next year amidst the acceleration of the green transition and opening up of new business opportunities. However, strict ESG requirements will make development of new projects potentially more difficult. Meanwhile, a report by S&P Global Market Intelligence notes that the aggregate annual global exploration budget is expected to increase between 5% and 15% year over year for 2022. According to S&P, a faster-than-expected recovery in market conditions and easing of lockdowns allowed explorers to reactivate programs by mid-2020, which caused some campaigns to carry over into 2021. Government intervention intensifies in 2022 Because of the economic and fiscal hardships and rising social inequality during the pandemic while mining companies are benefitting from elevated metal prices, government intervention in the sector will remain firmly in play in 2022 posing additional risks to mining projects. Companies will be subjected to resource nationalism in the form of increased taxes and royalties, policies to boost domestic

beneficiation, and the renegotiation of contracts to get better terms for the governments. Governments are also developing investment plans to boost their own production or secure minerals that will be key to the green and digital transitions. Thus, miners will also need to contend with trade wars, geopolitics of the COVID-19 pandemic, and changing governments or policies aimed at protecting strategic resources and increasing “self-sufficiency” in critical products like fossil fuels and rare earths. Automation, digitalization, and electrification to address productivity, safety, and ESG priorities The mine of the future will be less visible and smaller, use less water and energy, less polluting, more productive, and extract minerals more efficiently due to the application of new technologies. Incorporation of new technologies in mining is critical for companies to modernize their operations and meet increasingly stringent environmental and sustainability goals, while remaining competitive and relevant. The automation, digitalization and electrification of mining operations has the potential to increase mine productivity, daily operational capacity, sustainable use of nonrenewable resources, operational safety, and productive lifespans

Page 12 >

ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

RESOURCES COMMENTARY

< Page 10 of mines. The transition to off-grid mining and battery storage, together with the use of renewable energy to power operations are expected to bring advantages not only in terms of CO2 emissions reduction, but also in terms of helping industry-related companies manage costs. Electrification of mines have the potential to incur lower expenses due to minimal maintenance requirements leading to a reduction of operational downtime. Operational downtime is common among diesel-powered machinery due to the extensive maintenance required for their internal mechanisms that are prone to breakdown. While automation and electrification will result in a decrease of operational input costs, digitization produces predictable data. Data management also converts data into decision-making information. Digital innovation also allows diversification into greener products and improve transparency of reporting. These innovations include artificial intelligence, big data and satellite imagery. However, digitalization also exposes companies to cyber threats and hacking. Technical advances have also been made in waterless processing and waste disposal, and biogenic processes. Technological change in mining will require a workforce with new skills in roles that would be familiar with modern technology. There will be a shift in the skills profile for future workers who will need to manage and engage the electric and digital transformation in the industry. A reevaluation of current skills sets will need to be considered as the future mining workforce is likely to change, which will be driven primarily by the adoption of modern technologies. Opportune time for new business and operational models Miners now operate in a more volatile environment because of ESG and technology disruptions. They should adopt new business and operational models that will deliver greater returns directly to host communities and governments, minimize waste, reduce emissions, bring more value to investors, and gain low-risk access to capital. Mining and metal players need to accelerate their efforts to benefit from the new opportunities brought about by the green transition. These involve more exposure in energy transition materials and spinning off higher growth busi-

nesses linked to the green transition to unlock value. Miners also have opportunities to invest in product differentiation to benefit from green price premiums on lower-carbon products. Product differentiation based on green/ESG credentials and assorted price premiums will make some metals more of a specialized product sector and less of a bulk commodity material. Conclusion Disruptions open the industry to new risks and volatility. The local industry needs to adapt to these disruptions in light of the possibility of a more severe COVID variant and the political uncertainty in the conduct of the coming elections. The lifting of the open pit mining ban was a step in the right direction. However, the incoming government’s stand on mining will determine if the industry will be able to take advantage of the increasing global demand for minerals and metals or miss out on the boat again. References Ferguson, Mark, The Big Picture: 2022 Metals and Mining Industry Outlook, S&P Global Market Intelligence, 02 November 2021, https://www.spglobal.com/marketintelligence/en/news-insights/ blog/the-big-picture-2022-metalsand-mining-industry-outlook Ford, Alastair, The Mining Sector: 4 Key Trends for 2022, Proactive Investors, 27 December 2021, https://www.proactiveinvestors. co.uk/companies/news/968909/ the-mining-sector-4-key-trendsfor-2022-968909.html Goosen, Matthew, The Future of Mining Through Electrification, Digitalization and Automation, Ener-gy Capital and Power, 08 September 2021, https://energycapitalpower.com/the-future-of-

mining-through-electrification-digitalization-and-automation/ Mining: News on Mining & Construction Machines, https://www. bauma.de/en/trade-fair/trade-fairprofile/exhibition-sectors/mining/ Mining And Metals Key Themes For 2022, Fitch Solutions, 06 October 2021, https://www.fitchsolutions.com/mining/mining-and-metals-key-themes-2022-06-10-2021 Mitchell, Paul, Top 10 Business Risks and Opportunities for Mining and Metals in 2022, Ersnt and Young, 07 October 2021, https:// www.ey.com/en_gl/mining-metals/top-10-business-risks-and-opportunities-for-mining-and-metalsin-2022 Ordinario, Cai, PHL Will Post Fastest Growth in Asean—WB, BusinessMirror, 12 January 2022, https://businessmirror.com. ph/2022/01/12/phl-will-post-fastest-growth-in-asean-wb/ Sharmka, Ruchir, Ten Economic Trends That Could Define 2022, Financial Review, 04 January 2022, https://www.afr. com/policy/economy/ten-economic-trends-that-could-define2022-20220104-p59lpj Six Global Trends Shaping the Industry, https://www.futuremineralssummit.com/mining-trends/ Top Three Technology Trends Set to Disrupt Mining, Australian Mining, 02 December 2021, https://www.australianmining. com.au/news/top-three-technology-trends-set-to-disrupt-mining/ Upward Trend in Global Exploration Budget to Continue in 2022 – Report, MINING.COM Staff, 19 October 2021, https://www.canadianminingjournal.com/news/ upward-trend-in-global-explorationbudget-to-continue-in-2022-report/ What’s In Store For The Mining Industry In 2022?, Ag Metal Miner, 20 December 2021, https:// oilprice.com/Metals/Commodities/ Whats-In-Store-For-The-MiningIndustry-In-2022.html

Fernando “Ronnie” S. Penarroyo specializes in Energy and Resources Law, Project Finance and Business Development. He may be contacted at fspenarroyo@ penpalaw.com for any matters or in-quiries in relation to the Philippine resources industry and suggested topics for commentaries. Atty. Penarroyo’s commentaries are also archived at his professional blogsite at www. penarroyo.com

ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

RESOURCES COMMENTARY

2022 presidential candidates: Who truly walks the talk?

s this column is being written, there are less than 100 days to go before the May 9 elections. Many voters have made their minds up from the outset, some purely based on their visceral reactions to, and past experiences with, the candidates. However, we owe it to ourselves and future generations to scrutinize the candidates based on their platforms and advocacies, although time and again we are reminded that most campaign promises are made to be broken. For the mining industry, the obvious primary point of comparison would be the candidates’ position on mining and the development of our natural resources. After all, the Philippine Constitution itself recognizes the role that mining plays in our economic life by providing the framework for the exploration, development and utilization of mineral resources. The candidates’ respective positions on mining have been made public through their recent interviews and statements, including the debates that a certain candidate has been pointedly avoiding. Speaking to Boy Abunda, instead of Jessica Soho who he claims is biased, Ferdinand Marcos Jr. said he is open to allowing “sustainable mining”, while expressing aversion toward open-pit mining. Marcos Jr. said he recognizes that mining is a big source of revenue for the Philippine government, and that in these difficult times, we should take advantage of our vast natural resources. On open-pit mining, he cited the pollution that it allegedly causes and post-mine closure issues. He also called for improving the working conditions and compensation received by mine workers. Vice President Leni Robredo, for her part, has stated that she supports “responsible mining” and ensuring the protection of the environment. She believes that the benefits from mining should go back to local communities and contribute to holistic national development. She has also stated that she will continue to push for respect for the rights of indigenous peoples, which has been her advocacy from her days as an

“alternative lawyer” and for “honest to goodness consultation” with the communities affected by mining. She, however, said she would immediately cancel President Duterte’s Executive Order 130 lifting the moratorium on new mineral agreements, issue an executive order identifying “no-mining areas” and would call for the passage of the National Land Use Act, which she co-authored as a member of Congress. She also supports the passage of the “Alternative Minerals Bill” which bans mining in critical areas and open-pit mining. Manila Mayor Isko Moreno has said he will support mining as a means of reviving the economy especially after being ravaged by Covid-19, recognizing that mining can attract much-needed foreign direct investments and create jobs. He said that the government cannot rely on taxation alone and must develop its assets, including minerals, responsibly. Senator Panfilo Lacson said that, if elected President, he will ensure the “responsible” extraction of minerals and eradicate the double standard in the regulation of the mining industry. “Ang mining industry, hindi naman pwede patayin kasi major industry ito ng Pilipinas”, he said. He has pointed to small scale mining as the source of violations of mining laws and environmental risks, and an area that he will devote attention to, emphasizing that his actions will be “data driven” and “science based”. He has also called for the creation of a special program and funding for indigenous peoples “who suffer the brunt of irresponsible mining.” Senator Manny Pacquiao believes that the extraction of minerals can be done responsibly and is therefore against banning mining. He says that the number of mining projects in the country can be controlled and that the government can focus on monitoring open-pit mining. Only “Ka Leody” de Guzman has outrightly called for a ban on mining, saying it endangers the lives of people, specifically citing the effects of Typhoon Yolanda in an area where there is a largescale mining project. Instead, he

advocates advancing a “just transition to a green economy” as a solution to “destructive extractive industries like mining and logging”. He said that residents in communities to be rehabilitated should be given the knowledge and skills to conserve the ecology of their environments, which is crucial to the return of their livelihoods in farming and fishing. There is an entire By Patricia laundry list of other issues on the candidates can be grilled. However, for the Makati Business Club (MBC) [whose Governance Committee I currently chair] and other business groups, including the Financial Executives Institute of the Philippines (FINEX), Legal Management Council of the Philippines (LMCP), and Management Association of the Philippines (MAP), as well as various Chambers of Commerce, one paramount point is where the candidates stand on Freedom of Information. Freedom of information is enshrined in the Constitution. The Bill of Rights (Article III), particularly, Section 7, provides “(T)he right of the people to information on matters of public concern shall be recognized. Access to official records, and to documents and papers pertaining to official acts, transactions, or decisions, as well as to government research data used as basis for policy development, shall be afforded the citizen, subject to such limitations as may be provided by law.” What we need, therefore, is a law which implements and operationalizes this. A Freedom of Information (FOI) Law would require government to make public information available to citizens, organizations and businesses. However, it has been 35 years, and counting, but an FOI Law has still not been passed. From the perspective of FOI

A. O. Bunye

Page 16 >

ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

RESOURCES COMMENTARY

< Page 14 advocates, there is no lack of arguments in favor of the passage of an FOI Law. Good governance reforms are crucial in promoting sustainable and inclusive growth. This can only happen with clear rules and guidelines, easy access to information, eliminating vagueness in procedures, unchecked discretion among regulators, and inefficiency in the bureaucracy. An FOI Law would also encourage developing a culture of transparency at all levels. On 23 July 2016, soon after President Duterte assumed office, he issued Executive Order 2, entitled “Operationalizing In The Executive Branch The People’s Constitutional Right To Information And The State Policies To Full Public Disclosure And Transparency In The Public Service And Providing Guidelines Therefore”. While this was a very welcome development, the EO only covers the Executive branch, including but not limited to, the national government and all its offices, departments, bureaus, offices, and instrumentalities, including government-owned or -controlled corporations, and state universities and colleges. It does not, however, cover the legislature, judiciary and or even LGUs, although it encourages them to observe the order. Interestingly, the EO contains a reminder to all public officials of

their obligation to file and make available for scrutiny their Statements of Assets, Liabilities and Net Worth (SALN) in accordance with existing laws, rules and regulations, and “the spirit and letter of the Order”, but the signatory of the EO himself has time and again refused to provide his SALN, which is a basic instrument of transparency. For its part, the Supreme Court issued the Rule on Access to Information About the Supreme Court in 2019. The Supreme Court likewise ordered the creation of FOI Manuals in the entire judiciary. The Rule on Access to Information About the Supreme Court guarantees one’s “privilege” (but not absolute right) to either obtain a copy, receive the information or gain insight to all information and records or portions of those records in the official custody, possession and control of offices in the Supreme Court. Like all other rights, the “right to know” is not an absolute right. Excluded are those “non-disclosable information” protected by laws, rules or resolutions of the Supreme Court En Banc. The obvious limitations of these two issuances are that they only cover their respective branches of government. The goal is to pass an FOI Law which covers all three branches of government, including local governments. The consolidated House Bill (HB 5776) currently pending for

approval by the House Committee on Public Information enjoys strong support and has been consistently identified as a legislative priority by the business community. However, it is highly unlikely that it will pass in this administration, and it is therefore up to the next administration to take up the cudgels. Information is power. Information will allow us to make better decisions about who we elect to office, how we allow our leaders to allocate and spend our taxes, and also examine the policies they seek to implement. Information will allow us to be better partners in nation-building. The right information will empower us to fight and correct misinformation, falsehoods and outright fake news. During the campaign, a number of the presidential candidates have professed support for the concept of “freedom of information”, though some not necessarily for the passage of the law itself. What is more telling is not what they have said in words, but by their actions through the years, i.e., whether they have led lives of transparency and accountability. The campaign period is therefore a time for us to really sift through the noise and get to know our candidates, both national and local, but most especially the presidential candidates, as to who truly walks the talk.

Patricia A. O. Bunye is a Senior Partner at Cruz Marcelo & Tenefrancia where she heads its Mining & Natural Resources Department and Energy practice group. She is also the Founding President of Diwata-Women in Resource Development, Inc., a non-government organization advocating the responsible development of the Philippines’ wealth in resources, principally through industries such as mining, oil and gas, quarrying, and other mineral resources from the earth for processing.

ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

OceanaGold on PH Mining Club: Mining gold for a better future By Abe Almirol and Marcelle P. Villegas

hings are getting better for OceanaGold Philippines, Inc. after their application for FTAA renewal was finally approved last year for the Didipio gold and copper mine. Last 14 July 2022, the Philippine Government finally granted OGPI another 25 years to operate. The company’s operations had been halted for nearly two years due to a dispute between the mining firm and the provincial government. [1] From the company’s media release on their website, OPGI said that the new Financial or Technical Assistance Agreement (FTAA) applies retroactively from June 19, 2019. When they started operations again in November of 2021, they produced 14,863 ounces of gold and 2,323 tonnes of copper. This surpassed the company’s 2021 guidance range of 7,000 to 12,000 ounces of gold and 1,000 tonnes of copper. Last 11 February 2022, Philippine Mining Club’s 14th Webinar presented OceanaGold’s David Way as keynote speaker.

Way is the General Manager for New Zealand and Philippines of OceanaGold Corporation. His presentation is titled “Mining gold for a better future -- delivering on our commitments”. The virtual event was well attended with more than 200 attendees. Upon the renewal of their FTAA contract last year, the company expressed their gratitude to the Philippine Government and that their top priority is to rehire and train its workforce in the Philippines. During the PMC webinar, the General Manager said, “The Philippine Government has always been our partner in every stage of our operation. We keep them informed with the activities and seek their wisdom, especially in our commitment to mine safely, responsibly, and conscientiously.” Moreover, he said, “Our success is dependent on the strength of the workforce and on the relationship we have with our stakeholders. The Philippine Government has always been our partner in every stage of our operation. We keep them informed with the activities and seek their wisdom, especially in our commitment to mine safely,

responsibly, and conscientiously.” “Through our transformative engagements with the Government, our valued regulators, Indigenous Peoples groups, and our host and neighboring communities, we listen to their advice, and respond to their support. We commit to being a responsible Corporate Citizen of the Philippines.” The current FTAA of OGPI covers 8,314.42 hectares. Direct community beneficiaries include: 1 host community, 10 neighboring communities, 17,000+ residents (as of 2015 census), 2 host municipalities, and 2 host provinces (Nueva Vizcaya and Quirino). [2] Didipio Mine Workforce is composed of 1,145 employee (as of Dec. 31, 2021) wherein 99% is composed of Filipino workforce. The 25% of the Company’s workforce at Didipio are women who are in professional level roles. The FTAA was renewed on substantially the same terms and conditions and includes the following modifications: > The equivalent of an additional 1.5% of gross revenue to be allocated to community development

Page 20 >

ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

< Page 18 > Reclassification of Net Smelter Return to be an allowable deduction and shared 60% / 40% rather than wholly included in government share > Listing of the least 10% of the common shares in OceanaGold Philippines Inc. (OGPI), the Company’s Philippine operating subsidiary and holder of the FTAA, on the Philippine Stock Exchange within the next three years > OGPI shall offer for purchase by the Philippine Central Bank not less than 25% of its annual gold doré production at fair market price and mutually agreed upon terms > Transfer of OGPI’s principal office to a host province within the next two years The additional 1.5% allocated to community development will take the form of increased contributions to communities in the region and provincial development project. While the existing fund of Social Development

and Management Program will continue to be provided for the host and neighbouring communities, 1.0% of the additional 1.5% will be allocated to community development for additional communities and 0.5% to the host Provinces of Nueva Vizcaya and Quirino. OceanaGold reaches out to more communities Under Section 13.3 of the renewed FTAA, the contractor company shall assist in the development of communities outside Didipio and adjacent barangays. The new fund was named Community Development Fund (CDF) to distinguish itself from the Social Development Management Plan (SDMP) allocation which is mandated by the Philippine Mining Act of 1995. Didipio as the host community and 10 neighboring villages are already covered by the SDMP which is funded by 1.5% of the company’s actual operating cost of the preceding year.

The Didipio Operations of OceanaGold has assigned its External Affairs and Communications Department to manage the implementation of the CDF. The department is now undertaking extensive research in preparation for the community consultations to craft the operational guidelines to manage the new fund. The new FTAA provided the allocation for the CDF which amounts to one percent (1%) of the gross mining revenues of the preceding calendar year. As Didipio returns to its optimum production, the amount allocated for the CDF will gradually increase and will be peak in 2024 and gradually slide down as production slows down towards the end of mine life. During his presentation at the Philippine Mining Club webinar, Way also discussed the main features of their mining operations, namely: Processing Plant - use of cleaner production technology Tailings Storage Facility - Downstream construction method, the safest method of tailings dam construction. Of note, their tailings meet the criteria for non-hazardous discharge. Paste Backfill Plant – This is the country’s mining milestone - the first automated paste plant infrastructure built in the Philippines.

Page 21 >

ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

< Page 20 His presentation further emphasised on how OGPI assures the safety of their employees in the underground mine. For example, OGPI uses Self Rescuers (by Draeger/MSA), a portable device, breathing apparatus to be used in case of gas outburst/fire, smoke, fumes and air is irrespirable. This apparatus provides oxygen for 15 to 25 minutes used during an emergency. The underground mine safety plan also includes a Refuge Chamber with a maximum capacity of 112 personnel. [2] Way also mentioned that their mine site uses the first Rhino 100 in the Philippines. This equipment is the world’s fastest raise borer that can drill 500 m a month. On a final note, the General Manager’s report includes the 2021 Highlights: “Delivering on our commitments - remains a key focus” 1) Improved Profitability - Cash balance increased to $133 million with total immediate available liquidity increasing to $163 million. 2) Didipio Restart - Didipio

exceeded full year production guidance with 14,863 ounces of gold and 2,323 tonnes of copper produced over only two months; ramp-up to full production tracking ahead of schedule. 3) Haile Operations - Haile exceeded full year production guidance with an annual record of 189,975 ounces of gold produced. 4) Guidance Maintained - Consolidated full year gold production increased 20% yearon-year with 362,807 ounces produced.

References: [1] Atienza, K. and Ochave, R. (16 July 2021). “OceanaGold plans to reopen Didipio mine ‘as soon as possible’”. BusinessWorld Online. Retrieved from - https://www. bworldonline.com/oceanagoldplans-to-reopen-didipio-mine-assoon-as-possible/ [2] Magdaong, Jason (24 Nov. 2021) “Working Safe Underground --Managing Safety Hazards with Management System, Protocols, and Use of Technological Solutions in Didipio Underground Mine”. Presentation at PMSEA Webinar.

We pioneer motion

Smart Mining

CONCEPT Series Lubricators With Schaeffler CONCEPT series automatic lubricators, it is possible to supply precise amount of oil or grease, at the right interval, to your mining machineries and equipment, thereby avoiding consequential damage and reducing the risk of application failures. At Schaeffler, we are committed in finding the best solution for your business. Call us at +63 917 805 6589 to find out more. medias.schaeffler.sg/en/lubrication/lubricators

PH-Mining_ConceptLub_LandscapeA5.indd 1

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 1 2022

18/02/2022 2:27:07 PM

MINING NEWS

Paste Backfill System: A game changer in mine safety By Marcelle P. Villegas

here are many ways and technological advancements that are used in mine sites that prevent disasters and address issues like ground stability at end of mine. One of the most fascinating techniques used by OceanaGold Corp. in assuring the safety of employees and protecting the environment is the use of the Paste Backfill System. This topic and more were discussed by Engr. Jason N. Magdaong during the second day of PMSEA’s virtual event, Annual National Mine Safety and Environment Conference last November 24-26, 2021. On the second day of the conference, the PSEM Minerals Industry Symposium had OceanaGold Philippines Inc. (OGPI) as one of their presenters. Engr. Magdaong is the Environmental and Occupational Health, Safety Manager of OGPI. His presentation, “Working Safe Underground: Managing Safety Hazards with Management System, Protocols, and Use of Technological Solutions in Didipio Underground Mine” was a through discussion on all the safety measures and standards applied in the Didipio mine of OGPI. OGPI has various strategies and measures on how to assure safety in the underground mine such as having an efficient Ventilation System and the use of ventilation measuring equipment, carefully planned Ground Support Installation, Refuge Chambers, Escape Ladderway, and more. And then there is the Paste Backfill System which is not a new technology. However, the Paste Backfill System in the Didipio mine is the first and the only one in the Philippines. Paste backfill is an engineered mixture of fine solid particles (with binder) and water. The paste mixture can be placed in stopes (an excavation in a mine or quarry in the form of a step or notch), and binders may be added (or not) depending on the kind of strength needed for the backfill. Paste backfills are also important in tailings management and mine backfill alternative. Binders are

used in paste backfill where structural strength is required of the backfill and where resistance to liquefaction is necessary.[1] In a short interview with Engr. Magdaong during the virtual Q&A session, we asked him how can the Paste Backfill System help decrease the environmental impact of Didipio mining activities? And how can this technology provide a safe working environment for OGPI employees? “Paste Backfill System decreases environmental impact by reducing the volume of tailings disposed in the tailings storage facility (TSF) and corresponding reduces the required size of the tailings storage and reducing the required clearing and footprint of the TSF,” Engr. Magdaong said. “Associated risk of having bigger TSF is also reduced. Having a paste backfilled stopes in the underground, it provides a more stable and safer working area in any axis of mine production, may it be on the sides, above or below.” Lay people who are unfamiliar with the technology behind Paste Backfill System might feel some apprehension or doubt that a mining operation can be safely done without destroying the environment. Perhaps it is because mainstream media hardly mention that such a technology even exist in mining. Or maybe this technique in tailings management and ground stabilization and all other safety features in a mine are unheard of to most people. This presents a new challenge for

mining companies in effectively communicating topics related with science and technology, OceanaGold Philippines Inc. is one of the notable mining companies who make an effort to help the general public understand how responsible mining is indeed possible. References: https://sites.google.com/site/ mininginfosite/miner-s-toolbox/ backfill/paste-backfill https://pmsea.ph/67th-anmsec/

ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

All-In-One Solution

For Reliable Precision Elemental Analysis Robust Epsilon 4 benchtop XRF •Market leading light-element analysis •Little or no sample preparation •Higher sample throughput than traditional EDXRF benchtops with unique silicon drift detector technology •Automatic drift correction for compliant results WROXI, high quality calibration standards at your fingertips •Suitable for major and minor elements in wide range of oxides •Synthetic CRMs that are reliable yet more affordable than traditional CRMs •Trusted traceability produced under ISO 17034 accreditation •Use WROXI as a primary standard or to verify in-house standards for pressed powder analysis Other exclusive benefits •Access to Malvern Panalytical’s regional application laboratories and chemists •Valuable advice on analytical solutions on your needs •Custom calibrations for your mineral

DKSH Market Expansion Services Philippines, Inc. 8th floor Cyber Sigma Lawton Ave., McKinley West, Fort Bonifacio, Taguig City 1634, Philippines Mark Mangogtong | Product Specialist mark.mangogtong@dksh.com | +63 998 596 8717

Delivering Growth – in Asia and Beyond.

Scan and Watch!

Scan for more!

MINING NEWS

How safety performance is measured in PH mine sites By Marcelle P. Villegas

hilippine Mine Safety and Environment Association presented the virtual edition of 67th Annual National Mine Safety and Environment Conference (ANMSEC) last November 24-26, 2021 with the theme “Pusong Minero: Celebrating 67 years of responsible mining with the quiet heroes of the pandemic.” The event was also made possible in cooperation with the DENR-MGB. One of the highlights of this annual event is the awarding of the best mining companies. The winners of the 2021 Presidential Mineral Industry Environmental Award are the following: ~ Mineral Processing Category: Mindanao Mineral Processing & Refining Corporation ~ Quarry Operation Category: Republic Cement and Building Materials, Inc. – Bulacan ~ Surface Mining Operation Category: Berong Nickel Corporation PMSEA and DENR- MGB also recognize the Mine Safety - Best Practices and key speakers from the industry who have stories and milestones to share during the occasion. One of the guest speakers was Engr. Marcial H. Mateo (Chief, Mine Safety, Environment and Social Development Division, Mines and Geosciences Bureau). His presentation’s title is “Mine Safety and Health Management”. Laws on Mine Safety and Health Engr. Mateo’s topic is relevant not only to people within the industry but also to those who believe in anti-mining sentiments. Why? It is possible that some people dislike mining because they are unfamiliar with the complexities of owning and managing a mine site. Mining is not just getting minerals from the ground. There are laws in our country that regulate and mandates a lot of requirements from mining companies. We have laws about the protection of our environment, and laws that protect the rights and safety of workers as well. Engr. Mateo’s presentation starts with an enumeration of Philippines laws that cover mining companies, particularly Laws on Mine Safety and Health. From Mines and Geosciences Bureau, they have: ~ RA 7942 - PH Mining Act ~ DAO No. 2010-21 - IRR of RA 7942 ~ DAO No. 2000-98 - Mine Safety and Health Standards, 2000 ~ DAO No. 1997-30 - Small-scale Mine Safety Rules and Regulations ~ MC No. 2021-006 - Safety and Health,

Environment and Social Development and Management (SHES) Manual ~ MC No. 2018-02 - Guidelines for Compliance Monitoring and Rating Scorecard of Mining Permits/ Contracts Mining companies also comply with laws from Department of Labor and Employment (DOLE), namely: ~ PD 442 - Labor Code of the Philippines ~ RA 11058 - An Act Strengthening the Compliance with Occupational Safety and Health Standards ~ RA 10757 - An Act reducing the retirement age of mine workers from 60 to 50 ~ OSH Standards as Amended, 1989 (Yellow Book) From Department of the Interior and Local Government (DILG), mining companies follow the: ~ PD 1185 - Fire code of the Philippines ~ RA 9561 - Laws on illegal possession, manufacture, dealing in, acquisition or disposition of explosives Lastly, Department of Health’s laws on health and safety addresses particular health concerns and diseases. Mining companies comply with these laws and guidelines as well. ~ PD No. 856 - Sanitation Code of the Philippines ~ RA 9165 - Drug free workplace ~ RA 11036 - Mental Health Service in the

Page 26 >

ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

< Page 24 Workplace ~ EO 187-03 Tuberculosis ~ DOLE DA 052010 - Hepatitis B ~ RA 8504 AIDS and HIV Safety and Health Workplan A workplan in important in a mine site as this provides guidelines on how to properly implement the laws and requirements that covers the various aspects of health and safety. Mine Safety and Health Standards This states that “All Contractors, Permittees, Lessees, Permit Holders and Service Contractors shall strictly comply with all the rules and regulations embodied under Department Administrative Order No. 200098, otherwise known as the ‘Mine Safety and Health Standards.’” Annual Safety and Health Program The Regional Director shall require a Contractor, Permittee, Lessee, or Permit Holder to submit a Safety and Health Program covering its area of operations within fifteen (15) working days before the start of every calendar year with the following terms and conditions listed in Elements of SHP chart. DAO 2000-98 - Mine Safety and Health Standards To assure mine safety and health standards, there are certain steps and requirements to follow. DAO 2000-98 provides some specifications on the matter. The first step is the establishment of a safety and health organization, and then having trained safety officers within the organization. “Employer shall establish and provide for a safety and health office which is independent from other offices under the direct and immediate control and supervision of the Manager who shall be primarily responsible for the formulation and effective implementation of the company’s safety and health program and enforcement of these rules and

regulations.” What are the basic qualifications of a Safety Officer? All Safety Engineers and Safety Inspectors of mining/ quarrying operations shall be duly registered with the Regional Office and the corresponding permit shall be issued for this purpose (MGB Form Nos. 15-1, 15-2 and 15-3). For permanent registration of Safety Engineers, one is required to be a current licensed Mining Engineer with at least one (1) year supervisory experience in mining /quarrying operations and/or mine safety work; or currently licensed Engineer, Geologist or Chemist with at least five (5) years experience in mining/quarrying operations and/or mine safety work. The applicant for the position must undergo 40 hours of OSH training/seminars. Permanent Registration for Safety Inspectors should be a graduate in any Engineering, Geology or Chemistry course with at least one (1) year experience in safety work or two (2) years of experience in mining operations; or a college undergraduate in any Engineering, Geology or Chemistry course with at least two (2) years of experience in safety work or three (3) years of experience in mining operations; or at least high school graduate with four (4) years of experience in safety work or five (5) years of experience in mining operations. A Permanent Safety Engineer/ Inspector permits shall be subject to renewal every three (3) years with the Regional Office. A Temporary Safety Engineer/ Inspector Permit shall have a term of one (1) year from the date

of issuance thereof, renewable every year. Employees with at least ten (10) years of experience either in safety work or mining operation may be deputized by the employer as safety men, with the designation of a deputy safety inspector which shall be reported to the Regional Office. Health Hazard Control There are a lot of health hazards in a mine site. The guideline states, “An employer may not establish an emergency hospital and/or dental clinic in his workplace as required where there is a hospital or dental clinic located not more than five (5) kms. away from the workplace, or which can be reached in twenty-five (25) minutes of travel. Appropriate standby emergency transport vehicle shall be provided by the employer for the immediate transfer of the sick/ injured worker to the hospital.” Other safety measures that are required include having a Central Safety and Health Committee (CSHC) which is supposed to be established within one month from the start of the operation. The CSHC shall provide a forum for consultation and cooperation between the employer or manager of the mine, employees and members in initiating, developing and implementing measures designed to ensure the safety and health of employees at the mine. It shall also conduct a monthly safety meeting and the minutes of which to be submitted to the manager/employer and the Bureau/Regional Office. Safety and Health Training is also required to be provided by

Page 28 >

ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

By Abe Almirol

or the past six years of operations as a drilling contractor at the Masbate Gold Project (MGP), Quest Exploration Drilling (Philippines), Inc. has reached its goal of 1,000,152 safe manhours with 2,141 days without lost time injury (LTI) as of the day shift of November 12, 2021. The team has drilled over one million meters during this period. With an excellent commitment to safety and productive performance, QED started its RC in-pit grade control operations at the

together for the past nine years. “Our Masbate operations is basically run by a close team. We train and grow our employee’s knowledge on safety at work and at home to prevent incidents at all times. This process starts from Day 1 of their employment with QED,” Smith said. Describing QED’s Safety Culture At QED, everyone understands that a safe operation comes with hard work. Having the need to create a safe work culture requires effort from all team members. Through the commitment of the

team. Like in the past, the management has constantly reminded employees to practice what they learned from their training when they are at home, especially during occasions like Christmas breaks where people tend to lower their guard against unsafe practices. This part of the QED team’s “safety culture” has made dealing with COVID-19 easier. To prevent virus contamination, the movement of people from their homes to the workplace must be regulated. Getting used to safety discipline while at home contributed well to the adaptation process.

management, supervisors, and site safety personnel, coaching and mentoring became an integral part of daily routine for the Masbate team. “We have to refresh and remind employee’s all the time to continue with our safety culture to make sure we all go home safely each day from work. The same mindset applies with safety outside of work as well,” Smith explained. The pandemic has extended safety protocols to the households of each member of the Masbate

Systems-based Approach Safety as a science is basically a system of establishing control measures. To implement such controls, the team uses a systems-based approach to manage training and to effectively run safety meetings and pre-task risk assessments. The system also includes communicating safe working procedures, inspections, and auditing processes. “Without these systems being in place, which gives a structure to the relationship between us (as

should be conducted quarterly for effectiveness of the program. Employers is required to submit to MGB a copy furnished to the Regional Office, a report on the

conduct of the emergency drill.

QED celebrates safety milestone in Masbate

mine site in Aroroy, Masbate with a contract signed with MGP’s owner, Filminera Resources Corporation, in 2013. QED’s achievement is the result of obeying established safety management systems and guiding principles. In an interview with the Philippine Resources Journal, Wayne Smith, QED’s contract manager at the site, revealed detailed insights behind their safety performance. Smith explained that the team in Masbate has been working

Page 30 >

< Page 26 the employer to the employees. Employees with no surface/ underground mining experience shall experience shall receive no less than twenty-four (24) hours of training. And the, all employees shall receive no less than eight (8) hours of refresher training no less than once each twelve (12) months. Another requirement is the Emergency Response and Preparedness Program. The employer shall ensure the preparation of an emergency response preparedness program prior to commencement of any mining operation which covers the identification of hazards that might cause emergency at the mine, assessment of every perceivable risk that may lead to a medical emergency, and to have controlling measures that will prevent or deal with the emergency. An emergency drill

Reference: https://pmsea.ph/67thanmsec/ ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

Cert. No. 67125-27 EAC Code: 02/35

HINATUAN MINING CORPORATION Mine Site: Hinatuan Island, Brgy.Talavera, Tagana-an, Surigao Norte Surigao Liason Office: NAC Bldg. Km3, Brgy. Luna, Surigao City Tel. Nos, (086) 826-6113 Head Office: 29F, NAC Tower, 32nd Street, Bonifacio Global City, Taguig City, Metro Manila, Philippines, 1634, Tel. Nos. (623) 7987-626

MINING NEWS

Nickel Asia-Hinatuan Mining assists Typhoon Odette victims

ickel Asia Corp. - Hinatuan Mining Corp. (NAC-HMC) has spent Php15.7 million to assist families affected by Super Typhoon Odette in its host and neighboring communities, the Municipality of Tagana-an, City Government of Surigao, and the Province of Surigao del Norte. Of the Php15.7 million, Php13.2 million is from the Corporate Social Responsibility (CSR) Program of the company, and the remaining Php2.4 million is from the realigned 2022 1st Quarter Social Development and Management Program (SDMP). Among the activities conducted as part of the relief operation assistance of NAC-HMC were: provision of 5 kilos of rice to a total of 808 households in its three host communities - Barangay Talavera, Sitio Campandan, and Sitio Bagong Silang; provision of 10 canned goods and 5 noodles per household in the three host communities; Provision of additional 10 canned goods, 5 noodles with hygiene kit per household in the three host communities; provision of 1 sack of rice per household in the three host communities; provision of medicines for gastroenteritis/diarrhea to community health centers; Provision of hygiene kits (2nd wave) per household in the three host communities; provision of 500 sacks of rice to the Municipality of Tagana-an; provision of 1,500 sacks of rice, 15,000 canned goods & 15,000 noodles to the Province of Surigao del Norte; Provision of 2 units big chain-

< Page 28 the contractor) and the client, we would not have the control measures in place to prevent accidents from occurring,” Smith said. With over 50 people on board, QED’s Masbate team has been honed in the last nine years to face a long mine life. “Doing the things we have been taught to do” is a mantra for everyone in the QED management and workforce. Smith observed that a key element in their success is cultivating professional honesty among each team member. Training won’t work if some people still have the tendency to cover up mistakes, he said.

saw to Sitio Bagong Silang and Sitio Campandan; Provision of 40 folding beds to LGU-Talavera, Sitio Bagong Silang & Sitio Campandan; provision of free purified drinking water to all employees at HMC water refilling station; Provision of 500 sacks of rice to the City Government of Surigao; provision of 300 sacks of rice, 7,500 canned goods, and 7,500 noodles to Congressman Robert Ace Barbers’ relief operation; extended financial assistance of Php20,000 to all affected regular employees and Php10,000 to all regular seasonal employees residing in the provinces of Surigao del Norte and the Dinagat Islands; Provision of 10 canned goods and 5 noodles with additional hygiene kits (3rd wave) per household

in the three host communities; 1 sack of rice (2nd wave) per household in the three host communities; and provision of coffee, milk and milo sachets per household in the three host communities. The chairperson for the Representative of Host and Neighboring Communities (RHNC) of Nickel Asia Corp. - Hinatuan Mining Corp. (NAC-HMC), Hon. Eulita M. Borja, Talavera Brgy. Kagawad, is grateful of the activities made by NACHMC in assisting her community. “As the chairperson of RHNC, I am thankful for the assistance provided by NAC-HMC to Brgy. Talavera, Sitio Bagong Silang, and Sitio Campandan. We received various important items such as sacks of rice, medicine, canned goods, milk, coffee, shampoo, and toothpaste

Distribution of canned goods and noodles (3rd wave) to 808 households in Tagana-an.

Page 31 >

“If you made a mistake and failed to report or concealed your actions, how would we fix it?” Smith often ask his team. Maintaining an open communication line between and among members of the team allows the reporting system to smoothly flow. On the positive side, initiatives that add value to everyday safety performance was not left out. Smith said motivations like giving commendations and rewards is also part of their organizational system. ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

< Page 30 among many others,” Borja said. “During the period of difficulty brought upon by Super Typhoon Odette, HMC was always there to provide assistance to our community.” “I would also like to express my heartfelt gratitude to the management of NAC and HMC; Engr. Francisco J. Arañes, Jr., HMC Resident Mine Manager; Antonio B. Resuera, Jr., HMC ComRel Manager, and to all their staff. Thank you for all your help, may God continue to bless you and your company,” she added. Jeremeh Atillo, resident of Sitio Bagong Silang also shared the same thankful sentiment to NACHMC. “The help provided by HMC was very much welcomed, especially for me and my family since when Odette hit, we did not have any money to buy basic necessities such as food and water. I am very much grateful for all the things we received from the relief operation and assistance of NAC-HMC.” Ednalyn Japona, resident of Sitio Bagong Silang, also expressed her thanks to NAC-HMC for the assistance provided to her family and her community. “The assistance provided by NAC-HMC was vital for our family since we did not have a means of livelihood when we were hit by Odette. The relief goods we received such as canned goods, noodles, and rice among many others were really a great help. “The items we got from HMC provided us with strength to continue and persevere despite what we have gone through. Thank you very much NAC-HMC for your assistance, through your help, we were able to provide for the daily food needs of our families. Salamat karajaw NAC-HMC,” Japona said. Fellow Sitio Bagong Silang resident Virginia Amarille also expressed her gratitude to NAC-

HMC, “We are very much happy with the assistance provided by NAC-HMC. If there was no NAC-HMC, we would not know how we will go about our daily lives, it would be very hard for us to survive from the disaster brought about by Typhoon Odette without their help. Thank you very much NACHMC.” Maria Nena Jugar, resident of Brgy. Talavera is also grateful to NAC-HMC. “Even though our house was damaged by Typhoon Odette, we are very thankful to NAC-HMC for providing food through their various relief assistance, we were able to eat three times a day because of the support they provided,” she said. “My family and our community did not experience as much hardship as other typhoon affected communities because of the help we receive from NAC-HMC. They always provided support and did not forsake us in our time of need, thank you very much NAC-HMC,” Jugar said. Editha Bellona, resident of Brgy. Talavera, likened NAC-HMC to heroes because of the support they provided not only to her family, but also to her community. “I see them as our heroes during the time of the calamity, the assistance they provided to our community really helped us cope with the effects of the disaster. NACHMC is always ready and willing to provide support to its communities,” she said. “We received various important items to help us every day, even now; their assistance to our community has never stopped and continues to help us get back on our feet. Thank you NAC-HMC.”

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 1 2022

(Above) Distribution of Relief goods in Sitio Bagong Silang and Sitio Campandan; (bottom left) Distribution of hygiene kits (second wave) to 808 household in the three host communities; (bottom right) Turnover of medicines . NACHMC photos

MINING NEWS

Senator De Lima files measure vs. lifting open-pit mining ban

pen-pit mining is a globally accepted method that is considered to be the most feasible option for mining near-surface or shallow one deposits. Despite the track record of successful and safe open-pit operations in Australia, Canada, China and United States, there are still some who have apprehension towards the lifting of the ban on open-pit mining in the Philippines. Before the year ended, DENR Secretary Roy Cimatu signed the Department Administrative Order (DAO) No. 2021-40 that lifts the ban on open-pit mining. The order was passed last 23rd of December 2021. This covers mining for copper, gold, silver and other complex ores. DENR made this decision with hopes to revive the mining industry so it may once again provide job opportunities in rural areas. This decision was a response to counter the economic downturn that resulted from the global pandemic. Secretary Cimatu’s DAO No. 2021-40 now nullifies the DAO No. 2017-10 which was signed by former DENR Secretary, the late Gina Lopez. DAO No. 2017-10 banned open-pit mining in the Philippines for the past four years. Secretary Lopez was known as an anti-mining advocate and she passed the ban on open-pit method of mining during her time as her move to protect the environment from the adverse effects of mining. In relation to DENR’s recent decision to finally lift the ban on open-pit mining, Senator Leila de Lima filed a resolution to investigate further on this matter. A copy of her proposed resolution was released to media last 16th of January 2022. Her resolution urges the Senate to assess DENR’s decision because she sees this as “possibly catastrophic” to the environment and to human life. From a report by CNN Philippines, De Lima stated, “There is a need to conduct a thorough review of this policy decision as this can potentially open up the country once more to irresponsible mining practices which could further compromise the environment and pose health and safety risks to people and their communities.” [1] Moreover, the Senator said that the government should find

other ways to generate wealth not through mining because she believes that the industry’s extraction practices caused in the past many fatal accidents in the country. De Lima cited the Marcopper mining incident in Marinduque back in 24th March 1996 wherein toxic waste from the mine site contaminated the Boac River. The 27-kilometer Boac River was the main source of livelihood for those who did not work for the mine. From this incident in 1996, the government reported the toxic tailings waste killed P1.8 million worth of freshwater and marine life and P5 million milk fish fry. The toxic spill from the mine site caused flash floods which affected five villages with populations of 4,400 people each. One of the villages was Barangay Hinapulan which was buried under six feet of muddy floodwater. The local source of drinking water was contaminated with toxins as well. [2] During that time, Marinduque was listed as among the 44 poorest of the 80 provinces in the Philippines. [3] Senator De Lima noted that there had been at least five more mining disasters after this which clearly proves that the Philippines has “yet to figure out how to consistently extract mineral resources in a safe and efficient manner.” “When gains and risks are placed on a scale, the State must always err on the side of caution,” De Lima said. Although the Marcopper mining disaster happened almost 26 years ago, it was reported that the incident led to some significant changes in the government’s min-

ing policies. The government made revisions on the rules of the Mining Act that puts more emphasis on the protection of the environment and to bring light to social issues. Of note, higher standards for rehabilitation were set and consultations with the local government and indigenous communities also became the main focus of concern of these policies. [2] Meanwhile, the Department of Finance (DOF) supports DENR’s decision to lift the ban on open-pit mining. In a statement published by Philippine News Agency, DOF Secretary, Carlos Dominguez III said Republic Act (RA) No. 7942 (Philippine Mining Act of 1995) “does not prohibit open-pit mining as there are economic, safety, and environmental considerations for employing this method”. The Secretary said, “As cochair of the Mining Industry Coordinating Council (MICC), I support DENR Secretary Roy Cimatu’s decision to lift the ban on open-pit mining. The matter was extensively discussed in the MICC and with advice and guidance from experts, the recommendation was to lift the ban.” He emphasised that proper measures to ensure safety in this mining method can be implemented. “Strict monitoring and enforcement to ensure compliance with environmental standards shall be undertaken to prevent any abuse in the implementation of this type of mining activity... I am confident that the DENR is fully capable of regulating mining operations in the country so that mining activities are conducted safely with due

Page 33 >

ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

< Page 32 regard to the protection of the environment.” He mentioned that he is mindful and aware of the impact of mining activities on the environment, thus he emphasised that the Philippines aims to greatly reduce its carbon footprint. He said, “The protection of the environment is non-negotiable. We have to strike a careful balance between preserving and protecting the environment and pursuing our economic development objectives”. Secretary Dominguez is an official representative of the President to the Climate Change Commission (CCC) and is the head of the Philippine delegation to the COP26, a global environmental summit that addresses climate change issues. Last year from 31st of October until 12th November, delegates from around the world gathered in Glasgow, Scotland for the COP26 summit to discuss and share their plans and strategies on how to control climate change. Secretary Dominguez said that with the lifting of the ban, the mining industry can help with the country’s economic recovery, because the DENR has projected that open-pit mining will “lead to

the immediate development of 11 pending projects that are expected to generate about PHP11 billion combined in yearly government revenue, increase annual exports by PHP36 billion, and provide employment to 22,880 people living in remote municipalities”. [4] “Clearly, it will revive an industry that will create jobs and spur economic growth in the countryside... More importantly, the lifting of the ban on open-pit mining will help revitalize the economy as we begin to recover from the pandemic by generating additional revenues, royalty fees, export value, and even more jobs in related industries. These economic prospects can still be realised while we continuously implement strategies to manage and avoid the negative impacts of the openpit mining method.” He also pointed out that open-pit mines in Australia, Canada, China and the United States have been operating effectively and safely. This is possible too in the Philippines through tight monitoring and enforcement to ensure that mines strictly comply with laws and environmental regulations. Lastly, DENR clarified that the major issues or fears concern-

ing mining operations cannot be attributed to the open-pit method of mining, but rather to accidents or errors in wastes and tailings confinements. [4] Such accidents can be prevented through strict monitoring and implementation of safety measures. Marcelle P. Villegas Reference: [1] CNN Philippines (16 Jan 2022). “De Lima wants probe into lifting of open pit mining ban”. CNN Philippines. Retrieved from https://www.cnnphilippines.com/ news/2022/1/16/de-lima-senateprobe-lifting-open-pit-mining-ban. html [2] Environmental Justice Case Study - http://websites.umich. edu/~snre492/Jones/marcopper. htm and https://en.wikipedia. org/wiki/Marcopper_mining_ disaster#cite_note-env-10 [3] Poverty Statistics Poorest 44 Provinces Archived 2010-11-27 at the Wayback Machine, National Statistical Coordination Board, 2000 [4] Philippine News Agency (30 Dec. 2021). “DOF backs DENR move to lift ban on open-pit mining”. Retrieved from - https://www.pna. gov.ph/articles/1164102

Let DMT be your mining expert; from greenfield exploration to mine closure. DMT Consulting Ltd. Lake View Business Park, Nottingham, UK Dr. Vassilis Roubos, +44 1623 726 223 Pankaj Sinha, +44 7815 312053 Arlene Morales, +63 2 825 12 108 consulting@dmt-group.com DMT-GROUP.COM TÜV NORD GROUP

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 1 2022

MINING NEWS

Sandvik: Sustainability charges ahead A healthier work environment, radically reduced energy consumption, a lower carbon footprint and more efficient operations: the sustainability gains from innovations in battery-based mining equipment are simply electrifying.

ill electrification spark the next wave of mining innovation?” is the title of a recent report from consultancy firm EY. Brian Huff, vice president of technology at Sandvik-owned Artisan Vehicles, a manufacturer of battery electric vehicles (BEVs), says the wave has already reached the shore. Huff sees electrification more as a natural evolution of technology rather than a revolution, with the potential to reap a range of sustainability and cost benefits. “We’re moving past the ‘why’ stage and approaching the ‘how’,” Huff says. “Most mining companies have analyzed the business case of

The effects of electrification on employee health, however, are close to revolutionary. “We’ve heard many stories from miners claiming they would come home from a shift and be so tired they just crashed on the couch, blowing black snot from the nose, with no energy left to engage with their family,” he says. “Once they switched to battery equipment, they were much more energetic. These things are immeasurable. It’s beyond health, it’s about quality of life.” Given the difficulty of attracting a new generation to the mining industry, particularly people with the skills required to operate tomorrow’s connected, automated mines, any

in confined areas and workers are subjected to potentially hazardous exhaust fumes in their day-to-day operations,” the EY report says. At the Goldcorp Borden Lake mine in Ontario, Canada, the first all-electric underground operations are already up and running. “We have surveyed the first group of workers that started at our Borden mine,” John Mullally, Newmont Goldcorp group executive for sustainability, North America, told EY, adding: “Something like 90 percent said that they would not want to go back and work in a traditional underground mine alongside diesel engines.” While human health and qual-

(Illustration above) Electrification is a natural evolution of technology with the potential to reap a range of sustainability and cost benefits.

In 2019, Sandvik acquired Artisan Vehicle Systems, whose fleet of batteryelectric, zero emission underground vehicles include the A4, a four-tonne lithium battery-powered LHD underground mining vehicle.

electrification and seen the value. We just need to explain that an electric mine is not that different from a traditional mine, nor is it difficult to electrify. Battery-powered trucks and loaders are used the same way, and no new underground infrastructure is needed.”

improvement of conditions at work is certainly welcome. The World Health Organization has declared that diesel particulate matter from engine exhaust emissions is a carcinogen. “This has relevance to underground mining, where diesel equipment is operating

ity of life cannot be measured in numbers, opex and capex can. Another major benefit of an electrified operation is the amount of money that can be saved on construction of ventilation shafts and the energy bill for running the ventilation required to remove the

Page 35 >

ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

The A10 is the same size as its seventonne competitors and is the only batteryelectric LHD its size capable of carrying 10 tonnes.

< Page 34 hazardous fumes. In terms of capex, ventilation systems don’t come cheap. “The per-foot cost of digging a ventilation shaft can typically be USD 5,000, or USD 30 million for an 1,800-metre ventilation shaft, plus the time spent,” Huff says. Ventilation also comes with opex costs, in that it consumes a lot of power when generating the air that is funneled down into drifts. As much as 40 percent of an underground mine’s energy outlay is spent on powering ventilation systems to remove pollutants from tunnels, according to EY. In comparison, an electric mine requires roughly half as much ventilation, which cuts energy needs by close to 90 percent. The reduced ventilation of an electrified mine also saves on heating and cooling costs, as the air transported from outside might be too cold or too hot, depending on the season, to produce the required ambience. “All these things compound to provide a real financial advantage,” Huff says. “The capex costs for building ventilation shafts are substantial enough to pay for the entire equipment fleet needed to operate the mine.” As mining companies are forced to dig increasingly deeper in search of new findings and extensions of existing ores, the cost of constructing ventilation shafts grows. “The deeper you go, the better the business case for electrification gets,” he says. “When you access a new stope you don’t need as much auxiliary ventilation as you would with a diesel-run unit. Plus, a BEV only generates some 12 percent of the

heat generated by diesel-driven equipment.” Electrifying operations helps mining companies contribute to a more sustainable industry from many perspectives. The cost of energy represents up to one-third of a mining company’s total cost base, making it a keenly managed component of operations, and the EY report notes that “demand for carbon reduction in the sector is inevitable, and electrification is one way to achieve it.” In addition, the energy used to charge the batteries may come from renewable energy sources. With Sandvik-Artisan BEVs, the battery is being charged every time the vehicle trams downhill, and the recharged energy is used to carry the next load. Adding to a lower total cost of ownership, Huff says, is that a BEV has fewer moving parts than a fossil-fueled unit. “There is no need for a mid-life engine or transmission replacement,” he says. The latest Sandvik-Artisan BEV models are fitted with an additional battery pack, and the vehicle swaps batteries automatically when needed. “We designed the machine to swap its own batteries in just six minutes,” Huff says. “The machine has a secondary battery pack that is a third the size of a Tesla battery and is charged by the main pack once it’s loaded. After charging for one hour, the main pack typically lasts two to three hours and is swapped about four times a shift for a total time of 24 minutes.” In comparison, refilling a diesel unit typically takes 30 minutes each shift, including the time to drive to the fuel bay. “We offer battery as a service, meaning we provide charged and

Sustainability benefits of electrification: • Removal of particulate matter from underground environment • Drastic reduction of energy due to minimized ventilation requirements • Lower carbon footprint • Safer working environment for employees available batteries as well as preventive maintenance and service,” Huff says. “This service converts capex into opex and minimizes maintenance work.” According to the EY report, reaping the full value of electrification requires a rethink of mine design that considers a technology road map. Huff agrees that there is more leverage to be had for a greenfield mine that decides to go all-in electric from day one. “Then you have the ability to design around the potential for electrified equipment and benefit from the fact that you don’t need large ventilation shafts,” he says. Still, so-called brownfield operations also stand to gain from electrification, he says. “Most existing mines are expanding, digging deeper to continue exploration of the ore currently being extracted and to find new ore bodies and explore adjacent ones. With BEVs, ventilation capacity is less of a problem.” Electrification holds the potential of boosting the mining industry’s sustainability score. As Huff puts it, “Small changes create enormous advantages.”

The Z50 50-tonne haul truck generates twice the peak horsepower and one-eighth the heat of its diesel equivalent.

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 1 2022

MINING NEWS

enCate Geotube dewatering technology provides a simple and cost effective way of dewatering large and small volumes of Mining and Mineral wastes. This proven technology can accommodate dewatering and containment in one, costeffective operation. Utilizing TenCate Geotube® containers is an effective alternative to mechanical processing that enables the capture of precious metals and the efficient management of mine tailings, coal sludge, and other mine waste streams. With volume reduction as high as 90%, high solids levels make removal and disposal easy. TenCate Geotube® containers can be custom-sized to fit available space and be easily removed when dewatering is complete. Dewatered solids can be safely stored on site, reutilized to build dykes and berms, or disposed of in a landfill without expensive dredging or

One total solution for mining and mineral processing

transportation. Simple, versatile TenCate Geotube® Dewatering Technology is ideal for: Slurry Management In an open-pit or open-cut mine with a large catchment area, thousands of cubic metres of rainfall runoff slurry may flow into the pit every day. The slurry should be removed from the pit to allow the continuation of mineral extraction by pumping it out into settling ponds. When the settling ponds are full of sediments and where there are no options in mine extraction planning, cost budgeting and space availability, the mining corporation faces a threat of ceasing its operations. TenCate Geotube® dewatering technology is the answer to the problems that occur in slurry management. Slurry in the pit and settling ponds can be managed according to the needs of the mining operations with effective long term planning that will bring cost benefits to the mining corporation without compromising environmental and safety aspects. Tailings Management “Tailings” refer to the end of the mining process, constituting what is left over after the substances

of economic value have been removed. They generally consist of ground rock and process effluents that are generated in a mine processing plant. Tailings are commonly stored in an impoundment – an engineered structure – used as a settling basin/ storage container. Management of these storage basins is critical to a mining operation to insure there is sufficient capacity to keep the mine running. Adding additional capacity is often done by raising the perimeter of the basins or removing and dewatering the built up sediments in the storage ponds. TenCate Geotube® dewatering technology delivers a high volume, low cost solution reducing disposal costs by consolidating higher solids with very little maintenance. Dewatered solids can be safely stored on site, within the container, eliminating the spread of airborne particles or mechanically removed and transported to an approved location. In many cases, dewatered tailings contained inside the Geotube® units can be used as a structure within the pond or placed on top of the perimeter of the berm to provide additional capacity. Water Resource Management Water is often limited in supply

in mining applications making it a precious commodity that needs to be reclaimed and recycled through the process. TenCate Geotube® dewatering technology, in combination with proper coagulant or polymer conditioning, will begin releasing water from the suspended solids the moment they enter the tube. The specially engineered TenCate Geotube® textile retains the solids while releasing the clear water through the pores of the fabric. The effluent is typically of a quality that can be reused for mine processing operations, making this an economical and sustainable technology for mine water management. Beneficial Reuse Beneficial reuse of mining byproducts to create structures can positively impact the environment by preserving limited landfill space that otherwise would be consumed by normal tailings disposal. Using TenCate Geotube® dewatering and containment technology and a proper chemical conditioning regimen, a high solids content can be achieved with dewatered mine waste to create stable structures including raising embankments, creation of dams, diversion

Sludge before (left) and after (right) treatment with Geotube® dewatering technology.

Page 37 >

ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

< Page 36 dykes, and levees. This effort helps drive sustainability initiatives in the industry. From an economic perspective, the use 1. Filling - Material is pumped into the 2. Dewatering - Clear effluent water of TenCate Geotube® Geotube® container. simply drains from the Geotube® containers can eliminate container. Over 99 percent of solids costly disposal of semiavailable to restore are captured, and clear filtrate can liquid or paste waste by-products tailings operations. be collected and recirculated through to the extent that waste streams the system. can be diverted into useful and safe Acid Mine products. These uses can include Drainage good quality, economically attractive During the mining process sulfides alternative structural fill materials can be exposed which, when they for use in construction projects. In come in contact with water and many cases, mine waste will dewater air, can form sulfuric acid. This acid without the need for polymer can and often does dissolve other conditioning offering even greater harmful metals and metalloids in savings. the surrounding rock. Acid mine drainage can occur anywhere on Precious Metals Recovery the mine where sulfides are exposed Precious metal recovery to air and water -- including waste through heap leaching is an rock piles, tailings, open pits, industrial mining process to extract underground tunnels, and leach precious metals, copper, uranium, pads which can endanger local and other compounds from ore streams and groundwater. This can via a series of chemical reactions be a problem at both active and that absorb specific minerals and abandoned mines. then re-separates them after their The treatment process of division from other earth materials. an AMD waste with TenCate Inherent in this process is the Geotube® dewatering technology creation of slurries that need to be is accomplished through the dewatered. containment and dewatering TenCate Geotube® dewatering of the precipitated solids. The and containment technology is well dewatered solids can then be safely suited for 1) dewatering the waste and economically disposed in an stream from the precious metals approved landfill site thus eliminating recovery process such as barren an environmental problem. solution ponds and 2) capturing of dewatered slurries that still contain Specialty Applications precious metals so they can be The very nature of mining and reintroduced into the ore processing mineral processing operations system. By capturing and containing are that no two locations are valuable metals using TenCate exactly alike. Location, weather, Geotube® containers, the expense topography, mining conditions, of treating mine waste can be offset local and state regulations related and become a valuable income to water quality and tailings stream. management are but a few of the challenges that operators must Emergency and Disaster face. This requires a dewatering Management technology that is uniquely flexible to When emergency situations or adapt to individual site requirements disaster strikes a mining operation, to meet specific needs. causing disruption of normal TenCate Geotube® dewatering tailings management, the economic and containment technology is impact can be severe. Having a a simple, low tech solution ideal simple, proven, effective solution for remote or highly industrialized at hand is paramount. Utilizing locations. TenCate Geotube® TenCate Geotube® containment containers can be customized in and dewatering technology to size and shape to meet almost allow for continuous operation of any need. Whether an individual mining activities, in a situation when Geotube® unit is required to fit into traditional methods are not viable, is an underground gallery, or multiple, often the preferred choice. large tubes need to be stacked Whether it be a natural disaster, above ground to accommodate large a catastrophic event affecting volumes within a specific footprint; tailing ponds, permit restrictions, whatever the situation, TenCate interruptions of mechanical can customize a dewatering solution dewatering processes, above or right for you. underground capacity limitations, or TenCate develops and produces sudden increase in slurry production quality products that increase that strains the existing dewatering performance, reduce cost, and facility, TenCate Geotube® deliver measurable results by containers, in a variety of sizes to working with our customers to fit almost all situations, are readily provide advanced solutions. WWW.PHILIPPINE-RESOURCES.COM • ISSUE 1 2022

3. Consolidation - Solids remain in the bag. Volume reduction can be up to 90 percent. When full, the Geotube® container and contents can be deposited at a landfill, stored on site, or land reclaimed.

MINING NEWS

TMC bags 4th Presidential Award for responsible mining

emonstrating its commitment to responsible mining, Nickel Asia Corporation (NAC) affiliate Taganito Mining Corporation (TMC) bagged the Presidential Mineral Industry Environmental Award (PMIEA) for Surface Mining Category during the 67th Annual National Mine, Safety and Environment Conference last November 24-26, 2021. PMIEA is the highest citation given to a mining company for exemplary programs pertaining not only to the environment but also to the safety and social development performance of a company’s mining operations. “TMC is very proud of this recognition as we feel that this reflects our efforts in making our organization one of the best in the mining industry,” said Engr. Artemio E. Valeroso in his speech during the awarding ceremony. Valeroso said the award was made possible by TMC’s “partnership with the communities. The support of the people who have been part of the TMC team from the very beginning in achieving the sustainable development of the municipality of Claver.” This year’s award is the fourth for TMC since PMIEA was launched in 1997; the company

previously won the award in 2003, 2004, and 2008. Established through Executive Order No. 399, PMIEA is conferred annually by the Department of Environment and Natural Resources (DENR) and the Mines and Geosciences Bureau (MGB) to deserving companies to promote environmental protection and raise awareness on the mining industry’s best practices. For the last two years, all shortlisted companies were also judged based on their initiatives and efforts in combating COVID-19 and assisting their respective mining communities. For TMC, social development funds have been particularly focused on easing the impacts of COVID-19 on its host and neighboring communities, while fulfilling its mandates under the annual Social Development and Management Program (SDMP). For the current fiscal year, TMC has spent Php71.8 million for health, education, livelihood, public utilities and services, sociocultural preservation, information campaign, and mining technology.

Meanwhile, TMC also spent Php199 million for environmental programs, such as land, water, and air quality management, rehabilitation and reforestation, and various eco-tourism projects. Over 115,000 seedlings were planted in 41.9 hectares of mining and non-mining areas. A total of 439,619 seedlings were also produced by its nursery operations for the fiscal year, which supported the company’s greening activities, the establishment of buffer zones, and support to the government’s National Greening Program. Moreover, TMC also spent PHP35.2 million for safety programs, of which PHP15.7 million was allocated for COVID-19 intervention programs from July 2020 to June 2021--the period covering the award. A total of 8.3 million safe manhours without lost time accident was also achieved by TMC during the period. ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

INDUSTRIAL SERIES

MATERIAL HANDLING

Chief has the solution for all types of Coal, Aggregate, Mining and Biomass handling equipment. Whether the needs are above or below ground, in

TRUSSED OPEN BELT (CTOB)

OPEN OR TOTALLY ENCLOSED GALLERIES

process or overland - we have equipment to meet the

COMMERCIAL OPEN BELT (CCOB)

OVERLAND CONVEYORS

task. STACKING CONVEYORS

asia.chiefind.ph

RECLAIM CONVEYORS

MINING NEWS

Taganito Mining is national winner of industrial peace award

AGANITO, Claver, Surigao Del Norte -Taganito Mining Corporation (TMC), a subsidiary of Nickel Asia Corporation, has been declared the national winner of the 2021 Search for Outstanding Labor Management Cooperation (LMC) Program for Industrial Peace. TMC received the award December 15, 2021 during the virtual Twin Search on Outstanding Labor Management Cooperation and Grievance Machinery for Industrial Peace, jointly organized by the National Conciliation and Mediation Board (NCMB) and the Labor Management Cooperation Practitioners, Inc. (PHILAMCOP). The biennial search aims to promote harmonious labormanagement relations and acknowledge the role of labor management councils throughout the country in improving workers’ welfare and sustaining corporate viability amidst the challenges brought by the COVID-19 pandemic. Accepting the award, TMC Resident Mine Manager Engr. Artemio E. Valeroso highlighted the history of sustained partnership between the company and its labor union, the Taganito Labor Union (TLU). Valeroso said the labormanagement cooperation over the years reflects TMC’s ethos to focus on employee’s welfare, as encapsulated in one of its corporate slogans:

“Sa TMC-BIDA Kami.” “It’s a great honor to accept this award on behalf of everyone at Taganito Mining Corporation—from the TLU officers, members here in the mine site, and to all our teams,” he said. Edgardo Z. Buligan, NACTMC senior human resources manager, said the award demonstrated TMC’s leadership in industrial peace and labormanagement cooperation. ‘“The award is a recognition of the effective LMC mechanism fostering not only in industrial peace but also for boosting productivity and promoting a safe and healthy workplace at TMC,” Buligan said. Buligan noted that since the start of its mining operation 30 years ago, NAC-TMC has not experienced any labor unrest. NCMB described this year’s as a “special edition, in recognition of LMCs that have remained focused and true to the very essence of “cooperation and partnership– despite the COVID-19 pandemic that tested their significance and relevance amidst retrenchments and company closures.” TMC has received numerous labor-management recognitions over the years, the latest of which was in 2019 when it won the outstanding LMC for industrial peace award in the regional level.

Taganito Mining’s Labor Management Council (top photo) composed of management and labor union officers, after the announcement of winners for the 2021 Search for Outstanding Labor Management Cooperation (LMC) Program for Industrial Peace.

ENVOY: BINONDO-INTRAMUROS BRIDGE OPENS IN APRIL

he construction of the Chinafunded Binondo-Intramuros (B-I) bridge is almost complete and will be opened by April 2022, the Chinese Embassy in Manila said. During an on-site inspection, Chinese Ambassador Huang Xilian said the bridge would significantly ease traffic congestion on both sides of the Pasig River, with its capacity to accommodate 30,000 vehicles daily. “The project started on July 17, 2018 and has now been completed. The completion and the opening ceremony will be held next month,” he said. It features two arch ribs leaning against each other, a symbolic design Huang said reflects “the

unity of China and the Philippines, side by side, hand in hand”. The envoy noted that “highly efficient and energy-saving” construction equipment, as well as locally-produced materials, were used during the construction of the bridge. “The B-I Bridge purchased materials such as steel, engineering equipment, and building materials produced by local enterprises in bulk, with a total value of 2.47 billion pesos, which directly motivates the development of related industries,” he said. Apart from the bridge, a Philippine-China friendship park is expected to rise in the area

through the donation of the Federation of Filipino-Chinese Chambers of Commerce & Industry Inc. (FFCCCII), the Federation of Filipino-Chinese Association of the Philippines Foundation Inc. (FFCAP), and the Philippine Chinese Chamber of Commerce & Industry Inc. (PCCCII). The envoy said “commercial procedures” have also been completed for the North and South Harbor Bridge, the Eastbank-Westbank Bridge, and the Palanca-Villegas Bridge projects in Manila. ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

99.7% of Filminera, Phil. Gold workforce in Masbate vaxxed

asbate Gold Project’s total workforce has reached a significant 99.7% COVID-19 vaccination rate. “This statistic is incredible and truly exceeds anything I could have hoped for. It is the highest rate that I know of for any company, anywhere,” Dan Moore, President of Phil. Gold Processing & Refining Corp. (PGPRC) stated in the message sent to all employees recently. Moore related that planning for the vaccination of the workforce started in mid-2020 and plans were tweaked to address challenges until its realization. He commended the team who managed the companies’ Vaccination Program headed by the Medical Team, OHS, Human Resources and Administration Departments. As of the middle of February, fully vaccinated employees of both companies and their

contractors comprised 2,170 of the 2,177 workers. The vaccination program is now focused on administration of booster doses and 1,567 employees have received their booster shots. Geronimo Badulis Jr., Filminera Resident Manager also acknowledged the assistance of the Provincial Health Office (PHO) of Masbate, as well as the Rural Health Unit (RHU) of Aroroy in conducting the vaccination program for the companies’ workforce. Doctors and nurses from both the PHO and RHU administered the vaccination of the employees. “This is another testament of our dynamic partnership with our local government unit and officials,” said Badulis. Meanwhile, a total of 10,500 doses of Moderna and AstraZeneca vaccines were donated to the Masbate Provincial Health Office as its contribution the host prov-

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 1 2022

ince’s vaccination program. In addition, about Php5 million worth of cash assistance have been given by FRC and PGPRC to the Provincial LGU to amplify its COVID response efforts. PGPRC and FRC commit to strive and contribute to the vaccination efforts to fight the spread of COVID-19 virus in the country.

MINING NEWS

Tailings impoundment facility serves as sanctuary, breeding ground for vulnerable wild ducks

Philippine ducks thrive in TVIRD’s sulphide dam

IOCON, Zamboanga del Norte – Oftentimes, the silence of TVIRD’s Sulphide Dam is broken only by the loud and successive quacking of the waterbirds that made the company’s Tailings Storage Facility (TSF) its sanctuary for the last seven years. The quacking is then followed by splashing on the calm waters – and one can only surmise that the Philippine Ducks (Anas Luzonica) are thriving! Visitors of the company are always in awe of the dam’s size – some 34 hectares wide and120 meters deep. The TSF, which was used during the company’s copper-zinc mining operations, is a structural beauty in itself. Surrounded by lush and cool Mt. Canatuan, it looks like a lake with clear, green water. And the presence of the Philippine Ducks

makes the man-made lake even more interesting. Migratory birds Muhammad Faz Ur Rahman J. Werble, Ecosystem Management Specialist of the DENR’s Community Environment and Natural Resources Office (CENRO) in Siocon, confirmed the presence of the Philippine Ducks at the Sulphide Dam. “The Philippine Ducks are migratory birds and are endemic to the Philippines,” he said. Werble has been heading a team of CENRO personnel in conducting the Annual Asian Waterbirds Census for three consecutive years now. He said the reason it is conducted annually is because of the presence of a large number of threatened endemic Philippine Ducks.

“It is possible that the ducks come from nearby areas and chose to stay there because the Sulphide Dam is protected and no hunting is allowed,” he added. Werble also disclosed that the Philippine Ducks are dependent on wetlands for its food, shelter and breeding ground. It feeds on shrimp, fish, insects, and vegetation, which he believes are abundant in the area. Vulnerable According to online sources, Philippine Ducks are large dabbling ducks that “feed mainly at the surface rather than by diving.” They are classified as “vulnerable” because it has a small population and undergoing a rapid continuing decline due to extensive overhunting and loss of habitats. As few as an estimated 5,000 remain

Finding sanctuary. Philippine Ducks (Anas Luzonica), though not classified as “endangered,” are a vulnerable indigenous species that found sanctuary in TVIRD’s tailings dam. At its peak, close to 20 percent of these waterbirds’ total population may have been in Canatuan.

Page 43 >

ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

LiuGong Machinery: More than 60 years of quality wheel loader units

or more than 60 years, LiuGong Machinery Corporation has been leading China’s construction equipment manufacturing industry and is the No. 1 wheel loader manufacturer all over the world. Today, over 450,000 LiuGong wheel loader units have already been delivered. From building its first wheel loader in 1966, LiuGong has evolved to become one of the fastest-growing global CE (Construction Equipment) companies in the world, offering a full line of extreme duty, intuitive machines for construction equipment owners constantly challenged to do more with less. Products involved are as follows: Wheel Loaders, Excavators, Rollers, Motor Graders, Dozers, Pavers, Cold Planer, Skid Steer Loaders, Backhoe Loaders, Cranes, Mining Trucks, Crusher, Drilling Rig, Diaphragm Wall Crab, Trench Cutter, Forklift, and Material Handling. LiuGong delivers opportunities to its employees, quality products and services to its customers, financial success to its investors, and community support in the regions it serves. Starting with the arrival of 500 workers in the provincial city of Liuzhou in 1958, today, LiuGong is a

< Page 42 all over the country. “The Annual Asian Waterbird Census is done every month of January of the year by CENRO Siocon to monitor the number and migration of bird species, including the Philippine Ducks at TVIRD’s dam,” said Werble. During the first census that he conducted in 2019, Werble said he was happy to count more than 500 Philippine Ducks at the tailings facility. In 2020, its population reached 950 but came down to around 700 in 2021 due to migration. “These birds are a migratory specie. It migrates from one place to another.” At its peak, close to 20 percent of these waterbirds’ total population may have been in Canatuan. It is also likely that this figure will rise during the next migration. Other inhabitants Aside from Philippine Ducks, the TVIRD’s tailings storage facility is often visited by Kingfishers

global company with 19 product lines, 20 manufacturing facilities, over 10,000 employees, and 300+ dealers in more than 170 countries, offering customers the tough equipment they need to get any job done, anywhere, all with local support. LiuGong entered the Philippines in 2008 and has deeply developed the market for more than 14 years. As of today, there are more than 5,000 LiuGong machines serving and working in the country. QSJ Motors Phils Inc. has been Liu-

(Alcedo atthis) and Hawk Eagles (Nisaetus Cirrhatus) – which like the Philippine Ducks, also hunt for food there. Different kinds of bats, birds and snakes like the Philippine Cobra also found their home in the surrounding forest area. Even during the copperzinc mining operation, the Sulphide Dam is laden with freshwater fish that the Canatuan locals identified as hito (cat fish), kasili (eel) and halwan (mudfish), to name a few. Tribal leaders in Canatuan agree on the observations of visitors that at the foot of the lush Mt. Canatuan lies a beautiful lake – a refreshing view to anyone who wants to savor the silence of the mountain and its surrounding. A silence that can only be disturbed by the vigorous quacking sound of the Philippine Ducks that continue to thrive in its new habitat.

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 1 2022

Gong’s authorized dealer for 13 years. A main office and six branch offices are in the Philippines’ main regions and cities, including Manila, Pampanga, Isabela, Bicol, Cebu, Cagayan De Oro, and Davao. LiuGong offers highly stable and high-efficiency products, but also professional and in time after-sales. Tough world, tough equipment. LiuGong is your best and most reliable mining business partner. For more information, you may visit our website at https://apac.liugong.com.

Surrounded by a lush forest, TVIRD’s Sulphide Dam (above)has been home to almost 1,000 Philippine Ducks since the company concluded its operations in 2014. The area is also home to different kinds of birds, bats and snakes, including the Philippine Cobra.

MINING NEWS

All-in-one solution for reliable precision elemental analysis

hilippine minerals have a wide range of ores from nickel laterite, copper ore, iron ore, chromite ore, limestone and more. Thus, when daily operations require elemental analysis of a wide range of inorganic/ geological samples, it is often cumbersome, or not possible to setup and maintain a large number of dedicated calibrations to handle such range. In these cases, a widely applicable, but accurate solution is highly desirable. In this application note we demonstrate Malvern Panalytical’s unique solution WROXI in combination with Epsilon 4 and Leneo sample preparation, is capable to handle a wide range of sample types. This is the valueadded offerings by Malvern Panalytical to enhance precision elemental analysis, by way of in-house affordable traceability guaranteed CRMs WROXI solution The WROXI BASE application module comprises 15 synthetic multi-elements standards, containing in total 11 different inorganic oxides. Made from traceable compounds WROXI is a primary analytical solution. The standards are delivered as powders to be prepared as fused beads on-site, using the customer’s flux, dilution ratios and methodology. Each set of WROXI standards is supplied with 15 bottles containing 10 g of powdered standards each, packed under nitrogen, in air-tight plastic bottles. Each set is supplied with drift monitors to maintain the application. WROXI offers good calibration especially when doing shipment of ores and exploration thus following tolerance and penalty elements. It eliminates the use of different calibration in every ores and provides good accuracy and repeatability. Instrumentation A Claisse LeNEO automatic fusion instrument was used to make all the fused glass beads. LeNEO Requiring only an electrical connection and fume exhaust, the LeNEO can prepare glass disks for XRF analysis with high reproducibility. In addition to being easy to use, his fully automatic instrument guarantees

safety for the operator as well as superior analytical performance in the laboratory. Its muffle furnace and excellent insulation properties ensure uniform heating conditions providing excellent repeatability and reproducibility. 40 mm fused beads were produced by mixing 0.9 g of sample material and 9 g of flux (66 % lithium tetraborate / 34 % lithium metaborate). WROXI standards used to set up the calibration were prepared in duplicate. Measurements were performed using a Malvern Panalytical Epsilon 4 EDXRF spectrometer, equipped with a 15W, 50 kV silver anode X-ray tube, a high-resolution SDD30 silicon drift detector, 6 beam filters, a helium purge facility, a sample spinner and a 10-position removable sample changer. Epsilon 4 has an option to use in air mode, no vacuum system and no film consumables. To test the accuracy of the method 12 certified reference materials (CRM) of different geological matrices were prepared as fused beads. The results for the 11 compounds in the CRMs are shown in Table 2. For a wide range of sample types, the measured concentrations show excellent agreement with the certified values. Calibration results The calibration was set up using all 15 WROXI standards. The concentration ranges of the 11 compounds in the WROXI standards are shown in Table 1.

concentrations above 1%, and for all minors with concentrations between 0.1% and 1%. The WROXI application in combination with the Epsilon 4 is capable of analyzing most majors with a high accuracy, typically better than 3% relative. Table 3. Absolute and relative errors for a selection of oxides calculated from the set of CRMs. Data are presented for two concentration ranges: >1 % and between 0.1 and 1 %. To keep data representative a threshold was set so

Page 45 >

Validation To illustrate the quality of the application graphically, the measured concentrations are plotted against certified values (Figure 1). An Table 1. Concentration ranges of the 11 compounds in WROXI standards. excellent agreement between the values is evidenced by the correlation factor of the regression line (R2=0.9997). The results of the validation measurements are summarized Table 3. Absolute and relative errors for a selection of oxides calculated from and evaluated in Tathe set of CRMs. Data are presented for two concentration ranges: >1 % and ble 3. The results are between 0.1 and 1 %. To keep data representative a threshold was set so that shown for two groups data per evaluated compounds was defined by at least two samples in the for all majors with relevant concentration ranges. ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

Figure 1. Accuracy overview: comparison of measured and certified concentration for all compounds present in the 12 standards.

Table 2. Analytical accuracy: comparison of certified and measured values for 11 major and minor oxides in 12 CRMs of various types.

< Page 44 that data per evaluated compounds was defined by at least two samples in the relevant concentration ranges. Summary The data in this application note shows the versatility and power of the WROXI application for the analysis of 11 compounds in a variety of sample types. The combination of WROXI, Epsilon 4 and LeNEO offers a unique ver-

satile solution for elemental analysis of minerals. Users will save time setting up and maintaining a set of different calibrations to handle a wide range of sample types. This reduces the need to purchase a large set of certified reference materials. And best of all, the solution gives highly accurate results independent of sample type. Users can start analyzing directly,

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 1 2022

with minimal knowledge about the expected composition. Learn more at https://www.malvernpanalytical.com/ and see more at https:// www.youtube.com/c/MalvernPanalytical/featured.

MINING NEWS

Manageable Mine Management By Engr. Jeffrey Q. Geronimo Mining companies are always challenged by the tight deadlines and targets to timely satisfy the production requirements of the mine. This has often translated to numerous changes in mining strategies and plans which necessitates adoption of concurrent engineering methods. However, this also increases complexity due to the parallel activity of various functional teams. This is not an easy task for project managers and only shows how critical coordination is to prevent overloaded tasks and bottlenecks that may lead to further delays. The ENOVIA Project Manager role on the highly acclaimed 3DEXPERIENCE Mine platform uniquely gives the potential to accomplish zero delays by linking each team member’s mine data to project execution. In effect, mine project management becomes data-driven by being linked with the production targets. The implications of production targets can be quickly assessed against the project schedule. As a result, a project manager is taking action to resolve issues with a full understanding of the impact to the targets.

targets and execute projects related to the planning and introduction of future targets. Users can associate the plans into projects and organize them into portfolios. A portfolio provides visibility into a project’s road map, individual tasks, and real-time status of milestones to share with other teams or departments.

tasks are displayed as bar charts based on the timelines, and the milestones and gates are marked on it as well. It illustrates the start and end dates, and displays the dependencies between tasks. It provides for an easy way to study the whole project schedule.

Project Planning

Being the undisputed global leader in mining software solutions, Dassault Systèmes understands that the mining industry has diverse workforce – most especially when you have multiple mine sites, shift handovers or roster breaks. The work week, working hours and holidays vary across the globe. It also varies based on the type of task being executed and across departments or even the work hours per day in a week. As the 3DEXPERIENCE Mine platform enables “zero-distance”, the ENOVIA Project Manager provides the ability to create flexible work calendars based on organizational and regional factors. Exceptions can be created on a calendar which be customized for holidays or for workdays and can recur on daily/weekly/ monthly/ annual basis. There can be a start and end effectivity date for each exception. A practical use of exceptions is for handling mine production cutovers that require extra work longer than usual hours for a set period. The same use of exceptions may be required if a certain task is behind schedule.

The Project Manager supports all phases of the project. Once each target is approved, it is updated to a formal project and can be distributed in detail into tasks. Users can then define a task’s hierarchy to help identify which plans to approve based on how they impact the mine strategy. Users can decompose complex activities into smaller manageable sub-projects. They can define schedules to organize and assign project members’ roles, nonworking days, and shift turnovers. Tasks can be copied from projects or from project templates, including copying partial task structures. Project Manager also provides bidirectional support and integration to Microsoft Project for project managers that prefer using a Microsoft Project user interface for editing schedule information

Deliverables Planning

Visual Overviews

Project Manager enables users to organize and manage a mining company’s long and short-term

Users can also view and edit the project schedule graphically via a Gantt Chart. The phases and

Flexible Work Calendars

Page 47 >

ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS < Page 46 The company may choose to implement mandatory overtime temporarily. Each task can be on a different calendar based on the location of the task assignee or the type of task. If the task does not have a calendar, then the calendar associated to the user’s location is used, and if the location does not have a calendar, the default project calendar is used. Tasks are scheduled based on the calendar to provide an accurate schedule that reflects the real-life view for work plans. Invisible Governance As for traceability, users can capture meeting details to maintain artifacts for historical references. Managers can define meetings, and track who was invited and who actually attended. Agenda topics can be added to meetings with time durations allocated for each topic and associated document attachments for discussion. Issues that need further follow up and recorded decisions are stored as an outcome of the meeting. Zero Distance: Collaboration and Approvals Users can benefit from a wide range of capabilities for global enterprise collaboration to bring “zero distance” between the mine, main office, and other consultants. Those capabilities include the ability to manage and organize shared documents and structured product data; they also enable the creation of digital workspaces for virtual teams to work together. Users

can easily raise issues, organize meetings and track decisions. Any modifications can be formally approved using routes defined by end-users or from standard route templates. Microsoft Integration The ENOVIA Project Manager role can create and access 3DEXPERIENCE data from the most popular Microsoft applications: Word®, Excel®, PowerPoint®, Outlook®, Windows Explorer, and Windows Desktop Search. This capability enables enterprise-level collaboration while not disrupting the established productivity of end-users. With product content being managed on the 3DEXPERIENCE platform rather than on

users’ PCs, organizations are able to create, manage and review product content more securely. With the ENOVIA™ Project Manager on the 3DEXPERIENCE® platform, all stakeholders in the mining blockchain are aligned with the project goals and status – and work well together in achieving and defining your mine’s success. Let Paramina Earth Technologies, Inc. be your driver in your mine’s digital path to sustainable growth. Contact us at paramina_solutions@paramina. com or reach us through our website www.paramina.com for more information.

A sample dashboard of ENOVIA Project Manager’s Task Management app on the 3DEXEPERIENCE Platform.

Reference: Dassault Systèmes. (2022). Project Manager.

EXECS OPTIMISTIC OF ‘BUILD, BUILD, BUILD’ CONTINUITY

uthorities are optimistic for the implementation of most infrastructure projects proposed under the government’s “Build, Build, Build” program after noting the project’s long-term impact on the economy. In a virtual briefing hosted by the Presidential Communications Operations Office (PCOO) on Tuesday, Department of Public Works and Highways (DPWH) Undersecretary Emil K. Sadain said 18 of the 112 infrastructure flagship projects (IFPs) would be completed by June this year, or at the end of the Duterte administration. He said 12 additional projects are targeted to be completed by end-2022 while 89 are scheduled for implementation by 2023 and be completed in the next six years. These projects cost around

PHP6.65 trillion and have an investment requirement of around PHP3.12 trillion. He is hopeful that the next administration will continue with the implementation of the remaining projects “since most of these projects have been properly reviewed by the NEDA-ICC (National Economic and Development AuthorityInvestment Coordination Committee) Board and it went through a process.” “And most of these are actually yielding a high impact economic analysis. The national return is so huge,” he said. Sadain also pointed out that “there’s no way the next administration will shelve most of these projects but instead may be look at it and revisit. “ “We have seen also that the

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 1 2022

viability of implementing these projects is so strong because of the huge economic impact that will be brought to the country. We believe that these can be sustained by the next administration,” he said. Sadain said the big-ticket interisland projects under the Build, Build, Build includes the BataanCavite Interlink Bridge, the Panglao-Tagbilaran City Offshore Connector, Guicam Bridge, 3 Tawi-Tawi Bridges, the PanayGuimaras-Negros Link Bridge, Cebu-Mactan Bridge and Coastal [Road Construction], Panguil Bay Bridge, and the Samal IslandDavao City Connector. For the Department of Transportation, he said the projects “of high importance” are the North Commuter Railway and Metro Manila Subway.

MINING NEWS

Customised liner solution boosts SAG mill throughput, mine profits

gold and copper mine in South East Asia was experiencing a range of challenges with its SAG (semi-autogenous grinding) mill that were hitting productivity. Facing a significant increase in ore hardness that would have exacerbated the problems, the mine turned to us to provide a solution for a safer and more productive grinding operation. A multifaceted mill challenge A remote copper and gold mine in South East Asia had a problem: its 34 ft SAG mill was experiencing a range of performance issues that were limiting its production performance: • Pulp dischargers of many parts. The steel dischargers on the SAG mill comprised 187 pieces. Not unsurprisingly, this led to lengthy downtimes for component replacement. Making the situation worse: the discharger service life was a relatively short 12 months. • Inadequate liner service life. The SAG mill’s steel liners were failing to meet the required service life. To remedy the problem, the supplier had added more material to the liner design. But this created its own challenges, reducing the effective grinding volume and adding weight to the mill that was pushing bearing pressures dangerously close to limitations. • Peening liners. The steel used to make the liners produced a significant amount of peening. This made liner removal a time-consuming activity and more hazardous activity, as a heat lance is needed to remove peened liners. It also increases the risk of structurally damaging the mill’s shell. • Pegging of the grate plates. There was excessive pegging of the grate plates by worn metal grinding media, reducing flow. As temporary measure, the mine

The existing grates within the SAG Mill were pegging. Critical size grinding media were blocking apertures, reducing throughput.

was cutting out the pegged media every few weeks. Which only increased the time and cost spent on mill maintenance. To solve these challenges, the mine issued a request for quote to three companies with the challenge to improve the safety of mill maintenance and increase mill discharge. In practice, this meant reducing the number and length of maintenance interventions, as well the need for hazardous installation manoeuvres, lowering mill weight and eliminating flow constraints, such as clogging and pegging. The beginning of the solution is understanding the problem The journey to our solution began with a thorough review of operating conditions and liner design. Through this, we determined the first course of action should be to tackle the problems associated with the discharge system. This would allow us to increase throughput and reduce

weight – and would also lead to other objectives being met. With some key improvements in mind, we created sophisticated DEM simulations to help evaluate what discharge design would best meet the mine’s objectives. These simulations allowed us to beat the mine’s throughput target of 2,100 tpd and forecast a maximum possible throughput of 2,300 tpd. The new simulated design also showed a significant increase in service life, meeting the need to reduce maintenance interventions. After initial onsite discussions, mine personnel were invited to review the design adjustments and define the final scope. This made sure customer knowledge

DEM simulations were conducted to help evaluate the discharge design and meet mine’s objectives.

Page 49 >

ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

< Page 48 was also incorporated into the solution, as well as those of our engineering team.’ Exceeding expectations Our solution centred on our PulpMax™ composite mill liners, which were combined with material and design modifications to the steel lining system to promote increased efficiency and service life. The new liners boast 27% fewer parts (136 vs 187) and 45% lower weight (106,130 kg vs 191,962 kg). • Made from material that is up to 50% LIGHTER. This makes the liners easier to handle and improves worker safety. Lighter materials allow us to engineer larger components at reduced weight. It also results in less parts. • They typically have 50% FEWER PARTS. This results in a faster reline speed and quicker installation, and this adds up to workers spending less time in a confined space performing hazardous work. Along the journey, we were also able to provide solutions to other challenges – for example, pegging of the grates and peening of the discharge steel.

SURFACE EXPLORATION GEOTECHNICAL

The result was a solution that exceeded original expectations: • Improved safety. Fewer pieces and lower weight make maintenance simpler and quicker. This reduces the amount of time that workers spend on the mill – improving safety. It also lowers the total cost of ownership. Compounding these benefits, PulpMax composite wear liners last much longer than previous liners – through some 25 million tonnes of production. Liner service life has therefore been extended from 12 months to 15 months and based on wear measurements, could extend to 18 months. • Improved throughput. The new system consistently achieves throughput of 2,250-2,300 tpd,

BLAST HOLE SPECIAL PURPOSE

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 1 2022

exceeding the target of 2,100 tpd. This results from: o Reduced liner mass (>100 tonnes) o Improved shell design o Improved discharge efficiency o Less clogging and pegging

Plot No. M8, SIPCOT SEZ For Engineering Products, Perundurai, Erode – 638 052, Tamil Nadu, India.

DEWATERING WATER WELL

www.prdrigs.com

+91 97877 03666

suresh@prdrigs.com

MINING NEWS

Vulco® R67 mill lining rubber compound is revolutionizing mine site mill operations

elbourne, Australia – Vulco® rubber is renowned throughout the mining industry for its exceptional wear life and reliability in mill lining systems. These abrasion- and impactresistant rubber compounds have been developed with advanced technologies by the Weir Minerals’ team of expert engineers and material scientists who are continually refining Vulco® rubber products to keep them at the forefront of mill lining systems technology. Having identified a need for higher-wearing rubbers for mill lining systems, the material science experts commenced developing an industry leading, premium-grade rubber compound with superior wear life and performance in mill lining applications. The result was the Vulco® R67 rubber – an optimum material which is manufactured with proprietary new compounds and innovative methods of processing to deliver outstanding wear life and longer uptime. Extensive field research, compound testing and site trials were conducted to ensure that it was not only able to withstand severe abrasion in typical mill system applications, but that it is best in class. In fact, it has been the most wear-resistant rubber compound that Weir Minerals has ever developed for mill lining applications. The R67 compound boasts a high hardness, elongation, tensile and tear strength, and is suitable

for lifter bars, head/shell plates and grates. When it’s utilised in conjunction with metal cap mill liners, the result is a versatile, economical and efficient product that weighs up to 50% less than steel alone. The added benefit is a lighter product that’s faster, easier and safer to install. Revolutionising wear lining Since its launch in 2018, many mining operators from around the globe have implemented the R67 compound into their mill lining systems. They have reported as much as 20-40% improvement in wear life, which is resulting in fewer mill

When you see the distinct green coloured ends, you’ll instantly know it’s a Vulco® R67 mill liner.

lining replacements and longer mill campaigns. This reduction in shutdowns has a dual benefit of increased cost savings and improved plant availability. What are the benefits for the mill operators? With a liner that can run significantly longer, operators have experienced a wide range of benefits including: • Improved wear life • A measurable reduction in mill downtime • Increased uptime and processing • Easier and safer installations • Reduced maintenance costs In addition to this, the mines benefit from having an experienced and dedicated team from Weir Minerals who custom-engineer the liners to suit each mill’s unique requirements for optimal wear life. Global in-field success The R67 elastomer compound is changing the way mills operate - with exceptional results. Extensive global trials and commercial installations in the market have resulted in a number of successful outcomes across a variety of different grinding applications. From mines in the USA to Chile, the R67 has proven its outstanding performance consistently.

The unique Vulco® R67 rubber compound combines state-of-the-art technology with advanced raw materials to deliver extended wear life, increased uptime and lower total ownership costs.

Page 52 >

ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

INDUSTRY NEWS

Epiroc’s ambitious climate targets validated as science based

piroc launched ambitious sustainability goals that include halving its CO2 emissions by 2030. The SBTi has now validated Epiroc’s climate targets as being in line with keeping global warming at a maximum 1.5° C, consistent with the latest climate science and the goal of the Paris Climate Agreement. “Climate change is happening as we speak and we are working internally as well as together with our customers to reduce the impact on climate,” says Helena Hedblom, Epiroc’s President and CEO. “We are driving the industry’s transition toward a climatefriendly future, not the least with our growing offering of batteryelectric equipment. Epiroc is committed to halve CO2 emissions

Epiroc, a leading productivity and sustainability partner for the mining and infrastructure industries, has received validation by the Science Based Targets initiative (SBTi) for the company’s ambitious targets to reduce CO2 emissions. from the use of our equipment as well as in our own production and in transport by 2030. With the approval of our goals from SBTi, our position as a sustainability leader in our industry has now been reinforced.” In line with SBTi requirements, Epiroc commits to halve its absolute CO2 emissions in its own operations – so called Scope 1 and Scope 2 – by 2030, with 2019 as base year. However, more than 99% of Epiroc’s total CO2 emissions are other indirect emissions, with about 83% of the total coming from when customers use the

products. Therefore, Epiroc has committed to halve the absolute CO2 emissions from use of sold

Page 54 >

< Page 50 As an example, a high-grade nickel and copper mining project in the USA had a problem where the liners in one ball mill were wearing out too quickly, leading to continued downtime and reduced processing. They were looking for a product significantly superior to the elastomer that they were using. Initially there was reluctance from the mine, as they had loyalty to their original mill supplier, however after Weir Minerals conducted a series of trajectory simulations and discreet modelling - to optimise the design and deliver the best process performance for the mill, they agreed to trial the R67 liners. At the end of the trial the R67 showed 30-40% better performance than the incumbent liners and the customer installed a full set of R67 liners in their mill. Another trial in the USA took place in an iron ore mine with several dozen ball mills in operation. Here, Vulco® R67 liners delivered a 17% increase in life compared to the failed shell plates from the mine’s original mill lining system supplier. The company was extremely impressed with the results and installed a complete shell liner in their ball mill. Moving to Chile, a copper mine was keen to trial the R67 compound to see if they could improve the wear time of a competitor rubber liner. After a three-month trial, all liners were physically measured

showing that the Vulco® R67 liners fully worn wear life projected from the actual wear would be 80% longer compared to the incumbent liners. Another copper processing plant in Chile trialled R67 composite liners in their SAG mill against two other compounds that are commonly used in the industry. After 12 months, there was a 48% and 62% wear life improvement on the other liners – proving that the R67 composite liners could withstand the highly abrasive environment. Helping customers optimise their process As leaders in material technology, Weir Minerals are continuously undertaking research and development to provide best-in-class products to mining customers, while

helping them improve their bottom line. When using Vulco® R67 rubber compounds, our customers can feel assured they have a market-leading product that is backed by decades of experience, expertise, and proven effectiveness. This innovative rubber compound not only delivers superior physical and viscoelastic properties but is also a lighter and safer material to use. Where can you find Vulco® R67? Vulco R67® mill liners are made exclusively at Weir Minerals facilities in North and South America, Australia and South Africa, with plans to expand production into more regions in the future. For more information about Vulco R67® please visit: https:// info.global.weir/vulcor67

Inside the discharge end of a ball mill being fitted with spiral lifters and rubber grates. Vulco® R67 mill liners last significantly longer and deliver a measurable reduction in mill downtime, installation, and maintenance costs.

ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

Custom reports can be created to help data mine your company's archive. Users can create custom indices by document type. Reports generated can be exported to Excel and PDF for submission.

CONSTRUCTION NEWS

CREATE law pushes DMCI’s earnings higher

iversified engineering conglomerate DMCI Holdings Inc. booked a record-high core net income in 2021 despite the pandemic, as it continued to benefit from a lower income tax under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law. In a statement, DMCI Holdings said its full-year core net income surged by 164 percent to PHP17.4 billion last year from PHP6.6 billion in 2020. Including a nonrecurring income of P1 billion in 2021 mostly from deferred tax remeasurement under CREATE law and nonrecurring loss of

PHP708 million mainly from sales cancellations for a real estate project in 2020. The company also saw its net income surge by 214 percent from PHP5.9 billion to PHP18.4 billion, including a nonrecurring income of PHP1 billion in 2021 mostly from deferred tax remeasurement under CREATE law and nonrecurring loss of PHP708 million mainly from sales cancellations for a real estate project in 2020. President Rodrigo Duterte signed into law on March 26, 2021 the CREATE Act to attract more investments and maintain fiscal prudence and stability in the Philippines.

Republic Act 11534 or the CREATE Act introduces reforms to the corporate income tax and incentives systems. DMCI Holdings also attributed last year’s spectacular growth to surging commodity prices, recovering electricity rates, and higher construction accomplishments. “This year, we expect extreme volatility in coal and nickel prices because of the ongoing crisis in Ukraine, economic sanctions on Russian and possible policy interventions of China and Indonesia,” DMCI Holdings chairman and president Isidro Consunji said.

< Page 52

Epiroc way to optimize customers’ processes by connecting machines, systems and people using automation, information management and system integration. With 6th Sense comes a great focus on system connectivity, using interoperability to unlock the full potential of automation for production gains at lower operating costs. “6th Sense is a formula we have developed for getting the right solutions in place and achieving operational excellence in mining and infrastructure operations,” said Helena Hedblom, Senior Executive Vice President Mining and Infrastructure. “The name 6th Sense implies that the solution brings something extra and that is just what it does, providing a significant advantage such as track and respond to real-time working conditions and equipment needs.” One example of Epiroc’s focus on automated and productivityenhancing solutions comes from the Hollinger mine in Timmins, Canada. Together with long-term partner Newmont Goldcorp, Epiroc has put the world’s first fully autonomous SmartROC D65 surface drill rig in production. The operator can be positioned remotely and perform other tasks while the drill rig completes a full drill pattern autonomously. Besides increased operator safety, this boosts productivity thanks to Global Navigation Satellite System accuracy, non-stop opera-

tions and less wear and tear on drilling tools, reducing production costs and improving reliability. Another example is the new Teleremote e-tramming option for Epiroc’s popular range of Simba long-hole underground drill rigs. The automation package includes functionalities to monitor, plan and automate drilling operations from onboard the rig or from a remote location. Not only is the tramming process faster and simpler, the e-tramming function also provides a safer work environment and reduces variability in performance. “The 6th Sense approach is based on our customers’ needs for implementing digitalization, automation and new process integrations. We are continuously rolling out new innovative features, always with the customers’ needs in mind,” says Helena Hedblom, President

products – so called Scope 3 – by 2030. This is industry leading and well above SBTi’s minimum requirements. The transition from diesel-powered to battery-electric machines will make a significant impact. In addition, Epiroc’s 2030 sustainability goals also include halving CO2 emissions from transport, requiring 50% reductions of CO2 emissions from relevant suppliers, having 90% renewable energy in own operations, and offering a full range of emissions-free products, as well as ambitious targets for people. In addition to providing a growing range of battery-electric products, Epiroc’s climate actions include, among others, shifting transport from air to sea, and installing solar panels at many of its facilities. The SBTi - a partnership among the Carbon Disclosure Project, the UN Global Compact, the World Resources Institute and the World Wide Fund for Nature – is driving ambitious, sciencebacked climate action in the private sector. Epiroc presents 6th Sense, a game changer for smarter mining and infrastructure operations There is a growing need for the mining and infrastructure industries to look to digital technologies to enhance productivity, sustainability and safety. 6th Sense is the

ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

How to automate sampling, analysis of ores, mine materials

ccurate chemical analysis can provide vital data to enhance mining operations, such as improved extraction at mine sites and the optimized blending of mined material. However, sending samples to remote laboratories can cause delays ranging from hours to days. In addition, manually collected samples may not be representative of the bulk material. Automating this process and bringing the laboratory to the samples increases productivity. This can be done by adopting an automatic on-belt sampling solution. An Introduction to Automated On-Belt Sampling and Analysis Automatic on-belt sampling solutions provide instant chemical analysis of bulk mined material, such as coal, aluminum (Al), titanium (Ti), iron (Fe), manganese (Mn), nickel (Ni), and copper (Cu) ores. For instance, our on-belt sampling solution integrates the powerful Vanta™ in-line XRF analyzer to provide a fast, automated, and accurate analysis: • Real-time chemical analysis of mining feed material on belt • Excellent sensitivity to trace elements • Quantification of up to 30elements in one measurement • Detection down to 1 ppm for key elements • Analysis of light elements, including magnesium (Mg), aluminum (Al), silicon (Si), and sulfur (S) 3-Step Process for Automated On- Belt Analysis To help you understand how automated on-belt analysis works, here is the process in three simple steps: 1. Collect Samples are collected from the belt automatically using a cross-belt sampler, without the

need to stop or slow the belt. The system can be designed to meet relevant sampling and preparation standards, including ISO 12743, ISO 13909, ASTM E877, and ASTM D7430.

2. Prepare The collected samples are crushed to the required size. The moisture content is measured and recorded to remove measurement bias. The samples are pressed and ready for chemical analysis using X-ray fluorescence (XRF). The entire preparation process is automatically controlled and monitor.

have the right data at the right time.

Vanta™ iX In-Line XRF Analyzer

Key Benefits of Automated On-Belt Analysis for Mining Operations Automated on-belt analysis has many benefits for mining operations, including: • Fully automated and continuous to maintain high productivity • Can be seamlessly integrated into existing plants • No radioactive material used unlike alternative methods • High-quality results from direct sample analysis compared to methods that perform through-belt measurements • Real-time laboratory-quality measurements • Modular design for ease of maintenance For more information and queries kindly reach us, Traders Industrial Supply Co., Inc. Email: 1980trisco@ gmail.com Contact (+632) 8817-9004/ 09175818704

3. Analyze The prepared samples are analyzed using the Vanta iX in-line XRF analyzer. The data collection and analysis are fully automated. After analysis, the results can be seamless integrated into a plant workflow and data management system. This enables the right person to

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 1 2022

MINING NEWS

Schaeffler customer success story in Philippine mining sector

s one of the largest rolling bearing manufacturers worldwide, Schaeffler is a partner to all leading manufacturers and companies involved in the mining and processing industry. Our bearings and service solutions increase the functional reliability and performance of machines and processes. We support our customers in reducing maintenance efforts and protect their employees by providing a safe working environment. In this issue, we will share with you how Schaeffler has helped a mining corporation in Philippines optimize their maintenance efforts in their plant operations. Slaked lime is produced at Visayas Slaked Lime Corporation’s (VSLC) plant in the Philippines. To ensure proper and reliable lubrication of the numerous fans and blowers in the dusty environment, VSLC switched from a manual to an automatic lubrication solution. With the CONCEPT1 gas-driven automatic lubricators, the company will reduce maintenance efforts in the future, protect its employees and therefore be more sustainable. Customer Benefits • Integrity of grease is maintained with no penetration of impurities during relubrication • Longer bearing life in fans and blowers with reliable preset time intervals

• Enhanced safety with less human deployment in hard-toreach locations • Increase in productivity of the Maintenance Team with elimination of manual lubrication • Sustainable – lubrication cartridges can be refilled up to three times Challenge VSLC operates in a very dusty environment resulting from the production of slaked lime and limestone. Therefore, impurities often occur in the lubricants. These impurities affect, among other things, the bearing life in the fans and blowers. The maintenance team has to keep an ongoing focus on lubrication. As the numerous lubrication points were checked and relubricated manually and due to the sometimes difficult to access lubrication points, the safety of the maintenance staff was at risk. Schaeffler Solution Schaeffler’s experts recommended the flexible and costeffective lubrication solution with the automatic lubricator Concept1. The CONCEPT1 automatic lubrica-

What Schaeffler’s customer says... “With the automatic lubricator, we were able in a short time to significantly reduce efforts compared to manual lubrication. We are impressed and absolutely satisfied.” — Maintenance Section Manager, VSLC tion solution has one outlet and consists of a 125 millilitre SCHAEFFLER PHILIPPINES, INC. cartridge driven by a gas5th Floor, Optima producing dry cell. The flow rate can be preset differently Building, 221 Salcedo Street, Legaspi Village 1229 Makati depending on the amount City, Philippines of lubricant needed for the Contact: bearings. +639178056589 VSLC is very satisfied with Fax: +632 7798703 the lubrication solution and E-mail: marketing_ph@ has fitted a further 50 lubricaschaeffler.com tion points with CONCEPT Contact Person: Peralta 1 as a first step. Another 50 Charleson – Head of Sales lubrication points for motors Website: will soon be installed with www.schaeffler.ph automatic lubricators.

DOTR: METRO MANILA SUBWAY PROJECT 30% COMPLETE

ome 30.55 percent of the Metro Manila Subway Project (MMSP) is already complete, Department of Transportation (DOTr) Undersecretary for Railways Timothy John Batan said. “Despite the effects of the Covid-19 pandemic, again, backto-back to back major milestones were still realized despite all odds,” Batan said during an inspection of the MMSP’s Valenzuela depot. He said 576 out of the 6,400 tunnel rings needed for the partial operability segment of the MMSP have been completed, with

more underway at the MMSP’s 7.5-hectare fabrication yard in Norzagaray, Bulacan. He said the DOTr has acquired 197,000 square meters of land and 585 structures from 324 property owners as part of the project’s right-of-way acquisition. Despite this, he said there has been no “forced eviction resettlement” of the 183 informal settler families affected by the project through the help of the Valenzuela City government. With 17 stations—two of which are interoperable with the

North-South Commuter Railway line—the MMSP is seen to reduce travel time between Quezon City and NAIA from one hour and 10 minutes to just 35 minutes. Through a right-of-way agreement signed with the Department of National DefenseArmed Forces of the Philippines in December 2020, he said the MMSP will make use of 50,000 square meters of DND-AFP land, with an additional 60,000 square meters of land for tunneling works, and additional 55,000 square meters of land for temporary works. ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

INDUSTRY NEWS

Ritchie Bros. providing the Philippines a world of choice

riven by long term infrastructure growth, the expansion of mining activity and post COVID-19 recovery plans, the demand for construction and mining equipment in the Philippines for the medium to long term is strong. Coupled with global supply chain constraints and long lead times for buying new equipment from OEMs and their dealers, equipment users in the Philippines are now, more than ever, looking around the globe for quality used equipment. Ritchie Bros., the global marketplace of choice in the used machinery industry, has more channels and opportunities for Filipino customers to buy and sell equipment in the global marketplace. Ritchie Bros. pioneered live public unreserved auctions in the Philippines when they conducted auctions for the benefit of Pinoys equipment owner in the mid to late 1990s in Subic Bay. Live public unreserved auctions are how Ritchie Bros. has secured its unparalleled reputation over the past 60 years. Scheduling an auction date, marshaling hundreds if not thousands of late model quality used equipment into one auction yard, and inviting the public to bid. All assets in our unreserved auctions are sold, regardless of the final sale price, benefiting both buyer and seller. Ritchie Bros. has replicated this model around the globe, with over 50 permanent auction facilities located in 14 counties around the world (North America, Europe, Asia, the Middle East, and Australia). But as the needs of the market change and technology advances, Ritchie Bros. provides sales channels and offerings that meet the dynamic needs of our customers. Our live public unreserved auction, with thousands of assets, is still the backbone of our business. However, to match the

needs of our customers, we have also developed other sales and buying channels. IronPlanet is our online only auction platform, our 24/7 marketplace, Marketplace E, allows customers to buy equipment through offer and negotiation, while Ritchie Bros. Private Treaty, provides the ability to buy and sell assets discretely with Ritchie Bros. Each of these unique channels allows our customers more choice and timely opportunities to buy and sell equipment. Each one is uniquely formulated to provide our customers with solutions for every situation they may face. Online only platforms make it easy and convenient to purchase equipment from anywhere in the world. Ritchie Bros. comprehensive sales solutions give you a choice of selling channels through our global network. Our unreserved online auctions Ritchie Bros.’ unreserved auctions help you sell heavy equipment and machinery for the best price. Since we shifted to online auctions through our Timed Auction system, we’ve seen record-breaking bidder participation and sales results. Our reserved online auctions IronPlanet offers a convenient way to sell equipment quickly from your yard to a global buyer base. With the sale and transaction all taking place online, it’s a service designed to work with your schedule and location. Our 24/7 marketplace With Marketplace-E, our 24/7 online marketplace, you can set a minimum price and let us take care of finding the buyer. You can decide to

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 1 2022

sell from your own location or at one of Ritchie Bros. yards. Our Ritchie Bros. Private Treaty Ritchie Bros. facilitates private treaty negotiations for a wide variety of specialized and high-value heavy equipment and industrial assets. Buying is easy: just contact us to arrange an inspection and make an offer. We will handle confidential negotiations between you and the seller and manage the settlement of transactions. Ritchie Bros. in the Philippines With the vision to serve the needs of our customers in the Philippines, Ritchie Bros. has set up a Philippine Country Representative based in Manila. Chris Edwards has more than 20 years’ experience in the equipment trading business in the Asia Pacific region and conveniently located in Manila to serve your needs. Have assets to sell? Need to find quality equipment for your project? Reach out to Mr. Edwards for a no-obligation consultation on how Ritchie Bros. and its many sales and distribution channels would be best for you and your situation.

COMMUNITY NEWS

< Page 60 lems at a superficial, phenomenological level and as Hammer (2002) posited, it can only work effectively if placed under Process Management. Furthermore, due to its project-oriented and problem-solving focus, it cannot help in discovering better processes. The underlying assumption here is that the existing process design is sound and needs minor fine tuning to be efficient. As such, this kind of assumption will not lead to substantial performance improvement. If it happened to be that there is a wide discrepancy between the existing process performance and the desired performance, the process owner should initiate Business Process Reengineering (Hammer 2002). One should take note that the wide discrepancy in performance can be due to system disruption which we have witnessed during the pandemic. On Business Process Reengineering, it is the third phase which is an intentional and comprehensive redesign of work. The difference between Business Process Improvement and Business Process Reengineering is analogous to the difference between waste and non-value-adding work. Waste is generated from the erroneous and inconsistent individual activities performed and it can be eliminated using DMAIC. On the other hand, non-value-adding work holds the process together hence cannot be eliminated at once. Business Process Reengineering aims to reduce the number of non-value adding work. While it is easy to identify non-value adding work, it is difficult to reorganize the process to have less of it (Hammer 2002). In all the three phases of Business Process Management, the stages of Business Process Design shown on Figure 1 are undertaken. In Stage 1, the activities in a business process are conceptualized and arranged sequentially to come up with the desired output. This require a lot of thinking, i.e. idea generation and brainstorming. In Stage 2, the preliminary business process design is further analyzed and more details are added such as control mechanisms (e.g. stage gate, decision, etc.). In Stage 3, the process is optimized by determining the likely pain points, bottlenecks, or vulnerabilities and countermeasures are put in place. To ensure agility, the process undergo “What-If” Scenario Analysis where various scenarios are looked into to determine countermeasures in case such scenario would occur. The scenarios generated can be as many but those which will be considered for analysis are those with high likelihood of occurrence. Layers of protection are also put in place to ensure that the likelihood of process failing is low and that it is not disastrous. Moreover, potential unintended consequences are identified and to ensure productivity gains, the process is optimized first before automation (Davenport and Brain 2018). After the approval of the process design by the client, it is implemented (Stage 4). In here, the work area and equipment are rearranged according to the designed process and employees are trained on executing it. Control mechanisms are installed and the IT systems are reconfigured. Troubleshooting is also done at this stage. In Stage 5, the process is tested and the objectives in terms of Key Performance Indicators are measured to determine if the process delivers as intended. If externalities or emergencies occur and the testing and measurement results are the same as that during normal operations, then the process can be considered agile. In view of continuous improvement, the 5-stage cycle repeats. The stages in the foregoing paragraph were adapted from the general steps in the process

design of chemical plants and petroleum refineries and follow the plan-do-check-act framework of the International Organization for Standardization. One should take note that in all these endeavors, the application of design thinking is imperative where a wider field of view is required and external stakeholders are consulted (Bansal and MacMillan 2021). It will also be helpful to chart the business’ ecosystem and imagine the potential disruptions which could come from its various parts. Failure to have this ecosystem view is one reason why the US supply chain broke down at the onset of pandemic recovery when the demand for imported goods soared. As Hammer (2002) mentioned, business success results from the effective performance of a welldesigned and agile business processes. By putting in place such kind of business processes, companies will be prepared for system upset and they can help stabilize the system and prevent future disruptions (Bansal and MacMillan 2021). References

- Agile Business Consortium. 2021. [online] Available at: <https://www.agilebusiness.org/page/WhatisBusinessAgility> [Accessed 9 October 2021]. - Bansal, T. and MacMillan, K., 2021. How Your Organization Can Prepare for Systems Disruptions. [online] California Management Review. Available at: <https://cmr.berkeley.edu/2021/03/how-your-organization-can-prepare-for-systems-disruptions/?fbclid=IwAR 17ue8SBUCZ5YaLrFOWL_vkjf2MOG551WRLEp9QbNJsYH0Xk2gskTY028c> [Accessed 15 October 2021]. - Chountalas, P and Lagodimos, A 2012, Volume of Essays in Honour of Prof. S. Karvounis, University of Piraeus, Piraeus. - Davenport, T. and Brain, D., 2018. Before Automating Your Company’s Processes, Find Ways to Improve Them. [online] Harvard Business Review. Available at: <https://hbr.org/2018/06/before-automating-yourcompanys-processes-find-ways-to-improve-them> [Accessed 24 October 2021]. - Hammer, M., 2002. Process Management and the Future of Six Sigma. [online] MIT Sloan Management Review. Available at: <https://sloanreview.mit.edu/article/process-management-and-the-future-of-six-sigma/> [Accessed 9 October 2021].

Figure 1. Stages of Business Process Design Jed M. Bellen is the Chief Executive Officer and Founder of Bellen Management Consulting, O.P.C. based in Bacacay, Albay, Philippines. His specializations are on Business Process Management, Strategy, and Project Management. The clients he has helped to date are artist, educational institution, broadcast and print media, and a religious store. He is a Project Management Professional, a Stanford Certified Project Manager, an MBA from Asian Institute of Management (2011) and a licensed Chemical Engineer (BS Chemical Engineering, Bicol University, 2005). He can be reached via jed. bellen@bellenmc. com.

ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

Advertise the front of your calling card here. Contact us to find out how! Text or Call: +63 955 7380266 Email: info@philippine-resources.com

COMMUNITY NEWS

Building Agile Business Processes

Advertisers’ Index Calling Card Advertisements

Chief Industries

CTP Mining

DKSH

DMT Consulting Limited

Epiroc

Fahrenheit

FLSmidth

Hinatuan Mining

LiuGong

Major Drilling

OBC

Masbate Gold Project

Paperless Trail

Paramina Earth Tech

Philippine Mining Luncheon

PRD Rigs

QED

IFC

RDCL

Richie Brothers

Sandvik

Schaeffler

Site Group

IBC

Taganito HPAL Nickel Corp.

Taganito Mining

Tencate

Trisco

TVI Resources Weir Minerals 60

42-43 2

By Jed M. Bellen

f businesses have anything to learn from the Covid-19 pandemic, it should be making their operations agile. Business agility means the ability to adjust swiftly to market changes both internally and externally, address customer demands quickly and flexibly, and adapt and lead continuously the improvement initiatives in a productive and costefficient manner, while maintaining the required level of quality (Agile Business Consortium 2021). It is also based on the principles of teamwork, autonomy, and alignment. Having an agile business is becoming a strategic imperative because companies these days face more demanding customers, tougher competition (Hammer 2002) and a disrupted, volatile, uncertain, complex, ambiguous, and diverse world. As Bansal and MacMillan (2021) posited, only a handful of events made it obvious that every business is embedded within a larger open system which necessitates for building agile, adaptive, and resilient organizations. To achieve business agility, first, it has to become part of corporate objectives which can be translated into processperformance goals through balancedscorecard and economic-value-added techniques. The process-performance goals can be attained by putting in place a robust, flexible, and fast-response business processes. A business process is defined as “a construct consisting of a set of clearly pre-defined, structured, and logically related activities that work together and use resources in order to transform specific inputs into desired outputs (Chountalas & Lagodimus 2012).” When we talk of business process, we are reminded of the bigger umbrella of

business process management which is a structured methodology to improve performance that focus on disciplined design and careful execution of a business’ end-to-end processes (Hammer 2002). It encompasses business process design, business process improvement, and business process reengineering. Business Process Design is the first phase as the designer charts the business processes to be implemented. At this stage, parsimony of process steps is observed but provisions for shifting to ‘externalities scenario’ operations are included. Parsimony in this case means employing simple methods and using fewer resources. The activities in a process are aligned to serve customer needs. Furthermore, the design should specify the duration of doing the activities and the respective responsible persons. It should also be ensured that the defined performance objectives mentioned earlier are applied consistently across the processes to ensure repeatability and consistency (Hammer 2002). The second phase is Business Process Improvement. In here, the process owner can make minor modifications to the process design in order to fix a flaw or address new issues. Among the tools used to improve a process is Six Sigma which uses statistical analytic tools to uncover flaws in process execution. The most widely used methodology is known as the DMAIC (define, measure, analyze, improve, and control). The premise here is that businesses have to be consistent in terms of high levels of quality, low levels of cost, and that a disciplined, organized approach will eradicate variance, waste, and error in the operations. However, Six Sigma cannot address business prob-

Page 58 >

ISSUE 1 2022 • WWW.PHILIPPINE-RESOURCES.COM

Philippine Resources Journal - Issue 1, 2022

Articles inside

‘CREATE’ LAW PUSHES DMCI’S EARNINGS HIGHER

DOTR: METRO MANILA SUBWAY PROJECT 30% COMPLETE

EXECS OPTIMISTIC OF ‘BUILD, BUILD, BUILD’ CONTINUITY

PH DUCKS THRIVE IN TVIRD’S SULPHIDE DAM

TMC BAGS 4TH PRESIDENTIAL AWARD FOR GOOD MINING

BINONDO-INTRAMUROS BRIDGE OPENS IN APRIL

ONE TOTAL SOLUTION FOR MINING AND MINERAL PROCESSING

Innovations in battery-based mining gear

NAC-HINATUAN ASSISTS TYPHOON ODETTE VICTIMS

DE LIMA FILES BILL VS. LIFTING OPEN-PIT MINING BAN

By Fernando Penarroyo

SAFETY PERFORMANCE MEASURED IN PH MINE SITES

Mining gold for a better future

QED CELEBRATES SAFETY MILESTONE IN MASBATE

By Patricia A.O. Bunye

PASTE BACKFILL SYSTEM: MINE SAFETY GAME CHANGER