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Philex Mining 2014 Sustainability Report

About the Cover A hodgepodge of photographs outlines as a miner and a partner from the community, the cover page represents a convergence of interests and collaboration between Philex Mining Corporation and its host and neighboring communities, thereby building deeper and more strategic relationships. Characterized by participation and cooperation, the company’s various partnerships with its stakeholders create a living tradition for community development, economic progress, nation building and environmental protection.


Miners on their way home after their night shift duty in the underground. Catwalks are used for their safety.

Table of Contents About the Report

Report Boundary and Scope Reporting Guideline

Message from the Chairman Message from the President and CEO Our Approach to Sustainability

Sustainability Performance 2014

About Philex Mining Metals Business

Energy and Hydrocarbons Business Exploration and Development Mining Process

Risks to the Business Supply Chain

Awards and Recognition Governance and Ethical Conduct Economic Responsibility Our Market

3 3 3 4 6 8

12 14 20 24 25 26 28 30 32 34 42 45

Environmental Responsibility

Environmental Impact & Control Biodegradable Reagents Energy Optimization Water Conservation

Biodiversity and Reforestation Slope Stabilization

Monitoring Air Quality

Effluent Management Waste Management

Environmental Intiatives Workplace Responsibility

Labor Practices and Decent Work Compensation and Benefits Health and Safety

Training and Development

Equal Opportunity and Human Rights

Social Responsibility

Community Approaches

Community Investments Global Reporting Initiative Index Sheet

46 46 48 49 51 52 54 55 56 58 59 60 60 63 65 69 71 72 72 74 85


Philex Mining 2014 Sustainability Report

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Padcal community during night time.


ABOUT THE REPORT This is the first Annual Sustainability Report to be released by Philex Mining Corporation (PMC). All the information included in this report are based on data that were submitted to government agencies and on the reports of performance monitoring of the Padcal Mine site and Pasig Corporate office. We engaged with key stakeholders to understand their areas of interest and address their concerns about our operations. While this report does not cover all of the issues that concern our stakeholders, it includes the most significant programs of PMC that were initiated to address the environmental and social concerns. This report highlights our Environmental Protection and Enhancement Programs (EPEP), which cover rehabilitation and reforestation initiatives, water quality management, and pollution control projects of our Padcal Mine site. We have also included our Social Development and Management Program (SDMP) in the report to showcase community and employee projects that were undertaken in our areas of operation.

REPORT BOUNDARY AND SCOPE

The report covers the period of January-December 2014 and includes the environmental and social responsibility programs of the Padcal Mine of Philex Mining Corporation. We have included highlights of our operations: our environmental performance focusing on rehabilitation and reforestation, water management, waste management and pollution control; and our social performance covering employees and the local communities where we operate.

The report follows the G.3.1 Guidelines, at Application Level B reporting on key operational performance of the Philex Mining Corporation. These guidelines encourage companies to report on practices and performance that relate to sustainability in a manner that is transparent and uses a globally shared framework of indicators.

About the Report

REPORTING GUIDELINE

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Philex Mining 2014 Sustainability Report

MESSAGE FROM THE CHAIRMAN Philex Mining Corporation (PMC or the Company) has a clear and compelling vision for the future: to become a highly respected, world-class natural-resource company committed to deliver excellent value to our investors, employees, and other stakeholders. Since the Company was founded nearly 60 years ago, it has been committed to ensure excellent delivery of high quality products and safety of operations. Yet as world demand changes, PMC has to take a holistic view of its business, specifically with respect to the impact its products and operations will have on society. Traditionally, sustainability in the mining industry was first and foremost tantamount to reducing the harmful impact of its operations on the environment. While PMC regards this notion as still very important, the Company also adopts a broader perspective and pays equal attention to economic and social sustainability as well. Our commitment to environmental sustainability compels us to protect, reclaim and enhance the environment in which we operate. We promote environmental stewardship by complying diligently with corporate environmental policies and obligations and conducting activities that ensure the preservation of the environment and sustainability of the nearby communities. Our commitment to economic sustainability, meanwhile, rests on our ability to create economic value for our shareholders, customers, employees, and society as a whole. In delivering quality and consistent supply of mineral products, we help our customers function efficiently and generate income. By sustaining our business further, we also help unlock job opportunities and spur growth, for the benefit of local communities and the nation in general.

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Finally, our commitment to social sustainability ensures that we constantly create shared value for the business, our workers, and society. This includes adhering to sound corporate governance principles, with primary focus on looking after the health, wellness and safety of our employees, and empowering our neighboring communities to sustain their subsistence. We also require that our activities are conducted in a manner that is consistent with applicable laws and best practices in mineral exploration and development, aligned

with our environmental stewardship and health and safety objectives, maintains strong community relationships, and upholds basic human rights. Being a pioneer and leader in the Philippine mining industry means that we have established a profound influence on the communities affected by our business and developed a responsibility to nurture the natural environment altered by our operations.

"We firmly believe that we can best achieve our longterm vision by addressing the needs of our various stakeholders through the investments we make for the future, in line with our commitment to leave a positive legacy to society and make efforts to obtain and maintain our social license to operate."


This 2014 Sustainability Report is PMC’s maiden issue and it concretely manifests our commitment to transparency and responsible mining and strongly demonstrates how we have espoused and nurtured good governance in our corporate DNA over the years. As we set our sights extensively into the future, we believe that we can best thrive when we act with responsibility, transparency and accountability towards our local communities. We envision to share the benefits of mining to the widest spectrum possible, while expending considerable efforts in protecting the health and welfare of our people and the communities around us, supporting the livelihoods they are engaged in, and preserving the environment that sustains us all.

Manuel V. Pangilinan Chairman

Message from the Chairman

I wish to thank the people of PMC and our various stakeholders. I am certain that remarkable progress would not be possible without everyone’s hard work and dedication.

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Philex Mining 2014 Sustainability Report

MESSAGE FROM THE PRESIDENT & CEO 2014 was a challenging year for the mining industry, both in the Philippines and around the globe. That being said, PMC’s commitment to delivering sustainable value to our stakeholders remains unwavering. The Company finished last year with PhP703 million in net income, which was more than double that of the previous year.This was largely due to higher number of operating days at the Padcal Mine, coupled with financial discipline and agility in the face of challenging market conditions, particularly the lower ore grades and unstable metal prices. More importantly, we remained as focused as ever on our eight-pronged strategy of: 1) ensuring a stable pipeline of mining projects and reserves; 2) promoting environmental stewardship; 3) being well-positioned for a robust market demand; 4) ensuring our longterm growth potential; 5) adhering to good corporate governance principles and practices; 6) offering competitive costs; 7) ensuring strong shareholder support; and 8) empowering communities, to build on the early gains of the previous years. One of the Company’s significant operational milestones in 2014 was the permanent lifting of the suspension order from the Mines and Geosciences Bureau on Padcal Mine in March 2014. This, together with the government’s approval of the Declaration of Mining Project Feasibility of the Silangan CopperGold Project that will allow the Company to proceed with the development of the US$1.2-billion gold and copper mining operation in Mindanao, provides us with more confidence and a better perspective on our way forward. CHAMPIONING ENVIRONMENTAL STEWARDSHIP In the area of environmental responsibility, we ensure that our environmental practices adhere to the principles of a socially and environmentally responsible mining company. In all our project areas, we implement environmental management programs that support the attainment of the Company’s production targets in compliance with all the requirements, rules and regulations related to mining. This includes the development of mineral resources that minimize, if not totally eliminate, our 6

operations’ impact on the environment. We are also engaged in the rehabilitation of un-minable lands and disturbed areas within our tenements by adopting sustainable development strategies for (1) poverty reduction, through the generation of job opportunities and alternative livelihood sources; (2) food security, through agro-forestry, silvo-pasture and food forestation; (3) bio-diversity conservation, through poly-cropping, endemic species planting and silvicultural treatments; and (4) climate change mitigation and adaptation, through ecological waste management and forest protection. Last year, we invested a total of PhP433 million for these environmental programs. We also employ our environmental, health and safety practices in accordance with international standards. Padcal embarked on an Integrated Management System (IMS) which covers environmental management and safety of our people. In connection with this, we engaged the services of the globallyrecognized organization, TÜV Rheinland, to certify our environmental practices – under Environmental Management System, ISO 14001 – and our health and safety procedures – under Occupational Health and Safety Management, BS OSHAS 18001. PMC will soon be the first mining company in the country to be IMS certified. COLLABORATING WITH COMMUNITIES Every year, PMC is mandated to invest 1.5% of its total operating costs, before interest and taxes, to fund initiatives that benefit local communities under the government’s Social Development Management Program (SDMP). In 2014, the Company sustained the provision of health care, educational assistance and livelihood programs, supported by infrastructure projects, that improve the quality of life of our host communities. For 2014, our initiatives under our SDMP campaigns amounted to PhP74.8 million.


PROMOTING GOOD GOVERNANCE Year in and year out, we constantly work hard to promote sound corporate governance practices and take great pride in earning third-party recognition for our efforts. These serve as proofs of our ability to deliver on our commitments and provide additional motivation for performing better each year.

TRANSPARENCY IN REPORTING To further strengthen our good governance and sustainability commitments, PMC published its first Sustainability Report for 2014 to celebrate not just our achievements over the past years but also to look into the different areas where we, as a Company, can be of greater influence and benefit to society and the environment moving forward. As we look ahead to 2015 and beyond, we are focusing on establishing a sustainability management system to ensure that we continue to deliver on our vision of becoming a world-class and responsible mineral resource Company in the years to come. Indeed, 2014 was a year when we – and the industry in general – was put to the test and we came out stronger. Admittedly, while we still have our work cut out for us, I am justifiably proud of our progress. I would like to take this opportunity to extend my personal gratitude to all our employees, our partners, our communities, and all the stakeholders who continue to support PMC as we work together towards our shared vision.

Eulalio B. Austin, Jr. President and Chief Executive Officer

Message from the President and CEO

In 2014, PMC was recognized by two prestigious award-giving bodies for its good governance practices. These were the “Corporate Governance Company of the Year” award given by the Asia CEO Awards, and a regional award—the “Most Promising Companies on Corporate Governance”—bestowed by the Corporate Governance Asia, the region’s most authoritative journal on corporate governance. The Company was also a finalist in the Corporate Social Responsibility Company of the Year Category in the same Asia CEO Awards.

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Philex Mining 2014 Sustainability Report

OUR APPROACH TO SUSTAINABILITY Building a sustainable business requires PMC to continue producing an acceptable return for shareholders while understanding, managing and mitigating the impact of its mining operations on the environment and societies in which it operates. Our commitment to improving our sustainable development performance is guided and strengthened by legislation, customer requirements, external reporting frameworks, and stakeholder expectations. It is based on: •

Our strategy to make our production efficient with minimum impact on the environment while providing maximum benefit to our employees and host communities.

•

Our commitment to ensure that we continually improve the livelihood of our host and neighboring communities.

Adhering to Good Governance Our Code of Conduct mandates that we do our business with ethical standards and in accordance with all applicable laws, rules and regulations. We strive to act as a responsible corporate citizen and lend our expertise to help engage in constructive public dialogue and informed debate on issues of importance to us as a company, the mining industry, and the communities in which we operate.

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Protecting the Environment We have a responsibility to protect, rehabilitate and enhance the environment in which we operate. We encourage environmental stewardship and apply management measures to achieve this goal. Through our Environmental Protection & Enhancement Program (EPEP), we commit to ensure that environmental impacts are addressed; measures are in place to ensure compliance with corporate environmental policies and obligations; environmental management activities are supported by adequate resources and financial provisions; plans are in place to ensure that the environment is protected for future generations; and that the sustainability of nearby communities is safeguarded.

Environmental Policy Statement PMC, as a socially and environmentally responsible Filipino company striving for excellence in mineral resource development, is committed to the continual improvement of its operations, to minimize adverse environmental impacts, to comply with applicable legislations and other requirements, and to promote environmental awareness and commitment among its workers at all levels.


Our Approach to Sustainability 9

This area is part of the continous rehabilitation program of the company.


Philex Mining 2014 Sustainability Report

Lorem Ipsum dolor PMC employee, winner of the MVP Cup -Marathon during the MVP Olympics, an annual Employee Engagement event.

Ensuring a Safe Workplace

Promoting Employee Wellness

Our goal is to ensure that every employee is in good health and safe at work. We expect all employees and contractors to work in accordance with our safety and occupational health management policies for the benefit of our colleagues, families, communities, and business. Through our health and safety systems, we provide the equipment, training, and resources necessary to enable employees to work safely.

We are committed to develop the full potential of our employees. We respect and value our employees and observe the fundamental tenets of human rights, safety, and non-discrimination in the workplace. We fairly compensate our employees for their contributions, provide them with meaningful performance feedback, and offer professional development and training opportunities. We encourage accountability and employee involvement in issues affecting the workplace to help improve safety and work conditions, as well as our business efficiency. We also recognize that best practices continue to evolve, accordingly; we must learn and evolve as a business as well.

“We believe that effective security controls, standards, policies and procedures contribute to the safety and protection of our employees, assets and reputation and the communities in which we operate in.“ In addition to compliance with all applicable laws and regulation, it is imperative that our security function adheres to our commitments for the protection of human rights and respect for people. Above all, we respect the human rights of all individuals impacted by our operations, and do not tolerate any violations of these rights.

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PMC gives high regard to health and wellness of its employees through regular sponsorship of various team as well as individual sports for the employees. Popular sports include chess, badminton, tennis, volleyball, golf and bowling. Sports provide the employees venues for regular exercise that helps to improve physical health and a chance to build camaraderie among colleagues. There are company wide sports clubs which play an important role for socializing, leading to a better working relationship among employees and management. PMC recognizes the opportunity that the sports activities create in developing social relationships and mental well-being of the employees, thus the presence of support for industry-wide and inter company sports tournaments. (i.e. MVP Cup, PMA-


Women from the community does sewing activities as part of their livelihood.

In line with promoting healthy lifestyle, aside from sports, weekend and after-office recreational activities are encouraged even for families and communities. Activities like fun-runs, group exercises (Zumba) and martial arts gather the participation of families and communities. During the period of this report, there were two (2) fun runs participated by hundreds of employees and residents. PMC provides incentives to employees who actively participate and comply with health (i.e. weight monitoring), environment (i.e. beautification and re-greening programs), and safety (i.e. fire drill competitions) programs.

Empowering Communities PMC considers social, cultural, environmental, governmental and economic factors when evaluating project development opportunities under the Padcal Mines’ Social Development and Management Program (SDMP). PMC is committed to forge partnerships leading to improved quality of life and sustainable resource management in the communities where they operate. Stakeholder engagement is vital in ensuring smooth business operations and promoting local development. Effective engagement leads to collaborative arrangements between the company and the communities from planning, implementation and monitoring of the SDMP. Consultations with and

active participation of the residents, government, local non-governmental organizations, other interest groups as well as establishment of linkages with agencies, both local and international, contribute in facilitating long-term and beneficial development. Successful engagements with our communities lead to building partnerships that contribute to local capacity enhancement. In 2010, PMC established the Philex Group Foundation, Inc. (PGFI), which acts as the Corporate Social Responsibility arm and, together with PMC’s Community Relations Department aim to become, contributors to nation building by empowering local farmers and members of the mining community and the host and neighboring communities. PMC gives priority employment to qualified indigenous peoples and local community members. PMC respects the members of the communities and engages them through open and consultative dialogues. These serve as venues for discussions of issues and concerns relevant to the Company and its activities. It is also an opportunity for PMC to share appropriate and accurate information and provide timely response to the communities’ concerns. More importantly these venues also provide the company the time to listen and gather information for community development. Recognizing that there are organizations that rely on donations and sponsorships to implement programs, the company also offer support through membership with these organizations i.e. Philippine Business for Social Progress, Philippine Business for the Environment, Corporate Network for Disaster Response.

Our Approach to Sustainability

Philex Dual Meet). PMC also constructed ample sports and recreational facilities for this purpose.

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Philex Mining 2014 Sustainability Report

SUSTAINABILITY PERFORMANCE 2014 Environmental

PhP 433.1 million Investment on AEPEP

PhP 2.7 million Spent on dust control initiatives

PhP 327.3 million Spent on waste water management activities

PhP 7.5 million

Spent on reforestation activities

218,987 Seedlings planted

308.417 MW

Solid waste disposed

Total electricity consumption

23%

647,581 cu.m.

Water recovered in mineral processing

Total water consumption

12

5,568 cu.m.


Economic

PhP 10.582 billion

Revenue generated

Social

Total number of regular employees

2,224 Employees participated in safety trainings

90% Employees covered under CBA

88%

Employees from local region

PhP 74.8 million Social Investment fund

224 students

Our Approach to Sustainability

2,575

Benefitted from scholarship program from host and neighboring communities

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Philex Mining 2014 Sustainability Report

ABOUT PHILEX MINING Philex Mining Corporation (PMC) and its subsidiaries are organized into two main business groupings: the metals business, which are directly under PMC, Philex Gold Philippines, Inc. (PGPI), and Silangan Mindanao Mining Co., Inc. (SMMCI); and the energy and hydrocarbon business under Philex Petroleum Corporation (PPC). PMC was incorporated in the Philippines in 1955 and has been listed on the Philippine Stock Exchange since November 23, 1956. Its office is located in Pasig City, Metro Manila, Philippines. Metals Business • • • •

Philex Mining Corporation (PMC), operator of the Padcal Mine; Philex Gold Philippines, Inc. (PGPI), a wholly owned subsidiary through a holding company incorporated in the Philippines, operator of the Bulawan Mine; Silangan Mindanao Exploration Co., Inc. (SMECI), a wholly owned subsidiary incorporated in the Philippines, owner of the Silangan Copper Gold Project; Silangan Mindanao Mining Co., Inc. (SMMCI), a subsidiary of SMECI.

Energy and Hydrocarbon Business •

Philex Petroleum Corporation (PPC), a 64.79%- owned subsidiary of PMC organized in December 2007 and listed on the Philippine Stock Exchange.

Corporate Structure

PHILEX MINING CORPORATION 64.79% PHILEX PETROLEUM CORPORATION (Philippines)

PITKIN PETROLEUM PLC. (United Kingdom)

100% PHILEX GOLD PHILIPPINES, INC. (Philippines)

100%

51.24%

SILANGAN MINDANAO MINING CO., INC. (Philippines)

FEC RESOURCES, INC. (Canada) 36.44%

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FORUM ENERGY PLC. (United Kingdom)

24.05%

100% SILANGAN MINDANAO EXPLORATION CO., INC. (Philippines)

1.08%

LASCOGON MINING CORPORATION (Philippines)

98.92%


About Philex Mining 15

A sample of copper ore where PMC’s principal products are coming from.


Philex Mining 2014 Sustainability Report

VISION & MISSION

VISION

MISSION

Our vision is to be a highly respected, world class natural-resource company committed to deliver excellent value to its investors, employees, and other stakeholders.

We are a responsible mining corporation that discovers and processes minerals and energy resources for the use of society.

Philex Padcal Mine Administration Office.

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CORE VALUES

Work Excellence •

Respect for Individuals • • •

Practices gender and cultural sensitivity Shows authentic concern to promote individual welfare Examines own biases and behavior to avoid judgmental reactions

• •

Produces work results in a timely, accurate, and safe manner Constantly learns, innovates, amends, and improves services and processes Consistently delivers superior quality of work

Corporate Responsibility

• • •

Listens to and considers ideas or points of view of others Extends help while respecting the roles of others in doing the job Acknowledges team effort in success and collective responsibility over failure

• • •

Advocates Philex Mining as a responsible mining company Manifests core values in both professional and personal circumstances Upholds the Philex Mining Code of Business Conduct and Ethics

Social and Environmental Responsibility Integrity • • •

Practices honesty and sincerity in word and in deed Honors commitments Speaks up when situations warrant commendation or correction

• •

About Philex Mining

Teamwork

Shows genuine concern towards its host and neighboring communities to improve quality of life Supports and practices the environment, safety, and health guidelines of PMC Actively participates in the company's community development and environmental programs

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Philex Mining 2014 Sustainability Report

OUR MINING OPERATIONS PMC derives its production from operating its Padcal Mine in Benguet Province. Two mine sites, located in Negros Occidental and Zamboanga del Norte have been under Care and Maintenance, since 2002 and 2000 respectively. PMC through its subsidiary SMMCI, is now doing the Definitive Feasibility Study (DFS) for its Copper-Gold Project in Surigao del Norte, which is expected to be finished by 2015.

Padcal Mine

Located in Benguet province in northern Philippines and has been operating since 1958. It is the first underground block cave mine operation in Asia and is one of the oldest operating mines in the country. The mine consists of 12 mineral holdings, with a total area of 13,228 hectares. It is PMC’s biggest source of revenue.

The Bulawan Mine

Located in Sipalay City, Negros Occidental, a province in the western Visayas region. A gold mine that operated under the PGPI. Bulawan Mine has since been kept under care and maintenance since 2002.

The Sibutad Mine

In 1997, PGPI operated the Sibutad Mine in Zamboanga del Norte and has been under Care and Maintenance since 2000. As part of its environmental and social responsibility, it embarked into a successful effort of improving the environmental condition from a previous grassland into a forest and altered the landscape from being bare into lush and verdant green mountains.

Silangan Copper-Gold Project

SMECI, through SMMCI, owns the Silangan Copper Gold Project covering the Boyongan and Bayugo deposits in Surigao del Norte. The Boyongan copper-gold porphyry deposit in Surigao del Norte was discovered in August 2000. SMMCI completed the pre-feasibility study of Boyongan deposit in July 2014. The ongoing DFS is expected to be concluded in 2015. 18


BULAWAN MINE *Vista Allegre, Cayas, Bulog *Vista Allegre Gold Zone (Nagtalay, Skid-9, Skid-7, Laka Quartz, Laburan, South Ridge, Libertad

Las Cogon Kalayaan SILANGAN COPPERGOLD PROJECT

About Philex Mining

Clifton PADCAL MINE Southwest

SIBUTAD MINE

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Philex Mining 2014 Sustainability Report

METALS BUSINESS

Philex Mining Corporation The Padcal Mine, is situated in Sitio Padcal, Barangay Camp 3, Municipality of Tuba, Province of Benguet, Cordillera Administrative Region (CAR) in northern Philippines. The Mill Concentrator Plant, the Tailings Storage Facility Nos. 1, 2 and 3 and other facilities straddle the Municipalities of Tuba and Itogon, Province of Benguet. The property of PMC is located in Tuba and Itogon, Benguet with a total area of 13,228 hectares. Mineral Production Sharing Agreements (MPSA) cover the property’s 7,967 hectares while Exploration Permit Applications (EXPA) cover 5,261 hectares. The developed area for operation is only 580 hectares, or 5% of the total 13,228 hectares. This affected area includes the mine, mill, tailings facilities, residential, and other industrial areas. Tenements

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Area (ha.)

Date Approved

Date of Expiration

124

-

-

MPSA-156-2000-CAR 4,928 April 10, 2000 April 10, 2025 .............................................................. MPSA-157-2000-CAR 2,958 April 10, 2000 April 10, 2025 .............................................................. MPSA-276-2000-CAR 81 January 19, 2009 January 19, 2034 .............................................................. EXPA-075-CAR 486 September 24, 1992 .............................................................. EXPA-078-CAR 4,651 September 2, 1997 .............................................................. EXPA-098-CAR TOTAL

13,228


In August 2011, the declared life of Padcal Mine was extended to year 2020 from 2017 based on the declared proved reserves, which included tonnage from the 745 Meter Level (ML).

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YEARS OF OPERATION IN STO. TOMAS BENGUET

81 ha.

AREA FOR MINING PRODUCTION

13,228 ha. PMC AREA OF COVERAGE

About Philex Mining

A miner and a heavy equipment at work in the underground tunnel.

5,261 ha. AREA FOR EXPLORATION

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Philex Mining 2014 Sustainability Report

Remaining facilities at PGPI-Bulawan Mine.

Philex Gold Philippines, Inc. (PGPI) In the late 1980s, PMC carried out gold exploration, which resulted in the acquisition and staking of a number of primarily gold claim holdings throughout the Philippines. These gold assets were transferred to PGPI in July 1996, including the Bulawan Mine in Negros Occidental in the Visayas, which operated commercially from January 1996 until 2002, when it was placed under Care and Maintenance due to unfavorable metal prices. The Bulawan Mine currently has remaining resources of 23.9 million tons, including that of the Vista Alegre area. Exploration projects in the Vista Alegre area include the Nagtalay project and the Laburan/Skid 9 project, which are undergoing resource modeling and estimation to ascertain additional resources.

A panoramic view of the dam at TSF2 showing the fish cage of the aqua-culture project

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SMMCI’s Community Relations Department, LGU of Brgy. San Isidro, Tubod and its community during the turn-over ceremony of the newly constructed two-storey barangay hall.

Silangan Mindanao Exploration Co., Inc. (SMECI)

The Boyongan copper-gold porphyry deposit in Surigao del Norte was discovered in August 2000 under SMMCI, a joint venture with Anglo American Exploration Plc. On February 6, 2009, PMC acquired Anglo’s 50% interest in the Silangan Project under SMMCI for US$55 million.

About Philex Mining

SMECI, through subsidiary Silangan Mindanao Mining Co., Inc. (SMMCI), owns the Silangan Copper-Gold Project covering the Boyongan and Bayugo deposits in Surigao del Norte province in Mindanao.

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The exploration tunnel of the Silangan Copper-Gold Project


Philex Mining 2014 Sustainability Report

ENERGY AND HYDROCARBON BUSINESS Philex Petroleum Corporation (PPC) a 64.79%- owned subsidiary of PMC, was organized in December 2007 and listed on the Philippine Stock Exchange. It has interests in various petroleum service contracts in the Philippines and Peru, held directly and through its subsidiaries, Pitkin Petroleum Plc (Pitkin), and Forum Energy Plc (FEP). PPC’s direct interests in the Philippine petroleum service contracts, all located in the North West (NW) Palawan Basin, include: • 50% operating interest in SC 75 NW Palawan • an overriding royalty interest of 1.65% in SC 6 Cadlao; and • 1.67% in SC 6A Octon. PPC also holds a 53.07% controlling interest in Pitkin, an oil and gas exploration company registered in the United Kingdom with operations in Peru and in the Philippines. The Pitkin assets in Peru include: • 25% participating interest in Peru Block Z-38 lcated in offshore Tumbes Basin • 100% operating interest in Peru Block XXVIII located in Sechura Basin. Pitkin’s Philippine assets include: • 29.14% participating interest in SC 14 Block C-2 West Linapacan; • 70% operating interest in SC 74 NW Palawan; and • 35% participating interest in SC 53 Mindoro. PPC also holds a 60.49% controlling interest in FEP, with 36.44% held directly and 24.05% held indirectly through a 51.24%-owned subsidiary, FE C Resources, Inc., a Canadian company. FEP, a UK-incorporated oil and gas company with focus on the Philippines, has: • 70% operating interest in SC 72 Recto Bank, which covers the Sampaguita natural gas discovery in offshore west Palawan; • 100% operating interest in SC 40 North Cebu; and • minority interests in the SC 6A and SC 14 subblocks in offshore NW Palawan, including a 2.28% interest in the producing Galoc field.

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65%

OWNED SUBSIDIARY OF PMC IN DEC. 2007

2%

INTEREST IN SC 6 CADLAO

2%

INTEREST IN SC 6A OCTON

53%

CONTROLLING INTEREST IN PITKIN

60%

CONTROLLING INTEREST IN FEP


EXPLORATION & DEVELOPMENT Exploration and development (the equivalent of research and development for a mining company) are currently undertaken by PMC’s in-house team, assisted by consultants and other service providers such as engineering and/or drilling contractors. Expenses related to exploration and development for 2012, 2013, and 2014 amounted to PhP1.896 billion, PhP3.778 billion and PhP3.477 billion, respectively. Exploration activities within Padcal and its vicinity in 2014 covered the Deep Gold Zone prospect below 600ML of the Sto. Tomas II ore body and Bumolo. The Deep Gold Zone prospect lies within MPSA 276-2009-CAR, while Bumolo is within MPSA 1562000-CAR and MPSA-157-2000-CAR.

Bumolo A promising outcrop of quartz stock works with copper minerals plus magnetite was previously drilled from underground with unexceptional results. However, surface access was acquired from owners late in 2014 and drilling will commence in 2015.

Exploration Expenses

PhP 1.896

billion

PhP 3.778

billion

2012

2013

PhP 3.477

billion

2014

Follow-up drilling below 600ML of the Deep Gold Zone prospect discovered in 2011 was completed in 2014. Four holes, with total depth of 2,241.70 meters, were drilled up to May 2014. The results point to a very irregular gold-rich mineralization, which is related to a major fault zone.

About Philex Mining

Sto. Tomas II – Deep Gold Zone

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Philex Mining 2014 Sustainability Report

MINING PROCESS Mining operations employ underground method using the Block Cave System. Block caving is a method that is suitable to moderately fractured ore bodies, which when undercut, will collapse by its own weight thereby creating fragments of rocks that are subsequently extracted.

26

1

2

The pillars supporting the block at the undercut level are blasted or undercut which causes the ore column to cave and thus crush into fragments due to its own weight and the weight of the overlying materials.

Broken rocks as a result of the caving process are then extracted at the drawpoints which is then hauled by 25 tonner Low-Profile Trucks (LPT) and subsequently dumped at strategically located ore passes, which are vertical openings used to direct the flow of ore by gravity.

6

7

8

The ore is withdrawn and conveyed to a set of grizzly bars with a 5.08cm opening. The undersize material drops to the Tertiary Surge Bin. The oversize drops to a standard cone crushers for proper sizing and then conveyed to Tertiary Surge Bin.

From these bins, the ore is withdrawn and fed to ball mills for grinding. These ball mills are in close circuit with a cluster of hydrocyclones. The material flows by gravity through four (4) parallel trash screens before being fed to the flotation circuit.

Copper, gold, silver and sulfide minerals are separated from the waste or gangue portion of the ore by a Rougher Flotation circuit. The Rougher Concentrate produced is upgraded in a three-stage cleaning circuit. Tailings from the roughers are passed through parallel Sluice Launders to recover mineral values, such as gold, in the tails before it is fed to the tailings thickeners.


4

The ore is subsequently dumped at Long-Transfer Raise (LTR) that lead to the Crushing Level at +773ML. Ore fragments smaller than 15cm in diameter by-pass the jaw crushers; the bigger ones report to the crushers for size-reduction.

9 The final tails coming out of the rougher flotation is piped to thickeners for water reclamation. The thickener overflow is recirculated back to the plant as process water while the underflow flows to the tailings pond for impoundment. Additional fresh water is also pumped from Sal-angan creek.

Ore of suitable size then drops to the Haulage Level at +745ML where they are carried by five (5) Feeder Belt Conveyors (FBCs). The FBCs feed two (2) collecting bins that, in turn, discharge onto a 2.3-km long Cable Hauled Conveyor (CHC).

10 Slime from the 745-ML drain tunnel is treated by this plant. The underflow of the thickener is the feed of the flotation, recovers copper and gold utilizing Wemco flotation machines. This plant will operate on a case to case basis depending on the availability of Mine Drain Tunnel Discharge.

5 Finally, ore carried by the CHC is brought out into the surface and discharges onto the dump bin in the milling plant at the +1015ML. Coarse ore is delivered from the mine to the primary crushing plant via the CHC system at an average rate of at least 25,736 tons per day.

11

About Philex Mining

3

Mill Gold Refinery Process basically involves the recovery of the residual gold from the Mill Plant through Gemini Table or Gravity Concentration process. Recovered gold dusts are then smelted to produce gold ore bullion of high metal quality. 27


Philex Mining 2014 Sustainability Report

RISKS TO THE BUSINESS Risk is inherent in the business of mining. These risks are usually present in exploration, development and production, and other activities that involved the drilling and removal of material. Any of these activities could result in damage to, or destruction of, mines and other producing facilities, damage to life or property, environmental damage, increased costs and possible legal liability. Whenever there are risks, there are additional costs that are incurred by the Company to operate the mine. Operating a mine site in the Philippines, a country that experiences major natural catastrophes because of its geographic location, being situated in the “Pacific Ring of Fire” and typhoon belt, poses greater challenge for mining companies such as PMC. All these catastrophic events may materially disrupt and adversely affect the Company’s business operations. As such, PMC is taking every possible measure to identify and manage these risks, providing its workers the tools to control or mitigate them wherever possible, and have a safer work environment. We are also committed to ensuring the safety of people in the communities where we operate. Among these safety measures is the way the company designed the Padcal Tailings Storage Facilitates to enhance its management. Emergency procedures are set up in case of a tailings storage facility overtopping. PMC also maintains a warning system to alert the workers in cases of landslides, major earthquakes, and potential cave-ins. The underground blasting and drilling activities are carefully scheduled to ensure the safety of the employees and host communities.

28

The safety concern also extends to the visitors, all of whom are subjected to underground safety standards such as wearing the proper gear and carrying the proper equipment, when they visit the mine site. PMC also provides periodic training on underground mining safety and survival. A highly experienced team of underground rescue staff that has assisted in the country’s past landslides and major earthquakes is also on hand to provide ready assistance.

PRICE RISKS Apart from the risks from environmental and natural events, the Company is also subject to price risks that could affect its revenue. As it sells copper concentrates to the world market, these are dictated by international prices which are beyond the Company’s control. As such, PMC cannot avoid adverse impacts on its business resulting from a prolonged decline of the sales price of these commodities. To mitigate these price risks, the Company constantly evaluates the advantages and disadvantages of hedging a portion of its annual production.


Padcal tailings storage facility during foggy days.

As a business that extracts natural resources, PMC is subject to potential environmental concerns and to Philippine laws and regulations governing the environmental impact of its operations. To manage our environmental and natural events risks, we put a significant amount of effort and invest our resources into environmental protection and rehabilitation. To demonstrate our commitment to responsible and sustainable mineral resource development, PMC has adopted an environmental policy statement that is consistent with the ISO 14001 Certification on Environmental Management Systems. PMC is also covered by a pollution liability insurance against claims on environmental pollution.

While it substantially complies with applicable environmental regulations, PMC cannot assure that environmental incidents will not happen that could cause adverse impacts to the operations. As an example to such, PMC voluntarily suspended its Padcal Mine operations on August 1, 2012 upon discovering that nontoxic water and sediment had been discharged from its tailings pond after heavy rainfall that was brought about by successive typhoons. In addition to these external events, natural disasters, such as earthquakes, floods and landslides, could also severely hamper the operations of the Company. Such could pose potential damage to PMC’s facilities and surrounding infrastructure, block access to its mining assets, cause injuries to its personnel, and hamper its operations for an unforeseen period of time. These could materially and adversely affect its business, financial condition, results of operations and prospects.

About Philex Mining

ENVIRONMENTAL AND NATURAL EVENTS RISKS

29


Philex Mining 2014 Sustainability Report

SUPPLY CHAIN Our supply chain begins with the inputs we use to mine and produce our products, which are then transported, stored, processed, and used. Managing the supply chain requires an understanding of a broad scope of issues, as well as processes and impacts. Given the wide reach of these activities, supply chain management is a shared responsibility across our company. In the process of producing copper concentrates for shipment to smelters, PMC employs and utilizes labor, materials and supplies, power, and other services.

Labor is generally provided by the Company’s regular employees, and augmented by labor contractors for certain mining activities.

The maintenance of the Padcal Mine’s cable-haul conveyor system to carry the ore underground to the mill is contracted with Prince ACE Corporation, a Philippine company that works closely with Conveyor Design Engineering (Australia) and JV Industries (Australia). The Company has its own drilling expertise and equipment to conduct its own drilling.

30


Machinery and equipment, direct and indirect materials including Maintenance, Repair and Operating Supplies (MRO), are handled by the Company’s Supply Chain Organization. To ensure operational availability of these equipment and prevent supply risk, medium-to long-term contracts are maintained with major mining equipment manufacturers and Original Equipment Manufacturers (OEMs), respectively. Indirect materials, such as explosives, lime, steel, timber, fuel and lubricants, are mostly sourced locally and are either abundant in supply or under Vendor Managed Inventories (VMIs). Imported items, such as grinding balls and mill chemicals that have a high degree of quality and performance assurance requirement, are supplied by preferred vendors through long-term blanket purchase orders.

About Philex Mining

Energy is currently sourced from TeaM (Philippines) Energy Corporation under a two-year contract for the supply of electricity ending on December 31, 2015. In addition, the Padcal Mine has the capacity to selfgenerate standby electricity principally for mine underground use in case of supply interruptions, using generating sets run by bunker fuel. The National Grid Corporation of the Philippines provides the transmission lines for the delivery of power to the mine. Diesel fuel and gasoline are used mostly for the load, haul, dump equipment and the low-profile trucks mostly acquired from Sandvik Tamrock, Atlas Copco, and Volvo utilized underground, and for the mine’s transportation fleet.

31


Philex Mining 2014 Sustainability Report

AWARDS AND RECOGNITION PMC and its subsidiaries have consistently garnered local recognition for various environmental initiatives. In 2014, the Silangan Copper Gold Project won second runnerup in the Best Mining Forest Contest (Exploration Category) and the 2014 Presidential Award, the highest award from the Presidential Mineral Industry Environmental Award for Mineral Exploration.

Mr. Yulo Perez receives the PMIEA 2014 award for Silangan Mindanao Mining Company Inc., together with Mr. Pangilinan and Mr. Austin

PMC has been a consistent winner in the Presidential Mineral Industry Environmental Awards (PMIEA). In 2014, it won the 2014 Presidential

The Silangan Copper-Gold Project won second runner-up in the Exploration Category of the “Best in Mining Forest� award during the Annual National Mine Safety and Environment Conference in the Philippines. PMC has won the prestigious award for eight years in a row. 32


Award, the highest award from the prestigious award-giving body. PMC bagged the “Gold Award” given by The Asset’s Corporate Awards. The award, given in Hong Kong on December 11, 2014, recognized the quality of the Company’s financial performance, corporate governance, social responsibility, environmental responsibility, and investor relations.

Mr. Yu receives the award for PMC.

PMC clinched the 2014 “Security Bank Corporate Governance Company of the Year” award given by the Asia CEO Awards, which noted the Company’s excellence in management through its system of rules, practices, and processes.

Mr. Pangilinan and some of PMC’s top management during the awarding of Finance Asia.

PMC was named as one of the Philippines’ top companies, garnering the fifth and ninth places in the Best Corporate Social Responsibility and Best Corporate Governance categories, respectively, in the latest poll done by the Hong Kong-based FinanceAsia magazine. Conducted among 265 investors and analysts across Asia from February to March 2012, the poll underscores Philex Mining’s commitment to responsible mining, which focuses on operational excellence, environmental stewardship, and social responsibility.

PMC was recognized by Corporate Governance Asia, the region’s most authoritative journal on corporate governance, as one of the “Most Promising Companies on Corporate Governance” in Asia in 2014. The award was based on quality of management, business model, growth prospects, financial performance, and relative position in the industry,

About Philex Mining

Mr. Austin and Mr. Yu at The Asset awards

PMC was a Silver Awardee in the 2011 and 2010 Institute of Corporate Directors (ICD) ASEAN Corporate Governance Scorecard (ACGS) for publicly listed companies in the Philippines. The company was also included in the Top 20 awardees in the 2007 ICD ACGS. (ASEAN stands for the Association of Southeast Asian Nations.) 33


Philex Mining 2014 Sustainability Report

GOVERNANCE & ETHICAL CONDUCT As a publicly-listed Philippine corporation, PMC conforms to the corporate governance rules, requirements, and regulations of the Philippine Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE). The Company is committed to the highest standards of corporate governance and continues to benchmark its procedures against recognized international best practices. To ensure constant improvement, PMC monitors developments in corporate governance to elevate the Company’s corporate governance structures, processes, and for individuals, work exellence, corporate as well as social and environment responsibility. PMC has adopted a Corporate Governance (CG) Manual and complies with the Code of Corporate Governance of the SEC and Corporate Governance Guidelines and listing rules of the PSE, and endeavors to raise its corporate governance practices in line with global best practices.

THE BOARD The Board has two (2) independent non-executive directors in accordance with the Philippine laws and regulations, specifically Section 38 of the Securities Regulations Code of the Philippines. An independent director is allowed to serve as such for five (5) consecutive years, and shall be ineligible for election as such in the same company unless he/she has undergone a “cooling-off” period of two (2) years. After serving as such for 9 years, the independent director shall be perpetually barred from being elected as such in the same company, in accordance with the SEC Memorandum Circular No. 9, Series of 2011, effective Jan. 2, 2012.

34

BOARD DUTIES & RESPONSIBILITIES The types of decisions that require the approval of the Board of Directors pertain to the Company’s business that extend beyond the management of extra ordinary corporate affairs, but not above the limits of its authority as provided by law. Each Director has a three-fold duty of obedience, diligence and loyalty to the corporation he serves. The Director shall: a. Act within the scope of power and authority of the Company and the Board as prescribed in the Articles of Incorporation, By-Laws, and under existing laws, rules and regulations; b. Exercise their best care, skill, and judgment, and observe utmost good faith in the conduct and management of the business and affairs of the Company; and c. Act in the best interest of the Company and for the common benefit of the Company’s shareholders and all stakeholders. Faithful compliance with the principles of good corporate governance is the paramount responsibility of, and shall start with, the Board. Furthermore, the Board is required to exercise corporate powers, conduct the business and control the properties of the Company in compliance with the corporate governance principles instituted in the Company’s Corporate Governance Manual. The Board shall also be responsible for fostering the long-term success of the Company and securing its sustained competitiveness.


THE BOARD MEMBERS

Juan B. Santos

Oscar J. Hilado

Marilyn A. VictorioAquino

Robert C. Nicholson

Wilfredo A. Paras

Eulalio B. Austin, Jr.

Bienvenido E. Laguesma

Eliza Bettina R. Antonino

Barbara Anne C. Migallos

Governance & Ethical Conduct

Manuel V. Pangilinan

Edward A. Tortorici

35


Philex Mining 2014 Sustainability Report

Board

Name

No. of Meetings Held during the year

No. of Meetings Attended 8

9

8

9 Chairman Manuel V. Pangilinan ................................................................. 9 8 Member Juan B. Santos ................................................................. 9 7 Member Eliza Bettina R. Antonino ................................................................. 9 9 Member Marilyn A. Victorio-Aquino ................................................................. 9 8 Member Eulalio B. Austin, Jr. ................................................................. 9 8 Member Bienvenido E. Laguesma ................................................................. 9 9 Member Robert C. Nicholson ................................................................. 9 4 Member Edward A. Tortorici ................................................................. 9 9 Member Barbara Anne C. Migallos ................................................................. 9 8 Independent Oscar J. Hilado ................................................................. Independent

Wilfredo A. Paras

ATTENDANCE

The Board has a pre-determined schedule of meetings at the beginning of the calendar year. Discussions during meetings are open and independent views are given due consideration. As necessary, the Board likewise holds meetings through electronic medium or telecommunications.

BOARD APPOINTMENTS AND RE-ELECTION The Directors are elected by the stockholders at the annual stockholders’ meeting. Each director shall serve a one-year term and until their successors are elected and qualified. Any vacancy in the Board before the end of their terms shall be filled in accordance with applicable law and rules. As needed, the Board uses professional search firms to fill in the Board. The Board considers it appropriate that its structure comprises ethical and honest experts who are knowledgeable, experienced and skillful in diverse fields relevant to the conduct of the business. Members are selected with no discrimination for gender, race, religion, age, professional skill, or other qualifications.

36

CODE OF BUSINESS CONDUCT AND ETHICS The Company is dedicated to doing business in accordance with the highest standards of ethics. The Company, its directors, officers, and employees shall comply with the Code and shall endeavor to promote a culture of good corporate governance by observing and maintaining its core business principles of integrity, teamwork, work excellence, respect for individuals, corporate responsibility, and social and environmental responsibility in their relationships among themselves and with the company’s customers, suppliers, competitors, business partners, other stakeholders, government regulators, and the general public.


THE BOARD COMMITTEES The Committees will monitor the activities and undertake a regular review of matters under their respective areas. 1. The Nomination Committee The Nomination Committee screen the nominees to determine whether they have all the qualification and none of the disqualifications for election to the Company’s Board of Directors and prepared the final list of candidates for election at the Annual Stockholders meeting. The primary purposes of the Committee as stated in the Charter are to: a. review and evaluate the qualifications of the persons nominated to the Board as well as those nominated for election to other positions requiring appointment by the Board. b. assist the Board in making an assessment of the Board’s effectiveness in the process of replacing or appointing new members of the Board and Officers, which may include a consideration of the mix of executive and non-executive directors. No. of Meetings Held

No. of Meetings Attended

Manuel V. Pangilinan

2

2

Member Non-Executive Director

Juan B. Santos

2

2

Member Independent Director

Wilfredo A. Paras

2

Member Non-Executive Director

Robert C. Nicholson

2

Member Non-Executive Director

Marilyn A. Victorio- Aquino

Office

Name

Chairman Non-ExecutiveDirector

.............................................................................. 2 .............................................................................. 2 .............................................................................. 2

2

Governance & Ethical Conduct

..............................................................................

37


Philex Mining 2014 Sustainability Report

2. Compensation Committee The Compensation Committee reviewed the per diem and profit sharing policies of the members of the Board of Directors. It also reviewed and approved the compensation packages of the Company’s senior officers as well as the total employee remuneration package and incentive plan for 2014. In the event that financial warrant the payment of 1.5% director’s compensation, such as directors’ compensation shall be exclusive of the annual per diem paid to directors. Thus, the amount earned shall be deducted from the annual directors’ compensation.

Office

Name

No. of Meetings Held

Chairman Non-Executive Director

No. of Meetings Attended

Juan B. Santos 2 2 .............................................................................. Member Non-Executive Director

Robert C. Nicholson 2 2 .............................................................................. Member Non-Executive Director

Edward A. Tortorici

2

Member Independent Director

Oscar J. Hilado

2

2

Member Independent Director

Wilfredo A. Paras

2

2

1 ..............................................................................

3. Audit Committee The Audit Committee reviewed the 2013 Audited Financial Statement (AFS), discussed with the external auditor the various issues relating thereto and recommended for Board approval the financial reports and financial disclosures. It likewise reviewed and approved the external auditor’s work and all audit fees related thereto, the Internal Audit Plan, the Quarterly Financial Statements, the Internal Audit Quarterly Accomplishment Report and various Internal Audit findings. In addition, the Committee also adopted the Revised Audit Committee Charter and performed a self-assessment of the effectiveness and performance of Internal Audit as per SEC memo Circular No.4 Series 2012. No. of Meetings No. of Meetings Office Name Held Attended Chairman Independent Director

Oscar J. Hilado

5

3

Member Non-Executive Director

Robert C. Nicholson

5

5

Member Non-Executive Director

Eliza Bettina R. Antonino

5

4

Member Non-Executive Director

Marilyn A. Victorio-Aquino

5

5

Member Independent Director

Wilfredo A. Paras

5

5

.................................................................................. .................................................................................. .................................................................................. 38

..................................................................................


4. Corporate Governance Committee The CG Committee reviewed and approved the following: Related Party Transaction (RPT) Policy, Amended Policy on Dealings in Company shares of stock, other corporate governance best practices based on the ASEAN Corporate Governance Scorecard, PSE Compliance Surveys and SEC Memorandum Circulars, and the Directors’ and Officers’ Training Policy. It also facilitated the creation and spin-off of the Risk Committee from the Audit Committee and reviewed and endorsed to the Board for approval the PhP 7.2 billion convertible notes issuance of SMECI to fund the Silangan project DFS, as discussed earlier. Office Name No. of Meetings Held Chairman Non-Executive Director

Marilyn A. Victorio- Aquino

3

Member Independent Director

Oscar J. Hilado

3

Member Independent Director

Wilfredo A. Paras

3

......................................................................... ......................................................................... 5. Finance Committee

Office

Name

No. of Meetings Held

No. of Meetings Attended

Chairman Non-Executive Director

Robert C. Nicholson

1

1

Eulalio B. Austin, Jr.

1

1

Member Independent Director

Oscar J. Hilado

1

1

Member Non-Executive Director

Juan B. Santos

1

1

Member Non-Executive Director

Bienvenido E. Laguesma

1

1

........................................................................... Member Executive Director

...........................................................................

Governance & Ethical Conduct

The Finance Committee has the primary oversight responsibility of the Company’s corporate finance activities, including the management of its equity, financial risks, and the financing of major acquisitions.

........................................................................... ...........................................................................

39


Philex Mining 2014 Sustainability Report

6. Executive Committee Sec. 35 of the Corporation Code states that the Executive Committee may act, by majority vote of all its members, on such specific matters within the competence of the board, as may be delegated to it in the by-laws or on a majority vote of the board, except with respect to the: a. approval of any action for which shareholders’ approval is also required; b. filing of vacancies in the board; c. amendment or repeal of by-laws or the adoption of new by-laws; d. amendment or repeal of any resolution of the board which by its express terms is not so amendable or repealable; and e. distribution of cash dividends to the shareholders.

Office

Name

Chairman Non-Executive Director

Manuel V. Pangilinan

Member Executive Director

Eulalio B. Austin, Jr.

Member Non-Executive Director

Robert C. Nicholson

Member Non-Executive Director

Juan B. Santos

Member Non-Executive Director

Edward A. Tortorici

......................................... ......................................... ......................................... .........................................

REMUNERATION MATTERS Remuneration Policy As matter of policy, the remuneration of directors and other officers must be competitive and at a level that will attract and retain talent and motivate them to continue their efforts in contributing to the long-term success of Philex Mining Corp. The compensation is in accordance with the Corporation Code and the Company By-Laws, or as approved by the shareholders.

40


OUR STAKEHOLDERS

Stakeholders Local Communities

Mode of engagement

Frequency

Concern / Expectations

Response

Social Development and Management Program (SDMP)/Corporate Social Responsibility (CSR) Program, Immersions, Community Meetings and Consultations, Focused Group Discussions

As Necessary

Socio – Economic development of the communities

Implementation of SDMP/CSR Program by PMC in partnership with the communities

Collaborative partnerships

Social acceptability of the project

...................................................................................... Employees

Employee Volunteerism programs Work life balance programs

As planned

Focus on balance

work

life

CSR / Environmental voluntary activities Company sports tournament

...................................................................................... Annual / Quarterly Reports Multipartite meetings

Analysis/ Investors Briefing

As Necessary

Disclosures Compliance regulations

Quarterly

Updates Performance

to

on

Timely & accurate release of reports Strict compliance to regulatory requirements Quarterly Briefing; One-on-One meetings and conference

...................................................................................... Shareholders / Investors

Annual Stockholders’ meeting General Board Meeting

Annual

Website Investor Relation Team

As Necessary

Higher Financial Returns Minimum Risks related to business

Stable Dividends

Product specification Timely delivery of products

Meet expectations

Labor code practice by contractors Availability of supplies

Clear & transparent supplier management process

Regular disclosure of financial performance

...................................................................................... Customers Suppliers /

client

Governance & Ethical Conduct

LGU / Regulators

...................................................................................... Contractors

Accreditation Process Contractual Agreements

Once a year

41


Philex Mining 2014 Sustainability Report

ECONOMIC RESPONSIBILITY By maximizing earnings and reducing operating costs, PMC is able to create value for its shareholders while also contributing to the economic and social development of its host communities. Only by creating value and sharing it among its shareholders and host communities can PMC sustain its business over the long term. In 2014, PMC’s total operating revenues amounted to PhP10.898 billion, 4% higher than PhP10.462 billion in 2013 (15% higher versus PhP9.137 billion in 2012). PMC produced higher volumes of metal following the temporary and subsequent permanent lifting of the suspension order of the Padcal Mine operations in March 2013 and August 2014, respectively. The Company operated for a full year in 2014 (359 operating days) as against only ten months (299 operating days) of production in 2013 (and 214 operating days in 2012).

11.000

10.898

10.462 10.000

9.137 9.000

8.000

2012

2013

2014

Revenue in Billion Pesos

Contribution of Gold and Copper produced from Padcal Mine to sales revenue (in Thousands Pesos) 214 Days of Operation

44%

42

56%

299 Days of Operation

45%

55%

359 Days of Operation

44%

56%

2012

2013

2014

Gold

3,865,704

4,579,757

4,615,092

Copper

4,946,041

5,581,587

5,889,107

Total

8,811,745

10,161,344

10,504,199


Economic Responsibility PMC Board of Director members during the 2014 Stockholders Meeting.

43


Philex Mining 2014 Sustainability Report

Gold production rose to 105,008 ounces in 2014 from 99,802 ounces over a ten month operation in 2013 and 71,297 ounces over a seven-month operation in 2012. The 5% increase in the 2014 gold production was mainly due to higher tons milled, despite the lower average head grade of 0.438 grams per ton from 0.503 grams per ton in 2013. Over the threeyear period, the 2012 production showed the highest average head grade of 0.507 grams per ton due to the presence of higher-grade performing mining blocks.

The higher tonnage resulted in improved copper production in 2014 against 2013 despite a lower head grade of 0.212%.

Likewise, copper production climbed 9% to 35,391,154 pounds in 2014 from 32,495,443 pounds in 2013 (46% higher versus 22,306,172 ounces in 2012).

Total tons milled from the Company’s Padcal Mine for the year ended December 31, 2014 were 23% higher than 2013 (40% more than 2012) mainly due to longer operating days in 2014.

120,000

Similarly, higher tonnage resulted in higher copper production in 2013 versus 2012 in addition to the impact of better head grade of 0.236%. The lower copper grade in 2014 was expected and programmed under the mine’s development plan. Copper head grades in 2013 and 2012 were higher at 0.236% and 0.224%, respectively.

40,000,000

105,008 99,802

100,000

30,000,000

32,495,443

25,000,000 20,000,000

22,306,172

15,000,000

80,000

10,000,000 5,000,000

71,297 60,000

35,391,154

35,000,000

2012

2013

2014

Total Gold produced in ounces

0

2012

2013

2014

Total Copper produced in pounds

Total tons milled from the Company’s Padcal Mine for the year ended December 31, 2014 were 23% higher than 2013 (40% more than 2012) mainly due to longer operating days in 2014. 44


OUR MARKET PMC’s Padcal Mine produces copper concentrates, containing copper, gold and silver. Total ore extracted and processed from the start of operation to 2014 amounted to 382.048 million tonnes, producing 2.179 billion pounds of copper, 5.886 million ounces of gold, and 6.373 million ounces of silver. Pan Pacific processes the concentrates through its smelter plants and produces products, such as refined copper, precious metals and sulfuric acid. It is one of the largest buyers of copper concentrates in the world, with its smelting plants having an annual capacity of 1.5 million tons. The remaining 40% of the copper concentrates that PMC produces are made available to the world market through the London Metal Exchange, and is, therefore, subjected to internationally accepted pricing standards.

Economic Responsibility

PMC supplies 60% (approximately 45,000 tons) of its annual production of copper concentrates from its Padcal Mine to Pan Pacific Copper Co., Ltd. (Pan Pacific), an integrated Japanese copper producer jointly established by JX Nippon Mining & Metals Corporation and Mitsui Mining & Smelting Co., Ltd. in 2000.

45 Copper concentrates, the mine products, are transported from Padcal Mine to Poro Point, La Union before shipment to Japan


Philex Mining 2014 Sustainability Report

ENVIRONMENTAL RESPONSIBILITY As a socially and environmentally responsible company that strives for excellence in mineral resource development, Philex is committed to act with responsibility and transparency in developing mining projects. Our focus is to proactively minimize the adverse environmental impacts of our operations, comply with relevant legislations and other requirements, and promote environmental awareness and committment among our workers.

ENVIRONMENTAL IMPACT AND CONTROL Aspect

Environmental Impact

Land Resources Damage of ground and vegetation on areas directly affected by the mining operation

• • •

Reforestation & Forest Protection Surface Subsidence Control and Area Backfilling Progressive Rehabilitation of affected slopes and other vicinities of Mine Operation

Water Resources

Prevention of water resources pollution

• • • • • •

Water Quality Monitoring Mill Housekeeping Spillage Control Used Oil Depository Area Wastewater Management Disposal of Used Oil and Lubricants to DENR accredited waste treaters

Air Quality

Change in atmospheric air quality

• • • •

Air Quality Monitoring Installation of blowers and ventilation system inside the mine Installation of Dust Collector Installation of Dynaflow fume hood

• • •

Restriction of Hours Activity Construction of Sound Barriers Provision of earplugs and earmuffs

Noise

46

Control Strategies

Heavy noise due to mining operations and mobile equipment


Environmental Responsibility

430 ha. 440 ha. AREA REFORESTED

AREA REHABILITATED

PMC employee tends to seedlings at the Philex Forest Nursery.

47


Philex Mining 2014 Sustainability Report

BIODEGRADABLE REAGENTS PMC produces copper concentrates, which contain copper, gold and silver and use reagents to chemically separate minerals and recover gold, silver and copper.

At work in the Assay Laboratory.

Reagent

CONSUMPTION (in tons)

DOSAGE (in g/ton*)

Collector SIBX (used for grinding and flotation) (Sodium Isobutyl Xanthate) Cytec A3473 (used for flotation) (Sodium hydroxide, Inorganic sulfides, Dithiophosphates, Dialkyl dithiocarbamate)

275.38

29.06

4.4

0.46

................................................................................. Frother NasFroth (used for flotation) (Polypropylene glycol monomethyl ether)

82.64

8.72

................................................................................. pH Modifier

Lime (used for flotation)

10,634.66

1,122.08

................................................................................. *Total tonnes milled for the year = 9,477,632.6 tonnes

48


ENERGY OPTIMIZATION PMC uses energy in mine and milling processes and in chemical and manufacturing operations. Energy from outside sources accounted for 100% of the total energy consumed. The BPP is only stand-by for maintenance power during National Grid Corporation of the Philippines (NGCP) outage.

DIRECT ENERGY

The Padcal Mine sources electricity from the Sual Coal-Fired Power Plant through the transmission lines of the NGCP.

Environmental Responsibility

Padcal Mine also relies on PMC-owned Banget Power Plant, which has two diesel engine-driver electric generating sets with 6MW total derated capacity. These genset units are on standby in case there are scheduled or unscheduled power shutdowns in the national grid and used to power equipment during maintenance operations and supplying basic necessities such as water, lighting and ventilation blowers.

INDIRECT ENERGY (NON RENEWABLE SOURCE)

Electrical Substation Post 69 located at the Mill Division.

ENERGY INTENSITY

............

2014 1,011,070 GJ ...................................... 2013 795,537 GJ

28.56 29.54 KWH / TON

KWH / TON

(2013)

(2014)

49


Philex Mining 2014 Sustainability Report

Electricity Consumption (kWh) Mine Operations

Mill Concentrator

Tailings Pond

Residential

Other Loads

Total

January 5,947,912.82 16,526,683.12 160,779.10 867,968.59 262,985.10 23,766,328.73 .............................................................................................................. February 6,076,522.50 14,985,605.20 159,735.49 812,539.51 198,004.29 22,232,406.99 .............................................................................................................. March 6,344,813.90 17,141,826.86 159,974.84 846,094.32 243,697.05 24,736,406.97 .............................................................................................................. April 5,841,105.39 15,906,945.05 263,948.59 749,925.85 274,700.13 23,036,625.01 .............................................................................................................. May 6,906,670.56 17,887,067.10 167,251.72 780,277.81 290,642.34 26,031,909.53 .............................................................................................................. June 6,474,236.98 16,723,116.42 269,004.38 779,430.96 269,456.71 24,515,245.45 .............................................................................................................. July 6,448,795.77 16,673,491.61 231,663.56 913,063.98 369,777.32 24,636,792.24 .............................................................................................................. August 6,128,732.51 14,920,793.77 160,903.84 883,443.25 366,931.47 22,460,804.84 .............................................................................................................. September 5,427,827.00 14,528,174.63 137,063.04 831,353.94 311,966.91 21,236,385.52 .............................................................................................................. October 5,873,058.77 16,026,744.38 153,134.06 856,921.92 367,865.55 23,277,724.68 .............................................................................................................. November 5,659,996.65 13,876,835.11 1,085,194.00 996,696.94 351,116.04 21,969,838.74 .............................................................................................................. December Total

5,896,474.62

15,792,388.12

162,807.50

835,902.63

264,940.48

22,952,513.35

73,026,147.47

190,989,671.37

3,111,460.12

10,153,619.70

3,572,083.39

280,852,982.05

* Total tons milled for 2014: 9,506,195 tons ** Total KwH consumed for 2014: 280,852,982.05 kWh

When the national grid is unable to meet power demand, NGCP requires distribution utilities and electric cooperatives to curb their energy consumption to augment the power supply. In 2014, PMC adopted a voluntary Power Load Shedding Program for 2.5

hours in 92 days (from August 18, 2014 to December 31, 2014), which enabled the company to save a total of 177,933.52 kWh equivalent to PhP1,129,877.85. This program is still in effect from March 1, 2015May 31, 2015 from 1pm-4pm.

Month

No. of Days Implemented

kWh saved*

Total kWh saved**

Total Amount Saved (6.35/kWh)

August

9

1,934.06

17,406.54

110,531.53

Total

92

9670.3

177,933.52

1,129,877.85

................................................................................. 42,549.32 270,188.18 September 22 1,934.06 ................................................................................. 44,483.38 282,469.46 October 23 1,934.06 ................................................................................. 38,681.20 245,625.62 November 20 1,934.06 ................................................................................. 34,813.08 221,063.06 December 18 1,934.06 ................................................................................. 50

* Average of 2 hrs 30 mins of PLS implementation ** (No. of Days x kWh saved)


WATER CONSERVATION

PMC uses water at every stage of operation — from mineral processing and metal recovery, to controlling dust and meeting the needs of workers on site. Padcal Mine operations withdraw raw water from three sources: the Shimada Tunnel water reservoir, Smith Tunnel water reservoir, and Banawel Pumping Station, which are located in Banget and Padcal areas. The system supplies an average of 1,700 cubic meters of water per day. About 85% of the water delivered is distributed to more than 14,000 residents of Padcal Mine, while 10% is for industrial use, and 5% to paying private establishments. While production at the mine grew significantly in 2014, overall water consumption increased only slightly, due to significant improvements in the amount of recycled water. The Company plans to continue to improve water efficiency through recycling, reuse and treatment.

In a simulation, PMC was able to recover 23% of the water used in mineral processing in 2014. This is expected to translate to PhP77,170,982 in additional revenues a year from the recovery of more mineral density. Furthermore, the tailings cyclone would also enable the mill to generate 25,953 tons per day (TPD) of water, equivalent to an additional 16,415 TPD of water from the current setup. Savings could also come from the expected power savings of 11,983 kWh per day, resulting in additional savings of PhP60,393 a day. The Company is currently considering this as an initiative in water management.

Shimada Tunnel Water Reservoir

Water management is a primary concern in Padcal Mine during dry months, which typically last from March to May. One of the ways to address this is the installation of a tailing cyclone.

Smith Tunnel Water Reservoir

Environmental Responsibility

Environmental Quality and Monitoring Enhancement (EQME) personnel during their regular water quality monitoring.

Banawel Pumping Station

1,700 cubic meters of water

Padcal Mine

85% 14,000+ residents

10% Industrial Use

5% Paying private establishments

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Philex Mining 2014 Sustainability Report

BIODIVERSITY AND REFORESTATION

PMC has reforested a total area of 2,565 hectares.

Mining activities can have negative effects on the environment. Preventing and mitigating these impacts is our commitment to operate in a responsible and sustainable manner. As early as the exploration phase, PMC prepares and implements an Environmental Work Program to address the potential environmental impacts and ensure progressive rehabilitation of affected lands. On the other hand, during the operation phase, the environmental management program of the company is embodied in the Environmental Management Program in the Environmental Impact Assessment and the Environmental Protection and Enhancement Program of the project.

52

In 2014, PMC spent PhP7.45 million on various reforestation and forest protection initiatives to maintain the ecological balance within the concession area of Padcal Mine. In support of the National Greening Program of the government, the company planted a total of 218,987 seedlings, covering 440 hectares. A total of 10,469 seedlings have also been donated.

The Company implements a reforestation program through a three-year contract scheme to ensure 90100% survival rate of the plants. The Company’s reforestation activities follow a fourstep procedure described below: 1. Seedling production or procurement from the Company’s nursery; 2. Plantation establishment, which includes site preparation, spot holing/digging, seedlings transport/hauling and planting; 3. Plantation maintenance, which includes ring weeding and replanting; and 4. Protection, including fire line establishment and patrol works. The areas reforested in 2014 are the following: 1. New Plantation Area: NPC Watershed Area, Catcatbal, Ampucao, Itogon (100 hectares): These are aside from the existing or previous plantation areas to be replanted for enhancement and to be maintained by the contractors and the Company’s forestry crew.


Slope stabilization/Wattling: Sidweng, Ampucao, Itogon: 5,000 sq. meters

3.

Protection and Enhancement Planting for the second-year plantation areas: • Agroforestry Project at the TSF3 SLUP = 75 hectares • Reforestation Project at Tapaya Area =175 hectares

4.

Protection and enhancement Planting for the third-year plantations (80 hectares) and other previous plantations / forest areas.

Seedling propagation and maintenance is usually done during the last quarter of the year and the first semester of the succeeding year. The Company’s Forestry Section raised/produced 200,000 seedlings (potted and bare-root assorted seedlings) for the year 2014 in the forest nursery. The seedlings raised or produced were the following:

• Benguet pine • Gmelina • Caliandra • Ipil-ipil • Antsoan dilao • Guava • Coffee • Other fruit-bearing trees purchased from outside nurseries to augment the requirements for the agroforestry projects.

Environmental Responsibility

2.

Fifteen men were hired as casual workers to do seedlings propagation and maintenance at the start of the last quarter (2013) up to the end of second quarter of the following year (2014). In hiring casuals, preference is given to the residents from the outlying communities/sitios to gain their support and cooperation with the Company in the protection of the forest and the environment. Engineering structures are also constructed during the dry season to check the deterioration of active gullies, landslides, road banks, and the like. These installations prevent sediments from being carried into the river channel.

53


Philex Mining 2014 Sustainability Report

SLOPE STABILIZATION

Successful slope stabilization measures.

54

PMC is undertaking measures against soil erosion, as the mine site is located in steep slopes and higher elevation. Measures on slope stabilization involve the planting of vegetation on the eroding slopes which usually occurs during the rainy season.

2.

Construction of benches will be undertaken as a stabilization measure along the slopes surrounding the subsidence area. The excavated materials from the benches will serve as backfill materials to maintain the slope gradient of the area and the benches serve as catch areas for loose debris coming down the slopes, especially during the rainy season. This would include, but not limited to, the following:

3. Wide benches ( at least 12 meters wide ) will be provided in two locations/elevations of the Albian Slope to serve as catchment for materials that may be eroded by run-off during rains, thus protecting the main drainage canal below;

1.

Excavations and/or continue at the Albian direction. This is stabilization measure materials for backfill;

benching works will Slope on a down slope a progressive slope while providing in-situ

The drainage canal along the Lower Albian Slope shall be deepened to maintain the effective and easy drainage of run-off coming from the pit floor. Excavated materials will serve as in-situ backfill;

4. Benching works at the Pokis slopes, (particularly at the Pokis A, Pokis B1, Pokis B2) will be continued.


MONITORING AIR QUALITY

Padcal Mine operations also use significant quantities of diesel fuel to run electric generator sets, which is essential for our mineral processing operations. Generator sets are used only as maintenance power during power shutdowns of NGCP or the Sual Power. The crushing plant is the area where dust is usually produced at high level. Dust emission is mitigated by a dust suppression system where air and water is introduced to suppress dusts. Emissions from vehicle and from other equipment during mineral production and transportation are minimized through regular preventive maintenance.

Dust Control Programs • • • • • •

Fabrication of conveyor encapsulation of Conveyors 9 and 14, and Tertiary Vibrating Screen (TVS) cover awarded to Dustrol, Inc. Spent PhP2.194 million for screen cover and conveyor sealing Generated stock codes on July 22, 2014 Conducted conveyor hood encapsulation Conducted tertiary vibrating screen sealing Allocated budget of PhP505,000

PMC has allocated a budget of PhP2.7 million for dust control intiatives Regular gas measurement and monitoring is also conducted in various working areas based on the maximum allowable concentration of gases of the Occupational Safety and Health Standard regulations. An ambient quality air monitoring test conducted inside (industrial area) and outside (community) the mill plant from November 3-17, 2014 showed that particulate matters released ranged from 14 μg/ m3 (Good) to 352 μg/m3 (Acutely Unhealthy) at the industrial area while a range of 17 μg/m3 (Good) to 72 μg/m3 (Fair) was monitored outside the mill plant. All workers are strictly required to wear the prescribed PPEs (respirators) at the different working areas. Operations of the ventilation system at the underground operation is always maintained to ensure good air quality in various working areas.

Environmental Responsibility

Consumption of electrical power is a significant contributor to the greenhouse gas (GHG) emissions of the mining operations. As the operations are linked to the national grid for electricity supply, each has a different GHG emission factor and can significantly affect the level of emissions. The Philippine grid has a lower proportion of renewable energy sources in its supply and a resultant higher GHG emission factor.

PMC has allocated a budget of PhP2.7 million for dust control and PhP 505,000.00 for dust collection activities. It plans to replace the three units of filter bags dust collectors and the dust blower purchased in 1998 and 2010, respectively, to suck ambient dust and liberate clean air. Frequent clogging of the nozzles and duct system of these equipment prompted the Company to outsource the dust control, collection and disposal work to third-party suppliers.

55


Philex Mining 2014 Sustainability Report

EFFLUENT MANAGEMENT

The newly constructed spillway for the Tailing Storage Facility 3.

Water management at Padcal Mine operations involves treatment of water, in accordance with regulatory requirements, and with due consideration to the aquatic environment and users downstream of our operations. The operations have water quality monitoring systems in place to verify that any offsite discharges do not adversely affect the environment. The Padcal Mine operations discharged a total of 14,572,313 cu.m. of water in 2014, higher than the previous year’s 12,891,595 cu.m. of water. Of the total, water discharged from mill tailings accounted for 37%, from water tributaries (from springs and creeks) at 31%, and from the drainage at 32%. The Tailings Storage Facility has a catch basin structure that receives the mill tailings from the offset dike with the water discharged from the 745 ML drainage tunnel and the tributaries. Water discharged undergo a decantation process before effluents flow through the spillway and down to the Maligaboy and Balog Creeks and finally to the Agno River in Benguet province.

56

PMC regularly monitors discharge quality by conducting a weekly water sampling on the upstream and downstream parts of the spillway. The water samples collected would show if the quality of the effluents meet the Water Quality Standards. In 2014, results of water sampling

met the Water Quality Criteria (WQC) and effluent standards set by the Department of Environment and Natural Resources for Class “A” freshwater.

Water discharged:

37%

from mill tailings

31%

from water tributaries

32%

Underground drainage


In addition to self monitoring, a Multipartite Monitoring Team (MMT) regularly conducts an independent water sampling of ambient water and the effluents. Based on the laboratory test results, these all passed the DENR standards for physical parameter on TSS as well as heavy metals. WATER ANALYSIS FOR TSS & PRESENCE OF HEAVY METALS PARAMETERS

ABSTRACTED WATER **

EFFLUENT FROM DRAIN TUNNEL B**

BALOG CREEK**

BALOG CREEK

DOWNSTREAM

AGNO RIVER

CONVERGENCE OF BALOG CREEK AND

DENR STANDARDS *** DAO 34 DAO 35

AGNO RIVER

50 50 10 10 TSS 9 10 10 4 ..................................................................................... 0.01 0.02 <0.006 <0.006 Cadmium <0.006 <0.006 <0.006 <0.006 ..................................................................................... 0.05 0.05 <0.2 <0.2 Chromium* <0.2 <0.2 <0.2 <0.2 ..................................................................................... 1 None <0.2 <0.2 Copper <0.2 <0.2 <0.2 <0.2 ..................................................................................... 0.05 0.1 <0.4 <0.4 Lead <0.4 <0.4 <0.4 <0.4 ..................................................................................... Mercury

<0.0001

<0.0001

* Hexavalent Chromium ** Parameters for these sampling stations are checked against DAO-35

0.002

<0.0001

<0.0001

<0.0001

<0.0001

0.005

*** DEPARTMENT ADMINISTRATIVE ORDER (DAO)

PMC, through a third-party organization called the Sentro sa Pagsusuri, Pagsasanay at Pangangasiwang PangAgham at Teknolohiya Corp. (SentroTek Laboratory) based in Mandaluyong City, Metro Manila; conducted fish tissue analysis as related to the remediation and rehabilitation of Padcalâ&#x20AC;&#x2122;s Tailings Storage Facility No. 3. Presence of Heavy Metals on Fish Samples from Balog Fish Pond, Agno River upstream, Ampucao. Fish Species Eel Goby

Carp

0.04

0.15

0.04

0.05

0.5

0.05

0.05

0.3

0.3

Lead (Pb) (FAO)

0.5

0.29

0.03

<0.05

0.2

Arsenic (As) (FDA)

0.76-0.86

0.01

0.02

0.01

0.02

Heavy Metals

Standards (mg/kg)

Tilapia

Mercury (Hg) (FAO, EU)

0.5

Cadmium (Cd) (FAO, EU)

........................................................................... ...........................................................................

Environmental Responsibility

HEAVY METALS

(mg/L)

........................................................................... FAO- Fisheries Administrative Order EU- European Union FDA- Food and Drug Administration

Results of water and fish tissue analyses were found within prescribed threshold limits. PMC spent a total of PhP327.3 million in 2014 on waste water resource management initiatives, which included the rehabilitation and maintenance of its three tailings storage facilities, construction of engineering structures to protect the Albian-Bumolo Creek, purchase of additional equipment, and water sampling and laboratory analyses.

PhP327.3 million spent on waste resource management initiatives

57


Philex Mining 2014 Sustainability Report

WASTE MANAGEMENT

Color-coded drums to collect segregated waste

The Sanitary Landfill Facility (SLF) at TSF2 is being maintained in accordance with the Environmental Compliance Certificate (ECC) issued by the EMBCAR. Philex Mining Community is generating below 15MT per day of domestic waste thus the facility is under Category 1. Regular hauling of underground garbage and scrap metal, timbers, spare parts, etc. to surface is designated in the depository areas / scrapyard. There is a provision of waste drum on all designated working places in the site. A storage facility for broken glasswares and other solid wastes for proper disposal is also available. All domestic waste/garbage are being brought to the SLF. Nonbiodegradable wastes, which can be recycled, are segregated by the residents/garbage collectors and sold to outside buyers.

58

All used oil and lubricants generated from the various operations are collected and hauled to the Banget sludge pond and oil depository area for proper disposal to DENR accredited buyers. Suspected polychlorinated biphenyl (PCB)contaminated insulating oils generated from â&#x20AC;&#x153;retro-fillingâ&#x20AC;&#x2122; of transformers are contained in sealed drums and stored at the depository area for proper disposal in accordance with the DENR Laws, Rules and Regulations / RA 6969.

In 2014, Padcal Mine generated 5,568 cu.m. of solid waste, which were collected by a private contractor.


ENVIRONMENTAL INITIATIVES PMC invested PhP433.1 million to implement the activities under its 2014 Annual Environmental Protection and Enhancement Program (EPEP). This is primarily due to the non-implementation of the proposed Tailings Storage Facility 4 pending the needed government approval. The project would have required almost PhP500 million to implement.

Land Resources Management Description of Activity

Total Budget (PhP)

Reforestation and Forest Protection

6,650,800.00

....................................... Maintenance and Protection of Bamboo Plantations

78,000.00

....................................... Subsidence Area Operations

94,615,000.00

....................................... Garbage Collection and Hauling of Garbage from Mine Camp to Sanitary Landfill Facility at TSF No.2

2,250,000.00

TOTAL

103,593,800.00

Description of Activity

Total Budget (PhP)

Tailings Storage Facility No. 3

Seedlings in the Philex Forest Nursery.

PhP433.1 million TOTAL 2014 EPEP INVESTMENT

279,739,371.00 ....................................... Tailings Storage Facility No. 2 10,054,192.00 ....................................... Tailings Storage Facility No. 1 8,847,572.00 ....................................... Albian Creek Protection 35,530,000.00 ....................................... Water/Sediment/Fish Tissue Laboratory Analysis

Environmental Responsibility

Water Resources Management

2,554,000.00

....................................... Proposed Tailings Storage Facility No. 4

500,000,000.00

....................................... Bathymetric Survey of National Power Corporation (NPC) at San Roque Dam TOTAL

1,000,000.00

837,725,135.00

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Philex Mining 2014 Sustainability Report

WORKPLACE RESPONSIBILITY PMC, one of the leading mining companies in the Philippines, believes that it has a social responsibility to uplift the quality of life of its workers, make a positive contribution to the communities where it operates, and benefit the broader society.

LABOR PRACTICES AND DECENT WORK PMC recognizes that the success of the company depends on the efforts of skilled, dedicated and hardworking people. This is why PMC strives to foster a culture of inclusivity. The company conducts its business and activities fairly, honestly, and with due regard for the dignity and human rights of our employees, including the rights guaranteed by our labor laws. The company promotes health and safety, nondiscrimination, environmental awareness, and commitment in the workplace, and support programs that promote the development and potential of the employees. PMC encourages transparency, professionalism, and accountability among the employees.

TOTAL WORKFORCE 2,375 (Padcal Mine) 200 (Pasig Corporate Office) BY POSITION 183 Managers and Officers 606 Supervisors 1,786 Rank & File

60

DEMOGRAPHIC PROFILE PMC has a total of 2,575 full-time regular employees (of which 2,375 are from Padcal Mine and 200 from Pasig Head Office). Of the total, 1,919 were in operations while 656 were in support service functions. The workforce is almost equally divided in terms of age, with employees from ages 40 and below comprising 52% and those 41-60 years old making up 48%. In terms of gender distribution, males comprise 90% of the company while females comprise 10%. The hiring policy gives preference to residents from local communities where the company do business. As the Padcal Mine is in Benguet province in northern Philippines, a majority or 88% of PMCâ&#x20AC;&#x2122;s employees come from the Cordillera Administrative Region (CAR) and from Regions 1 and 2.


Workplace Responsibility

2,575

FULL-TIME REGULAR EMPLOYEES

Underground miners wearing full Personal Protective Equipment (PPE).

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Philex Mining 2014 Sustainability Report

The overall average tenure of employees was 15 years, with an average age of 42 years old. Labor turnover for 2014 was at 389, of which 87% were comprised of male employees and 68% between ages 31 to 40 years old. As majority of the employees were local hires, 93% of the separations were from the CAR and Regions 1-2.

BREAKDOWN OF CORPORATE OFFICE

BREAKDOWN OF PADCAL MINE SITE

RANK CLASSIFICATION

RANK CLASSIFICATION

Female

Male

TOTAL

Officer 1 7 8 ........................................ Division Manager 3 4 7 ........................................ Group Manager 1 5 6 ........................................ Department Manager 5 17 22 ........................................ Assistant Manager 16 16 32 ........................................ Supervisory 33 31 64 ........................................ Rank & File

24

37

61

TOTAL

83

117

200

Temporary (Consultant, Contractual, Project)

3

10

13

TOTAL

Rank & File

81

1,644

1,725

TOTAL

176

2,202

2,375

Temporary (Consultant, Contractual, Project)

306

29

335

BREAKDOWN BY DOMICILE REGION

PADCAL

CAR 1,036 ........................................ R1-R2 1,236 ........................................ R3-R5-NCR 194 ........................................ R6-R8 79 ........................................ TOTAL

PMC miners during a briefing before their work.

Male

20 88 108 MANAGERS ........................................ 75 467 542 Supervisory ........................................

R9-R13-ARMM

62

Female

30

2,575


COMPENSATION AND BENEFITS

PMC’s compensation package includes a base salary and comprehensive benefits, which are reviewed regularly. PMC offers a daily wage rate that is well above the minimum wage for regular/ full-time employees in the Cordillera Autonomous Region (CAR). Job levels are determined based on the assessment of the employee’s qualifications and position. Full-time employees are given a host of fringe benefits on top of those mandated by law. The Company also provides service incentive leave and sick leave benefits, as well as personal protective equipment, utilities, and transportation to temporary employees.

COMPARATIVE DAILY WAGE RATE (in Pesos)

In addition, PMC also provides financial security to employees even after their retirement through a retirement benefit plan. The plan defines an amount of retirement benefit that employees will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.

600 535.45

280

280

CAR Philex-PADCAL

CAR Philex-PADCAL

PROBATIONARY

LIST OF BENEFITS PROVIDED TO EMPLOYEES Government-mandated ◊ Social Security System (SSS) ◊ Philhealth ◊ PAG-IBIG Fund ◊ 13th Month Pay ◊ Rest Day ◊ Night Differential Pay ◊ Overtime Pay ◊ Magnacarta for Women ◊ Solo Parent Leave ◊ Paternity / Maternity Leave Fringe ◊ Annual Vacation Leave (AVL) ◊ Sick Leave ◊ Productivity Bonus ◊ PPE ◊ Bereavement Leave ◊ Bereavement Assistance ◊ Annual Medical Check-up ◊ Medical Assistance ◊ Group Life / Accident Insurance ◊ Tuition Fee Subsidy ◊ Housing ◊ Utilities ◊ Cooking Gas ◊ Sala Set ◊ Dining Set ◊ Rice Grant ◊ Free Elementary Education ◊ Subsidized High School Education ◊ Retirement Pay ◊ Severance Benefits ◊ Transportation ◊ Job Enrichment benefits ◊ Seminars & Trainings ◊ Others

Workplace Responsibility

To become a rewarding place to work, PMC offers competitive pay and benefit packages at all levels.

REGULAR

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Philex Mining 2014 Sustainability Report

COLLECTIVE BARGAINING PMC recognizes workers’ rights to exercise freedom of association and collaborative bargaining. This is part of its commitment to human rights, which is guided by the Universal Declaration of Human Rights, the most widely recognized definition of human rights and the responsibilities of national governments; and the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work. During the reporting period, PMC has three labor unions that represent almost 90% of its total employees during collective bargaining agreement (CBA) negotiations: •

The Philex Rank-and-File Employees UnionAssociation of Labor Unions, for rank-and-file employees of Padcal Mine, who comprised nearly 70% of its workforce; The Philex Mining Supervisory Employees Union-Association of Professional Supervisory Office Technical Employees Union, for supervisors; and the The Philex Pasig Employees Union for the Pasig rank-and-file employees.

The five-year collective bargaining agreements (CBAs) signed with the first two unions will expire in 2015 while the agreement with the third union covers a period of five years and will expire in August 2016. In addition to the government-mandated benefits package the company extend to full-time employees, the CBAs address employee needs for ensuring health and safety, among which are: 1. Medical, dental and hospitalization benefits; 2. Group life insurance and accident protection plan; 3. Personal protective equipment; 4. Professional development benefits, job enrichment and safety seminars. There has been no major labor dispute or strike by any of the Company’s unions in the past five years.

PERCENTAGE OF UNION MEMBERSHIP AS OF SEPTEMBER 30,2014 CATEGORY

CONFIDENTIAL %

AGENCY

%

MEMBERS

%

4.42% 104 0.04% 1.580 67.21% SUPERVISORY 104 .............................................................. 1.62% 38 0.60% 474 20.16% RANK & FILE 38 .............................................................. TOTAL

64

142

6.04%

142

0.64%

2,054

87.37%


HEALTH AND SAFETY

In 2014, the Company improved the Padcal Mineâ&#x20AC;&#x2122;s health and safety management system, and the safety and security behavior of the workers through education and training, and implementation of policies and procedures that promote safety. Padcal Mine has tailings storage facilities designed to provide safety zones in cases of cave-ins. PMC also maintains a warning system to alert its workers in cases of landslides, major earthquakes, and potential cave-ins. Underground blasting activities are scheduled and drilling activities are planned carefully to ensure employee safety.

Quarterly safety hour session of all employees.

All PMC staff and visitors are required to attend safety induction and follow rules on underground safety standards that include wearing the appropriate Personal Protective Equipment. PMC provides periodic training on all workplace safety and survival. It has a team of trained and experienced underground rescue staff who had assisted in the past landslides and major earthquakes outside Padcal. Programs for the health, safety and welfare of the employees include a retirement program, medicine allowance, free hospital services, free housing, educational assistance for employeesâ&#x20AC;&#x2122; dependents, rice subsidy, meal allowance, life and accident insurance, recreation, sports and entertainment, gasoline and transportation allowance, and bereavement assistance.

Workplace Responsibility

PMC has a firm commitment to ensuring the safety, health and welfare of its employees, workers, contractors, and visitors to its mine sites. The Company adheres to a site safety policy and health and safety programs to ensure every stakeholderâ&#x20AC;&#x2122;s safety. It espouses loss prevention as a way of life and strives to maintain a sound and safe working place that promotes the prevention of injury, illness, property damage, and loss to process, in compliance with all relevant legislations.

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Philex Mining 2014 Sustainability Report

PMC operates a number of committees and groups whose purpose is to maintain a safety-first culture and monitor safety performance. Employees are represented on safety matters through the Central Safety, Health and Environment Council (CSHEC), which has 117 members. The purpose of the CHSEC is to review and recommend corporate policies and programs and monitor activities as they relate to health, safety, environment and social matters affecting communities where PMC conducts operations.

Council Membership

Ratio per group

Percentage per group

Community Officers

3 of 3

100%

Resident Manager 1 of 1 100% ....................................................................... Assistant Resident Manager 1 of 1 100% ....................................................................... Division Manager 5 of 5 100% ....................................................................... Group Manager 7 of 7 100% ....................................................................... Department Managers 27 of 29 93% ....................................................................... Assist. Dept. Managers 55 of 59 93% ....................................................................... Supervisors 4 of 524 0.76% ....................................................................... Union (Supervisory) 2 of 2 100% ....................................................................... Rank and File 2 of 1721 0.12% ....................................................................... Union (Rank and File) 2 of 2 100% ....................................................................... Contractors 8 of 20 40% ....................................................................... TOTAL

117 of 2374

Owing to the nature of the mining business, PMC recognizes the dangers inherent in the type of work done at the mine site. As such, the Company places a strong emphasis on safe work practices and training. These efforts have resulted in a steady year-on-year decline in overall accidents. In 2014, Padcal Mine recorded one Lost Time Accident-Fatal (LTA-F) from three incidents in 2013. There were two Lost Time Accident-Non Fatal (LTA-NF) recorded in 2014, a significant decline from the ten incidents reported the previous year. PMC is working towards achieving a “zero-harm” record by constantly reviewing safety policies and procedures. Initiatives are also in place to ensure that injuries are avoided and accidents are eliminated in the workplace. Third-party consultants are also engaged to evaluate the Company’s existing safety performance and identify risks areas, as well as possible areas for improvement.

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SAFETY PERFORMANCE

11.41 Incidence rate 0.33 frequency rate 680.90 severity rate Occupational diseases 2 incidents Absenteeism 2.63 incidence rate

Work-related fatalities

Lost days 6,147 incidents No Lost Time Accident 100 incidents

Workplace Responsibility

1 incident

Lost Time Accident - Non-Fatal 2 incidents

Lost Time Accident - Fatal

1 incident Hearing Loss Philex Miner in Personal Protective Equipment (PPE).

1 incident Back pain 1 incident

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Philex Mining 2014 Sustainability Report

Safety Training Programs

Defensive Driving Orientation

102

607

number of employees

341

number of employees

Loss Control Management

113

number of employees

Overhead Crane Maintenance and Operation Seminar

number of employees

Fire Emergency Preparedness for Poro Personnel

29

number of employees

Underground Emergency Management

Supervisor Training Observation Program number of employees

411

140

129

number of employees

First Aid Training

329 68

Accident/Incident Investigation and Analysis Seminar

Fire Safety Seminar for Puroks

number of employees

number of employees

Mine Rescue Seminar

23

number of employees


TRAINING AND DEVELOPMENT PMC is committed to investing in its own people by developing their skills and capabilities through regular performance reviews combined with training and development programs. In 2014, 42% of the employees participated in a formal performance review process. This process includes a review of an employeeâ&#x20AC;&#x2122;s development plan, which may include participation in training and development programs to maximize their talent and potential. Due to the structure and provisions of some industrial agreements, not all employees participate in individual performance reviews.

Across the organization, PMC is focused on providing pathways and development opportunities for its people. In 2014, each employee, on average, received 307 hours of training based on the needs of each department and the employee, as well as that of the platform for the training, whether it can be taken in person or online.

ORIENTATION / HIRING MONTH

NO. OF EMPLOYEES

TRAINING HOURS

SEPTEMBER

145

5,800

TOTAL

964

38,560

JANUARY 64 2,560 .................................................................. FEBRUARY 128 5,120 .................................................................. MARCH 155 6,200 .................................................................. APRIL 159 6,360 .................................................................. MAY 147 5,880 .................................................................. JUNE 74 2,960 .................................................................. JULY 61 2,440 .................................................................. AUGUST 31 1,240 ..................................................................

Workplace Responsibility

POLICIES AND PROCEDURES TRAINING THRU ORIENTATION OF NEWLY HIRED EMPLOYEES

69 Resident Mine Engineer Review Program yields 15 board passers for Philex.


Philex Mining 2014 Sustainability Report

The Company requires all newly hired employees to complete a 40-hour training orientation with emphasis on safety, productivity and policies. Information on the Code of Conduct of Employees and on aspects of human rights are integrated into the course of the training orientation.

964

NEW EMPLOYEES HIRED

Safety orientation for newly hired employees.

70

38,560 TRAINING HOURS


EQUAL OPPORTUNITY & HUMAN RIGHTS

In addition to providing equal opportunity to both men and women in the workforce, there is no discrimination on race, religion, ethnicity, national origin, color, age, sexual orientation, citizenship, veteran status, marital status or disability. Harassment, including sexual, physical and verbal, is prohibited. The Company does not allow forced or compulsory labor and has had no founded incidents of discrimination of any form for the period covered in this report. PMC does not allow child labor, as defined by the International Finance Corporation (IFC) as “work by children that is economically or likely to be hazardous or to interfere with the child’s education, or to be harmful to the child’s health or physical, mental, spiritual, moral, or social development.” PMC will not knowingly employ a person who is

under the legal age of employment, or where that employment would contravene the IFC definition of child labor. PMC also recognizes the rights of indigenous people in the communities where it operates. In 2008, the company has entered into a memorandum of agreement with the duly organized indigenous peoples and indigenous cultural communities living within 98 hectares of Padcal Mine. The agreement signifies the company’s compliance with Republic Act No. 8371, otherwise known as the Indigenous Peoples Rights Act of 1997, and the Mining Act of 1995. The indigenous communities agreed for the continued mining operation of PMC on the 98 hectares of land in exchange for their entitlement to royalties and social assistance benefits that include employment and livelihood opportunities.PMC also committed to rehabilitate the land area through tree planting and slope stabilization, as well as provide technical assistance on infrastructure projects that will benefit the indigenous community. There were no incidents of human rights violations involving indigenous peoples and other stakeholders during the reporting period.

Workplace Responsibility

As a socially responsible organization, PMC values the dignity of every individual and the basic human rights recognized under the Philippine Constitution and the Universal Declaration of Human Rights. In all its endeavors, the company is committed to respect human rights and conduct activities in a manner that is consistent with all applicable laws and in accordance with best practices in mineral exploration and development, environmental stewardship, health and safety, and community relations.

71 Participation of women in the workforce.


Philex Mining 2014 Sustainability Report

SOCIAL RESPONSIBILITY Engaging with the host communities, governments and other key stakeholders is important to ensure that PMCâ&#x20AC;&#x2122;s activities positively enhance the lives of people who live near its operations and society at large. By working together with its host communities, PMC aims to create opportunities that are aligned with their interests and build mutually beneficial relationships. COMMUNITY APPROACHES PMC implements an annual Social Development Management Program (SDMP) that aims to benefit the socio-economic conditions of the residents in the host and neighboring communities of its mine sites. To fulfill its corporate social responsibility under the SDMP, PMC has adopted the following strategies and approaches: 1. Conducts an annual planning and fora with community and other stakeholders to hear and address issues related to the companyâ&#x20AC;&#x2122;s operations and initiatives. A sense of ownership is created when the community members participate in the planning workshop in their respective areas. This also allows the company to gather information that would help improve the business, as well as the conditions in the communities. 2. Establishes linkages and network with concerned local government units and national government agencies for necessary technologies, resources and services. 3. Implements capacity building programs that enable the local community to participate in governance and be active partners in the development of their areas. 4. Monitors and evaluates impacts of our community projects.

72

The government mandates all mining companies to implement a SDMP during mine operation and a Community Development Program (CDP) during mine exploration phase. Complementary to this are Information, Education and Communication (IEC) programs that are vital to engagement as these promote effective communication and transparency. In addition to these, we also implement a program on Development of Mining Technology and Geosciences (DMTG), in our Padcal Mine. PMCâ&#x20AC;&#x2122;s pillar social programs are in the areas of Health, Education, Livelihood and Public Infrastructure Support or HELP. In 2014, PMC invested PhP74.8 million, including the PhP10.4 million carryover fund from the 2013 SDMP budget. Several factors that contributed to the delayed implementation of the projects were issues on boundary dispute of proposed project sites and late submission of required documents such as land title or tax declaration, and certificates of registration. Almost all of these were already resolved by 2014 and carry-over of 2014 budget shall be included in the 2015 ASDMP.


Social Responsibility

PhP74.8 million TOTAL SOCIAL INVESTMENT FUND 73 Students of Philex Elementary School.


Philex Mining 2014 Sustainability Report

COMMUNITY INVESTMENTS

PMC Employees and community members enjoying the benefits from the Sto. Nino Hospital.

COMMITMENT TO HEALTH CARE As a socially responsible mining company, PMC commits to implement programs that address the health care needs of residents of Barangays Camp 3 and Ampucao, its host communities, and those in neighboring areas Barangays Camp 1, Ansagan and Dalupirip. On health, extension of medical services have been continuously provided to the host communities with quality healthcare, which otherwise is difficult to access in the area. A highlight of PMCâ&#x20AC;&#x2122;s Health accomplishments last year is providing basic hospital and medical services to 6,320 patients from the host communities in the Company-owned Sto. NiĂąo Hospital. PMC operates a primary 28bed capacity hospital manned by five (5) doctors, a dentist, nurses and other medical personnel. Average annual budget to help serve the medical needs in a remote area in the mountains of Benguet is PhP 28 million.

74

In addition, PMC also extends other Health Programs such as: Philhealth Insurance coverage to 183 partner indigent residents, medical assistance to 39 indigent patients with special medical cases and support to rural health units in providing health centers with medical equipment.

Philex Sto. Nino Hospital has 28-bed capacity and offers basic hospital and medical services


PMC offers capability building activities to barangay health workers through trainings and seminars to enhance their knowledge and skills needed to deliver quality health services in their respective communities.

All these SDMP initiatives are geared towards building a legacy of being a responsible mining company that promotes sustainable communities.

School-based health screening among pupils was implemented in partnership with the Department of Education and Municipal Health Office, which benefitted three participating elementary schools. The health screening included dental care, blood sugar test, hemoglobin count test, urine test, and blood pressure check. Attending physicians discussed the medical results with the teachers and parents for proper action. PMC implemented sanitation projects such as provision of access to potable water, construction of comfort rooms with septic tanks, and provision of toilet bowls to ensure cleanliness, sanitation and proper hygiene thereby promoting illness-free areas. The Company also improved barangay health centers in areas where these are much needed.

Social Responsibility

Participants of an Emergency Responders Training from Barangay Ampucao with Itogon Mayor Victor Palangan, Municipal and Provincial Health Practitioners

Inaguration of health center at Camp 3.

75


Philex Mining 2014 Sustainability Report

Saint Louis High School - Philex in Itogon, Benguet.

COMMITMENT TO QUALITY EDUCATION PMC continues to promote good quality education through its support to various educational initiatives that benefit the communities hosting Padcal Mine.

Aside from the private elementary and high school, PMC is also actively supporting teachers and the improvement of other school buildings and facilities in its host and neighboring communities. Annual average expenditures for other educational support is PhP5 million.

On education, PMC subsidizes the Philex Mine Elementary School and St. Louis High SchoolPadcal Mine, with a pool of 80 teachers. Tuition for the elementary education is 100% free. The elementary school has already produced some 14,000 graduates. The Company subsidize 80% of tuition fee for high school with a student having to contribute only a minimal amount. St. Louis High School-Padcal Mine has already produced 8,700 high school graduates. For school year 2014-2015, PMC extended financial subsidies to all the 790 students enrolled in the St. Louis High SchoolPhilex and the 1,413 pupils of the Philex Elementary Schools. The students receive financial subsidies for books and uniforms. PMC also implements a Technical Livelihood Education (TLE). The average annual cost to run both the elementary and high school facilities is PhP30 million. 76

Cadets of Philex Mining Academy.


Social Responsibility

Infrastructure support under PMC’s education program includes construction of school buildings or classrooms, and repair or improvement of other school buildings and facilities. Going beyond compliance, PMC fulfills its mandate of assisting in the development of science and mining technology by heavily investing on future industry leaders through its Philex Mining Academy (PMA). PMA was created to tap the best graduates in mining engineering, metallurgy, and geology. Recruits called “cadets” are placed on a two-year, on-the-job training in preparation for full-time employment with PMC for another three years, at the least. Emphasizing further its partiality towards education, PMC granted fifteen scholarships for graduate studies, including law and medicine, for its host and neighboring communities in its Padcal Mine through its Pusong Philex Post Graduate Scholarship. PMC may now boast of supporting pre-school to graduate education, showing further that more than extracting mineral from the bowels of the earth, it is as much concerned as with extracting and harnessing the potential of its greatest asset, its people.

Turn-over ceremony for the constructed school library in Camp 3.

77


Philex Mining 2014 Sustainability Report

Exhibit of loom weaving products.

COMMITMENT TO ECONOMIC EMPOWERMENT PMC’s livelihood program is anchored on building partnerships, developing responsibility and taking stakeholder accountability to help build self-reliant communities. PMC believes that the success for economic self-reliance rests heavily on the active and meaningful participation of our communities from project identification to implementation and assessment. PMC has provided resources and technical services in support of local enterprises to improve agricultural production, which is the community’s economic-base. Projects include coffee production, organic farming technology transfer, mushroom growing, livestock raising, meat processing and loom weaving. Strengthening of cooperatives and people’s organizations through skills training and mentoring, and market linkage also helps in delivering success of the project. PMC is looking at continuing and building on these projects moving forward so that the goal of establishing self-reliant communities will be realized. Meat processing at Community Based Technology Center.

78


Turn-over ceremony of the constructed 7.5km road in Camp 3m Tuba.

In addition to health and educational facilities, PMC partners with its host communities through projects that help in the development of the countryside and in the delivery of social services. Construction of public facilities like potable water systems, bridges, drainage canals, construction of multi-purpose centers, repair and improvement of community offices, churches to meet their spiritual needs , provision of access through construction of farm to market roads, graveling and maintenance of existing access, among other projects, have helped in developing PMCâ&#x20AC;&#x2122;s communities. PMC supports the religious sector within the Padcal Mine through the construction of a church within the mine camp and through various initiatives such as donating materials for the reconstruction of churches, sponsorships of annual feasts, holding fun-run activities for a cause, and sponsoring sacerdotal anniversary celebrations.

Sto. Nino Chapel inside the Padcal camp.

Social Responsibility

PUBLIC INFRASTRUCTURE DEVELOPMENT AND OTHER PROGRAMS

79


Philex Mining 2014 Sustainability Report

OUR INVESTMENT IN COMMUNITIES In 2014, PMC implemented Health Care, Education and Livelihood Programs supported by Public Infrastructure projects. These have helped in developing PMCâ&#x20AC;&#x2122;s communities and contributed to the improvement of the quality of life of the residents.

These initiatives provide a great number of economic and social benefits to the local communities in which we operate. These include:

HEALTH

EDUCATION

Providing basic health services and contributing to the overall improvement of health conditions through free hospitalization, medical missions, emergency response, health profiling and education, improvement of health facilities, among other projects;

Helping improve the quality of education through scholarship assistance and teaching and learning enhancement programs, improvement of educational facilities;

- - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - -

LIVELIHOOD Developing and enhancing enterprises and businesses to augment their household incomes such as skills training, the provision of seed capital for aquaculture, goat raising, mushroom production, loom weaving, and other projects; and

PUBLIC INFRASTRUCTURE Providing infrastructure upgrades to the community in the form of improvements to or construction of roads, bridges, canal, water systems and concrete retaining walls.

Our Investment in Communities (in Pesos) PhP8,281,290.16 80

14%

PhP22,386,400.57 37%

PhP8,235,186.38 14%

PhP21,138,663.01 35%

In the larger community, we help create a sustainable local economy through small business development.


PPAs

Project Title/Description

Impact/Beneficiaries

Hospitalization

Provision of basic health services to the residents within the host and neighbouring communities

The Philex Sto Nino hospital is provided free consultation that included laboratory test, x-ray and medication to 6,320 residents from the host and neighbouring communities

Socialized Health Care

Provision of Philhealth insurance to the host and neighbouring communities

183 indigenous families received the Philhealth insurance from the company, this project provides health assistance especially if the services needed by a patient can not be catered by Philex Sto Nino Hospital

Financial Assistance

Provision of financial assistance to the indigenous families within the host and neighbouring communities

39 indigenous patients with no Philhealth insurance received financial assistance for medical treatment

Support to Barangay Health Centers

Provision of Personal Protective Equipment (PPE) to the Barangay Health Workers (BHWs); medical equipment, supplies and capitalization for the Botika ng Barangay and seed capital for iodized salt retailing station, to the host and neighbouring communities

43 BHWs received the PPE for their protection while on duty; 200 residents from SALBA benefit from the medical equipment and supplies provided to the Barangay Health Center; A Botika Ng Barangay in Ampucao was established to have access to over the counter medicines

Emergency Response Team

Conduct training on Emergency Response and Preparedness and provision of equipment to the host and neighboring communities

Conducted training on emergency response and preparedness. Participated by midwives, BHWs and tanods in barangay Dalupirip and Ampucao

Assistance to Rural Health Unitâ&#x20AC;&#x2122;s (RHU) Programs

Provision of goods for the Supplemental Feeding Program and conduct of Training on Herbal Medicine

Conducted training on herbal medicine in barangays Camp 3 and Ampucao to increase awareness of community residents on the use of herbal medicine, especially in the absence of commercial medicines. Provided goods for Supplemental Feeding Program in Camp 3 Elementary School

Sanitation Program

Construction of communal toilets and septic tanks in the host sitios and provision of toilet bowls to some residents

Constructed 3 communal toilets for 100 residents in Sitio Kurba, Kaipilan and Sta Fe of barangay Ampucao; constructed septic tanks for 20 residents in Upper Banget; gave 45 units of toilet bowl to Camp3 and Sta Fe, Ampucao residents

Support to Health Center

Improvement of Torre, Camp 3

health center in

More patients from the community are accommodated with the improvement of the health center in Torre, Camp 3

Access to Potable water

Rehabilitation of water pipeline in Sitio Sta Fe and provision of plastic hose in Salangan

Rehabilitated the water pipeline for 72 residents in Sitio Sta Fe and provided plastic hose for 24 residents in Sal â&#x20AC;&#x201C;angan barangay Ampucao

Social Responsibility

HEALTH

81


Philex Mining 2014 Sustainability Report

PPAs

Project Title/Description

Impact/Beneficiaries

EDUCATION

82

Scholarship program for College and High School Students

Provision of full scholarship to qualified and deserving college and high school students from the host and neighbouring communities

Provided full scholarship to 124 college and 100 high school students from the host and neighbouring communities

Subsidy for High School Students and Elementary Pupils

Subsidy for the high school students and elementary pupils from the host and neighbouring communities

Sponsored 142 high school students and 263 pupils enrolled in Saint Louis High School and Philex Mine Elementary School, the company shoulders 70% of the total school expenses

Technical Vocational Scholarship

Provision of full scholarship to the deserving students from our host and neighbouring communities enrolled in vocational courses

Provided full scholarship to 15 students enrolled in vocational courses

Support to Alternative Learning System (ALS)

Provision of materials and transportation allowance to the ALS learners from the host and neighbouring communities during their review classes and examination

Provided materials and transportation allowance to the73 ALS learners during their review classes and examination

Financial Assistance to College Students

Provision of financial assistance to the college students from the host and neighbouring communities who failed to avail the full scholarship program of the company

Provided financial assistance to 23 college students, the company shoulders 75% of the total school expenses

Post graduate scholarship

Provision of full scholarship to the qualified college or masters degree holders from our host and neighbouring communities who want to continue their studies

Provided full scholarship to the 15 recipients currently enrolled in their Post Graduate Courses

Teaching and Learning Enhancement Program

Conduct capability building and enhancement trainings and seminars for the teachers and day care workers; provision of financial support to teachers and day care workers within the host and neighboring communities

Conducted capability building and enhancement trainings and seminars for the teachers and day care workers, and provided financial support to teachers, day care workers, and to school activities in the 20 elementary schools and 5 day care centers

Provision of School Supplies

Provision of school supplies and materials to the host and neighbouring elementary schools

Provided supplies and materials to the students and pupils in 9 elementary schools and 1 high school.

Improvement /Construction of School Facilities

Construction and improvement of school buildings, teacherâ&#x20AC;&#x2122;s quarter and provision of learning equipment to the host and neighbouring elementary schools

Constructed and renovated 8 elementary schools and 1 high school buildings, 2 teacherâ&#x20AC;&#x2122;s quarters and provided learning equipment to 10 elementary schools


PPAs

Project Title/Description

Impact/Beneficiaries

Work Appreciation Program

Conduct training for the newly graduates students in preparation for actual work exposure

A total of 114 newly graduates experienced a three-month on the job training in PMC to enhance their skills, knowledge and attitude and prepare them for actual work

Cooperative trainings

Conduct series of trainings for the cooperatives and other associations within the host and neighbouring communities

Conducted series of trainings for the 7 cooperatives and 19 associations, this training is a requirement by the CDA for accreditation

Capability training for Elders

Conduct training on capability building of Elders and leaders in barangay Dalupirip Itogon Benguet

Conducted training on capability building to the 36 Elders and leaders in Barangay Dalupirip, Itogon, Benguet to increase their leadership skills

Enhancement of the Existing Income Generating Projects

Provision of seed capital, technical assistance and site development for various income generating projects within the host and neighbouring communities

The company developed, enhanced and provided seed capital to the existing livelihood programs like goat raising, aquaculture, mushroom production and loom weaving

Establishment of Income Generation Projects

Conduct skills training and seminars, provision of seed capital, construction of multi - purpose building and site development for Agri- based livelihood programs within the host and neighbouring communities

Together with the existing cooperatives and associations as partners, the company helped established income generating projects such as sewing, dress making, meat processing, egg production and T-shirt printing partners

Organic Vegetable Farming and Coffee Farm Management

The Farm Management Program seeks to develop a agricultural strategy that would provide select beneficiary with a regular income.

Implemented in September 2014 among 5 partner-farmers in the sitios of Mangga, Balayan, Makalbeng, Torre and Bastian.

Meat Processing Program

The Meat Processing Business Center is a double â&#x20AC;&#x153;Aâ&#x20AC;? NMIS accredited facility of the Foundation in Padcal that will eventually provide employment.

In partnership with the Benguet State UniversityCollege of Home Economics and Technology, 16 operator-trainers from among the residents of the mining community and the members of the host and neighboring communities in the proper meat processing manufacturing process to ensure quality and safety. These 16 were also trained on proper business procedures, entrepreneurship and product pricing.

Coffee Roasting Program

Under the KapeBuhayan program, the Foundation also established a coffee roasting facility in Padcal. Through this facility, the Foundation has initiated a coffee buying program in the host and neighboring communities of the mine; providing proof that coffee farming may become a viable source of income for the farmers.

Bought coffee from coffee farms of Padcal and Torre in Tuba, Benguet and in Ampucao and Sta. Fe in Itogon, Benguet. These coffee are marketed under the KapeBuhayan brand.

Social Responsibility

LIVELIHOOD

83


Philex Mining 2014 Sustainability Report

PPAs

Home-based Meat Processing Program

Project Title/Description

Impact/Beneficiaries

The Home-based Meat Processing Training is a joint project of the Philex Foundation, the Livelihood Committee of Camp 3 Barangay, Tuba, Benguet, the Philex Community Credit Cooperative and BSUCHET which seeks to provide beneficiaries basic training on meat processing.

100 people coming from Padcal and its host and neighboring communities undertook the training program. The training program was sponsored by the Barangay Council.

Construction of all weather and safe farm to market road

Concreted a total length of 1.334km road; constructed 250 drainage canals; several foot trails and pathways in 12 areas and slope protection for road and building protection and flood control. These projects aim to provide better and safer access especially during rainy season.

Safety Program

Construction of cat walk, foot trail and parapet wall

Constructed 2 units cat walk along Philex road for the safety of the students; 1 unit 1,500m foot trail in Lower Banguet for the safety of the residents going to the water source and 1 unit 12mx1mx30m parapet wall for the safety of the commuters

Support to Churches

Improvement and provision of financial assistance to the different churches within our host and neighbouring communities

Provided financial assistance for the improvement of the following churches: St Jude Chapel; St Francis Church; Immaculate Conception Church; Free believers in Christ Fellowship Inc.; Balucoc Church; and LubnacKlondykes Basic Ecclesial Community

Socio Cultural Program

Introduction of School of Living Tradition to the various Elementary Schools in barangay Camp 3

Introduced School of Living Tradition in Camp 3 Elementary School, Torre Elementary School and Twinpeaks National High School

PUBLIC INFRASTRUCTURE Farm to Market Road

OTHER PROGRAMS

84


Profile Disclosure

Description

Page No.

Section

Remarks

1.1

Statement from the most senior decision-maker of the organization

4

Message from the Chairman

-

1.2

Description of key impacts, risks, and opportunities

28

Risks to the Business

-

2.1

Name of the organization

14

About Philex Mining

-

2.2

Primary brands, products, and/or services

15

About Philex Mining

-

2.3

Operational structure of the organization

14

Corporate Stucture

-

2.4

Location of organizationâ&#x20AC;&#x2122;s headquarters

Back Cover

Contact us

-

2.5

Number of countries where the organization operates

18

Our Minesites

-

2.6

Nature of ownership and legal form

14

About Philex Mining

-

2.7

Markets served

43

Our Market

-

2.8

Scale of the reporting organization

12h

Sustainability Performance 2014

-

2.9

Significant changes during the reporting period

3

About the Report

-

2.10

Awards received in the reporting period

32

Awards & Recognition

-

3.1

Reporting period

3

About the Report

-

-

-

This is our first Sustainability Report

2

About the Report

3.2

Date of most recent previous report

3.3

Reporting cycle

3.4

Contact point for questions regarding the report

Back Cover

Contact us

-

3.5

Process for defining report content

9

Our Approach to Sustainability

-

3.6

Boundary of the report

3

About the Report

-

3.7

State any specific limitations on the scope or boundary of the report

3

About the Report

-

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities

3

About the Report

-

-

Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement

-

-

3.11

Significant changes from previous reporting periods in the scope, boundary, or measurement methods

-

-

3.12

Table identifying the location of the Standard Disclosures in the report.

85

GRI Content index Sheet

3.13

Policy and current practice with regard to seeking external assurance for the report.

-

-

4.1

Governance structure of the organization, including committees under the highest governance body

36

The Board Committees

4.2

Indicate whether the Chair of the highest governance body is also an executive officer

36

The Board

4.3

For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members

36

The Board

4.4

Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body

38

Access to Information

4.5

Linkage between compensation for members of the highest governance body, senior managers, and executives and the organizationâ&#x20AC;&#x2122;s performance

39

Remuneration Policy

4.6

Processes in place for the highest governance body to ensure conflicts of interest are avoided

36

Code of Ethics

4.7

Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees

36

Board Appointments & Re-elections

3.9

Data measurement techniques and the bases of calculations

3.10

Reported data is measured and reported through internal measurement system and as per the government standards

Global Reporting Initiative Index Sheet

GLOBAL REPORTING INITIATIVE INDEX SHEET

None This is the first Sustainability Report

GRI Application Check -

-

-

85


Philex Mining 2014 Sustainability Report

4.8

Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation

16,17

Vision, Mission, Corporate Values

28

Risks to the Business

4.9

Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles

4.10

Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance

34

The Board

4.11

Explanation of whether and how the precautionary approach or principle is addressed by the organization

4.12

Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses

4.13

Memberships in associations and/or national/international advocacy organizations in which the organization

4.14

List of stakeholder groups engaged by the organization

8

Our Approach to Sustainability

4.15

Basis for identification and selection of stakeholders with whom to engage

8

Our Approach to Sustainability

4.16

Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group

8

Our Approach to Sustainability

4.17

Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting

8

Our Approach to Sustainability

Description

Page No.

Section

Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.

-

-

EC2

Financial implications and other risks and opportunities for the organization’s activities due to climate change.

-

-

EC3

Coverage of the organization’s defined benefit plan obligations.

63

Benefits provided to employees

EC4

Significant financial assistance received from government.

-

-

EC5

Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation.

63

Compensation & Benefits

EC6

Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

-

-

EC7

Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.

60

Workforce profile

EC8

Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.

72

Community Initiatives

EC9

Understanding and describing significant indirect economic impacts, including the extent of impacts.

72

Community Initiatives

EN1

Materials used by weight or volume.

48

Materials

-

EN2

Percentage of materials used that are recycled input materials.

-

-

-

EN3

Direct energy consumption by primary energy source.

49

Energy

-

EN4

Indirect energy consumption by primary source.

49

Energy

-

EN5

Energy saved due to conservation and efficiency improvements.

50

Energy

-

EN6

Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.

-

-

-

EN7

Initiatives to reduce indirect energy consumption and reductions achieved.

49

Energy

EN8

Total water withdrawal by source.

51

Water

-

EN9

Water sources significantly affected by withdrawal of water.

49

Water

-

EN10

Percentage and total volume of water recycled and reused.

51

Sustainability Performance 2014

-

EN11

Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.

52

Biodiversity & Reforestation

EN12

Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

52

Biodiversity & Reforestation

EN13

Habitats protected or restored.

53

Biodiversity & Reforestation

EN14

Strategies, current actions, and future plans for managing impacts on biodiversity.

54

Slope Stabilization

Profile Disclosure

None

Remarks

Economic EC1

-

None -

-

Environment

86

-

-

-


-

EN15

Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.

-

-

EN16

Total direct and indirect greenhouse gas emissions by weight.

-

-

-

EN17

Other relevant indirect greenhouse gas emissions by weight.

-

-

-

EN18

Initiatives to reduce greenhouse gas emissions and reductions achieved.

-

-

-

EN19

Emissions of ozone-depleting substances by weight.

-

-

-

EN20

NOx, SOx, and other significant air emissions by type and weight.

-

-

-

EN21

Total water discharge by quality and destination.

56

Wastewater

-

EN22

Total weight of waste by type and disposal method.

58

Solid Waste

-

EN23

Total number and volume of significant spills.

-

-

-

EN24

Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.

-

-

EN25

Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff.

56

Wastewater

46

Environmental Impact & Control

EN26

Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

EN27

Percentage of products sold and their packaging materials that are reclaimed by category.

-

-

EN28

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.

-

-

EN29

Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce.

-

-

EN30

Total environmental protection expenditures and investments by type.

59

Environmental Initiatives

LA1

Total workforce by employment type, employment contract, and region, broken down by gender.

62

Workforce Profile

LA2

Total number and rate of new employee hires and employee turnover by age group, gender, and region.

62

Workforce Profile

LA3

Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.

63

Benefits provided to full time employee

-

-

All employees who attained parental leave returned to work after fulfillment of leave

64

Collective Bargaining

-

-

-

None

-

-

Not Applicable as we do not package our products -

-

Labor Practices -

LA4

Return to work and retention rates after parental leave, by gender.

LA5

Percentage of employees covered by collective bargaining agreements.

LA6

Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements.

LA7

Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advice on occupational health and safety programs.

66

Health & Safety

LA8

Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender.

67

Safety Performance

LA9

Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.

68

Safety training programs

LA10

Health and safety topics covered in formal agreements with trade unions.

64

Health & Safety

LA11

Average hours of training per year per employee by gender, and by employee category.

70

Training & Development

LA12

Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.

-

-

LA13

Percentage of employees receiving regular performance and career development reviews, by gender.

-

-

LA14

Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.

35

Corporate Governance

LA15

Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation.

-

-

We don’t differentiate the salary as per the gender.

HR1

Percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights concerns, or that have undergone human rights screening.

-

-

-

HR2

Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken.

-

-

-

HR3

Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.

-

-

-

-

Global Reporting Initiative Index Sheet

-

-

-

-

99% of managers have completed their performance evaluation for the reporting period. -

Human Rights

87


HR4

Total number of incidents of discrimination and actions taken.

HR5

Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights.

-

-

There were no such incidents

-

-

None of the operations. We provide freedom to exercise collective bargaining for all rank & file employees

71

Equal Opportunities & Human Rights

We strictly practice “No Child Labor” policy and ensure that all our employees are above the minimum age criterion set by the government.

HR6

Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor.

HR7

Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor.

71

Equal Opportunities & Human Rights

HR8

Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations.

-

-

71

Equal Opportunities & Human Rights

HR9

Total number of incidents of violations involving rights of indigenous people and actions taken.

HR10

Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments.

-

-

HR11

Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms.

-

-

-

-

There were no such incidents. We ensure that the rights of the Indigenous People are not violated Noneh

Society -

SO1

Percentage of operations with implemented local community engagement, impact assessments, and development programs.

72

Community Approaches

SO9

Operations with significant potential or actual negative impacts on local communities.

72

Community Approaches

SO10

Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities.

75

Community Initiatives

SO2

Percentage and total number of business units analyzed for risks related to corruption.

-

-

-

-

We orient all our newly hired employees on the anti-corruption policy practiced by the company. -

SO3

Percentage of employees trained in organization’s anti-corruption policies and procedures.

SO4

Actions taken in response to incidents of corruption.

-

-

SO5

Public policy positions and participation in public policy development and lobbying.

-

-

SO6

Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

-

-

SO7

Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes.

-

-

SO8

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.

-

-

PR1

Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.

-

-

PR2

Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.

-

-

PR3

Type of product and service information required by procedures and percentage of significant products and services subject to such information requirements.

-

-

PR4

Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.

-

-

PR5

Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

-

-

PR6

Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.

-

-

PR7

Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.

-

-

PR8

Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

-

-

PR9

Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.

-

-

-

-

None

-

-

-

-


Padcal community as seen from the GCH view deck.


Philex Mining Sustainability Report 2014

Philex Building 27 Brixton corner Fairlane Streets, Pasig City 1600, Philippines P.O Box 2398 MCPO, Makati City Philippines 1200 Telephone: 632 633-3234/ 634-4441 Email: philex@philexmining.com.ph Website: www.philexmining.com.ph

2ndrev philex mining annual report  
2ndrev philex mining annual report  
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