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MANILA - Philex Mining Corporation on Thursday said it may earn only a third of its 2012 forecast, as it expects its Padcal mine in Benguet province to remain shuttered for the rest of the year.
During the Mining Conference 2012, Philex chairman Manuel V. Pangilinan said the impact of the suspension of operations at Padcal was "severe and substantial."
"We forecast P4 billion profit for the year. That'll go down to P1.5-1.7 billion" as the "Padcal mine will probably be closed until the end of the year," he said.
On August 1, Philex voluntarily suspended operations at Padcal following the discovery of a leak at its tailings pond. The company immediately informed the government about the accident, leading the Mines and Geosciences Burea to order a halt to mining activity in Padcal pending the completion of a cleanup.
Weeks after the initial leak, Tailings Pond No. 3 again discharged more sediment and water to the Balog Creek, which converges with the Agno River.
Pangilinan said the company may take until end of the year to complete its cleanup, after which the leaking tailings pond would be shut permanently.
"We are looking for alternative sites for a tailings pond. We then have to ensure that it is fool-proof as far as nature allows," he said.
He said Philex, which has been operating Padcal for decades, has learned a lot from the Padcal accident.
"This is something we did not foresee. We just have to manage our affairs better than we have before," he said. "If others can do it, why can't we?"
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