Bit more than that, here is a copy of post on SS.First posted...

Bit more than that, here is a copy of post on SS.

First posted 02:40am (Mla time) Nov 09, 2005
By Blanche S. Rivera, Christine Gaylican
Inquirer News Service

THE ENVIRONMENT department has decided to suspend the operations of what had been billed as the flagship of the country's revived mining industry.

The foreign-funded P1.4-billion Rapu-Rapu polymetallic project on Rapu-Rapu Island in Albay province has been suspended after two mine spills allegedly caused cyanide contamination of nearby waters, officials said yesterday.

The Mines and Geosciences Bureau said the suspension order would be served today on Lafayette Phil. Inc. after lapses in company operations caused mine spills on Oct. 11 and 31 at the project site.

"Because of the Oct. 31 spill, there was an unauthorized discharge of effluent from the tailings pond in which the cyanide levels are elevated beyond DENR (Department of Environment and Natural Resources) standards," MGB regional director Rey Juan told the Inquirer by phone.

"The mine spill has affected marine life in Hollow Stone creek and Ungay creek. There were reports of dead fish and other marine organisms," he said.

Lafayette Philippines said it had not received any suspension order.

"The DENR is having a second look and has not ordered a closure of our mining operations," Lafayette Philippines president Rod Watt said in a phone interview.

Watt said MGB Region 5 was still verifying reports of alleged mine tailings spill.

He said the company had voluntarily shut down operations, but this was according to the planned closure of the gold mining plant in order to shift to base metal ore processing.

Production starts

"This is in preparation for the commencement of our copper and zinc production targeted for the end of November," said Watt.

In Sydney, the Australia-listed Lafayette said it was investigating a second spill of cyanide into the local water system, Reuters reported.

Lafayette said managing director Andrew Mcllwain was leading the company's investigation into how a "small amount" of mine waste containing diluted cyanide was released.

Cyanide is used to segregate gold from ore.

On Oct. 11, a larger amount of cyanide-laced waste was discharged, a Lafayette spokesperson said in Sydney.

"It was definitely an operational procedure that went wrong on the 11th of October and it was something that happened that shouldn't have happened and we do accept full responsibility for that," Reuters quoted the spokesperson as saying.

The project, one of the first new mining ventures approved after 15 years, went into commercial production this year. The company has exported some 4,000 ounces of gold as of October to a refiner in Hong Kong. The project is operated by Lafayette Phil. Inc. with Lafayette NL of Australia, LG Collins and KORES of South Korea. It produces gold, silver, copper and zinc.

Rapu-Rapu is expected to yield around 50,000 ounces of gold annually, 600,000 ounces of silver, 10,000 metric tons of copper concentrate and 14,000 metric tons of zinc concentrate, according to the MGB.

Juan said that although Lafayette had voluntarily stopped its operations in the gold milling plant since the second mine spill, when the tailings pond overflowed, the government would like to ensure that corrective measures were in place before operations resumed.

Company effort recognized

"We recognize the effort of the company, but we're going to issue the order that it will remain suspended until it complies with the requirements," Juan said. "We would like to be assured that when they open, the dam will be still be okay for the duration of the project."

Environment Undersecretary Deinrado Dimalibot said, "I have recommended that Lafayette stop operations indefinitely... The spill incidents are small but we thought they needed a more definite remediation plan."

The requirements indicated in the order being prepared include Lafayette's submission of a geotechnical evaluation of the integrity of the dam that holds the mine tailings.

The geotechnical report from Lafayette would be validated by an independent body from the academe and the mining industry.

The suspension order is based on a joint investigation by the MGB and the Environmental Management Bureau (EMB), and confirmed by the Mine Rehabilitation Fund committee composed of the provincial governor, DENR regional director, EMB, MGB, Lafayette and a non-government organization.

Standard for cyanide

The DENR standard for cyanide in water is 0.05 ppm. Tests done by the EMB showed cyanide level in the water from the second mine spill was at 0.1 ppm.

The first spill on Oct. 11 came from the events pond, where a supposedly defective valve and pump channeled the mine tailings instead of to the tailings pond. The events pond is an area designated to catch mine waste in case the tailings pond overflows. The second spill on Oct. 31 was purportedly caused by the overflow of the tailings pond due to heavy rains.

"They should foresee the volume that would be accommodated by the dam from the tailings as well as the rain," Juan said.

Officials said Lafayette was fined more than P300,000 for the spill on Oct. 11 that resulted in a fish kill reported by surrounding communities.

The EMB is still calculating the penalty for the second spill.