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ANNEX "A

Secretary's Certificate

I, ARTEMIO C. MORALDA, Corporate Secretary of Rio Tuba Nickel Mining Corporation, do hereby certify that the following resolution was unanimously adopted at the regular meeting of the Board of Directors of the corporation held the 2nd Floor Solid Mills Building, Dela Rosa cor Adelantado Sts., Legaspi Village, City of Makati on 24th day of May, 1995 and that the said resolution is in full force and effect and as not been amended, altered or revoked as of this date:

"RESOLVED, as it is hereby resolved that the President, Manuel B. Zamora, JR., be authorized to prepare, draw, execute, sign and deliver for and in behalf of the corporation any and all documents, deeds, contracts or agreements with the government that are necessary in connection with or for the processing of the application for extension/renewal of the the Mining Lease Contract of RIO TUBA NICKEL MINING CORPORATION at Rio Tuba, Bataraza, Palawan, or in the alternative the same to be converted into a Mineral Production Sharing Agreement under R.A. No. 7942 otherwise known as the New Mining Code of the Philippines.

RESOLVED FINALLY, as it is hereby resolved that a copy of this resolution be furnished DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES, Quezon City by the Corporate Secretary.

IN WITNESS WHEREOF, I have herunto signed this Certificate on this 6th day of July, 1995 at City of Makati.


ARTEMIO C. MORALDA
Corporate Secretary

Subscribed and sworn to before me on this 6th day of July, 1995, applicant exhibiting to me his community tax no. _____________ issued at City of Makati on February 28, 1995.

Doc. No. 62
Page No. 14
Rack No. IV
Series of 1995


ZENAIDA S. HERNANDEZ
Notary Public





 ~r O -r O . 1 1 1 1 ( C.'t ~T J . 1 ~T 1 Lj ) l CrO /


5 8° 33' 43. 977" 117° 24' 39. 93 2"





If * 6 8° 34' 03.508" 117° 24' 39. 932"


7 8° 34' 03.508" 117° 24' 30.123"


8 8° 34' 13.274" 117° 24' 30. 123" ) \ y\


ll 9 8° 34' 13. 274" 117° 24' 39.932"


10 8° 34' 42.571" 117° 24' 39.932"


II 8° 34' 42.571" 117° 24' 49. 741"


8° 34' 52. 33 7," 0 49. 741"


12 ro


13 8° 34' 52.337" 117° 24' 59.5 50"


14 8° 3 5' 02. 102" 117° 24' 59.550"


15 8° 35' 02. 102" 117° 24' 20.319"


16 8° 34' 52.337" 117° 24' 20. 319" ^7 ) '


17 8° 34' 52.337" 117° 23' 50. 880" V--/





18 8° 35' 02. 102" 117° 23' 50. 880" r~^ //


19 8° 35' 02. 102" 117° 23' 41.067" W


20 8° 35' 31 . 399" 117 ° 23' 41.067"


21 8° 35' 31. 399" 117° 23' 01.815" • nj£SZa?'*2^"‘


22 8° 35' 50. 930" 117° 23' 01.815"


23 8° 35’ 50. 930" 117° 23' 21.441" fr' ^S *


24 8° 36' 10. 461" 117° 23' 21. 441" s°? )//


25 8° 36' 10. 46 1" 117° 23 II. 628"


26 8° 36' 20.227" 117° 23 II. 628"


27 8° 36' 20. 227" 117° 23 01. 815" b- I (


28 8° 36' 29. 993" 117° 23' 01. 815" "O ^ -Ns


29 8 36' 29. 993" 117° 22 52.002"


30 8° 36' 39.759" 117° 22 52.002" v_>»





31 8° 36' 39. 759 117° 23 2 1 . 44 1"


32 8° 36' 29.993" 117° 23' 21.441"


33 8° 36' 29.993" 117 0 23 31.254"





34 8° 35' 41. 165" 117*23 31. 254"


35 8° 35' 41. 165" 117*23 41 . 067"


36 8° 35' 31. 399" 117* 24 39. 932"


37 8° 35 ' 21 . 633" 117° 24 39. 932"


38 8 35 21 . 633" 117° 25 ' 19. 184 "


39 8° 35 02.102" 117*25 19. 184"


40 8° 35 02. 102" 117° 25 28.997"


41 8° 34 52. 337" 117° 25 28.997"


42 8° 34 52. 337" 117*25' 38. 810"


, 8 30 43 8° 34 42. 57J" 117*25 38.8 10"


;


44 8° 34 42,571" 117*25' 48. 623'j


45 8° 34' 23.040" 117*25 48.623" Maranto


\ 46 8° 34' 23.040" 117° 25 58.436"


' \ . 47 8° 33' 53. 743" 117° 25 58.4 36"


8° 33' 53. 743" 117*25 48.62 3"


1 48


, l '.y 49 8° 33' 43.977" 117 25' 48.623"


50 8° 33' 43.977" 117*25' 28. 997"


51 8° 33' 24. 446" 117*25' 28.997"


52 8° 33' 24. 446" 117*25' 19.184"


53 8° 33' 14. 680" 117 25' 19.184"


Tie line From Bulanjao Trlangulation Station to BARANGAY OF RIO TUBA


Corner-lof RODY -1 Clqlm , S6 3*04' E 8 4,271.47 m. MUNICIPALITY OF BATATA Z A





PROVINCE OF PALAWAN


AREA 990.00 HAS





BEARING TRUE


SCALE I I 50,000


PLAN OF T HE 110 MINING CLAIMS





OF





RIO TUBA NI PKEL MINING CORPORATION





FOR M PSA/&PH.I CATION





SURVEYED BY: tH'SKSVy.





TIM BANC Am'


GEODETIC ENGINEER


V Reg. Cert. No. ---225J- Date _A~12 ~67.





. License' No. .....Date L~ 'Tzll-


I


*17 20' ~ 117 25 117


 ANNEX "C"

THREE-YEAR UTILIZATION WORK PROGRAM

1.0 CORPORATION INFORMATION

1.1 Project Name RIO TUBA BENEFICIATED NICKEL SILICATE
ORE PROJECT

1.2 Company Name RIO TUBA NICKEL MINING CORPORATION

Head Office 2nd Fir., Solid Mills Bldg.
Address
Dela Rosa Cor. Adelantado Sts.
Legaspi Village, Makati City
Tel. No. 892-1006 to 10
Fax No. 893-31-63/817-61-91

Minesite Address: Bgy. Rio Tuba, Bataraza, Palawan

1.3 Contact Person : Jose S. Saret
VP-Operations

2.0 PROJECT DESCRIPTION

2.1 Project -Details

2.1.1 Location

The mining claims and facilities of Rio Tuba Nickel Mining Corporation are located in Barangay Rio Tuba, Municipality of Bataraza, province of Palawan. The project site is bounded by 8 33'15" - 8 36'40'' latitude                                 and 117 22'52" - 117 05'58" longitude and approximately
850 Km from Manila.

2.1.2 Estimated Capital Costs

As of year end 1997, the current assets of the company stand at P478 million.

2.1.8 Commodity: Nickel Ore (Lateritic type)

2.1.4 Present Status of the Project:



The project is presently in operation stage. It started mining operation in 1976 and since then has continuously operated for the last twenty one(21)


years.


 Page -2-

2.1.5 Description of Mining Method

The company employs open pit mining method using conventional mining equipment like bulldozer, backhoe, wheel loader, dump trucks, breaker, etc.
The mining activities follow a sequence of operations consisting of development drilling, pit planning and survey, clearing and grubbing, stripping of overburden and ore mining. Areas with confirmed minable reserves are
first cleared of vegetation using bulldozer. After clearing, removal of overburden follows where laterites and unshippable ore grade materials are excavated using backhoe and/or truck loader. These materials are loaded into
dump trucks and then hauled and dumped in designated stockpile areas. Some of these materials are actually utilized as matting materials, siltation dike construction materials, filling materials in the restoration of mined- out areas, etc. Stripping operation is usually done during the rainy months of May to November.

During the production period (December-April), shippable ore are extracted using same set of mining equipment used in stripping operations. This time, mined nickel ore materials are hauled and damped into piles in designated
sun-drying area (SDA). Relatively hard portion of the ore section are initially broken into boulders using a breaker instead of explosive blasting. These hard ore boulders are loaded into boulder trucks using grapple and then
hauled to nearby breaking areas for further size reduction and ore sorting.

Actual mining usually reached down to a depth of about 20 meters maximum. Pit walls assume a final pit limit based on the following pit design parameters:

Bench height ... 3 meters
Bench Width ... 5 meters
Bench Slope ... 90 degrees
Overall pit slopes ... 30.96 degrees

2.1.6 Estimated Daily/Annual Production

                                   Dry Season              Wet Season
                                     (5 Months)               (7 Months)
Stripping:
Annual Volume                                             1.500.000 WMT
Daily Capacity                                               9.000 WMT/day
No. of Shift/day                                                  1




                                 Dry Season                 Wet Season
                                (5 Months)                    (7 Months) 

Ore Mining:
Annual Volume     600.000 WMT
Daily Capacity       6.000 WMT/day
No. of Shift/day       2

2.1.7 Description of Beneficiation Process

The process employed to produce beneficiated nickel silicate ore (final product) basically includes solar drying and screening of soft nickel ores, and crushing and screening of hard nickel ores.

The solar drying of soft ore is carried out during the dry period from January to the first week of May of each year. The run-of-mine soft ore is hauled and dumped into piles in the solar drying area. The pile is scraped using
hydraulic track excavators provided with specially designed 6-meter long blade. About 20 cm thick of the surface of one side of the pile is scraped and pushed over the top of the pile towards the other side. Scraping is
done twice daily. Once the desired moisture level is reached the ore is loaded into dump trucks and transferred for screening.

RTNMC maintains two screening lines. One is tripledeck vibrating screen with 75 mm opening, the other is a fixed grizzly with a size of 6 meters x 7 meters, bars set at 50 mm openings and inclined at 30 degrees. About 60%
of the solar dried ore for screening is fed to the fixed grizzly line. The balance of 40% is delivered to the vibrating screen through a receiving hopper. Screening rate averages 100 tons/hour for the vibrating screen end
160 tons/hour for the fixed grizzly, the undersize of both vibrating screen and the grizzly constitutes the beneficiated nickel silicate soft ore.

The stockpiled hard ore and oversize from the vibrating screen and fixed grizzly are fed to a jaw crusher through a receiving hopper. The crusher has a capacity of 70 tons per hour with a discharge opening of 95 mm.



Solar Drying/Crushing and Screening Schedules:

Annual Volume            380,000 WMT         20,000 WMT
Daily Capacity               4,300 WMT/day     200 WMT/day
No. of Shift/day                    2                             1




 Page -4-

2.2 Mineral Reserves (as of April 15, 1998)

2.2.1 Ore Reserves/Resources at 2.0% Ni Cut-off

                                         Tonnage         Grade
Category                            DMT                %Ni 

Positive                            4.720.000         2.37
Probable                         1.592.000          2.33
Possible                             708.000          2.36
                                          7,020,000         2.35

Based on the present positive minable ore reserves and producttion rate of 400,000 WMT beneficiated nickel silicate ore averaging 2.3% Ni, the remaining life of the mine is six(6) years (1998-2003).

2.2.2 Potential for Additional Reserves

The area has geological potential for additional ore reserves coming from the existing and subsisting claims of the company but outside the subject area

2.3 Access/Transportation

The project site is accessible from Manila via two main routes: direct from Manila to the site by private plane or ship; or through Puerto Princesa City, the capital of Palawan. In the latter route, Puerto Princesa City can be reached from Manila through a one-hour flight by commercial airplane or through an
18-hour commercial boat ride. From Puerto Princesa, the project site is accessible through 5-hour land trip or through a one-hour




flight of a company-owned single engine airplane.

2.4 Utilities

2.4.1 Power Supply

The company power plant maintains 3 units of 700 KW each generators. One unit operates daily to provide electricity requirement of the plantsite and townsite.

The piersite power plant maintains one units of 75 KW Caterpillar generator to provide electricity requirement of the pier facilities for drydocking maintenance and barge loading operations.














 Page -5-

Presently, no power supply alternatives are available in the area.

2.4.2 Water Supply

Beneficiation method employed is totally dry basis, therefore, no process water is required. Only domestic water needed for drinking, washing, etc. purposes is
required and this is presently being supplied by existing 4 units deep well.

2.5 Mining Equipment/Beneficiation Equipment and Auxiliary Machinery

RTNMC maintains the following equipment for the different phases of operation and maintenance.

Equipment                                       Quantity
a. Dump trucks, 10-15 cu.m. 57 units
b. Wheel loaders 14 units
c. Track Excavators 20 units
d. Track Loaders 3 units
e. Drills 12 units
f. Fuel Lorry 2 units
g. Track Crane 2 units
h. Water Truck 5 units
i. Maintenance Truck 2 units
j. Garbage Truck 1 unit
k. Fire Truck 2 units
l. Road graders 3 unit 8
m. Road roller 1 unit
n. Truck Trailer 1 unit
o. Bulldozers 9 units
p. Service vehicles 25 unit 8
q. Tugboats 3 units
r. Ore barge 11 units
s. Farm Tractor 3 units
t. Lifting machine/crane 2 units
U. Generator set, 700 KW 3 units
V. Screening/Crushing Plant 1 lot
w. Assaying Equipment 1 lot

2.6 Workforce-Information

2.6.1 Total operational workforce

The work force as of the end of 1997 is summarized as follows:




 Page -6-

Job Class                    Number
Sr. Staff/Managerial       10
Jr. Staff/Middle               14
Foremen/Supervisor      56
Technical                          24
Teachers                         35
Rank & File                      267
Total                                 406

2.6.2 Staff Organizational Set-up

The Minesite Table of Organization is presented in Table 1.

2.6.3 Housing Options

A new township consisting primarily of housing, hospital, school, recreational facilities, etc. was established by the company capable of accommodating all its regular workers.

A detailed list of townsite facilities is enumerated below.

Construction and Maint . Bldg. 1 unit
Shopping Center 1 unit
Market Bldg. 1 unit
Coop Warehouse Bldg. 1 unit
Gymnasium 1 unit
Children's Park 2 areas


School Bldg. Private School(LSVMS)
Basketball Court 2 courts
Church/convent Catholic Church, 1 unit
Hospital Secondary class, 1 unit

Morgue 1 unit
Ladies Dormitory 1 unit
Guest Lodge Annex 1 unit
Bachelor's Quarters 1 unit
Guest Lodge 1 unit

Foreman's Duplex 32 units
Laborers' Row Houses 100 units
Senior Staff House 9 units
Junior Staff House 24 units
RMM House 1 unit



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 Page -7-

ARMM House 1 unit
Clubhouse 1 unit
Swimming Pool 1 unit
Pelota Court 2 units
Tennis Court 3 units
Farm and Vegetable House 1 unit

2.7 Development Schedule

The Rio Tuba Nickel Project has been in operation for the last twenty one (21) years since 1976 when actual mining started.

2.8 Production Schedule and Estimated Cost per Annum (1993-2000)

                                          1998                     1999                     2000
Production Schedule
Stripping Vol., WMT      1,420,300         1,369,000               1,367,700
Mining Vol., WMT             668,200            595,900                  611,000
Prod. Vol., WMT              464,600            400,000                   400,000
Shipping Vol., WMT           400,000         400,000                   400,000

Estimated Annual
Production Cost (x P000)
Mining                                  44,000           42,300                       43,700
Beneficiation                        30,500           32,300                      33,000
Other Mining/
Beneficiation Cost              79,600            73,800                       90,500
Overhead Cost                   105,500          106,100                     114,000
Marketing Cost                   22,900             24,000                        25,000
Excise Tax                            4,700                5,500                         6,800
Environmental Safety &
Health                                   12,800               15,400                      13,500
Community Devel. Cost     -4,300                 5.000                         5.000

Total Cost                           P 304,200         P304,000                 P332,000

3.0 COMMUNITY DEVELOPMENT PROGRAM AND ESTIMATED COST

3.1 Community Development Program

3.1.1 Infrastructures

Provide assistance in the construction, repair and maintenance of barangay roads, deep wells, irrigation dikes and similar infrastructures upon the request of concerned barangay officials

Construction of community, latrine for indigeneous people (Palawans) residing in sitio Buhay



Provide assistance in the improvement of existing multipurpose pavement/basketball court




 Page -8-

3.1.2 Social Services

Provide medical and dental services thru the company existing hospital

Undertake medical mission activities with the help of US-based Filipino-American doctors

Donation of garbage drums to LGU's and schools for their beautification and sanitation drive

Provide electric lighting facilities to selected public places such as churches, military barracks, etc.

Provide drinking water supply facilities to residents within the company's immediate vicinity

Provide free transportation services to:
- school pupils to and from school
- wedding ceremonies
- burials
- other related purposes

3.1.3 Education and Sports

. Provide educational services thru the company's school facilities (LSVMS)

Scholarship program to some 80 deserving elementary, high school and college students

Assistance for athletic and scouting activities

.Sponsor inter-community basketball tournaments

. Availment of company resort facilities by community residents

3.1.4 Livelihood Projects

Support to livelihood projects of the community 

Availability of cattle, swine and poultry products of subsidized prices

Production of ice blocks at reduced prices to fishing companies in the community

Undertake manpower training programs for drivers, mechanics and equipment operators



 Page -9-

3.2 Community Development Cost

Year                          Estimated Cost (x000) 
1998                               P 4,300
1999                                  4,600
2000                                  5,000

4.0 ENVIRONMENTAL PROTECTION AND MANAGEMENT COST ESTIMATES (including Mine Safety and Health)

4.1 Environmental Protection and Management Program

The company's environmental management program is detailed in the proposed Environmental Protection and Enhancement Program (EPEP) already submitted.

4.2 Cost Estimates

Year                   Cost Estimate (x000)
1998                       P 12,900
1999                           15,444
2000                            13,582




5.0 PERSON WHO PREPARED THE WORK PROGRAM

JOSE S. SARET
Mining Engineer
PRC License No. 887
PTR No. 4656966
Date Issued : January 28, 1998
Place Issued: Bataraza, Palawan










 ANNEX "D"

Republic of the Philippines
Department of Environment and Natural Resources
Visayas Avenue, Diliman, Quezon City, 1100
Tel. Nos. (632) 929-66-26 to 29 • (632) 929-62-52
929-66-20 • 929-66-33 to 35
929-70-41 to 43

ENVIRONMENTAL COMPLIANCE CERTIFICATE



The Department of Environment and Natural Resources (DENR), through the
Environmental Management Bureau (EMB) hereby grants this Environmental
Compliance Certificate (ECC) to the proposed RIO TUBA BENEFICIATEI)
NICKEL SILICATE ORE PROJECT of Rio Tuba Nickel Mining Corporation
(RTNMC) to be located in Barangay Rio Tuba, Municipality of Bataraza, Province of Palawan, after complying with the Environmental Impact Assessment (EIA) requirement as prescribed in the promulgated guidelines implementing Section 3 (b) of P.D. 1121 and P.D. 1586.



This Certificate is being issued subject to the following conditions:

1. This Certificate shall be limited to the existing 110 mining claims of the company in Barangay Rio Tuba, Municipality of Bataraza, Province of Palawan, covering some 990 hectares but excluding areas identified as core zone, as defined in the Strategic Environmental Plan for Palawan Act (Republic Act 7611). All other remaining subsisting claims within the Bulanjao Range shall no longer be available for mining operations or for any development considering its old growth forest status.

In view of some legal constraints to be addressed by the DENR, mining
operations in controlled use area as defined under the SEP Law shall be
forestalled pending the resolution of legal issues;

2. The proponent in coordination with the Office of the Undersecretary for
Environment & Programs Development, the Forest Management Bureau (FMB), the DENR Regional Units, the Protected Areas and Wildlife Bureau (PAWB), the Palawan Council for Sustainable Development (PCSD) and the MGB Regional Units shall quantify the areas to be excluded from mining operations within the coverage of the 990 has. and clearly delineate said areas on a map within forty five (45) days after the receipt of the ECC; to wit:

2.1 core zones
2.2 subsisting claims within the Bulanjao Range
2.3 forest patches for in-situ conservation
2.4 corridors linking the forest patches in item 2.3 to permit movement of
biota and to ensure genetic flow
2.5 controlled use area

3. The proponent, prior to project implementation, shall undertake a 100% forest inventory of all forested portions/patches and every five (5) years thereafter, the results of which shall be submitted to the EMB, the DENR Regional Units, the MGB Region IV and the FMB-Geographic Information System Unit;



4. A Watershed Management Plan shall be prepared in coordination with the DENR Regional Units and submitted to the FMB and the EMB for review and endorsed to the Office of the Undersecretary for Environment and Programs Development for approval prior to project implementation. A status report on the implementation of the


5. A Resettlement/Compensation and Livelihood Program acceptable to the families whose properties have been affected during the previous mining operation and who will be directly affected by the proposed project shall be submitted to the EMB for approval within thirty (30) days upon issuance of this ECC. A status report on the program’s implementation including schedule of payments (recipients, amount paid, date paid) shall be submitted to the EMB prior to project implementation;

6. The proponent shall submit an acceptable archaeological survey report covering all the areas in which major surface soil disturbance will be undertaken such as quarry sites, plant site, access roads, pond sites, storage sites, settlement and rehabilitation sites, etc. to the EMB within sixty (60) days upon issuance of the ECC and before any surface soil disturbance is effected. If an archaeological site is identified, provisions shall be made for a rapid recovery (salvage archaeology) of the artifacts. In addition, an effective monitoring program to report any significant archaeological site shall be implemented during the operation of the project. In case of any archaeological findings, appropriate rapid recovery efforts shall be instituted, before any mining activity in that area is resumed;

7. Ore extraction shall be by Open Pit method and limited to 475,000 WMT per
annum. The open pit shall be of the conventional cone type with a 45° final pit
slope. Bench height shall not exceed 10 meters and the final berm shall not be
less than 4.5 meters wide. Ramps and haulage roads shall not exceed 10 meters wide with an average gradient not exceeding 8%;

8. No blasting operation shall be conducted for the entire mining operation;

9. Direct use of the recovered topsoil for re-soiling or as soil cover on waste dumps, and for camp beautification in general shall be effected or, if not yet possible, stockpiling on designated suitable areas shall be done and limited to low heights of not more than one (1) meter and temporarily re-vegetated to protect the soil from erosion

10. A buffer zone of 50-meter strip shall be provided and maintained along the entire periphery of the project site as well as the easement for any water body within the project site and the quarry areas and stockpile areas;

11. All areas not affected by the quarrying, stockpiling, and transportation of ore, waste, and other materials, particularly those supporting sensitive ecosystems such as secondary growth forests, creeks, and natural springs shall be protected;



12. Slope stabilization and erosion control of the affected side slopes of the nearby river/creeks, siltation ponds, as well as the stockpiles, within the project site shall be strictly effected;

13. Measures shall be undertaken to prevent siltation of the affected coastal/surface water bodies during mining and stockpiling operations;




15. Instead of sprinkling water, portions of the Macadam Road linking the pier and






the quarry areas, especially those adjacent to populated areas shall be permanently






paved to mitigate dust pollution;






16. Adequate drainage system(s) including silt traps shall be provided and regularly






maintained in the stockpiles, quarry areas; the entire plant premise and parallel






access roads to minimize the transport of sediments from the earthwork areas to






the river system. Siltation ponds shall be lined and drainage ditches, well






maintained;






17. All appropriate mitigating measures shall be instituted to minimize generation of






noise, dust and siltation of any water body during the quarrying, stockpiling, and






transportation activities;






18. Adequate measures and protection shall be given to the nearby/affected mangrove






forests. Enrichment planting shall be undertaken by the proponent in coordination






with DENR, Local Government Units (LGUs) and Non-government






Organizations (NGOs) to enhance the protective and productive capacities of






these ecosystems;






19. A comprehensive rehabilitation/restoration program for the destroyed/disturbed






wildlife habitat, shall be prepared in coordination with the PAWB and the DENR






Regional units and implemented by the proponent. The program shall include a






detailed plan of activities with time table and defined strategies in






implementation;






^0. Noise level, emissions and effluents generated shall be conform with prescribed






DENR standards;






21. A solid wastes management program shall be strictly implemented during project






implementation. Stripped-off overburden materials, mine wastes, sludge and






other solid wastes shall be properly stockpiled and disposed of in permanent,






stabilized areas and away from any water and drainage systems, and shall be






maintained in safe and non-polluting conditions;






22. Pursuant to the pertinent provisions of the Philippine Mining Act of 1995 (R.A






7942) and its implementing rules and regulations (DAO 96-40), the following,






among others, shall be complied with:






22.1. Contingent Liability and Rehabilitation Fund (CLRF)) to cover expenses






of multisectoral monitoring activities, short and long-term rehabilitation






programs and/or indemnification of damages to life and property shall be






set up by the proponent within thirty (30) days from the receipt of the ECC






through a separate Memorandum of Agreement (MOA1 with thp dfxir rm






22.2. The proponent shall submit an Environmental Protection and


Enhancement Program (EPEP) within sixty (60) calendar days from


receipt of this ECC to the EMB and MGB for preliminary review and final


approval. The EPEP shall include the following:


22.2.1 The project’s environmental protection, enhancement and rehabilitation


commitments covering all areas to be affected by development under their


contracts;


22.2.2 The life-of-mine to the completion of rehabilitation of the mine that is


proximate to the land use prior to its disturbance, unless other beneficial


users are pre-determined and agreed upon in partnership with local


communities and local government units;


22.2.3 A statement on post-mining land use potential for various types of


disturbed land and the completion of the commitments in the rehabilitation


of the disturbed land in a technically, socially and environmentally


competent manner; and


22.2.4 Financial requirements up to post-decommissioning over a ten-year period


implementation including schedules, system of environmental guarantees,


monitoring and reporting provisions;


22.3 A Multipartite Monitoring Team (MMT) to be composed of the DENR,


local environmental NGO representative, LGU representative, affected


community(ies) and/or disadvantaged sector (women, youth, elderly,


indigenous cultural community, etc.) representatives and RTNMC shall be


organized to serve as a monitoring arm of the CLRF Steering Committee


and the MRF Committee through a MOA within sixty (60) days from the


receipt of the ECC; and


22.4 A Mine Environmental Protection and Enhancement Office (MEPEO)


shall be established to set the level of priorities and organize the resources


needed to implement environmental management programs;


22. Mine safety rules and regulations as provided for under Mines Administrative


Order No. RD-51, Series of 1991 shall be strictly observed to prevent health and


occupational hazards posed by the project operations;


23. The proponent shall conduct a monthly emissions (air, water and noise)


monitoring, the results of which shall be submitted to the DENR Region IV-A and


the EMB. Should the monitoring indicate exceedance of DENR standards, the


proponent shall either reduce the level of operation or cease operation until such


time that emissions conform to the DENR standards;





24. The proponent shall gather baseline condition on the aquatic biota of all surface


water resources in the area and annually monitoring the same, the results of which


shall be submitted to the EMB, the MGB Region IV and the DENR Regional


Unit:


25. A revised Environmental Risk Assessment (ERA) which will include a Disaster Preparedness Program and risk from natural hazards, including collapse of the siltation ponds shall be submitted by the proponent to the EMB within ninety (90) days upon receipt of this ECC. An annual auditing of risks and hazards of the project shall be undertaken, a report of which shall be submitted to the EMB and the DENR Regional Units;

26. A progressive rehabilitation/reforestation program shall be immediately
implemented on the mined-out areas and completed prior to abandonment and monitoring of the program shall continue over a ten-year period;

27. Qualified local residents and women shall be given priority in employment.
Adequate public information shall be provided for jobs available to local residents in the affected areas and as part of its livelihood support, the proponent shall undertake appropriate skills training and job preparation;

28. A community assistance program for livelihood that shall entail the meaningful participation of women shall be formulated and implemented. The program shall also include assistance in the construction of shallow and deep wells for potable drinking water and other domestic uses;

29. The proponent shall implement a Social Development Program and shall assist the local government units in the provision of health, education and welfare services to the residents of the impact areas and vicinities in coordination with the Department of Health, the Department of Education, Culture and Sports, and the Department of Social Welfare and Development;

30. The proponent shall give assistance/protection to the fisherfolks should
complaints/other problems arise which are brought about by the mining
operations in the area;

31. The proponent shall commission an independent and continuing health study which shall include a determination of the levels of airborne-related diseases of the affected residents, particularly the children, to be funded from the CLRF, the results of which shall be evaluated by the DOH and the EMB, and shall constitute as basis for determining compliance;

32. The proponent shall link up with other industries in the area, the Coastal
Environmental Program (CEP) of the DENR, the academe, the NGOs and LGUs to put up a marine protection program for the portion of the Sulu Sea fronting its pier facilities. It shall devise ways to minimize its disturbance, particularly the effect of vessels used to load/unload personnel, ore and other materials;

33. The proponent shall undertake an effective and continuing Information Education and Communication (IEC) Program to explain publicly its EIS mitigative measures for negative impacts as well as conditions of the ECC that are of importance to wildlife, marine ecology, and biodiversity, for a greater awareness, understanding and acceptance of the project among the local residents. It shall










open opportunities to educate the affected community(ies) through sectoral and small group consultations on environmental and human safety measures in quarrying. The IEC activities shall be funded by the proponent but implemented by a joint team of the proponent, MGB Region IV, DENR Region IV and DENR’s selected NGO partner. The proponent shall submit a detailed IEC program to EMB, MGB Region IV, DENR Region IV and the LGUs annually;

34. The proponent shall immediately execute a Perpetual Lease Agreement and/or Lease Agreement with the landowners of the 7 km. Macadam Road linking the quarry areas and the pier facilities;

35. On-the-spot monitoring and inspection may be initiated by the DENR in
coordination with concerned groups to monitor the project’s compliance with the ECC conditions;

36. All other permits and requirements of other concerned government entities such as clearance from the National Museum and the DAR conversion permit shall be secured prior to operations; and

37. Transfer of ownership of this Project carries the same conditions in this ECC for which written notification shall be made by herein grantee to the EMB and MGB within Fifteen (15) days from such transfer.

Non-compliance with any of the above stipulations will be sufficient cause for the suspension or cancellation of this Certificate and/or imposition of fine in the amount of Fifty Thousand Pesos (P50,000.00) for every violation thereof, at the discretion of the Bureau (Section 9 of P.D. 1586)

Granted this 11 day of Dec,. 1997.

VIRGILIO Q. MARCELO
Acting Secretary