updates on the masbate gold project and its environmental and social responsibility
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2010 Mining Philippines Conference Updates on The Masbate Gold Project And Its Environmental and Social ResponsibilityTRANSCRIPT
2010 MINING PHILIPPINES CONFERENCE
16 September 2010
Updates on The Masbate Gold ProjectA d It E i t l d S i l R ibilitAnd Its Environmental and Social Responsibility
The Masbate Gold Project is jointly operated by:
Filminera Resources Corporation (FRC) - holds the mining and surface rights and the Environmental C li C tifi t (ECC) dCompliance Certificate (ECC); and
Phil. Gold Processing & Refining Corp. (PGPRC) - owns and operates the Project’s central processingthe Project’s central processing plant.
The two companies are responsible i l d l d t thmineral developers and together
adopt and implement high standards in Occupational Health, Safety, Environment and Community R l tiRelations.
Corporate Partner: CGA MiningP th A t liPerth, Australia
CGA TEAM – FIRST MOVER TRACK RECORD
• First major gold mine to be developed in Mongolia – Boroo gold mine
• First major gold mine in Tanzania – Golden PrideGolden Pride
• First major gold project in Nigeria -Segilola
• Masbate is the largest gold mine in the Philippines.
THE PHILIPPINESRich mineral endowmentRich mineral endowment
• 3rd largest in gold
4th l i• 4th largest in copper
• 5th largest in nickel
6th l t i h it• 6th largest in chromite
Improved Rating in Fraser Institute Survey
• 35th up from 49th
• Australian States – averaged 31stgfrom 18th
• Bases: mineral endowments and public policy factors affecting mining p p y g gand exploration investments
PROJECT DEVELOPMENT PARTNERS
Leighton Construction F.P.L.S. $85M BFO 30MW power$85M BFO 30MW power
plant
Lycopodium Process engineering designdesign
GHD Tailings Dam
BNP Paribas Project financeBNP Paribas Project finance
CONSTRUCTION DELIVERY
Total capital expenditure – under US$200MUS$ 00
Practical completion achieved on the scheduled date
First Gold Pour – 12 May 2009
Just over 2 years from project acquisition
SAG & BALL MILLS
EXPERIENCED TEAM IN THE PHILIPPINES
Rolando Q. Amores Chairman Chemical Engineer; 42 years experience in Mining & Metallurgy
Cris G. Acosta President BS (West Point); ME (Cornell); PhD/MS/MBA (MIT); CFA; 11 years with ShellPhD/MS/MBA (MIT); CFA; 11 years with Shellin London and Manila; 14 years with Philippine Govt/Military
Danilo S. Latuga Resident Manager Mining Engineer; 32 years experience
Ramon S. Velasco Resident Geologist/ Mine Exploration Geologist; Community Relations; 29 years experience
Sulpicio B. Bernado Compliance Manager BS Mining Engineering; MBA20 years with Govt/Bureau of Mines
EXPERIENCED OPERATING TEAM
Mark Turner Chief Operating Officer Mining Engineer; 23 years total experience; 16 yrs with Resolute; Responsible for 3 or 4 operations simultaneously
Wayne Foote General Manager Mining Engineer; 21 years gold experience;Wayne Foote General Manager Mining Engineer; 21 years gold experience; Extensive experience in Australia, Ghana, Tanzania, Egypt and Mali; Commissioned 2 previous operations
Ray Mead Processing Manager 20 years experience In Australia and Africa
Marcus Neville Mill Superintendent BSc Extractive Metallurgy; 10 years experience in Australia and Africa
Eliza Molloy Technical Services Manager Bachelor of Engineering (Mining); 10 years experience; Rio Tinto – in Western Australia and California
THROUGHPUT
1 600 000
1,800,000
1,400,000
1,600,000
Design
1,000,000
1,200,000 g
600,000
800,000
espe
rqua
rter
200,000
400,000 tonn
e
-June Sept Dec March June Sept Target
quarters
Sept Q 2010 – Forecast
COST PER TONNE MILLED
25.00
26.00
1,600,000
1,800,000
22 00
23.00
24.00
1,200,000
1,400,000
Design
20 00
21.00
22.00
800,000
1,000,000
r qua
rter
mill
ed
18.00
19.00
20.00
400,000
600,000
tonn
espe
r
annu
alco
st/t
16.00
17.00
18.00
-
200,000
June Sept Dec March June Sept Target quarters
INTERIM PLANT EXPANSIONPlant expansion to 6 5MtpaPlant expansion to 6.5Mtpa
Capital estimate US$15M
Lead Nitrate IntroducedLead Nitrate Introduced Benefits:
• Reduction in residence time – Higher throughputsReduction in residence time Higher throughputs with minimal capital outlay
• Increased recoveries – Indications of nominal 2% achievableachievable
EXPLORATION
US$10M Initial Budget
- 25,000m RC Drilling- 30,000m Diamond
Drilling- 5,000m Trenching
Targeting 3 Key Areas
• Infill drilling of 3.2m ozs of inferred resources
• Close to Mine targets outside of current reserves/resourcesR i l E l ti• Regional Exploration
ENVIRONMENTAL COMPLIANCE
MGP is fully compliant with :
• Philippine regulations & standards
• Environmental Compliance Certificate (ECC)Certificate (ECC)
• Required environmental permits from EMB & MGB
• Environmental Protection & Enhancement Program
• Final Mine Rehabilitation & decommissioning Plan (FMRDP)
• Go ernment reporting• Government reporting
KEY ENVIRONMENTAL PROGRAMMES:1. Undertaken as part of ECC requirements, :
• Limnological & coastal marine studies• Limnological & coastal marine studies • Mangrove survey & conservation program• Power Plant Stack & Ambient Air Sampling• Stormwater Runoff Management Plan• MGP’s Emergency Response Program• MGP s Emergency Response Program
2. Upgrade of the Company Nursery to achieve best practice nursery management & target of planting 200,000 trees per year
3. Regular water, air & noise monitoring (daily, weekly, monthly & quarterly)
4. Improvement in waste management towards achieving the goals of reuse/reduce/recycle scheme (on site & within Barangays)reuse/reduce/recycle scheme (on-site & within Barangays)
5. Development of an integrated Safety, Health & Environmental Management System
6. Training employees & contractors in core environmental management modules (Environmental Awareness, Hydrocarbon Management, Solid Waste Management)
7. Quarterly Review by the Multi-partite Monitoring Team (MMT) – all issues raised to date have been minor; the MMT commendable of MGP performance
SDMP and CSRSDMP and CSR
Social Development Management Program (SDMP) –(totalling 20 million pesos, 2009)
Livelihood – fishing, livestock raising, agricultural lands and training and capital
Electricity & Water provision
Roads & infrastructure – schools, barangay halls, sports facilities, chapels
Education –scholarships, transportation, teachers’
ll h l liallowances, school supplies
Health & Sanitation – medical supplies & equipment d ti di l i idonations, medical missions, health & nutrition training, ambulance vehicle
Culture & Sports sportsCulture & Sports – sports equipment, cultural events, sports fest, etc
LIVELIHOOD
Fishing
Provided 160 various types of fi h d 11
g
fishnets and 11 fishing boats to 131 fishing families in 4 barangaysbarangays
Organized 4 fisher folks associationsfolks associations
Livestock/animal dispersal
90 does and 10 bucks dispersed to 50 farmers
14 goats re‐dispersed to new recipientsDispersed 171 head
of livestock/ animals
6 cows provided to 6 members of farmers org. In Lanang
Agricultural input
Fifty heads of hog dispersed to 50 women household
Farm inputs provided to Lanangfarmers association
women household members
Provision of sewing machines
10 units of sewing machines of various
d dtypes provided to women’s association.
ELECTRICITY
Provision of • Provide electricity to nearby schools health center and churchProvision of electricity
• Provide electricity to nearby schools, health center and church
• Installed street lights
• Allow access to the local electricity grid within company properties
WATER SUPPLY
Water line ExtensionInstalled 1.2 kilometerswaterline extension with 12 distribution points serving 500 households
Regular water rationing and distribution to 475 households
Financial assistance to Aroroy Water DistrictAroroy Water District
ROADS AND OTHER INFRASTRUCTURE
Pathway Construction
Completed construction of 201 meter longof 201 meter‐long pathway for Lanang and Panique
Road Repair and Maintenance
‐ Repaired 1.1 kilometersof barangay roads in Panique and Puro‐Maintain 8.7 kilometers of roads around the mine complex
CAPSAY 1 unit 2 story BANGON 1 unit 2 story
Construction of 3 and renovation of a barangay CAPSAY – 1 unit, 2 story
building constructedBANGON – 1 unit, 2 story
building constructedof a barangaymulti‐purpose buildings
PURO – Renovation of 1 unit multi-purpose bldg
BALAWING – 1 unit, 2 story bldg constructed
EDUCATION Scholarship Programs ‐ 82 recipients (26 high school and 56 college) of scholarship and educational assistance
Brgy Lanang ScholarsBrgy Lanang ScholarsBrgy Syndicate Scholars
Brgy Amoroy Scholars
Brgy Puro Scholarsgy
Brgy Caspay Scholars
School Building Construction
Bangon Elem. School Panique High School Amoroy Elem. SchoolCompleted construction of 1 classroom building Completed construction of 2 classroom building Completed construction of 2 classroom building
Lanang Elem. SchoolCompleted construction of 1 classroom building
Syndicate Elem. SchoolCompleted construction of 1 classroom building
Balawing Elem. SchoolCompleted construction of 2 classroom building
Salary assistance for teachers
teachers in various schools of Brgys. Puro, Balawing & Lanang
Transportation assistance
571 Students from 3 barangays571 Students from 3 barangays(Brgys Puro, Lanang & Syndicate) being ferried to and from school
Purchase of transportation boat
1 unit of motor boat each to Brgys Balawing and Lanang to transport 44 students to and fromstudents to and from schools
Purchase of Multi purpose vehicle
1 unit of school service/jeep purchased for Brgy Syndicate to transport students to and from Aroroy High School
HEALTH &SANITATION
Proper waste disposal
Purchased 3 garbagePurchased 3 garbage trucks for barangaysPanique, Puro and Bangon for garbage collection
Barangay Panique Barangay Puro
Strengthening health referral system
Provision of HealthProvision of Health service for Lanang,
Barangay Bangon Barangay Lanang
Health facility development anddevelopment and Nutrition program
• Equipped the BarangayHealth Station in PuroHealth Station in Puro
• Provided Medicines for Botika ng Barangay in two Barangays, Puro and Panique
• Implemented Feeding• Implemented Feeding program for malnourished children‐BN & VL (46‐Panique and 37 in Puro)
CULTURE AND SPORTS DEVELOPMENT
Chapel Renovation and constructionp
Materials and financial assistance provided to barangays for Fiesta celebrations.
Corporate Social Responsibility (CSR) (totalling around 30 million pesos, since 2007)
• MGP implemented various programs, projects and activities during the construction and pre-operation stages to help in the
• MGP implemented various programs, projects and activities during the construction and pre-operation stages to help in the p g peconomic and social development of impact communities
Th i iti ti
p g peconomic and social development of impact communities
Th i iti ti• These initiatives were undertaken even before the institutionalization of the Social Development and Management Program (SDMP)
• These initiatives were undertaken even before the institutionalization of the Social Development and Management Program (SDMP)Program (SDMP)
• These are projects recognized by the company as pressing needs and basic human necessities
Program (SDMP)
• These are projects recognized by the company as pressing needs and basic human necessitiesand basic human necessities particularly in health, education and infrastructure
• Protection and respect of socio-
and basic human necessities particularly in health, education and infrastructure
• Protection and respect of socio-Protection and respect of socio-cultural values were also given importance
Protection and respect of socio-cultural values were also given importance
Community Health Emergency Response
Company doctor, shows ComRel ambulance for community patients
Livelihood Program for Relocated Farmers
Katupan techno-demo farm visited by the Regional and Provincial High Value Crop Mobile team.
Katuparan farmers during their graduation ceremony
THE KATUPARAN FARMERS ASSOCIATION
Tax Contributions
Estimates
Excise taxes PhP 157 M
Real property taxes 76 M
Expanded withholding taxes 132 M
Withholding tax on wages 25 M
Final tax 27 M
Local business taxes 20 M
Other taxes 38 M
VAT 1.415 B
TOTAL PhP 1.890 B
Employment Benefits
Roughly 73% of around 1500Roughly 73% of around 1500 employees are local hires; capacity and ability to feed families
Multiplier effects – local businesses and indirect jobs created ; income for Aroroy and MasbateAroroy and Masbate
The Masbate Gold Project is Aroroy’s development partner.
….Ito ang ating minahan para sa kinabukasan.