ABSTRACT

COMMUNITY PROFILE

BARANGAY CAMP 3, TUBA, BENGUET

Barangay Camp Three was made a new Barrio from mother Barrio Camp Four upon

approval of Municipal Council Resolution No. 105, dated July 15, 1960 of Tuba, Benguet,

recommending favorable consideration on the petition of the residents of Camp Three and

adjoining sitios of Bu-o, Mangga, Agpay, Liang, Alapang, Torre, Pelpel, Katkatbal, Teytey,

Kimmabab, Bowa, Antamok, Balayan, Padcal Philex and Ducot.

Barangay Camp Three made its name not only in the country but the whole world when it was

chosen as one of the 50 Model Communities entire the world by the Friends of the United

Nations, We the People: 50 Communities Award during the 50th Anniversary of the United

Nations last September 24, 1995 at New York, USA. It is also one of the consistent national

awardees in the implementation of the Katarungang Pambarangay program last December 17,

1997, at the Quirino Grandstand, Rizal Park. Barangay Camp Three was adjudged Hall of

Farmer for being the Most Outstanding Lupong Tagapamayapa in the Philippines for three (3)

consecutive years, 1995, 1996 and 1997.

Agriculture is a main source of income in outlying sitios while mining is the main source of

income at Philex Mines. Barangay Camp 3 was also a recipient of the Kabalikat sa Kabuhayan

Program, a partnership with SM Baguio.

Total land area :4,322.74 hectares or 7.07% of the total land area of Tuba

Population: 10, 413 and 2,444 households (2016)

ORGANIZATIONAL CHART

2013-2016

Baliton, Benedicto E.
Barangay Captain

Dino, Daimaia B. Bingit, Joselita Jane A.

Barangay Kagawad Barangay Kagawad

Jacinto, Linda G. Opad, Jane L.

Barangay Kagawad Barangay Kagawad

Ambucay, Octavius U. Montino, Estela T.

Barangay Kagawad Barangay Kagawad

Sow, Claire D. Saliman, Carlito P.

Barangay Kagawad SK Chairman
LOCAL MINE PROFILE

Philex Mining Corporation

Location: Barangay Camp 3, Tuba, Benguet

Total Land Area: 12,059 Hectares

Mining History

Philex Mining Corporation (“PMC” or the “Company”) is known as the country’s largest

gold producer and its subsidiaries are organized into two main business groupings: the mining

business, which is directly under PMC, Philex Gold Philippines, Inc. (PGPI) and Silangan

Mindanao Mining Co., Inc. (SMMCI), and the energy and hydrocarbon business under PXP

Energy Corporation (PXP), formerly Philex Petroleum Corporation, but not until July 15, 2016.

Thus, as of December 31, 2016, the Group’s mining business remains as its only business

segment.

PMC has been operating the Padcal Mine in Benguet for the past 59 years using the

underground block-cave method. It is one of the oldest operating mines in the country and

provides PMC its biggest source of revenue. In October 2015, an additional 20 million tonnes of

ore reserves were declared within the current ore body, which will extend the mine’s life by two

(2) more years, from 2020 to 2022.

Exploration

Exploration activities in 2016 focused on three major projects around the vicinity of the

current ore body – the Bumolo Project, which has been undergoing intensive drilling; Desert

Storm, which is submitted for surface assessment and porphyry copper-gold targeting; and

Tapsan, which undergoes surface mapping for gold in veins. All three projects are located

within Mineral Production Sharing Agreements (MPSA)-156, although a significant area of

possible resources in Tapsan occurs within MPSA-157.

Bumolo Project

The Bumolo project is a porphyry copper-gold deposit approximately 1.5 kms northeast of

the Sto. Tomas II mine. Resource definition drilling was completed in August 2016. A total of

11,075 meters from 46 holes were drilled for the year raising the total meters drilled to 17,782

meters from March 2015 when it started. Mineral Resource Estimation at Indicated classification

will be completed in 2017 that will be based on the geological interpretation as of December

2016.

Metallurgical testing of mineralized drill core samples and environmental rehabilitation of

Bumolo were also completed by the end of December 2016.

The accessibility of the near-surface Bumolo ore to the existing mine and mill

infrastructures makes it attractive to pursue mining feasibility study.

Desert Storm 156 (DS 156) Project

The project is a bold exploration and drilling program designed to discover a new porphyry

copper deposits within the vicinity of Philex’s Sto. Tomas II deposit, specifically within MPSA

156 to extend the life of Padcal operation beyond 2022. The exploration is based on the observed

clustering of porphyry copper deposits in the Baguio Mineral District and in other local and

foreign analogues.

The Desert Storm Project consists of four prospects in MPSA 156, namely Southwest,

North Midway, Oliva, and Tapsan , where potentials for buried porphyry copper-gold

mineralizations are currently being investigated. Social access to the prospect areas was

vigorously pursued in the last quarter of 2016 to initiate exploration. As of this writing,

diamond drilling is actively on-going in three out of the four prospects: Southwest, North

Midway and Oliva.

Tapsan Gold Prospect

Tapsan is a gold-silver vein prospect located 5kms south-southeast of the Sto. Tomas II

ore body. Investigations of the prospect commenced in the second quarter of 2016. Geologic

mapping of outcrops and pocket miners’ tunnel identified possible targets for drilling. A 2-
kilometer long tramline system is being constructed to convey drill equipment over the rugged

terrain in the area to enable scout drilling within this year.

Identified and Reserve Mineral Resources

Figure 3.2 Identified Mineral Resources in Figure 3.3 Reserve Mineral Resources in
Padcal Mine, Tuba, Benguet Padcal Mine, Tuba, Benguet
Figure 3.4 Geological Map of Santo Tomas II Mine
Barangay Camp 3, Tuba, Benguet

Figure 3.5 Topographic Map

Barangay Camp 3, Tuba, Benguet
Figure 3.6 Political Map of Philex Mines
Barangay Camp 3, Tuba, Benguet
COMMUNITY ACTION PLAN

A. Statement of the Problems

Limited Mine Life

Philex’s Padcal mine is moving closer towards the end of its mine life. It is the longest

operating mine in the country and currently serves as the listed company’s primary source of

revenues.

The company has been operating Padcal mine for the last 61 years, employing the

underground block-cave method. With Padcal mine now almost depleted, the company is now

fast-tracking developments at its Silangan Mine in Surigao del Norte.

Philex already spent around P16 billion to P17 billion gearing up for the Silangan mine

project since it started exploration. All in all, the company requires an initial capital expenditure

of $800 million or about P42 billion to commence the operations of Silangan mine by 2022.

For the entire 2018, Philex Mining saw its net income falling by 63 percent to P608

million from P1.7 billion in 2017 pulled down by its two-year losing streak in its gold and copper

production.

The Silangan project is estimated to generate P170 billion in revenues, P31 billion in

national and local taxes and at least 8,000 employment opportunities in the first 10 years of

operation. However this would mean the loss of 15,000 jobs working at Padcal Mine.

Largest Mine Spill

After months of recurring leakages, the Philex mine spill in Benguet has become the

“biggest mining disaster” in the Philippines in terms of volume. Some 20 million metric tons of

sediments have flowed into water channels from the Philex tailings pond in Itogon since its

drainage tunnel was breached last August of 2012.

This is ten times more than the volume of mine tailings that spilled out of the Marcopper

mine in 1996 in Marinduque, which dumped some two million metric tons of waste into the

Boac River and is still considered the worst mining disaster in terms of toxicity. Residents along

the 27-kilometer Boac River lost their fishing livelihood and diseases have afflicted the
community after the incident. Many years later, it was observed that cases of human deformities

residing along the contaminated Boac River were still present.

Mining officials are still studying the toxicity levels of the wastes from the gold and

copper mine that were deposited in nearby waterways after heavy monsoon rains led to a major

breach in its drainage tunnel last August 1. About five "minor" recurrences have been reported

since then.

Figure 4.1 Pictures of the Philex Mine Spill Disaster

B. Objectives Agno River, Tuba, Benguet

The main objective of this community action plan is to conserve and protect the resources

of Tuba, Benguet and minimize the effects of the operations by Philex Mining Corporation.

Specifically, it aims to:

1. Innovate ways to ensure the continuity of the people’s livelihood after the mine is expected to

end its operation in 2022;

2. Avoid the repetition of tailing accident of 2012 by strengthening the tailing dams built by the

Philex Mining Corporation (PMC) as well as constant check-up and repair;

3. Reduce the possibility of soil collapse after the mine’s operation ceases;

4. Assist the reforestation program of PMC to rehabilitate the lost forest cover; and

5. Ensure the safety of water quality flowing in Agno River.

C. Suggested Activities

Agriculture and Entrepreneurship

The Philex’s Livelihood Program is already focused on building partnerships, empowering

individuals, and promoting stakeholder accountability to help build self-reliant and sustainable

communities. Through these initiatives, PMC is espousing the view that the Company is more

than just an “obligated provider” but in fact a partner for development. Projects implemented

under the Livelihood Program vary from farming and other agroforestry practices, to establishing
cooperatives to small-scale trading. This allows stakeholders the opportunity to live their dreams

on entrepreneurship while being supported by the technical expertise provided or facilitated by

PMC. The Livelihood Program awarded to the mining community depends on its geographical

orientation, availability of raw materials, and viability of their product and presence of required

skills.

In Padcal Mine, for instance, latest technology for processing local agricultural products,

such as in coffee farming and mushroom growing, is shared with the host and neighboring

communities. Other simple income-generating projects, like honey bee keeping, vegetable

growing, and loom weaving are also being supported and encouraged as a means of livelihood to

the communities.

As a preparation for mine decommissioning, entrepreneurial skills for business

opportunities are enhanced and nurtured at the Company’s Community-Based Business

Technology Centers (CBTC). Among the popular ventures currently promoted under this

program are meat processing, livestock raising, aquaculture and coffee farming.

The overarching goal of these programs is to transform Philex employees, their families

and individuals in host and neighboring communities to become self-reliant, sustainable, and

independent.
However, Philex alone cannot support their 15,000 workers when their mining operation

will be put to a halt in 2022. Subsidies coming from governing bodies and non-government

organizations can boost the livelihood of the affected residents.

Figure 4.2 Livelihood Programs of

Philex Corporation
Barangay Camp 3, Tuba, Benguet

PERIOD OF IMPLEMENTATION
RESOURCES
ACKNOWLEDGMENT

First and foremost, we would like to express our gratitude to our subject teacher ,Mr.

Michael Jay O. Mesa for guiding us throughout the duration of making the community plan on a

local mining area at the Barangay Camp 3, Tuba, Benguet. He was able to guide us whenever we

don't know what's the next thing we do.

Second, we would like to thank to the Philex Mining Corporation for being cooperative on

making the community plan for the safetiness of the people that surrounds the mining area. To

the Barangay officials who gave lots of information that are needed and to the residents of

Barangay camp 3 Tuba, Benguet, a million thanks to all of you.

We are also grateful to our parents who are always there for us to support us countless

times physically, mentally and financially of course. To our co-members thank you for the

cooperation during the making of our community plan. Last but not the least, we are grateful

enough to our Lord Jesus Christ for the knowledge and wisdom he had given.