University of Mindanao

SHS Department
TEC 304

Case Study

How to Preserve and Conserve Minerals

with
Apex Mining Co., Inc

Ryan Timario
Jake Luga
Elaine Eñigo
Angelica Grabador
Leonaline Sanchez

Introduction
 Mining has been an environmentally unfriendly activity throughout the
world.Mining is defined as the extraction of valuable minerals or other geological
materials from the earth which forms mineralized package of economic interest to the
miner wherein fact it is a site specific activity that is done at the sites where the minerals
existing. Mining affects all the components of environment and the impacts are either
permanent or temporary.It is evident that mining has considerable impacts on the
ecology and the surrounding areas (Samiksha S.,2016). Stewart Udall once said
“Mining is like a search and destroy mission”. (Richardson,2014).The mining industry is
very destructive and it doesn’t have to be.

In the case, Mining influences social aspects in deliberating some necessities

but it embarked many effects and upshots because of some unusual causalities. Many
were benefited yet many were also disgraced because of the resultants made visible of
the said scenario.Mining process creates potential negative impacts on the environment
both during the running operations and for the years ecosystem and environment were
undoubtedly affected.

Mining also brings several advantages and upper hand, It provides of raw
materials like metals and coal that said to be the mostly needed to build and maintain
modern industries and economies.

The minerals that are being extracted during mining activities are very essential
and needed to be protected and conserved to maintain ecological balance for
supporting life and to make the resources available for present and future generation.

In the Compostella Valley, there was a Company named APEX MINING

CO.,INC.— A Philippine-based gold mining company and it’s main project is the Maco
Mine in the Island of Mindanao specifically in Compostella Valley Province. The
company was incorporated and registered with the Philippine Securities and Exchange
Commission on February 26,1970 primarily to carry on the business of mining, milling,
concentrating, converting, smelting, treating, preparing and otherwise producing and
dealing in gold, silver, copper, zinc, iron, and all kinds of ores, metals, and minerals.
Statement of the Problem
Based on the Davao Today News, when they interviewed one of the resident
living near the mining site said that Masara River was damage from its original
composition due to mining tailing of Apex Mining Co., Inc. and that results to fish kills.
Last month, Apex reported a leak occurred at around 7 a.m. on Jan. 15, spilling mine
waste from Maco's diversion pipe in Lumanggang Creek. The spill was contained
by technical staff around 9 a.m. to 10 a.m. on the same day of the incident. The
government has cleared Apex Mining Co. to re-start its operations after that incident.
The Mines and Geosciences Bureau (MGB) has approved the miner's request to
lift the temporary suspension in the aftermath of a tailings spill. The company has
determined the cause of the spills and has mitigated the problem and is undertaking
engineering measures to prevent recurrence of the same. What are the main reasons
why is there a Tailing Spill ? How can we have an environmentally sustainable mining?

Company Profile
Apex Mining Co., Inc. (the Company) was incorporated and registered with
the Philippine Securities and Exchange Commission on February 26, 1970 primarily to
carry on the business of mining, milling, concentrating, converting, smelting, treating,
preparing for market, manufacturing, buying, selling, exchanging and otherwise
producing and dealing in gold, silver, copper, lead, zinc brass, iron, steel and all kinds of
ores, metals and minerals. The Company listed its shares in the Philippine Stock
Exchange on March 7, 1974 and attained the status of being a public company under
the symbol APX.

In 1974, the Company commenced the operation of its Maco Gold Mine situated in the
Municipalities of Maco and Mabini in Compostela Valley.

On October 10 2014, the Company acquired 100% ownership over Monte Oro
Resources & Energy, Inc. (MORE) which has mining and non-mining business interests.
MORE’s mining interests in the Philippines consist of 100% ownership over Paracale
Gold Ltd. which, in turn, fully owns Coral Resources Philippines, Inc. and 40% of
Bulawan Mineral Resources Corporation, both located in the Municipality of Jose
Panganiban, Camarines Norte. MORE has mining interests in other countries consisting
of: (a) 100% shareholding in Minas de Oro Mongol LLC (a Mongolian company) which
owns 51% equity in Erdenejas LLC, a joint venture company holding a mining license in
Khar At Uul in Mongolia; (b) 90% shareholding in Monte Oro Mining Company Ltd.,
which is engaged in mining exploration in Sierra Leone, and in MORE Minerals SL
which is engaged in artisinal mining and gold trading in Sierra Leone; and (c) 3.92%
participation in National Prosperity Gold Production Group Ltd. which holds mining
claims and license from the government of Myanmar to develop and operate the gold
mine located at Moe di-Moe mi Region, Township, Mandalay Division, Myanmar, known
as the Maudi Taung Gold Mine. MORE’S non-mining businesses consist of a 52%
ownership over International Cleanvironment Systems, Inc., a company engaged in
solid waste management, and a 30% participating interest in Service Contract No. 72
for natural gas in the Sampaguita gas field offshore northwest of Palawan in the West
Philippine Sea.

History of Maco Gold Mine

The Apex Mining Co., Inc. (AMCI) is a proudly Philippine-owned company, run
by Filipinos, with origins in the Maco Gold Mine in Compostela Valley, Province of
Mindanao in the Southern Philippines. Maco Gold Mine was formerly known as Masara,
situated in the municipalities of Maco and Mabini, but the name change was effected in
recognition of the entire municipality where mining occurs, rather than one particular
village near the mine site. Compostela Valley is made up of eleven municipalities, one
of them being Maco where Apex Mining Company, Incorporated is located. Maco has
thirty-seven barangays, 10 of which lies within its borders. People in Compostela Valley
has its livelihood which is mainly made up of agricultural products such as rice, coconut,
cacao, coffee, papaya, mango, pineapple, durian and banana. Aside from agriculture,
the province is also rich with gold ore, discovered by indigenous people in rivers during
the 1980’s. An estimated $1.8 billion worth of gold reserves remain untapped in the
5,000 hectare area of Mt. Diwalwal. Mining has now become another popular trade.

Effects towards the Environment

The Company was adjudged first runner up in the category “Best Mining Forest
in the Philippines for 2007” during the PMSEA Convention in Baguio City. Our efforts
towards responsible mining and environmental protection from the mountains to the sea
have proved highly effective. Programs have included the establishment of an AMCI
demonstration farm, which serves as the source of seedling dispersal in the community
and a hub of intensive reforestation research on the mangium (indigenous acacia)
species. The Company established a satellite nursery in the coastal community of the
Province of Compostela Valley to propagate mangroves in compliance with the
Memorandum of Agreement covering the “Adopt a Mangrove Forest” project that
AMCI entered into with the Department of the Environment and Natural Resources in
June, 2007.

Community Relation
The Company’s social responsibility towards the surrounding communities has
been its constant priority ever since its mine development in the area began. In 2007,
infrastructure was built that caters to the needs of the community. Projects include the
Teresa Elementary School, the Indigenous Peoples’ Office, the Road Maintenance
Program, relocation sites with amenities, and assistance in the electrification of the
Biucadan area. Activities organized for different sectors of the impact communities
include: the SPES program to train the youth for employment; the Inter-faith Forum to
facilitate productive exchange of views; the provision of technical assistance to the
Indigenous Peoples on their Ancestral Domain Sustainable Programs; and coordination
with local government on the implementation of its development programs. The
Sumpaw ng Inangsabong Mansaka Inc. – the recognized Indigenous Peoples’
organization in the area – was awarded one million Pesos advance royalty payment by
the Company for assistance with its projects. Such an award represents a level of
monetary support unprecedented in the experience of the Indigenous Peoples. Pilot
projects that have started in 2008; the Manpower Recruitment Project to ensure work
opportunities for the local settlers, initiated jointly by the four impact barangays and the
Indigenous Peoples of the area and tourism development of Barangay Mainit Hot
Spring.

How to have environmentally sustainable mining?

We can preserve minerals by simply being responsible enough in mining. There
are many ways on how we can minimize the impact of mining such as reducing inputs
and outputs and lastly, restoring environmental functions in mine sites. In reducing
inputs, it refers to Water, Energy, and Land disruption. Water is one of the most needed
material in mining operation and by diverting surface water and pumping groundwater,
we can reduce both the quantity and quality of water available downstream for aquatic
ecosystems and other industrial and municipal water users, especially in areas arid
climates. Energy are also one of the components because it was used for metal
processing, to grind ore and to refine copper and aluminum, extraction of fossil fuels,
and construction of infrastracture.Reducing energy consumptions at mines, can reduce
greenhouse gas emission and extend the life of fossil fuel reserves in addition to
reducing operation costs and therefore, the cost of the commodity being mined. There
are a number of ways to reduce the land-use impacts of mining. [7] These include
reducing the overall footprint of the mining area, minimizing the amount of waste
produced and stored, maintaining biodiversity by transplanting or culturing any
endangered plants found on site, and planning mines around existing infrastructure
where possible. [7] Although current technology requires ores to be excavated in order
to produce metals, research in areas such as biomining offers the possibility of mining
with minimal land disruption in the future. Waste and acid rock drainage are the output
of mining, we can reduce it by having waste management plan/ strategies, using
cleaner production techniques, environmental control technologies, using waste as raw
materials, reducing the amount of waste produced through process re-engineering,
storing waste rock underwater, flooding and sealing underground mines, mixing acid-
producing materials with acid-buffering materials, covering waste rock, and chemical
treatment of sulphide wastes.

Conclusion
References: