June 10, 2014

PX complies with PAB

In a press statement, Philex Mining Corp (PX) said it has fulfilled its obligations to the government and the Pollution Adjudication Board (PAB) with regard to the 2012 incident in its Padcal mine. The company has announced that it has already paid the environmental duty of P188.6m last week. Moreover, PAB has affirmed the water quality in the accident area after PX implemented a rehabilitation and clean-up program for the affected area.

PAB has then extended indefinitely the lifting of a Cease and Desist order it issued to PX on November 28, 2012. At the same time, the mining regulator Mines and Geosciences Bureau has allowed PX to continue its operations beginning July 8, the end of the four-month temporary permit it issued to the company on March 8, 2014.

Our take: The PAB resolution finally clears PX of the government obligations and penalties that has plagued its operations for more than a year. This finally allows PX to resume normal operations. PX has already produced 4x the amount of copper and 2.5x the amount of gold this 1Q14 vs last year as Padcal resumed operations although thishas been partially offset by lower realized metal prices for the year. – WealthSec