Coral Bay Update on the Palawan HPAL Project

Update of Coral Bay Nickel Corporation’sHydrometallurgical Processing Plant For Low Grade Nickel Ores

The Project is located within theindustrial facility of Rio Tuba NickelMining Corporation (RTNMC) in Brgy.Rio Tuba, Bataraza, Palawan.Since 1977, RTNMC has been miningsaprolitic nickel ores selling them toferro-nickel smelters abroad. In more Coral Bay Nickel Corporationthan 25 years of operation, it alsogenerated mine wastes of about 25million tonnes. Called low gradelimonitic mine wastes, these arestockpiled around the mine area. Rio Tuba Nickel Mining CorpCBNC will process these stockpilesusing the technology called HPAL orhigh pressure acid leach.

HPP SIMPLIFIED FLOWSHEET Flash Demin H2 O Tanks Scrubber H2SO4Low grade nickel ore AUTOCLAVE 1.26 % Ni, 0.15 % Co HPAL 245oC, 4 Mpa Leached Slurry High Pressure Acid Leaching (HYDROMETALLURGICAL) Steam H2S CCD NiSO4,CoSO4 Limestone Lime Reactor Tails Dam Fe2O3,CaSO4, Cr2O3 NaOH Scrubber Other Solid Oxides And Hydroxides NiS,CoS Effluent 56 % Ni, 4.5 % Co

HPP LINE 1 (ECC granted July 10, 2002) PERFORMANCE AFTER 4 YEARS (April 2005 – April 2009) July, 2002 to August, 2004 – ConstructionAugust, 2004 to March, 2005 – Commissioning Ore Processed – 3,487,000 DMT April, 2005 – Start of Commercial Operation Ore Grade – 1.26 % Ni, .089 % Co Production – 37,700 DMT Ni & 2,800 DMT Co Annual Production Metal Recoveries – 87.2 %Ni, 84.9 % Co Employed – 2,125 (7.5% Female, 71.3 % Locals) 10,000 MT Nickel, 750 MT Cobalt Taxes Paid – Php 993 Million

HPP LINE 2 (ECC granted Feb. 1, 2007) COMBINED PRODUCTION CAPACITY June, 2006 to Jan. 2009 – Construction Designed: Feb. 2009 to May, 2009 – Commissioning Annual Nickel Production – 20,000 DMT/yrJune, 2009 – Start of Commercial Operation Annual Cobalt Production – 1,500 DMT/yr Annual Production Upgraded: Annual Nickel Production – 24,000 DMT/yr 10,000 MT Nickel, 750 MT Cobalt Annual Cobalt Production – 1,860 DMT/yr

Million US Dollars Line 1 Line 2Total Investment 200 308 Environmental ProtectionWastewater Treatment Facilities 9 10Air Pollution Control Facilities 6 15Tailings Dam Construction 5 26Total Million US $ (Percent) 20 (10) 51 (16)

 Environmental Protection and Enhancement Program (EPEP) Social Development and Management Program (SDMP) Final Mine Rehabilitation and Development Program (FMR/DP)

Particulars Requirements Compliance Remarks1. CLRF Php 5.25 M Now > Php 6 M At DBP in 20042. CAPEX on 10 % of Project 16% or Php 3.5B, InstalledPollution Control CAPEX of Php 25 B CAPEX modernFacilities facilities3. OPEX on 3-5% of Operating 18-20% or Php 1.2 - Used topPollution Control Costs 1.4 B/yr, of OPEX qualityFacilities materials4. MRFC 9 Members 10 Members Plus ERDS rep5. MMT 10 Members 16 (+ 4 samplers) Plus add’l 1MGB,1EMB,1 PCSD,2LGU and Church6. EMO 1 Officer (MEPEO) 1 Office of EMO Provided staff plus 10 staffs for all areas

Tailings Storage Facility Water Treatment

Pier Site Facilities Rio Tuba River Macadam Road RTN Townsite Airstrip

ELECTROSTATIC STACK PRECIPITATOR BOILER GENERATOR STACK STACK STACK HEATERS SCRUBBERSFLASH TANKS SCRUBBER AUTOCLAVE

Particulars Parameters Standards Actual1. Effluent Siltation pH @ 6.5 – 9.0 8.0 – 8.5 Qualities pond TSS < 70 mg/L < 10 effluent Temperature < 3 deg C rise < 1 deg C Oil and grease < 5 mg/L < 1.0 Cr +6 < .2 mg/L < .15 Pb < .3 mg/L < .05 Tailings pH @ 6.0 – 9.0 8.0 – 8.5 dam TSS < 150 mg/L < 10 supernatant Temperature < 3 deg C rise < 1 deg C Oil and grease < 5 mg/L < 1.0 Cr +6 < .2 mg/L < .15 Pb < .3 mg/L < .05Notes:a) Quality of water from the pond and dam are well within the standards.b) As, Hg and Cd contents are also analyzed and are below detection levels.

Particulars Parameters Standards Actual2. Air Plant CO < 500 mg/Ncm 60-100 Qualities Emissions NOx < 1,000 mg/Ncm 60-100 SOx < 700 mg/Ncm 60-80 Opacity < 20 Percent 10-15 H2S < 7mg/Ncm <1 Acid mist < .3 mg/Ncm <.07 Ambient Air TSP, at plant < 300ug/Ncm 50-250 TSP, at houses < 230ug/Ncm 10-150 Noise, at plant < 85 Decibels 60-75 Noise, at houses < 60 Decibels 45-50Notes:a) Actual air quality considerably lower than maximum allowable levels.b) Monitoring done in plant site (for source specific standards) and populated areas (for ambient air quality standards).

Continuous Monitoring Systems D C S CEMS CEMS pH, H2S Detectors H2SCO, Nox, SOx, Opacity Temp

Marine Waters 24 HR TSP samplerInland Waters NO2, SO2 Acid sampler mist sampler

Annual CoastalResources AssessmentFindings:A healthy marine ecosystem wasmaintained at the primary impact zoneof CBNC’s coastal operations.Regular patrol prevented illegalfishing practices and kept the area as ade-facto sanctuary.

Trestle pile with soft coralsTrestle area teeming with fishes

The results of the study showed thatthe flora and vegetation within theproject site and its vicinities are stillintact. Generally the type of vegetationis secondary forest in a large extent,grassland and a disturbance issomewhat minimal and considered asinsignificant considering theparameters used by the monitoring andassessing team. Generally the type ofvegetation is secondary forest in a largeextent, grassland and brushlandformation which is dominated by thepioneer species. In some observationsagricultural areas and agroforest wereobserved including old follow orabandoned kaingin.The dominant plant form around thearea is trees followed by herbs, vinesand shrubs.

pH? ppm? mg/L?Biodiversity? We just want to know if the fish,the birds, the bees, the animals, and people will not die!

Bees as Air Quality Bio-Indicators

Fish (Fresh and Salt Water) as Water Bio-Indicators

For TESTING........For TASTING........

TREE BUFFERPLANTING ZONE CBNC Personnel And Contractors

Mangrove Planting at Nagoya Beach Area Eastern side of causeway Western side of causeway

Vermi-compostingproject toproduceorganicfertilizer

By: BMP Environment and Community Care, Inc. June 16-19, 2006 Site Visit

bmp E NVIRONMENT & COMMUNITY CARE, INC.“The Environmental Audit highlighted the HPP Project’s REMARKABLE the HPP Project’s remarkable COMPLIANCE with conditions of the compliance with the the conditions of the Environmental ComplianceEnvironmental Compliance Certificate.Certificate. Of the 33 major and 8 sub- Of the 33 major conditions conditionsand 8 sub-conditions, 40 conditions hadconditions, only 4 major Full Compliance (98 % Performance).Partial Compliance and the rest had Full Compliance.”

Particulars Requirements Compliance Commitment Remarks1. Financial > 1 % of Direct 1. 02%, or P149 M 1. 00%, or P439 M 2.9 times higherAllocations Processing Cost for SDMP 1 for SDMP 2 (for CBNC) (2004-2008) (2009-2013) > 1 % of Gross 1.12 %, or P103 M 1.68 %, or P177 M 1.7 times higher Rev./Direct for SDMP 1 for SDMP 2 Mining Cost (2004-2008) (2009-2013) (for RTNMC)2. Community Com-Rel Sections Com-Rel Sections ComplianceOrganizational Relations Office created to monitor created to monitorRequirement Rio Tuba Nickel Rio Tuba Nickel Implementor Foundation Inc. Foundation Inc.3. Coverage 5 Host and 5 5 Host and 6 5 Host and 6 Additional brgy Neighboring Neighboring Neighboring of MNLF rebel Barangays Barangays Barangays returnees Interested ICCs Twelve (12 ) ICCs Twenty four (24) Double pro- ICCs mining group

SDMP COVERAGE OR IMPACT AREAS

SDMP COVERAGE OR IMPACT AREASNon- IP Communities : 11IP Communities : 24

SOCIAL DEVELOPMENT AND MANAGEMENT PROGRAM SDMP I Expenses vs SDMP II Budget COMBINED CBNC/RTNMC SDMP I SDMP II 2004-2008 2009-2013ITEM PARTICULARS Expenses Share Budget Share Million Php Percent Million Php PercentA Legal obligation (>1% of DMMC) 238.16 1.00 544.38 1.00D Total Social Development Program 251.83 1.06 615.91 1.13

SOCIAL DEVELOPMENT AND MANAGEMENT PROGRAM SDMP I Expenses vs SDMP II Budget COMBINED CBNC/RTNMC SDMP I SDMP II 2004-2008 2009-2013ITEM PARTICULARS Expenses Share Budget Share Million Php Percent Million Php PercentA Legal obligation (>1% of DMMC) 238.16 1.00 544.38 1.00B Social Development Expenses/Budgets 1 RTNFI Hospital Services for Non-dependents 57.38 0.24 70.00 0.13 2 LSVMS School Subsidies for Non-dependents 48.62 0.20 60.00 0.11 3 Community Relations Assistance 14.00 0.06 70.00 0.13 4 Gawad Kalinga Housing 10.00 0.04 50.00 0.09 5 Indigenous Learning System 6.00 0.02 30.00 0.06C SDMP Proper 6.1 SDMP I - Community Development (Todate) 95.43 0.40 6.2 SDMP II - Community Development (New) 289.72 0.53 7 SDMP II -Training and IEC 20.40 0.09 46.19 0.08D Total Social Development Program 251.83 1.06 615.91 1.13

SOCIAL DEVELOPMENT AND MANAGEMENT PROGRAM SDMP I Expenses vs SDMP II Expenses COMBINED CBNC/RTNMC SDMP I SDMP II 2004-2008 1st Year - 2009ITEM PARTICULARS Expenses Share Expenses Share Million Php Percent Million Php PercentA Legal obligation (>1% of DMMC) 238.16 1.00 78.47 1.00B Social Development Expenses/Budgets 1 RTNFI Hospital Services for Non-dependents 57.38 0.24 22.28 0.28 2 LSVMS School Subsidies for Non-dependents 48.62 0.20 14.60 0.19 3 Community Relations Assistance 14.00 0.06 15.23 0.19 4 Gawad Kalinga Housing 10.00 0.04 7.11 0.09 5 Indigenous Learning System 6.00 0.02 6.83 0.09C SDMP Proper 6.1 SDMP I - Community Development (Balance) 95.43 0.40 2.58 0.03 6.2 SDMP II - Community Development (New) 50.01 0.64 7 SDMP II -Training and IEC 20.40 0.09 18.08 0.23D Total Social Development Program 251.83 1.06 136.70 1.74

RTNFOUNDATION, INC. HOSPITAL Number of patientsStatus : Primary Hospital 40000 38015 31279Workforce : 38 Staff 30000 Doctors : 9 19228 20000 Nurses : 14 Other Staff: 15 10000 0 2007 2008 2009

Leonides S. Virata Memorial SchoolStatus : Private school, supervised by De La Number of Students Salle University, Bacolod City 1260 1252 1240 1233Workforce : 52 staff 1220 a. School Principal : 1 1200 1188 b. Primary & Elementary Faculty: 25 1180 c. Secondary : 17 d. Other Staff : 9 1160 1140 SY 07-08 SY 08-09 Sy 09-10

Indigenous Learning System (ILS) Concept : Arnold Jansen Catholic Enrolment Profile (06-09) Mission Foundation 09-10 Implementor: St. Jude’s Parish, SVD Order 08-09 Level 3 Levels: Level 1: Non-literate Level 2 07-08 Level 1 Level 2: Elementary undergraduate No. of sites Level 3: Secondary undergraduate 06-07 Work force: 14 staff 0 100 200 300

Gawad Kalinga Aim : 1,000 houses in 10 years 2009 : 100 houses turned over Established sites Sites being developed Site Dev’t. Programs (Sibol, Sagip, Productivity, Orderliness, Health, Neighborliness, & Cleanliness) Workforce: 5 Volunteers: 30

GK Concept + The IPs “SWEAT” Equity CBNC/RTNMC Funding (At least 1000 manhours)(Php 100 M = 1000 houses)

Gawad Kalinga – Kulantuod 35 Units

Gawad Kalinga – Bongkol-Bongkol 48 Units

Gawad Kalinga – Ocayan 17 Units

SDMP I Accomplishments (2004-2008)Infrastructure: Social Services: 16 Day Care Center  20 Medical Outreach 11 Health Center  1 unit Ambulance 13 Tribal Hall  1 unit Fire Truck 30 Road construction and repair  2 units Pick-up 2 Gymnasium  11 Multi-cab 3 Public library  14 Motorcycle with sidecar 3 Irrigation system  19 Generator set 26 Multi-purpose pavement  62 Petromax 18 Church & Mosque repair  65 ICOM radio 13 Other communal building  26 Cellular phone  2 Water system  15 Water tank  115 Jetmatic pump

SDMP I Accomplishments (2004-2008) Livelihood: SUMMARY OF SCHOLARS NON-IP IP TOTAL No. of Grads 2005-2006  13 Handtractors w/trailers College High School 82 41 29 66 111 107  10 Fishing boats Elementary 11 71 82  37 Carabaos 134 166 300 2006-2007  17 Cows College 131 48 179 11  113 Swine High School 74 95 169 33 170 203  4 Trainings & Seminars Elementary 238 313 551 11  12 Cooperatives funded 2007-2008 College 153 56 209 27 Education: High School Elementary 86 36 119 170 205 206 275 345 620 27 2008-2009  Scholarship Program College 161 37 198 39  7 School buildings constructed High School 82 123 205  14 Classrooms constructed Elementary 21 264 167 327 188 591 39  2 Classrooms repaired TOTAL NO. OF COLLEGE GRADUATES 77

INFRASTRUCTURE PROJECTS

LIVELIHOOD PROJECTS

COMMUNITY SERVICES

OTHER COMMUNITY SERVICES

EDUCATIONAL ASSISTANCESDMP scholars during a team building seminar. 77 graduated. Some of the 7 school buildings, 14 classrooms constructed.

SDMP II Accomplishments (2009) Infrastructure:  1 Road Concreting  2 Construction of Bridges  1 Tribal Hall  7 Road improvements  2 Bahay Tarukan  1 Basketball Court  2 Barangay Hall Improvement  2 School Bldg. Construction  1 School Bldg. Repair  2 School Stage

SDMP II Accomplishments (2009)Social Services: 4 units Hi-Lux Vehicle 2 units Ford Everest 1 unit Ford Ranger 4 units Sarao Jeepney 11 Jetmatic pump installed 8 Grass trimmers ICOM radio 222 units Cellular phones 2 units Typewriter 27 units Mountain Bikes 27 units Motorcycle (5 TMX; 22 XRM) 3 sets of Books Funding of various activities & celebrations 26 Churches/Mosque assisted 70 Families Assisted (Medical/Calamity) 1 unit Laptop (Lenovo) 2 units Canon digital camera 1 set Musical instruments 2 sets Sound System 19 units Generator set & electrical materials

SDMP II Accomplishments (2009)

SDMP II Accomplishments (2009) Livelihood:  86 units Spraycan  3 Fishing boats & accessories  6 units Hand tractors  72 heads Carabaos  15 sacks Urea  21 quarts Cymbush  15 sacks 16-20  70 pieces Shovel  10 pieces Hoe  52 units Plough & Harrow

SDMP II Accomplishments (2009) Education: 2,316 Elem. pupils assisted 84 Elementary Scholar 243 High School Scholar 214 College Scholar 10 Lakbay-Aral Trips 8 Annual Convention Attended

RTN FOUNDATION, INC.Garnierite Avenue, RTNMC Town site, Rio Tuba, Bataraza, Palawan 5306Mobile No.: 09175750135

Particulars Requirements Compliance Remarks1. Financial Php 106 Million To implement Approved by Budget within 10 years MGB on Dec. after closure. 14, 20092. Coordination Must align with After MGB LGU still with LGU their CLUP approval. preparing their CLUP3. Fund To be deposited in To comply. MGB Allocation a gov’t-assigned requirement bank for 7 years, from 2012 to 2019

HPP Project Area End-of-Project Land Site (ha) UseHPP Complex 35 ForestlandTailings Dam 1&2 Impoundment 187 Industrial tree plantation area Embankments 29 Reconstructed shrublandWater storage 28 AquacultureSanitary Landfill 4 Sports ground or public open spacePort area 36 Coconut landincludingcauseway

Environmental Management Office

Daghang Salamat, Arigato Guzaimasu, Maraming Salamat Po!

Coral Bay Update on the Palawan HPAL Project

by No to mining in Palawan on Jun 02, 2011

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Coral Bay Update on the Palawan HPAL Project Presentation Transcript