2010 MINING PHILIPPINES CONFERENCE16 September 2010
Updates on The Masbate Gold Project And It Environmental and Social Responsibility A d Its E i      t l dS i lR           ...
The Masbate Gold Project is jointly operated by:Filminera Resources Corporation(FRC) - holds the mining and surfacerights ...
Corporate Partner: CGA Mining        Perth, A t li        P th Australia
CGA TEAM – FIRST MOVER TRACK RECORD• First major gold mine to bedeveloped in Mongolia – Boroo goldmine• First major gold m...
THE PHILIPPINESRich mineral endowment•     3rd largest in gold•     4th l          largest i copper                  in•  ...
PROJECT DEVELOPMENT PARTNERSLeighton       Construction F.P.L.S.               $85M BFO 30MW power                   plant...
CONSTRUCTION DELIVERYTotal capital expenditure – underUS$ 00US$200MPractical completion achieved on thescheduled dateFirst...
SAG & BALL MILLS
EXPERIENCED TEAM IN THE PHILIPPINESRolando Q. Amores     Chairman              Chemical Engineer;                         ...
EXPERIENCED OPERATING TEAMMark Turner       Chief Operating Officer      Mining Engineer; 23 years total experience;      ...
THROUGHPUT                  1,800,000                  1,600,000                  1 600 000                  1,400,000    ...
COST PER TONNE MILLED                     1,800,000                                                            26.00      ...
INTERIM PLANT EXPANSIONPlant expansion to 6.5Mtpa                   6 5Mtpa    Capital estimate US$15MLead Nitrate Introdu...
EXPLORATIONUS$10M Initial Budget   -   25,000m RC Drilling   -   30,000m Diamond       Drilling   -   5,000m TrenchingTarg...
ENVIRONMENTAL COMPLIANCE                      MGP is fully compliant with :                           •   Philippine regul...
KEY ENVIRONMENTAL PROGRAMMES:1. Undertaken as part of ECC requirements, :     • Limnological & coastal marine studies     ...
SDMP and CSR
Social Development Management Program (SDMP) –  (totalling 20 million pesos, 2009)Livelihood – fishing, livestock    raisi...
LIVELIHOOD Fishing         gProvided 160 various types of fishnets and 11 fi h       d 11fishing boats to 131 fishing fami...
Livestock/animal dispersal                             90 does and 10 bucks                              dispersed to 50 f...
Agricultural inputFarm inputs provided to  Lanang     Fifty heads of hog farmers  association                dispersed to ...
ELECTRICITY Provision of  Provision of    • Provide electricity to nearby schools health center and church                ...
WATER SUPPLYWater line Extension  Installed 1.2 kilometers  waterline extension with 12   distribution points serving 500 ...
ROADS AND OTHER INFRASTRUCTUREPathway Construction  Completed construction   of 201 meter‐long   of 201 meter long  pathwa...
Construction of 3 and renovation of a barangayof a barangay        CAPSAY – 1 unit, 2 story                               ...
EDUCATION                                  Scholarship Programs ‐ 82 recipients (26 high                                  ...
School Building ConstructionBangon Elem. School                                Panique High School                        ...
Salary assistance for teachers teachers in various schools of  Brgys. Puro, Balawing & LanangTransportation assistance  57...
Purchase of transportation boat         1 unit of motor boat each          to Brgys Balawing and          Lanang to transp...
HEALTH &SANITATIONProper waste disposal  Purchased 3 garbage   Purchased 3 garbage  trucks for  barangays  Panique, Puro a...
Health facility development  and development andNutrition program • Equipped the Barangay Health Station in Puro Health St...
CULTURE AND SPORTS DEVELOPMENT  Chapel Renovation and construction     pMaterials and  financial assistance provided to ba...
Corporate Social Responsibility (CSR)(totalling around 30 million pesos, since 2007)                                      ...
Community Health Emergency Response           Company doctor, shows ComRel ambulance for           community patients
Livelihood Program for Relocated Farmers                                              Katupan techno-demo farm visited by ...
THE KATUPARAN FARMERS ASSOCIATION
Tax ContributionsEstimatesExcise taxes                                 PhP 157 MReal property taxes                       ...
Employment Benefits              Roughly 73% of around 1500                 employees are local hires;                 cap...
The Masbate Gold Project is Aroroy’s development partner.     ….Ito ang ating minahan para sa kinabukasan.
Updates on The Masbate Gold Project And Its Environmental and Social Responsibility
Updates on The Masbate Gold Project And Its Environmental and Social Responsibility
Updates on The Masbate Gold Project And Its Environmental and Social Responsibility
Updates on The Masbate Gold Project And Its Environmental and Social Responsibility
Updates on The Masbate Gold Project And Its Environmental and Social Responsibility
Updates on The Masbate Gold Project And Its Environmental and Social Responsibility
Updates on The Masbate Gold Project And Its Environmental and Social Responsibility
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 Responsibility

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Updates on The Masbate Gold Project And Its Environmental and Social Responsibility

  1. 1. 2010 MINING PHILIPPINES CONFERENCE16 September 2010
  2. 2. Updates on The Masbate Gold Project And It Environmental and Social Responsibility A d Its E i t l dS i lR ibilit
  3. 3. The Masbate Gold Project is jointly operated by:Filminera Resources Corporation(FRC) - holds the mining and surfacerights and the EnvironmentalCompliance Certificate (ECC); andC li C tifi t (ECC) dPhil. Gold Processing & RefiningCorp. (PGPRC) - owns and operatesthe Project’s central processingplant.The two companies are responsiblemineral developers and together i ld l dt thadopt and implement high standardsin Occupational Health, Safety,Environment and CommunityRelations.R l ti
  4. 4. Corporate Partner: CGA Mining Perth, A t li P th Australia
  5. 5. CGA TEAM – FIRST MOVER TRACK RECORD• First major gold mine to bedeveloped in Mongolia – Boroo goldmine• First major gold mine in Tanzania– Golden Pride• First major gold project in Nigeria -Segilola• Masbate is the largest gold minein the Philippines.
  6. 6. THE PHILIPPINESRich mineral endowment• 3rd largest in gold• 4th l largest i copper in• 5th largest in nickel• 6th l largest i chromite t in h itImproved Rating in Fraser Institute Survey• 35th up from 49th• Australian States – averaged 31st g from 18 th• Bases: mineral endowments and p public p y factors affecting mining policy g g and exploration investments
  7. 7. PROJECT DEVELOPMENT PARTNERSLeighton Construction F.P.L.S. $85M BFO 30MW power plantLycopodium Process engineering designGHD Tailings DamBNP Paribas Project finance
  8. 8. CONSTRUCTION DELIVERYTotal capital expenditure – underUS$ 00US$200MPractical completion achieved on thescheduled dateFirst Gold Pour – 12 May 2009Just over 2 years from projectacquisition
  9. 9. SAG & BALL MILLS
  10. 10. EXPERIENCED TEAM IN THE PHILIPPINESRolando Q. Amores Chairman Chemical Engineer; 42 years experience in Mining & MetallurgyCris G. Acosta President BS (West Point); ME (Cornell); PhD/MS/MBA (MIT); CFA; 11 years with Shell in London and Manila; 14 years with Philippine Govt/MilitaryDanilo S. Latuga Resident Manager Mining Engineer; 32 years experienceRamon S. Velasco Resident Geologist/ Mine Exploration Geologist; Community Relations; 29 years experienceSulpicio B. Bernado Compliance Manager BS Mining Engineering; MBA 20 years with Govt/Bureau of Mines
  11. 11. EXPERIENCED OPERATING TEAMMark Turner Chief Operating Officer Mining Engineer; 23 years total experience; 16 yrs with Resolute; Responsible for 3 or 4 operations simultaneouslyWayne Foote General Manager Mining Engineer; 21 years gold experience; Extensive experience in Australia, Ghana, Tanzania, Egypt and Mali; Commissioned 2 previous operationsRay Mead Processing Manager 20 years experience In Australia and AfricaMarcus Neville Mill Superintendent BSc Extractive Metallurgy; 10 years experience in Australia and AfricaEliza Molloy Technical Services Manager Bachelor of Engineering (Mining); 10 years experience; Rio Tinto – in Western Australia and California
  12. 12. THROUGHPUT 1,800,000 1,600,000 1 600 000 1,400,000 Design g 1,200,000 1,000,000 800,000 tonne per quarter 600,000 es 400,000 200,000Sept Q 2010 – Forecast - quarters June Sept Dec March June Sept Target
  13. 13. COST PER TONNE MILLED 1,800,000 26.00 1,600,000 25.00 24.00 1,400,000 23.00 1,200,000 Design 22.00 22 00 1,000,000tonnes per quarter 21.00 annual cost/t milled 800,000 20.00 20 00 r 600,000 19.00 400,000 18.00 200,000 17.00 - 16.00 June Sept Dec March June Sept Target quarters
  14. 14. INTERIM PLANT EXPANSIONPlant expansion to 6.5Mtpa 6 5Mtpa Capital estimate US$15MLead Nitrate IntroducedBenefits:• Reduction in residence time – Higher throughputs with minimal capital outlay• Increased recoveries – Indications of nominal 2% achievable
  15. 15. EXPLORATIONUS$10M Initial Budget - 25,000m RC Drilling - 30,000m Diamond Drilling - 5,000m TrenchingTargeting 3 Key Areas • Infill drilling of 3.2m ozs of inferred resources • Close to Mine targets outside of current reserves/resources • Regional E l ti R i l Exploration
  16. 16. 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) • Government reporting Go ernment reporting
  17. 17. KEY ENVIRONMENTAL PROGRAMMES:1. Undertaken as part of ECC requirements, : • Limnological & coastal marine studies • Mangrove survey & conservation program • Power Plant Stack & Ambient Air Sampling • Stormwater Runoff Management Plan • MGP’s Emergency Response Program MGP s2. Upgrade of the Company Nursery to achieve best practice nursery management & target of planting 200,000 trees per year3. 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) (on site5. Development of an integrated Safety, Health & Environmental Management System6. 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
  18. 18. SDMP and CSR
  19. 19. Social Development Management Program (SDMP) – (totalling 20 million pesos, 2009)Livelihood – fishing, livestock raising, agricultural lands and training and capitalElectricity & Water provisionRoads & infrastructure – schools, barangay halls, sports facilities, chapelsEducation –scholarships, transportation, teachers’ allowances, school supplies ll h l liHealth & Sanitation – medical supplies & equipment donations, medical missions, d ti di l i i health & nutrition training, ambulance vehicleCulture & Sports – sports equipment, cultural events, sports fest, etc
  20. 20. LIVELIHOOD Fishing   gProvided 160 various types of fishnets and 11 fi h d 11fishing boats to 131 fishing families in 4 barangaysOrganized 4 fisher folks associationsfolks associations
  21. 21. Livestock/animal dispersal 90 does and 10 bucks  dispersed to 50 farmers 14 goats re‐dispersed   Dispersed 171 head  to new  recipients of livestock/ animals 6 cows  provided to 6  members of  farmers org.  In Lanang
  22. 22. Agricultural inputFarm inputs provided to  Lanang Fifty heads of hog farmers  association dispersed to 50  women household  women household membersProvision of sewing machines 10 units of sewing  machines of various  types provided to  d d women’s association. 
  23. 23. ELECTRICITY Provision of  Provision of • Provide electricity to nearby schools health center and church Provide electricity to nearby schools, health center and church  electricity • Installed street  lights  • Allow access to the local electricity grid within company  properties
  24. 24. WATER SUPPLYWater line Extension Installed 1.2 kilometers waterline extension with 12  distribution points serving 500  householdsRegular water rationing and distribution to 475 householdsFinancial assistance to Aroroy Water District Water District
  25. 25. ROADS AND OTHER INFRASTRUCTUREPathway Construction Completed construction  of 201 meter‐long  of 201 meter long pathway for Lanang and  PaniqueRoad Repair and Maintenance‐ Repaired 1.1 kilometersof barangay roads in Panique and Puro‐ Maintain 8.7 kilometers of roads around the mine complex
  26. 26. Construction of 3 and renovation of a barangayof a barangay CAPSAY – 1 unit, 2 story unit BANGON – 1 unit, 2 story unitmulti‐purpose  building constructed building constructedbuildings PURO – Renovation of 1 unit multi- BALAWING – 1 unit, 2 story bldg purpose bldg constructed
  27. 27. EDUCATION Scholarship Programs ‐ 82 recipients (26 high  school and 56 college) of scholarship and  educational assistance Brgy Lanang Scholars Brgy Lanang Scholars Brgy Syndicate Scholars Brgy Amoroy Scholars Brgy Puro Scholars gyBrgy Caspay Scholars
  28. 28. School Building ConstructionBangon Elem. School Panique High School Amoroy Elem. SchoolCompleted construction of 1 classroom building Completed construction of 2 classroom building Completed construction of 2 classroom buildingLanang Elem. School Syndicate Elem. School Balawing Elem. SchoolCompleted construction of 1 classroom building Completed construction of 1 classroom building Completed construction of 2 classroom building
  29. 29. Salary assistance for teachers teachers in various schools of  Brgys. Puro, Balawing & LanangTransportation assistance  571 Students from 3 barangays Students from 3 barangays (Brgys Puro, Lanang &  Syndicate)  being ferried to and  from school
  30. 30. Purchase of transportation boat 1 unit of motor boat each  to Brgys Balawing and  Lanang to transport 44  students to and from  students to and from schoolsPurchase of Multi purpose vehicle 1 unit of school  service/jeep purchased  for Brgy Syndicate to  transport  students to and  from Aroroy High School
  31. 31. HEALTH &SANITATIONProper waste disposal Purchased 3 garbage  Purchased 3 garbage trucks for  barangays Panique, Puro and  Bangon for garbage  collection  Barangay Panique Barangay PuroStrengthening health referral system Provision of Health   Provision of Health service for Lanang,   Barangay Bangon Barangay Lanang
  32. 32. Health facility development  and development andNutrition program • Equipped the Barangay Health Station in Puro Health 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)
  33. 33. CULTURE AND SPORTS DEVELOPMENT Chapel Renovation and construction pMaterials and  financial assistance provided to barangays for Fiesta celebrations.
  34. 34. Corporate Social Responsibility (CSR)(totalling around 30 million pesos, since 2007) • MGP implemented various programs, projects and activities during the construction and pre- p g p operation stages to help in the economic and social development of impact communities • These i iti ti Th initiatives were undertaken even before the institutionalization of the Social Development and Management Program (SDMP) • These are projects recognized by the company as pressing needs and basic human necessities particularly in health, education and infrastructure • Protection and respect of socio- cultural values were also given importance
  35. 35. Community Health Emergency Response Company doctor, shows ComRel ambulance for community patients
  36. 36. 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
  37. 37. THE KATUPARAN FARMERS ASSOCIATION
  38. 38. Tax ContributionsEstimatesExcise taxes  PhP 157 MReal property taxes              76 MExpanded withholding taxes       132 MWithholding tax on wages            25 MFinal tax                                  27 MLocal business taxes                       20 MOther taxes                                      38 MVAT 1.415 BTOTAL     PhP 1.890 B
  39. 39. Employment Benefits Roughly 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 Masbate
  40. 40. The Masbate Gold Project is Aroroy’s development partner. ….Ito ang ating minahan para sa kinabukasan.

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