Taganito Hydrometallurgical Processing Plant Project - Environmental Impact Statement

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Taganito Hydrometallurgical Processing Plant Project Environmental Impact Statement Taganito Mining Corporation Document No.: R08-014 July 2008

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Taganito Hydrometallurgical Processing Plant Project Environmental Impact StatementTaganito Mining CorporationDocument No.: R08-014July 2008pages 1-251

Transcript of Taganito Hydrometallurgical Processing Plant Project - Environmental Impact Statement

Page 1: Taganito Hydrometallurgical Processing Plant Project - Environmental Impact Statement

Taganito Hydrometallurgical Processing Plant Project

Environmental Impact Statement Taganito Mining Corporation

Document No.: R08-014 July 2008

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Environmental Impact Statement R08-014 Prepared for

Taganito Mining Corporation Prepared by Maunsell Philippines Inc 11/F Ayala Life - FGU Center, 6811 Ayala Avenue, Makati City, Philippines T +632 843 6336 F +632 843 6125 www.maunsell.com 21 July 2008 51050307 © Maunsell Philippines Inc 2008 The information contained in this document produced by Maunsell Philippines Inc is solely for the use of the Client identified on the cover sheet for the purpose for which it has been prepared and Maunsell Philippines Inc undertakes no duty to or accepts any responsibility to any third party who may rely upon this document. All rights reserved. No section or element of this document may be removed from this document, reproduced, electronically stored or transmitted in any form without the written permission of Maunsell Philippines Inc.

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Quality Information Document Environmental Impact Statement

Ref 51050307

Date 21 July 2008

Prepared by Maunsell Environmental Study Team

Reviewed by Naniel V. Aragones / Jess P. Bayrante / Jo Rowena Garcia

Revision History

Authorised Revision Revision Date Details

Name/Position Signature

0 09/04/2008 Preliminary Issue Jess P. Bayrante Associate Director - Environment

1 18/04/2008 With TMC’s comments Jess P. Bayrante Associate Director - Environment

2 21/04/2008 For EIARC review Jess P. Bayrante Associate Director - Environment

3 28 May 2008 Additional Information Jess P. Bayrante Associate Director -

Environment

4 21 July 2008 Final EIS Jess P. Bayrante Associate Director - Environment

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Table of Contents

Project Fact Sheet i

Executive Summary iv

1.0 Basic Project Information 1-1

2.0 Description of the Project’s EIA Process 2-12.1 Terms of Reference of the EIA Study 2-12.2 The EIA Team 2-12.3 EIA Study Schedule 2-22.4 EIA Study Area 2-32.5 EIA Methodology 2-32.6 Public Participation 2-3

3.0 Project Description 3-13.1 Project Location and Area 3-13.2 Project Rationale 3-23.3 Project Alternatives 3-23.4 Project Components 3-5

3.4.1 Hydrometallurgical Processing Plant (HPP) and Associated Facilities 3-93.4.2 Auxiliary Facilities 3-22

3.5 Description of Project Phases 3-313.5.1 Pre-construction/Pre-operational Phase 3-313.5.2 Construction/Development Phase 3-323.5.3 Operational Phase 3-323.5.4 Abandonment Phase 3-32

3.6 Project Wastes and Built-in Management Measures 3-333.7 Manpower Requirements 3-363.8 Project Cost 3-363.9 Project Duration and Schedule 3-36

4.0 Baseline Environmental Conditions, Impact Assessment and Mitigation 4-14.1 The Land 4-1

4.1.1 Land Use and Classification 4-14.1.2 Geology and Geomorphology 4-24.1.3 Geohazard Analysis 4-74.1.4 Terrestrial Flora 4-134.1.5 Terrestrial Fauna 4-20

4.2 The Water 4-264.2.1 Hydrology and Hydrogeology 4-264.2.2 Key Impacts and Mitigating Measures 4-344.2.3 Oceanography 4-404.2.4 Key Impacts and Mitigating Measures 4-474.2.5 Sediment Transport 4-474.2.6 Water Quality 4-474.2.7 Sediment Quality 4-584.2.8 Key Impacts and Mitigating Measures 4-594.2.9 Freshwater Biology 4-594.2.10 Key Impacts and Mitigating Measures 4-664.2.11 Marine Biology 4-664.2.12 Key Impacts and Mitigating Measures 4-87

4.3 The Air 4-884.3.1 Meteorology 4-88

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4.3.2 Ambient Air Quality and Noise 4-894.3.3 Key Impacts and Mitigating Measures 4-99

4.4 The People 4-1074.4.1 Demographic Data 4-1074.4.2 Household Survey 4-1094.4.3 Key Socio-Economic Conditions 4-1104.4.4 Community Perception and Social Acceptability 4-1124.4.5 Project Awareness 4-1134.4.6 Indigenous People 4-1144.4.7 Key Impact and Mitigating Measures 4-1184.4.8 Public Health 4-1234.4.9 Key Impacts and Mitigating Measures 4-125

5.0 Preliminary Risk Assessment 5-15.1 General Risk Assessment 5-1

5.1.1 Conceptual Framework, Approach and Methodology 5-15.1.2 Hazard Identification 5-25.1.3 Risk Analysis 5-25.1.4 Hazard Analysis 5-25.1.5 Consequence Analysis 5-65.1.6 Frequency Analysis 5-75.1.7 Estimation of Risk 5-75.1.8 Risk Assessment 5-8

5.2 Environmental Risk Management Plan 5-85.2.1 Emergency Response Policy and General Measures 5-8

6.0 Environmental Management Plan 6-16.1 Impacts Management Plan 6-16.2 Social Development Framework 6-116.3 IEC Framework 6-136.4 Abandonment/Decommissioning/Rehabilitation Policies 6-166.5 Environmental Monitoring Plan 6-16

6.5.1 Self Monitoring Plan 6-166.5.2 Multi-Sectoral Monitoring Framework 6-246.5.3 Environmental Guarantee and Monitoring Fund Commitment 6-246.5.4 Institutional Plan for EMP Implementation 6-24

7.0 References 7-1

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List of Figures

1.0-1 Location Map and Site Development Plan of the Proposed Taganito HPP Project 3.1-1 Project Location Map 3.1-2 Map of Primary Impact Areas 3.1-3 Map of Secondary Project Impact Areas 3.4-1 Taganito HPP Project Site Development Plant 3.4.1-1 Process Flow Chart 3.4.1-2 Material Balance Diagram of the Taganito HPP (for 30kT-Ni as MS + 15kT-Ni as

Hydroxide) 3.4.1-3 Water Balance Diagram of the Taganito HPP Project 3.4.2-1 Conceptual Lay-out Plan of the Wharf 3.4.2-2 Proposed Alignment of the Wharf 3.4.2-3 Sectional Views of the Wharf 4.1.2-1 Regional Geologic Map of Mindanao 4.1.2-2 Geologic Cross-sections 4.1.2-3 Soil Fertility Sampling Points 4.1.3-1 Slope map for the Taganito Mines Project area 4.1.3-1 Distribution Map of the Philippines, PHIVOLCS 2000 4.1.3-2 Active Faults Distribution Map of the Philippines, PHIVOLCS 2000 4.1.4-1 Figure Location of the vegetation sampling quadrats 4.1.5-1 Location of the wildlife sampling sites 4.2.1-1 Map showing the Location of the PAGASA Statios (with MAR in mm) Relative to the

Taganito Mines Project Area 4.2.1-2 Map showing the Location of the Hydrology Sampling Stations 4.2.1-9 Composite Plot of Annual, Cumulative Annual and Monthly Maximum, Mean and Minimum

Rainfall – Mine Site Station 4.2.1-10 Map Showing the Proposed Facilities and Developments in the Different River Basins 4.2.1-11 Calculated Flow Duration Curve at the Proposed Diversion Weir in the Taganito River 4.2.1-12 Calculated Flow Duration Curve at the Proposed Diversion Weir in the Daang Suba River 4.2.1-13 Comparative Flow Duration Curve of Taganito River Under Existing Condition and With

Tailings Dam and Diversion Weir (Encircled Ordinates are 0.1 or 10 year and 0.01 or 100-year Exceedance)

4.2.1-14 Comparative Flow Duration Curve of Hayanggabon River Under Existing Condition and With Tailings Dam (Encircled Ordinates are 0.1 or 10-year and 0.01 or 100-year Exceedance

4.2.3-1 Map showing the study area 4.2.3-2 Bathymetry of study area. Contour lines in meters 4.2.3-3 Map showing station locations covered during the field survey 4.2.3-4 Map showing the model domain overlaid by bathymetry in meters 4.2.3-5 Vertical profiles of salinity and temperature 4.2.3-6 Surface current. From drogue measurements 4.2.3-7 Simulated surface current in January (top) and August (bottom) 4.2.3-8 Vertically averaged current in January (top) and August (bottom) simulated by POM 4.2.3-9 Modeled tidal velocities during ebb (left) and flood (right) conditions (from Villanoy and

Magno, 2006) 4.2.6-1 Location Map of Water Quality Sampling Stations

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4.2.6-2 Supplementary coastal water quality sampling stations in the coastal waters of Taganito, Carascal Bay, and Canal Bay. The white rectangular outline depicts the area shown in Figure 4.2.6-3.

4.2.6-3 Supplementary coastal water quality sampling stations in the coastal waters of Taganito 4.2.6-4 Cadmium levels in the coastal waters of Taganito, Canal Bay, and Carascal Bay 4.2.6-5 Copper levels in the coastal waters of Taganito, Canal Bay, and Carascal Bay 4.2.6-6 Pb levels in the coastal waters of Taganito, Canal Bay, and Carascal Bay 4.2.9-1 Counts of Aquatic Insect Groups 4.2.9-2 Counts and Number of Taxa of Aquatic Fauna from the Different Sampling Stations 4.2.11-1 Area covered by site reconnaissance of coastal waters 4.2.11-2 Location Map of Marine Sampling Stations 4.2.11-3 Total average densities of soft bottom benthos in the marine Environment of Taganito HPP

Site, Surigao 4.2.11-4 Total estimated abundance of crustacean fauna in the marine environment of Taganito

HPP Site, Surigao 4.2.11-5 Total estimated abundance of polychaetes in the marine environment of Taganito HPP

Site, Surigao 4.2.11-6 Phytoplankton densities in 4 marine stations within the vicinity of Taganito, Surigao 4.2.11-7 Zooplankton densities in 4 marine stations within the vicinity of Taganito, Surigao 4.2.11-8 Zooplankton biomass in 4 marine stations within the vicinity of Taganito, Surigao 4.2.11-9 Shoot density of the different seagrass species recorded per station. Data presented are

mean (±)standard error (SE). Hun: Halodule uninervis, Hovs: Halophila ovalis, Thal: halassia hemprichii, Cyro: Cymodocea rotundata, Syri: Syringdoium isoetifolium, Enha: Enhalus acoroides, and Cyse: Cymodocea serrulata

4.2.11-10 Total shoot density of the seagrasses in the different sites surveyed in Claver area. Data presented are mean (±) standard error (SE).

4.2.11-11 Above- (white shaded area) and below- (gray shade area) ground biomass allocation (g dry weight m-2) of the different seagrass species located in white sand (Site 1, A) and north (Site 2, B) of Aling Island, Urbiztondo (Site 4, C), and Taganito (Site 5, D). Data presented are mean ± standard error (SE)

4.2.11-12 Total biomass allocation of seagrasses in the different Sites surveyed around the municipality of Claver. White shaded portion: aboveground; gray shaded portion: belowground biomass. Data presented are mean ± standard error (SE)

4.3.2-1 Location of Air Quality Sampling Stations 4.3.3-1 Predicted 1-hour TSP Ground Level Concentration (ug/Ncm) TSP Highest Value of

94ug/Ncm vs DENR NAAQS of 300ug/Ncm 4.3.3-2 Predicted 1-hour SO2 Ground Level Concentration (ug/Ncm) SO2 Highest Value of

335ug/Ncm vs. DENR NAAQS of 340ug/Ncm 4.3.3-3 Predicted 1-hour NO2 Ground Level Concentration (ug/Ncm) NO2 highest value of

230ug/Ncm vs. DENR NAAQS of 260ug/Ncm 4.3.3-4 Predicted 24-hour TSP Ground Level Concentration (ug/Ncm) TSP Highest Value of

54ug/Ncm vs DENR NAAQGV of 230ug/Ncm 4.3.3-5 Predicted 24-hour SO2 Ground Level Concentration (ug/Ncm) SO2 Highest Value of

135ug/Ncm vs. DENR NAAQGV of 180ug/Ncm 4.3.3-6 Predicted 24-hour NO2 Ground Level Concentration (ug/Ncm) NO2 highest value of

92ug/Ncm vs. DENR NAAGQV of 150ug/Ncm 4.3.3-7 Predicted 30-min H2S Ground Level Concentration (ug/Ncm) H2S highest value of

3.7ug/Ncm vs. DENR NAAQS of 100ug/Ncm

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4.3.3-8 Predicted 1-hour CO Ground Level Concentration (ug/Ncm) CO highest value of 28ug/Ncm vs. DENR NAAQGV of 35ug/Ncm

4.3.3-9 Predicted 8-hour CO Ground Level Concentration (ug/Ncm) CO highest value of 10ug/Ncm vs. DENR NAAQGV of 10ug/Ncm

4.4.1 Settlement Map of All Project-Affected Areas 5.1.1-1 Schematic Flow of Risk Assessment 6.5.1-1 Proposed Marine Monitoring Points 6.5.4-1 TMC Organizational Chart for EMP implementation List of Tables

2.1-1 List of Significant Issues Raised During the Scoping Meetings 2.2-1 The EIA Study Team 2.3-1 EIA Schedule of Activities 2.6-1 List of Public Consultations Conducted 3.4-1 Project Components and Location 3.4.1-1 Description of HPP Circuits 3.4.1-2 H2S Plant Specifications 3.4.1-3 Properties and Quality of Hydrogen Sulfide 3.4.2-1 Tailings Storage Facility Specifications 3.4.2-2 Total reserves of Limestone quarry 3.4.2-3 Stages of Quarrying Operation 3.4.2-4 Description of Materials Storage Facility 3.5.1-1 Project Permits 3.6-1 Potential Project Wastes 3.7-1 Breakdown of Personnel 3.9-1 Project Duration and Work Schedule 4.1.2-1 Geologic Units in the Project Site 4.1.2-2 Soil Fertility Sampling Point Details 4.1.2-3 Soil Properties 4.1.3.-1 Geohazards in relation to slopes 4.1.3-2 Geohazards, Impacts and Mitigation 4.1.3-3 Earthquake Distribution 4.1.3-4 Major Earthquake Generators and Ground Acceleration 4.1.4-1 Location of the sampling Quadrats 4.1.4-2 Species Richness of the Three Types of Vegetation Cover 4.1.4-3 List of the Species at the Open forest and their corresponding importance value (IV) 4.1.4-4 List of the species at the limestone forest and their corresponding importance value (IV) 4.1.4-5 List of the species at the brushland and their corresponding importance value (IV) 4.1.4-6 Diversity indices and number of species for each transect line 4.1.4-7 List of the Mindanao Island endemics recorded from the sampling quadrats 4.1.4-8 List of Species included in the National Red List 4.1.5-1 Locations of the wildlife sampling sites 4.1.5-2 List of noteworthy species in Brgys. Cagdianao, Hayanggabon, Taganito and Sapa 4.2.1-1 List of catchments and corresponding Project area/facility drained 4.2.1-2 Comparative summary of measured and simulated velocity and river flows

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4.2.1-3 Summary of Changes and Runoff and groundwater recharge depths 4.2.6-1 Locations of the Surface Water Quality Sampling Stations 4.2.6-2 Location of the Groundwater quality sampling Stations 4.2.6-3 Location of the Marine and Coastal water Quality sampling Stations 4.2.9-1 Freshwater Benthos in the River Systems Collected by Kick Net 4.2.11-1 Benthic attributes for sites sampled off Barangays Taganito, Hayanggabon and Urbiztondo 4.2.11-2 Species list and counts per station of reef fishes off Taganito 4.2.11-3 List of commercial fishes landed in Hayanggabon 4.2.11-4 Average estimated density (number of individuals/m2 of soft bottom benthos in the marine

environment of Taganito Nickel HPP Project, Surigao 4.2.11-5 Density and list of phytoplankton for each station in Taganito, Surigao 4.2.11-6 Density and list of zooplankton for each station in Taganito, Surigao 4.2.11-7 List of seaweed-associated species in seagrass meadows and their relative cover and

frequency of occurrences in Claver 4.3.2-1 Air Quality and Noise sampling Stations 4.3.2-2 Methods of Noise Sampling and Air Analysis for SO2, NOx, TSP and PM-10 4.3.2-3 Results of 1-Hour Ambient Air Quality Monitoring 4.3.2-4 Results of 24-Hour Ambient Air Quality Monitoring 4.3.2-5 Air Quality Indices (Source: Annex A of DAO 2000-81) 4.3.2-6 Ambient Noise Levels 4.3.2-7 Philippine Ambient Noise Standards 4.4.1-1 Summary of Demographic Profile :Project-Affected Communities (PACs) 4.4.1-2 Power Supply and Demand 4.4.1-3 Water Supply and Demand 4.4.2-1 Key Features of Project-Affected Communities (PACs) 4.4.3-1 Summary of Basic Household Features of Project-Affected Communities (PACs) 4.4.3-2 Main Source of Income : Project-Affected Communities (PACs) 5.1.4-1 Hazard Materials Associated with the Project 5.1.4-2 Hazard Analysis Matrix 5.1.5-1 Results of External Consequence Computation 5.1.6-1 Results of Frequency Calculation 5.1.7-1 Results of Preliminary Risks Posed by the Project’s Operations 5.2.1-1 List of Equipments for Various Emergency Conditions 6.1-1 Summary of the various impacts and mitigation measures for the different project phases 6.2.1 The Social Development Framework 6.3-1 Information, Education and Communication (IEC) Plan/Framework 6.5-1 Environmental Monitoring Plan (EMoP) with Environmental Quality Performance Levels

(EQPLs) List of Plates

3.4-1 Proposed location of HPP at the southern portion of Barangay Hayanggabon 3.4-2 Proposed location of HPP overlooking Telegrapo Island 3.4-3 Proposed location of the Ore preparation Circuit at the north western portion of the mine

site called “Taga 2” 3.4-4 Proposed location of the Ore Preparation Circuit 3.4-5 Proposed location of the Ore Preparation Circuit

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3.4-6 Proposed wharf berth located beside the existing wharf facility 3.4-7 Proposed location of the Quarry Site 3.4-8 Proposed Tailings Dam Site Quarry Site 4.1.4-1 The three general vegetation types in the development area: (a) open forest (at the initial

stage of regeneration); (b) limestone forest; and (c) brushland) 4.1.6-1 Stands of woody fern observed in Site 1 4.1.6-2 Vegetation cover in Site 1 4.2.6-1 Station SW1 at taganito River. Brownish turbid waters were noted in the wet season in

contrast with the clear waters observed during the dry season sampling. Runoff from exposed slopes upstream of the station contribute to the turbidity in the wet season. This station is located upstream of the proposed tailings dawm in Taganito River

4.2.6-2 The station drains an area of the watershed that is currently unaffected by mining operations. Waters during the dry and wet season sampling were noted to be clear. This is considered as a control station and will not be affected by the proposed HPP operations

4.2.6-3 Station SW3 at Taganito River. Brownish, turbid waters were noted in the wet season while clearer waters with a much lower stream flow was noted during the dry season. The station is downstream of an existing siltation pond. It will be downstream of the proposed tailings dam

4.2.6-4 Station SW4 at Taganito River. The station represents the confluence of Stations SW2 and SW3. Clear waters were noted in the dry season. Turbid waters noted in the wet season was due to the turbidity of station of SW2

4.2.6-5 Station SW5 at Taganito River. Slightly turbid waters and high flows were noted during the wet season. Runoff from banks such as that in the foreground primarily contributes to the turbidity. Lower flows and clearer waters were noted in the dry season

4.2.6-6 Station SW6 at Taganito River. High flow and turbid waters were noted during the wet season. Less turbid waters with lower flow was noted in the dry season. The site will be affected by the proposed tailings dam

4.2.6-7 Station SW7 at Tagnito River. Turbid waters were noted during the wet season as compared to the dry season. The site is situated upstream of the proposed tailings disposal dam

4.2.6-8 Station SW8 at Taganito River 4.2.6-9 Station SW9 at Hayanggabon River. Turbid waters were noted during the wet season

sampling. The site will be affected by the proposed tailings dam in Hayanggabon River 4.2.6-10 Plate 4.2.6-10. Station SW10 at Hayanggabon River 4.2.6-11 Station SW11 at Sensio Creek. Clear waters were observed in the wet and dry seasons.

Sensio Creek is the stream nearest the town site 4.2.6-12 Station SW12 at Magallanes River. The station is near the proposed quarry site 4.2.6-13 Station SW13 at Magallanes River. The station is near the proposed quarry site 4.2.6-14 Station SW14 at Sapa River 4.2.6.15 Station SW15 at Magallanes River. The station is downstream the proposed quarry site 4.2.9-1 The kicknet method of sampling 4.2.9-2 Sorting of aquatic fauna caught by kicknet 4.2.9-3 Brown coloration on riparian vegetation indicating water level during flooding after a heavy

rainfall, and erosion of riverbanks at SW 4 4.2.9-4 Rocks at SW11 heavily covered with sediments 4.2.9-5 Station SW1 located in creek at the inlet of a siltation pond 4.2.9-6 Station SW2 located at Taganito River before SW 4 4.2.9-7 Station SW3 which feeds into Taganito River 4.2.9-8 Station SW4 which is downstream of Station 2 along Taganito River

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4.2.9-9 Station SW5 located further downstream of Taganito River 4.2.9-10 Station SW6 located downstream of the discharge of a siltation pond 4.2.9-11 Station SW7 located upstream of Station 6 4.2.9-12 Station SW8 near the Taganito River mouth 4.2.9-13 Station SW9 upstream of Hayanggabon River 4.2.9-14 Station SW10 near Taganito River mouth 4.2.9-15 Station SW11 located near the mouth of Sencio Creek 4.2.9-16 Station SW12 upstream of Magallanes River before confluence with Sapa River 4.2.9-17 Station SW13 downstream of Magallanes River and Sapa River confluence 4.2.9-18 Station SW14 upstream of Sapa River 4.2.9-19 Station SW15 downstream of Magallanes-Paoy River 4.2.11.1-1 Branching Acropora formosa northeast of Aling Island 4.2.11.1-2 Coral growth forms found southwest of Aling Island 4.2.11.1-3 Corals mounds found off Karaang Banwa 4.2.11.1-4 Corals with silt in between depressions off Malingin Islet 4.3.2-1 Air Quality Station No. 1 at TMC Staff House (February 2007) near Ore Preparation Area 4.3.2-2 Air Quality Station No. 2 at the Mine Pit Taga-2 (February 2007 near Proposed Tailings

Dam 4.3.2-3 Air Quality Station No. 3 at the Mine Yard Taga-3 (February 2007) near proposed Tailings

Dam 4.3.2-4 Air Quality Station No. 4 at the IPs Relocation Site (February 2007) near Ore Preparation

Area 4.3.2-5 Air Quality Station No. 5 at Brgy. Taganito (February 2007) near Ore Preparation Area 4.3.2-6 Air Quality Station No. 6 at gawad Kalinga (February 2007) near Ore Preparation Area 4.3.2-7 Air Quality Station No. 7 at Hayanggabon Elementary school (February 2007) Proposed

HPP vicinity 4.3.2-8 Air Quality Station No. 8 at Brgy. Hayanggabon (February 2007) Proposed HPP Vicinity 4.3.2-9 Air Quality Station No. 9 at Brgy. Sapa (February 2008) near proposed Limestone Quarry

Area 4.3.2-10 Air Quality Station No. 10 at Brgy. Ladgaron (February 2008) near proposed Limestone

Quarry Area 4.3.2.11 A Truck Generating Dust in the Mine Yard (May 2007) 4.4.6-1 Mamanua Relocation Site 5.1.4-1 Hazard Material Associated with the Project 5.1.4-2 Hazard Analysis Matrix 5.1.5-1 Results of External Consequences Computation 5.1.6-1 Results of Frequency Calculation 5.1.7-1 Results of Preliminary Risks Posed by the Project’s Operations List of Annexes

1-1 Sworn Accountability Statement of the Project Proponent 1-2 SEC Registration 1-3 Sworn Accountability Statement of the EIA Preparers 2-1 Site Scoping List of Issues 2-2 Attendance Sheet during the Public Scoping 2-3 Technical Scoping Checklist & Attendance Sheet

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List of Appendices

3.4.1 Configuration of Power Station 4.1.1 Figure 1 Existing Land Use Map of Municipality of Claver, Surigao del Norte 4.1.1 Figure 2 Proposed Land Use Map of Municipality of Claver, Surigao del Norte 4.1.4 Table 1 Llst of Species Recorded during the Vegetation Survey 4.1.4 Table 2 List of Philippine Endemics from the Sampling Quadrats 4.1.4 Table 1 List of amphibian, reptile and mammal species recorded from Brgys. Cagdianao,

Hayanggabon, Taganito, and Sapa, Mun. of Claver, Surigao del Norte 4.1.5 Table 2 List of bird species recorded from Brgys. Cagdianao, Hayanggabon, Taganito, and

Sapa, Mun. of Claver, Surigao del Norte 4.1.5 Text 1 Detailed Discussion for Each Group of Wildlife.doc 4.1.5 Text 2 Data Analysis 4.2.1.1 Table 1 Monthly and Annual Rainfall Data (mm) at the Taganito Camp Site (1994 -2006) 4.2.1.1Table 2 Monthly and Annual Rainfall Data (mm) at the Taganito Mine Site (1994 -2006) 4.2.1.1 Table 3a Summary of Peak Wet Season (January 2007) Velocity Measurements and

Discharge Computations – Main Taganito River (SW-1) 4.2.1.1 Table 3b Summary of Recession or Less Wet Period (April 2007) Velocity Measurements and

Discharge Computations - Main Taganito River (SW-1) 4.2.1 Table 4a Summary of Peak Wet Season (January 2007) Velocity Measurements and

Discharge Computations – Daku Creek (SW-2) 4.2.1 Table 4b Summary of Recession or Less Wet Period (April 2007) Velocity Measurements and

Discharge Computations - Main Taganito River upstream (SW-2’) 4.2.1 Table 5a Summary of Peak Wet Season (January 2007) Velocity Measurements and

Discharge Computations – Daang Suba River (SW-3) 4.2.1Table 5b Summary of Recession or Less Wet Period (April 2007) Velocity Measurements and

Discharge Computations - Daang Suba River (SW-3) 4.2.1 Table 6a Summary of Peak Wet Season (January 2007) Velocity Measurements and

Discharge Computations – Hayanggabon River (SW-4) 4.2.1 Table 6b Summary of Recession or Less Wet Period (April 2007) Velocity Measurements and

Discharge Computations - Hayanggabon River (SW-4) 4.2.1 Table 7a Summary of Peak Wet Season (January 2007) Velocity Measurements and

Discharge Computations – Sensio Creek (SW-5) 4.2.1Table 7b Summary of Recession or Less Wet Period (April 2007) Velocity Measurements and

Discharge Computations – Sensio Creek (SW-5) 4.2.1Table 8 12-Year Estimated Monthly and Annual Average Discharge, m3/sec. – Taganito

River 4.2.1 Table 9 12-Year Estimated Monthly and Annual Average Discharge, m3/sec. – Daang Suba

River 4.2.1Table 10 12-Year Estimated Monthly and Annual Average Discharge, m3/sec. – Hayanggabon

River 4.2.1 Table 11 12-Year Estimated Monthly and Annual Average Discharge, m3/sec. – Sensio Creek 4.2.1 Table 12 12-Year Estimated Monthly and Annual Average Discharge, m3/sec. – Township

River 4.2.1 Table 13 Estimated Monthly and Annual Average Discharge (m3/sec.) for Taganito River With

Reduced Catchment Area Due to Tailings Dam No. 1 and Diversion Weir 4.2.1 Table 14 Estimated Monthly and Annual Average Discharge (m3/sec.) for Hayanggabon River

With Reduced Catchment Area Due to Tailings Dam No. 3 4.2.1 Table 15 Estimated Potential Evapotranspiration in mm at the Lake Mainit Station

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4.2. Table 16 Monthly and Annual Water Balance Under Existing Conditions – Taganito River Basin

4.2.1 Table 17 Monthly and Annual Water Balance Under Existing Conditions – Daang Suba River Basin

4.2.1 Table 18 Monthly and Annual Water Balance Under Existing Conditions – Hayanggabon River Basin

4.2.1 Table 19 Monthly and Annual Water Balance Under Existing Conditions – Sensio Creek River Basin

4.2.1 Table 20 Monthly and Annual Water Balance Under Existing Conditions – Township River Basin

4.2.1 Table 21 Monthly and Annual Water Balance Under Existing Conditions – Paoy-Magallanes River Basin

4.2.1 Table 22 Monthly and Annual Water Balance Under Existing Conditions – Sapa Creek Basin 4.2.1 Table 23 Monthly and Annual Water Balance With Ore Preparation Area – Taganito River

Basin 4.2.1Table 24 Monthly and Annual Water Balance With Decant Pond – Hayanggabon River Basin 4.2.1Table 25 Monthly and Annual Water Balance With HPP – Sensio River Basin 4.2.1 Table 26 Monthly and Annual Water Balance With New Township – Township River Basin 4.2.1.3 General Climatologic Condition 4.2.4 Table 1 Erosion Calculation using the Universal Soil Loss Equation (USLE)1, Area 1 4.2.4 Table 2 Erosion Calculation using the Universal Soil Loss Equation (USLE)1, Area 2 4.2.5 Sediment Transport Study 4.2.6 Table 1 Groundwater Quality with the Appropriate Quality Criteria (Wet Season) 4.2.6 Table 2 Groundwater Quality with the Appropriate Quality Criteria (Dry Season) 4.2.6 Table 3 Groundwater quality with the Appropriate quality Criteria (Additional) 4.2.6 Table 4 Surface Water Quality with the Appropriate Quality Criteria (Wet Season) 4.2.6 Table 5 Surface water Quality with the Appropriate quality Criteria (Dry Season) 4.2.6 Table 6 Surface water Quality with the Appropriate Quality Criteria (Additional) 4.2.6 Table 7 Coastal and Marine Water Quality with Appropriate Quality Criteria (Wer Season) 4.2.6 Table 8 Coastal and Marine Water Quality with the Appropriate Quality Criteria (Dry Season) 4.26. Table 9 Coastal and Marine Water Quality with the Appropriate Quality Criteria (Additional) 4.2.6 Figure 1 Supplementary coastal water Quality sampling Stations in the coastal water of

Taganito 4.2.6 Figure 2 Supplementary coastal water Quality Sampling Stations in the coastal waters of

Taganito, Carascal Bay and Canal Bay. The white rectangular outline depicts the area shown in Figure 2

4.2.6 Figure 3 Cadmium levels in the coastal waters of Taganito, Canal Bay, and Carascal Bay 4.2.6 Figure 4 Copper levels in the coastal waters of Taganito, Canal Bay, and Carascal Bay 4.2.6 Figure 5 Pb levels in the coastal water of Taganito, Canal Bay, and Carascal Bay 4.2.7 Table 1 Heavy Metal Concentrations in the Stream and marine Sediments (Wet Season) 4.2.7 Table 2 Heavy Metal Concentration in the Stream and Marine Sediments (Dry Season) 4.2.7 Table 3 Index of Geo-accumulation (Wet Season) 4.2.7 Table 4 Index of Geo- accumulation (Dry Season) 4.2.7 Table 5 Index of Geo-accumulation (additional) 4.2.6 Table 6 Pollution Class Based on 1 geo 4.2.11.3 Table 1 Average estimated density of soft bottom benthos by station at the Taganito HPP

Site, Surigao

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4.2.11.4 Table 1 Nitrate concentrations in 4 marine stations within the vicinity of Taganito, Surigao4.2.11.4 Table 2 Nitrate concentrations in 4 marine stations within the vicinity of Taganito, Surigao4.2.11.4 Table 3 Phosphate concentrations in 4 marine stations within the vicinity of Taganito,

Surigao4.2.11.4 Table 4 Ammonium concentrations in 4 marine stations within the vicinity of Taganito,

Surigao4.3.1.1 Figure 2 Annual Wind Rose Data (Surigao City) – 1997 to 19964.3.1 Figure 4 Frequency of Tropical Cyclone Passage4.3.1 Table 1 Climatological Normals4.3.1 Table 2 Climatological Extreme4.3.3 Limitations and Assumptions of Air Modeling4.3.3 Figure 1 Predicted 30-min H2S Ground Level Concentration (ug/Ncm) H2S highest value of

3.7ug/Ncm vs. DENR NAAQS of 100ug/Ncm at 800 m W of the proposed HPP4.3.3 Figure 2 Predicted 1-hour CO Ground Level Concentration (ug/Ncm) CO highest value of

28ug/Ncm vs. DENR NAAQGV of 35ug/Ncm at the tailings dam at Taga 34.3.3 Figure 3 Predicted 1-hour CO Ground Level Concentration (ug/Ncm) CO highest value of

10ug/Ncm vs. DENR NAAQGV of 10ug/Ncm at the tailings dam at Taga 24.4.1a Household Population by age-Group, Sex, Municipality of Claver, 20004.4.1b Literacy and Illiteracy Rate by Sex Per Barangay from 6 years old 15 years old SY

2004-20054.4.1c Literacy and Illiteracy Rate by Sex Per Barangay from 16 years old and above4.4.2 Perception Survey Questionnaire4.4.3 Table 1 Monthly Cash Income Features of Households4.4.4 Table 1 Degree of Support or Opposition to the Proposed HPP Project, All PACs4.4.4 Table2a Degree of Support or Opposition to the Proposed HPP Project, Hayanggabon4.4.4 Table 2b Degree of Support or Opposition to the Proposed HPP Project, Cagdianao4.4.4 Table 2c Degree of Support or Opposition to the Proposed HPP Project, Taganito4.4.4 Table 2d Degree of Support or Opposition to the Proposed HPP Project, Sapa4.4.5 Table 1 Fears and Apprehensions About the HPP Project4.4.7 Table 1 Aggregate Wages of Construction Workers (Skilled and Unskilled)4.4.7 Table 2 Aggregate Value of Local Purchases of Construction Workers4.4.7 Table 3 Employment Days Created or Sustained by Local Purchases of Construction

Workers4.4.7 Table 4 Employment Days Created or Sustained by Local Purchases of Construction

Workers4.4.7 Table 5 Aggregate Wages of HPP Workers (Skilled and Unskilled)4.4.7 Table 6 Aggregate Value of Local Purchases of HPP Workers4.4.7 Table 7 Employment Days Created or Sustained by Local Purchases of HPP Workers (15%

of Retail Price)4.4.7 Table 8 Employment Days Created or Sustained by Local Purchases of HPP Workers (25%

of Retail Price)4.4.7 Table 9 Aggregate Value of Local Purchases of Town Site Residents and Corresponding

Employment Days Created4.4.8.1 Table 1 Vital Health Statistics of Claver, Surigao del Norte, 2003- 20074.4.8.1 Table 2 Ten Leading Causes of Morbidity in Claver, Surigao del Norte, 2003-20074.4.8.1 Table 3 Ten Leading Causes of Mortality in Claver, Surigao del Norte, 2003-20074.4.8.1 Table 4 Environmental Health and Sanitation Profile of Claver, Surigao del Norte, 2004

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4.4.8.1 Table 4 Environmental Health and Sanitation Profile of Claver, Surigao del Norte, 2004 4.4.8.1 Table 5 Health Personnel in Claver, Surigao del Norte, 2003-2007 4.4.8.1 Table 6 Health Facilities in Claver, surigao del Norte, 2007 4.4.8.2 Table 1 Vital Health Statistics of Impact Barangays, 2003-2007 4.4.8.3 Table 1 Leading Causes of Morbidity, Barangay Cagdianao, Claver, Surigao del Norte,

2003-2007 4.4.8.3 Table 2 Ten Leading Causes of Morbidity, Barangay Hayanggabon, Claver, Surigao del

Norte, 2002-2006 4.4.8.3 Table 3 Ten Leading Causes of Morbidity, Barangay Sapa, Claver, Surigao del Norte, 2003-

2007 4.4.8.3 Table 4 Ten Leading Causes of Morbidity (by age group), Barangay Taganito, Claver,

Surigao del Norte from October to December 2006 4.4.8.3 Table 5 Ten Leading Causes of Morbidity (by gender), Barangay Hayanggabon, Claver,

Surigao del Norte, 2002-2006 4.4.8.4 Table 1 Leading Causes of Mortality, Barangay Cagdianao, Claver, Surigao del Norte 2003-

2007 4.4.8.4 Table 2 Leading Causes of Mortality, Barangay Hayanggabon, Claver, Surigao del Norte

2003-2007 4.4.8.4 Table 3 Leading Causes of Mortality, Barangay Sapa, Claver, Surigao del Norte 2003-2007 4.4.8.5 Table 1 Environmental Health and Sanitation Indices of the Impact Barangays 4.4.8.6 Table 1 Health Personnel in the Impact Barangays (2007) 4.4.8.7 Table 1 Health Facilities in Barangay Cagdianao, Claver, Surigao del Norte, 2007 5.1.1 Relevant IAEA-TECDOC-727 Manual Tables

List of Abbreviations and Technical Nomenclature o degrees oC degrees Celsius % percent /day per day α alpha µg/Ncm microgram per normal cubic meter µg/Nm3 microgram per normal cubic meter µM micromole µm micrometer AA algal assemblages AB non-living components or abiotics AE actual evapotranspiration Al Aluminum AMPSA Application for Mineral Production Sharing Agreement ANSI American National Standards Institute API American Petroleum Institute As Arsenic AS/NZS Australian Standards/New Zealand Standards ASME American Society of Mechanical Engineers BHS Barangay Health Station BOD Biological Oxygen Demand BSWM Bureau of Soils and Water Management Ca Calcium Ca(OH)2 Calcium Hydroxide / slaked lime

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CAA Clean Air Act CaO Calcium Oxide / lime CBR Crude Birth Rate CCD Counter Current Decantation Cd Cadmium CENRO Community Environment and Natural Resources Office CH3OH Methanol CLUP Comprehensive Land Use Plan cm centimeter cm2 square centimeter cmd cubic meters per day CMS cubic meters per second CO2 Carbon Dioxide COD Chemical Oxygen Demand CP Certification Precondition Cr Chromium CTD Conductivity Temperature Depth CTWG Community Technical Working Group cu.m cubic meter CVD Cardio Vascular Diseases ∆ delta D depth d/y days per year DAO Department of Environment and Natural Resources Administrative Order day-1 per day dBA decibels dbh diameter at breast height DC/DCA dead coral DCS Distributed Control System DENR Department of Environment and Natural Resources DEPED Department of Education DI Dominance Index DILG Department of Interior and Local Government DMT dry metric tons DO Dissolved Oxygen DOH Department of Health DTI Department of Trade and Industry E East ECC Environmental Compliance Certificate EGF Environmental Guarantee Fund EIA Environmental Impact Assessment EIS Environmental Impact Statement EL elevation

EMB-DENR Environmental Management Bureau-Department of Environment and Natural Resources

EMF Environmental Monitoring Fund EMoP Environmental Monitoring Plan EMP Environmental Management Plan EQPL Environmental Quality Performance Levels ERA Environmental Risk Assessment ERP Emergency Response Plan ESA Environmental Site Assessment

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FDC Flow Duration Curve Fe Iron FGD Focus Group Discussion FPIC Free and Prior Informed Consent g gravity g gas g DW m-2 grams dry weight per square meter gC/m3 gram Carbon per cubic meter GLC ground level concentration GOP Government of the Philippines GPS Global Positioning System GW Ground Water H2 Hydrogen H2O Water H2S Hydrogen Sulfide H2SO4 Sulfuric Acid has hectares HC hard coral Hg Mercury HH household head HLA High Level Alarm HLZ High Level Interlock HPA High Pressure Alarm HPAL High Pressure Acid Leach Section HPP Hydrometallurgical Processing Plant IAEA International Atomic Energy Agency IEC Information, Education and Communication Igeo Index of Geo-accumulation ind m-3 individuals per cubic meter individuals/m2 individuals per square meter INK Iglesia ni Kristo IP Indigenous People IUCN International Union for Conservation of Nature IV Importance Value KBMS Karaang Banwa Marine Sanctuary kg kilogram kg/cm2 kilogram per square centimeter kg/t kilogram per ton KII Key Informant Interview kJ kilojoule kJ/mol kilojoule per mole km kilometer km2 square kilometer kPaG kiloPascal Gauge kt kilo ton kwh kilowatt hour lcpd liters per capita per day LGU Local Government Unit LLA Low Level Alarm LLZ Low Level Interlock lps liters per second LTO Land Transportation Office

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LWUA Local Water Utilities Administration m meter m/s meters per second m2 square meter m-2 per square meter m3 cubic meter m-3 per cubic meter m3/s cubic meters per second MAR Mean Annual Rainfall MCLE Matte Chlorine Leach Electrowinning MCM million cubic meter mD meter diameter MEF Minimum Environmental Flow Mg Magnesium mg milligram Mg(OH)2 Magnesium Hydroxide mg/kg milligram per kilogram MGB Mines and Geosciences Bureau mH meter height MHO Municipal Health Office mID meter inner diameter million m3 million cubic meter mL milliliter mL meter level mm millimeter mm/month millimeters per month MMT Multipartite Monitoring Team Mn Manganese Mo. monthly MOA Memorandum of Agreement MPDC Municipal Planning and Development Coordinator MPDO Municipal Planning and Development Office MPSA Mineral Production Sharing Agreement MRF Materials Recovery Facility MS Mixed Sulfide MSDS Materials Safety Data Sheets MSM Maximum Soil Moisture MT metric ton MT/d metric tons per day MT/h metric tons per hour MT/hour metric tons per hour MT/y metric tons per year MW megawatt N North N2 Nitrogen NAAQG National Ambient Air Quality Guidelines NAAQGV National Ambient Air Quality Guidelines Values NAAQS National Ambient Air Quality Standards NaHS Sodium Hydrosulfide NAMRIA National Mapping and Resource Information Authority NaOH Sodium Hydroxide NCIP National Council for Indigenous People

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NGO Non Government Organization NH Nickel Hydroxide NHRC National Hydraulic Research Center NIGS National Institute of Geological Sciences NNW North North West NO2 Nitrogen Dioxide NOx Nitrogen Oxides NPCC National Pollution Control Commission NSO National Statistics Office NW North West NWRB National Water Resources Board NWRC National Water Resources Council OT other fauna P precipitation PAC Project Affected Communities PAGASA Philippine Atmospheric, Geophysical and Astronomical Services Administration Pb Lead PCO Pollution Control Officer PE potential evapotranspiration PENRO Provincial Environment and Natural Resources Office PGA Peak Ground Acceleration PHIVOLCS Philippine Institure of Volcanology and Seismology PhP Philippine Peso PM10 Particulate Matter measuring 10 micrometers or less PNSDW Philippine National Standards for Drinking Water POM Princeton Ocean Model PPE Personal Protective Equipment ppm parts per million ppt parts per thousand PSA Pressure Swing Adsorption psu practical salinity unit RIDF Rainfall-Intensity-Duration-Frequency RO run-off S Sulfur SC soft coral SDF Social Development Framework SDMP Social Development and Management Program SE standard error SE South East SEASEE Southeast Asia Seismology and Earthquake Engineering shoots m-2 shoots per square meter Si Silica SO2 Sulfur Dioxide SOx Sulfur Oxides sq km square kilometer sq. m square meter sqm square meter SSE South South East STG Steam Turbine Generator STP Septage Treatment Plant TDS Total Dissolved Solids TESDA Technical Education Skills Development Authority

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TMC Taganito Mining Corporation tree/m tree per meter TSP Total Suspended Particulates TSS Total Suspended Solids UPLB-CFNR University of the Philippines Los Banos-College of Forestry and Natural Resources USEPA United States Environmental Protection Agency USGS NEIC United States Geological Survey National Earthquake Information Center Zn Zinc ZnS Zinc Sulfide

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Project Fact Sheet Project Name Taganito Hydrometallurgical Processing Plant (HPP) Project

Project Location Barangays Taganito, Hayanggabon, Cagdianao and Sapa, Municipality of

Claver, Surigao del Norte (See Figure 1.0-1)

Nature of Project Construction and operation of a HPP and auxiliary facilities

Production Capacity Annual Output: 45,000 metric tons of Nickel in Mixed Sulfide (MS) Product and/or Nickel Hydroxide (NH) Product and 4,500 metric tons of Cobalt in the Mixed Sulfide (MS) Product

Proponent Name Taganito Mining Corporation (TMC)

Proponent’s Address

4th Floor, BMMC Building (formerly Solid Mills Building), De La Rosa cor. Adelantado Streets, Legaspi Village, 1229 Makati City

Proponent’s Contact Numbers

Tel Nos: (02) 893-4679; (02) 8934689; (02) 8126074 Fax No: (02) 8126075

The Environmental Impact Assessment (EIA) Study conducted for the Taganito Hydrometallurgical Processing Plant Project is consistent with the revised Procedural Manual for DAO 30-2003 of August 2007. The Terms of Reference used in the conduct of the EIA Study was based on the environmental impacts identified for an ore processing project and the issues and concerns solicited during the public and technical scoping meetings conducted on 29-30 January 2008. Prior to the conduct of the EIA Study, a series of public consultations were made by TMC. The issues raised during the public consultations include possible negative environmental impacts of the project and the benefits that the project may potentially provide. During the public scoping, the issues mentioned include the kind of chemicals that will be used and how will they be disposed of, the exact locations of the plant and other facilities, and the benefits of the project. Based on the results of the IEC activities conducted by TMC, the stakeholders were perceived to be generally receptive of the project. The Baseline Environment The existing environmental conditions were assessed by conducting surveys and sampling for the various modules involving the land, water, air and the people.

Location Map of the Project

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The proposed project site is characterized by an ophiolitic suite of rocks and three distinct soil units. The slope gradient ranges from rolling to moderately steep slopes. The area has three general vegetation cover: brushland, limestone forest, and open forest. Of the 163 total number of species, there are 58 Philippine endemics, three of which are Mindanao endemics. Eight species are included in the Philippine National Red List. Faunal survey recorded a total of 97 wildlife vertebrate species which is consists of four amphibians, four reptiles, 75 birds and 14 mammals. Twenty-five species are endemics (i.e., 24 Philippine endemics and one Mindanao endemic). Two are near endemics. Population status ranges from uncommon to common; while habitat is from grassland-parang type to ultramafic and limestone forests (in this case heavily disturbed). Four species (i.e., three birds and one mammal) are listed in the IUCN 2007, 2007 Redlist of Threatened Species. Groundwater, surface water and marine water samples were collected and were tested for various water quality parameters corresponding to the PNSDW and DAO 90-34 criteria. Except for the dry season sampling in GW2, all groundwater stations have been tested positive for both total and fecal coliforms. All heavy metal levels, except for chromium, are within the PNSDW limits. Only TDS level particularly in station GW2 and GW3 exceeded the required limit during the wet season sampling. For surface water stations, only total and fecal coliform levels exceeded the DAO 90-34 water quality criteria in direct-impact streams. For marine waters, all parameters are in compliance with the prescribed criteria, except for fecal coliform and dissolved copper (naturally elevated in the coastal waters of Taganito and other regions of North Eastern Mindanao). The coral reef study showed that the reefs off Taganito can be classified as relatively good with an average cover of 51%, which is higher than the average coral cover of 32.3% obtained by Nanola et al., 2004 for the entire Philippines. Soft bottom assemblage had recorded a total of 35 taxa with an estimated average density of 3,403 individuals/m2. Some of the stations were observed to be covered with reddish silt. However, there is no indication that it has an adverse impact on the soft bottom fauna. The phytoplankton assemblage collected was typical of coastal waters, being dominated by diatoms. The dominance of the identified zooplankton larval forms (nauplii and copepodite) is a positive indicator of good turnover of standing stock translating to food available for pelagic fish. The number of fish larvae is also quite notable at 1,061 ind m-3, for a promising fish stock. Most of the detected concentrations of TSP, PM10, SO2 and NO2 are less than the NAAQS and NAAQGV. Exceedance of TSP levels is attributed to the vehicular traffic within the mine site area. On the otherhand, the very low detected SO2 and NO2 levels indicate the natural background of the area where emissions are derived from vehicles/fuel burning equipment and use of fire wood for cooking. Noise levels are all within their respective DENR limits. Of the ten stations, three are under Class D; two are under Class AA and the rest under Class A using the NPCC classification. The project-affected communities (PAC) are basically of mainstream stock (Surigaonon and Cebuano-speaking settlers and their descendants). Only Barangay Taganito has a compact visible indigenous community of 20 Mamanua families. Except for Sapa (6%), households in the PACs derived their cash income from employment (45 – 53%). Employment is the largest contributor (52 – 66% of households) to household cash income except in Sapa (5%). A household survey was conducted among the PACs. Sixty-six percent of the respondents think that the proposed HPP project is “generally good for the community, Surigao del Norte, and the Philippines”, 2% believe that it will benefit only other people but not me, my family or my community”, 12% think that the project is “neither good nor bad but not harmful” while 13% think that it is “harmful/risky.” Overall, for all PACs as one area, respondents gave a mean rating of 7.58 out of a scale of 0 to 10 where 10 means that they are strongly in favor of the project and 0 if they are strongly against it.

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Key Impacts and Mitigating Measures The key impacts identified for the proposed project are:

• Site preparation activities for the various facilities will result to the alteration of landuse/landscape as well as loss of habitat

• Land purchase for the project use might cause displacement and/or unequitable renumerations

• The quarry operation of the limestone will result to change in topography, clearing of vegetation and siltation

Ecologically and economically important species (based on the species inventory) will be raised in the nursery and will be used for rehabilitation of cleared areas, if appropriate. Landowners/tenants and/or status of ownership will be identified. An agreement between the owner and TMC will be made. TMC will implement a compensation package based on existing laws and regulations, as necessary. Excavation in benches will be implemented in quarry areas to reduce the risk of slope failure as well as minimize surface erosion. Slope stabilization measures will be implemented as needed in areas prone to collapse. A plan for surface water drainage management will be developed to further reduce the risk of related slope failure.

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Executive Summary Brief Project Description Project Location and Area The Taganito HPP Project covers an approximate area of 1,000 hectares and is located within Barangays Taganito, Hayanggabon, Cagdianao and Sapa in the Municipality of Claver, Surigao del Norte Province. Project Rationale The project will enhance the resource utilization capacity of Taganito Mining Corporation (TMC) through the processing of laterite both from stockpile and in-situ. In effect, the project will provide the technology which will enable TMC to utilise laterite as raw material. The project will also generate taxes and fees, provide employment and contribute to community development projects and economic activities on a local and national level and further augment the existing social development programs. Project Components The table below summarizes the project components:

Component Description Location Hydrometallurgical Processing Plant (HPP) and associated facilities

Will contain high pressure acid leach circuit, sulfurization circuit, hydroxide circuit, waste water treatment, chemical and reagent preparation circuits, boiler and power plant, acid plant facility, H2S plant facility, slaked lime plant facility, administration office, vehicle shelters, storage facilities and waste management facilities

Plant will be located south of Hayanggabon.

Tailings Storage Facility

Tailings dam will be designed to handle approximately 6.7 million DMT of generated tailings from the HPP per year. A decant pond shall be built to handle the tailings discharge.

Tailings dams will be built west of the HPP. The decant pond will be located immediately north of the tailings dam and west of the HPP

Limestone Quarry and its associated facilities (e.g. haul road)

Quarry operations are designed for an annual output of 2 Million MT of limestone material. A hauling road is approximately 30 km to the HPP.

The site is located in Barangay Sapa, approximately 13 km west of the HPP

Water Supply System

Will include diversion weirs and a desalinization facility for seawater

Weirs of water supply system shall be located at the Taganito and Daang Suba Rivers; Collecting pond will be located within the HPP. Desalinization facility will be

Location Map of the Project

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Component Description Location located in Barangay Hayanggabon

Wharf Berths and associated facilities (e.g. vehicle shelter, administration office)

Will handle chemical tankers (for acid and methanol), bulk cargo (for MS products and sulphur) and coal barge. Vehicle shelter will be used for installation, maintenance and repair facility for vehicles

Wharf Area beside existing causeway Near the vicinity of the Pier Site

Materials Storage Facility

Materials Storage Facilities shall be erected for the following materials: MS and NH – products storage facility with approximate area of 2,800 m2 Coal – concrete paved yard with an approximate area of 21,000 m2 Slaked Lime – concrete paved yard with an approximate area of 20,000 m2 Sulfur – concrete paved yard with an approximate area of 20,000 m2 Ore – unpaved with an approximate area of 80,000 m2

Barangay Taganito

Ash Disposal Pit For disposal of ash from power plant Barangay Taganito Townsite The proposed townsite will include houses (with

a capacity of approximately 10,000 residents), buildings (e.g. school, church, hospital, hotel), amusement facilities (e.g. golf course, park, playing field) and other amenities.

Barangay Cagdianao

Production Capacity Rate Annual Output: 45,000 metric tons of Nickel in Mixed Sulfide (MS)

Product and/or Nickel Hydroxide (NH) Product and 4,500 metric tons of Cobalt in the Mixed Sulfide (MS) Product

Types of Waste The following are wastes that may be generated during the HPP operation and the built-in management measures that will be implemented:

Possible wastes that maybe generated Built-in Management Measures A. Hydrometallurgical Processing Plant and Associated Facilities HPAL Circuit - heavy metal leach residue (Al, Fe, Cr, Si, Ca)

heavy metals will go to tailings dam after final neutralization\

Sulfurization Circuit – H2S emissions, ZnS and barren liquor which contains Mg, Mn, Al, Si, Ca and H2SO4

ZnS and barren liquor will go to tailings dam after final neutralization; H2S emissions will be very minimal and will pass through scrubbers. Concentration will be within the standard.

Hydroxide Circuit – Barren liquor which contains Mg, Mn, Al, Si, Ca and H2SO4

Identified wastes will go to tailings dam after final neutralization

H2S Plant – Sulfur residue Identified wastes will go to tailings dam after final neutralization

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Slaked Lime Kiln Plant - TSP, SOx, NOx, CO Concentration of emissions will be kept within standards

Acid Plant Operation – cooling tower blow down and waste heat boiler blow down

Identified wastes will go to tailings dam after final neutralization

Coal-Fired Power Plant – TSP, SOx, NOx, CO, ash

Ash to ash disposal pit; Dust collectors will be in place; low sulfur content coal and high efficiency combustion will be utilized for the operation

B. Tailings Storage Facility – decant pond effluent

Effluent recycled as process water in main HPP; supernatant discharged to sea near wharf

C. Limestone Quarry – run-off with increased hardness due to calcium ions from quarry, limestone dust/ TSP

Gravitational drainage will be employed for the quarrying face. Drainage ditches will be created on the quarrying roads and sand basins for draining supernatant water to the river. Drainage ditches will also be created on the transportation roads and set facilities for sedimentary sands to prevent polluted water from flowing into the river

D. Materials Storage Facility – TSP, coal dust, sulfur dust from stockyards, slake formed from deposition of limestone dust, spills/excess/expired Ca(OH)2 or Mg(OH)2 and other chemicals, lubricants/used oils and batteries from maintenance/repair, condemned equipment, used tires

Provision for containment facility/clean up/disposal of expired materials

E. Townsite – sewage from residential, institutional and commercial sources, run-off contaminated by fertilizer/pesticides from golf course, vehicle emissions, solid waste especially from market, fuels oils, grease from vehicles and equipment, medical waste

Solid waste to go to MRF; waste water collection system/treatment; medical waste disposal based on DOH guidelines; fuels, oils and grease will be collected by an accredited waste treatment company

Manpower Requirement A maximum of 4,000 construction workers will be required during

the peak construction period of the project. During operations, the HPP and its auxiliary facilities (excluding the limestone quarry) will potentially employ 1,100 personnel. Approximately 200 people will be needed for the limestone quarry operations.

Project Cost The total capital investment for the project is estimated at almost US Dollars 3 Billion. Annual operation costs will be about US Dollars 200 Million based on an annual maximum output of 45,000-Ton Nickel and 4,500-Ton Cobalt Production

Project Phases Phases of the project include pre-construction, construction/ development phase, operational phases and abandonment phase.

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Project Duration and Schedule The project is envisioned to last for 30 years. Presented below is the schedule for the construction activities of the project. Pre-commissioning and commissioning of the HPP will follow right after construction activities are completed.

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-1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54

InfrastructureOre prep.&Storage

Process plant

Ore prep. & StorageProcess Plant

ConstructionInfrastructure

Process PlantOre Prep. & Storage

Ore prep. & StorageInfrastructure

Process Plant

Process PlantOre prep. & Storage

Y5

Detailed Engineering Design of Facilities

Activities Y1 Y2 Y3 Y4

Electrical and Infrastructure

Procurement

Civil

Mechanical

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Brief Summary of Project’s EIA Process The Terms of Reference used for this EIA Study was consistent with the revised Procedural Manual for DAO 30-2003 (August 2007). The members of the EIA Team are composed of multi-disciplinary specialists and experts who have extensive experience in the conduct of EIA studies for projects in the various industry sectors.

Role/Specialization Name EIA Study Team Project Director Jess Bayrante Project Manager Naniel Aragones Hydrologist Ben Rojas Water Quality Specialist Aries Milay Sediment Transport Specialist Fernando Siringan Geohazard Specialist Malvin Kenneth Manueli Risk Assessment Specialist Jake Tio Geologist Malvin Kenneth Manueli Air Dispersion Modeller Moreno Penalba Air Quality Specialist Melissa Manguiat Terrestrial Vegetation Specialist Abba Grace Sanchez Terrestrial Wildlife Specialist Michael de Guia Aquatic Biota Specialist Naniel Aragones Coral Reef Specialist Lambert Meñez Seagrass Specialist Napo Cayabyab Plankton Specialist Kathleen Silvano Reef Fish Specialist Naniel Aragones Benthos Specialist Marivene Santos Oceanographer Charina Repollo Socio-economic/Stakeholder Consultation Specialist Willy Palarca Anthropologist Felixberto Roquia Public Health Specialist Romeo Quizon Peer Reviewer Jo Rowena Garcia Environmental Scientist Kathleen Anne Cruz Environmental Scientist Ronaldo Lacsamana Proponent Team Vice President Reynaldo Vigilia Assistant Vice President Conrado Tambiloc Jr. Technical Services Manager Rogelio Cadano

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Study Period The EIA Study was conducted from January 2007 to April 2008. Below is the EIA schedule of activities.

Date Activities 28 January 2008 Project Briefing at the Site 29 January 2008 Site Scoping 30 January 2008 Technical Scoping Meeting January 2007 Primary Data Collection – Wet Season Sampling April 2007 Primary Data Collection – Dry Season Sampling January 2007 to February 2008 Secondary Data Collection February 2008 Additional Primary Data Collection February 2007 to April 2008 Data Analysis and EIS Preparation

The various modular studies and primary surveys were conducted at the perceived direct impact areas which include the HPP area and the proposed locations of the auxiliary facilities, which will all be located within the jurisdiction of Claver. The study area, along with the proposed locations of the various structures is shown in Figure 1.0-1. EIA Methodology The EIA approach and methodology was based on the revised Procedural Manual of DAO 30-2003. Consistent with the data and information requirements indicated in the approved Technical Scoping Checklist, the study team collected secondary information from different government agencies. Dialogues, liaison and coordination meetings and interviews were also conducted with TMC, local officials, and representatives of stakeholders. Primary data were obtained through sampling and surveys to supplement the secondary information. Summary of Public Participation in Scoping and EIA Study Below is a summary of the public participation activities prior to and during the EIA Study: Pre-EIA Activities • Meetings with Community Technical Working Group; Community

meetings/consultations in Barangays Taganito, Urbiztondo and Hayanggabon; Radio program news release;

EIA Activities • Public Scoping Meeting; household and perception surveys; key informant interviews with representatives of stakeholders including the Mamanuas.

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Summary of Baseline Characterization

Ecosystem Findings Land The project site is characterized by ultramafic rocks, mainly composed of

peridotites and serpentinite and three soil units (residual soil, transported unconsolidated recent alluvial deposits and swamp deposits). The slope gradient is undulating and rolling reaching up to 18% to moderately steep and steep slopes up to 50 %. Among the identified probable geohazards include earthquake, landslide, liquefaction, flooding, erosion, tsunami and coastal erosion. The area has three general vegetation cover: brushland, limestone, and open forest (at the early stage of regeneration). A total of 163 morpho-species were recorded with families Moraceae and Myrtaceae as the most speciose. There are 58 Philippine endemics, three of which are Mindanao endemics. Eight species are included in the Philippine National Red List, which include three Philippine endemic and one Mindanao endemic. Faunal survey recorded a total of 97 wildlife vertebrate species which consists of four amphibians, four reptiles, 75 birds and 14 mammals. Twenty-five species are endemics (i.e., 24 Philippine endemics and one Mindanao endemic). Two are near endemics. Population status ranges from uncommon to common; while habitat is from grassland-parang type to ultramafic and limestone forests (in this case heavily disturbed). Four species (i.e., three birds and one mammal) are listed in the IUCN 2007, 2007 Redlist of Threatened Species.

Water The proposed Taganito HPP Project covers six river basins namely: Taganito (subcatchment: Daku creek), Daang Suba, Hayanggabon, Sensio, Townsite (unnamed) and Baoy-Magallanes (subcatchment: Sapa creek) Rivers. The water balance for the basins considered for the Taganito project generally indicates that the project area currently has a large volume of surface water (49.2% to 51.4% MAR) and groundwater recharge (25.8% to 26.5% MAR). Water requirement for the construction of diversion weirs and tailings dam is very minimal as compared to the water supply that may be available from groundwater resources and river run-offs. However, during operations, the dependable flow of Daang Suba and Taganito River is only about 61% of the combined total water requirement of 53,000 cmd for processing, power plant cooling and domestic water supply. Construction of the plant buildings and facilities and other auxiliary components of the project will decrease the percolation in the new built-up area while increasing the surface run-off. The increase in the water run-off is estimated to be at 5% to 16.6% while the decrease in the groundwater recharge is expected to be 5.3% to 15%. The proposed tailings dam will cut-off the flow from the headwaters of Daku, Daang Suba and Hayanggabon catchments. The diversion weirs at Taganito and Daang Suba will also reduce the streamflow. The annual mean flow reductions for the Taganito River and Hayanggabon River are 70% and 90% respectively. Daang Suba will have an almost 100% flow reduction. A decrease in the flood discharge and flood peaks will be experienced with the establishment of the tailings dam and diversion weirs. Thus, possible impacts in the downstream areas are also minimized.

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Ecosystem Findings Quarry activities will also increase run-off which in return may increase sedimentation in the Sapa Creek and Baoy-Magallanes River. The coast off Taganito has a complex bathymetry characterized by a narrow, shallow channel which opens into the deep Pacific. Wind, tidal and current patterns are governed by Pacific water regimes and monsoons. Simulations of surface water current showed flows to the southeast during the northeast monsoon, and reversing to the northwest, alongshore, during the southwest monsoon. Vertically averaged currents, which incorporate bathymetry, depicted strong velocity flows within the channel and along the coast. Tidal currents exhibited a consistently southeastern flow, both for ebb and flood semi-diurnal tides. Groundwater, surface water and marine water samples were collected and were tested for various water quality parameters corresponding to the PNSDW and DAO 90-34 criteria. All groundwater stations have been tested positive for both total and fecal coliforms, except for the dry season sampling in GW2. Among the parameters pertaining to physical and chemical quality with health significance, all levels except for chromium are within the PNSDW limits. With reference to the aesthetic quality, only TDS level particularly in station GW2 and GW3 exceeded the required limit during the wet season. No oil and grease was traced in all groundwater stations. For surface water stations, only total and fecal coliform levels exceeded the DAO 90-34 water quality criteria in direct-impact streams. Heavy metals are less than detection limit, while parameters without prescribed values are comparable to other areas. For marine waters, all parameters are in compliance with the prescribed criteria, except for fecal coliform and dissolved copper (naturally elevated in the coastal waters of Taganito). Cadmium and lead concentrations exceed their respective prescribed limits, which is a common attribute of coastal and marine waters in the Philippines. Sediment samples were collected in various water quality stations. Majority of the samples are practically unpolluted with chromium, copper, iron, manganese and lead and unpolluted to moderately enriched with cobalt. Various sediment samples are also practically unpolluted with arsenic and zinc. The two metals that have high geo-accumulation indices are cadmium and nickel, reaching the extremely enriched class. The high indices are expected of nickel logically as the area is highly mineralized with this metal. It was observed that areas with similar geologic conditions such as Berong, Quezon, Palawan (Maunsell, 2005) and Narra, Palawan (Maunsell, 2008) also have enriched sediment cadmium levels. A total of 348 individuals of freshwater fauna from the Phylum Annelida, Arthropoda and Mollusca were collected. The highest number of aquatic fauna and taxa, mostly aquatic insects which are indicator of good quality water, was collected downstream of the Taganito River, followed by the river mouth station of Taganito and Hayanggabon Rivers. The very low aquatic organisms were recorded at Stations 2, 3, 6 and 7, which could be due to the highly disturbed riverbed and riverbanks at these stations. No organisms were collected at Stations 4 and 11 due to the river overflow happened few days before the sampling. Fishing by the locals was only observed in the Sensio Creek (Station 11) and Magallanes River (Stations 12 and 13). The coral reef study utilized five sampling stations (i.e., two in Aling Island., one in Karaang Banwa, one in Malingin Islet, and one in East Telegrapo Island). One

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Ecosystem Findings 50m transect was established for all the stations except for Aling Island. Results show that the reefs off Taganito can be classified as relatively good with an average cover of 51%. This value is higher than the average coral cover of 32.3% obtained by Nanola et al., 2004 for the entire Philippines. Survey of reef fishes followed the same stations for coral reefs. It recorded a total of 67 species in 19 families. The highest record was made in Aling Island with 479 individuals followed by Karaang Banwa with 278. Telegrapo Island has the lowest number with 102. The discrepancy in values obtained is attributed to the coral cover exhibited by the different sites. Aling Island and Karaang Banwa both have high coral cover while Telegrapo Island has the opposite. Soft bottom assemblage in the eight sampling stations (following the Marine Water stations) is dominated by crustaceans, polychaetes, and foraminiferans. These are mostly epi- and infaunal in form. A total of 35 taxa with an estimated average density of 3,403 individuals/m2 were identified. The high density of peracrid crustaceans such as gammarid amphipods, tanaids, and isopods suggests of good habitat for the soft bottom fauna. Some of the stations were observed to be covered with reddish silt. However, there is no indication that it has an adverse impact on the soft bottom fauna. The phytoplankton assemblage collected was typical of coastal waters, being dominated by diatoms (2,359,555 ind m-3) followed by protozoans (87,447 ind m-

3), dinoflagellates and blue-green algae (69,497 and 66,757 ind m-3, respectively). Zooplankton forms identified show the dominance of larval forms particularly nauplii (137,668 ind m-3) and copepodite (78,427 ind m-3). These larval forms are positive indicators of good turnover of standing stock translating to food available for pelagic fish. The number of fish larvae is also quite notable at 1,061 ind m-3, for a promising fish stock. Other larval forms identified were of benthic organisms, indicating continuity of the benthic population. Among adult forms, Calanoid copepods were most numerous, followed by Cyclopoid copepods and Larvaceans.

Air

Air quality stations were established in ten locations with the highest number of potential receptors. Levels of TSP, PM10, SO2, and NO2 were determined during the wet and dry seasons and these were compared with the prescribed value of the DAO 2000-81 and the National Ambient Air Quality Guidelines Values (NAAQGV). Based on the DAO 2000-81 standards, the results indicate that the air in the proposed project site and its vicinity is under fair to good condition with reference to TSP level and within good condition with reference to the PM10 level. The detected concentrations of SO2 and NO2 are all less than the NAAQGV. Moreover, the very low detected SO2 and NO2 levels indicate the natural background of the area where emissions are derived from vehicles/fuel burning equipment and use of fire wood for cooking. Noise levels were also measured in the air quality stations. Of the ten stations, three are under Class D; two are under Class AA and the rest under Class A using the NPCC classification. Results of all the noise measurements are within their respective DENR limits.

People The project-affected communities (PAC) are basically of mainstream stock (Surigaonon and Cebuano-speaking settlers and their descendants). Only Barangay Taganito has a compact visible indigenous community of 20 Mamanua families. Majority of the household members are belonging to the economically productive age-group of 15-64. Except for Sapa (6%), households in the PACs derived their cash income from employment (45 – 53%). Employment is the

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Ecosystem Findings largest contributor (52 – 66% of households) to household cash income except in Sapa (5%). A household survey was conducted among the PACs. Sixty-six percent of the respondents think that the proposed HPP project is “generally good for the community, Surigao del Norte, and the Philippines”, 2% believe that it will benefit only other people but not me, my family or my community”, 12% think that the project is “neither good nor bad but not harmful” while 13% think that it is “harmful/risky.” Overall, for all PACs as one area, respondents gave a mean rating of 7.58 out of a scale of 0 to 10 where 10 means that they are strongly in favor of the project and 0 if they are strongly against it.

Summary of Impact Assessment and Environmental Management Plan

• Impacts Mitigation Summary

Project Phase / Environmental Aspect (Project Activity Which

Will Likely Impact the Environmental Component)

Potential Impact Options for Prevention or Mitigation or

Enhancement

I. Pre-Construction Phase

Social preparation

Negotiation for land purchase

Fears and apprehensions of the people

Possibility of displacement and/or not properly compensated

Conduct of community-based IEC to address sources of fears and apprehensions of households

This impact pertains to the purchase or lease of land where the plant and auxiliary facilities will be located. Landowners/tenants and/or status of ownership will be identified. An agreement between the owner and TMC will be made. TMC will implement a compensation package based on existing laws and regulations, as necessary.

A one-hectare site in Hayanggabon has been designated as a resettlement area for the affected families living downstream of the proposed tailings dam site. Appropriate compensation according to law will be made with respect to disruption (e.g., loss or damaged) to livelihood and to dwelling units and other assets, except land.

II. Construction Phase

Construction of various components including ore preparation circuit, HPAL, counter current decantation circuit, wharf facilities, townsite, coal-fired power plant, quarry facilities, and tailings dam

• Possible impact on soils from vehicle and machine fuel spills

• Possible impact on streams and coastal waters from erosion and sedimentation

• Solid and liquid waste management issues

• Proper housekeeping

• Provision of hygiene and sanitary facilities

• Enforcement of a solid and liquid waste management plan

• Enforcement of proper management practices for the handling of fuels and

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Project Phase / Environmental Aspect (Project Activity Which

Will Likely Impact the Environmental Component)

Potential Impact Options for Prevention or Mitigation or

Enhancement

Employment

• Effects on marine and aquatic biota associated with water quality impacts such as erosional impacts causing increased levels of TSS and possible petroleum contamination

• Noise generation from vehicles , construction activities and operation of construction equipment

• Site preparation, construction of the haul roads and clearing activities, and earth works will generate fugitive dusts.

Employment/Influx of migrants

oils

• Establishment of mine water and coastal water management systems which will serve as controls in minimizing sedimentation impacts on water ways

• To minimize noise, heavy equipment will be appropriately muffled. Workers operating heavy equipment will be provided with appropriate PPE, as necessary.

• Road dust will be suppressed with water, as necessary on a regular basis. In addition, drivers will be educated on the effects of vehicular speed on dust generation. Speed limits will be enforced by the company.

Implementation of “local-first” hiring policy.

III. Operation Phase

HPP Operations Possible Health Issues

Protective Personal Equipment (PPE) and devices (e.g. hard hats, gloves, goggles, safety glasses, ear plug, respirator, acid proof uniforms) will be provided to all workers in the facility. An occupational safety and health management plan will be implemented for strict compliance. Health monitoring of all employees will be done on a regular basis.

Operational risks and safety issues; On and off-site contamination risks in the event of an accident

A closed system approach shall be implemented in all facilities to prevent any potential gas leakage to the surrounding environment. An emergency shut down system will also be installed to prevent any risks of emission to the surrounding environment. Measures to reduce risks such as the installation of Distributed Control System (DCS), noise monitoring equipment, gas detectors, pressure and chemical control systems, fire control systems, and other redundant safety devices as contingency will be in place. Parameters such as gas concentration, pH, pressure, temperature etc. will be monitored by DCS. Electrical systems to be installed in hazardous areas will be based on American Petroleum Institute (API) standard. The facilities in particular will be designed with provision for more open spaces as a passive measure to disperse any leakage of Hydrogen Sulfide.

Solid and liquid waste management issues

Processing waste will be subject to monitoring and treatment will be done prior to disposal

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Project Phase / Environmental Aspect (Project Activity Which

Will Likely Impact the Environmental Component)

Potential Impact Options for Prevention or Mitigation or

Enhancement

into the tailings dam. Disposal of domestic wastes from office and plant operations will be in accordance with acceptable waste management practice. Waste such as worn out electrical components, processing and handling facilities will be subject to materials recovery prior to proper disposal.

Tailings dam operations Possible failure and leakage of tailings

Periodic monitoring of structural integrity will be conducted on the dam and appurtenant structures during its entire operational life.

Processing waste will be pre-treated prior to disposal at the tailings facility to guarantee a safe release into the environment. Periodic water and sediment quality monitoring will be implemented in tributaries immediately downstream of the tailings dam.

Limestone quarry operations Erosion along disturbed slopes and exposed soil surfaces; Increased landslide potential in quarry areas with unstable slopes

Benching will be implemented in quarry areas to reduce the risk of slope failure as well as minimize surface erosion. Slope stabilization measures will be implemented as needed in areas prone to collapse. A plan for surface water drainage management will be developed to further reduce the risk of related slope failure.

Possible impact on soils and water from vehicle and machine fuel spills

Environmental best practice in the handling of proper management practices for the handling of fuels and oils will be implemented. Periodic checks and maintenance of vehicles and equipment will be implemented. Procedures on the proper disposal of used oil will be observed.

Solid and liquid waste management issues

Disposal of domestic wastes from office and plant operations will be in accordance with acceptable waste management practice. Waste materials generated from the quarry operations will be subject to materials recovery prior to proper disposal.

Impacts on vegetation cover and wildlife within the quarry site

A sanctuary or reservation area offsite or near the quarry area will be designated for displaced wildlife. It will also serve as the nursing area for affected vegetation. A proactive rehabilitation program will be implemented in the disturbed areas during the cessation of quarrying activities.

Possible increase of emission and dust suspension in disturbed and exposed soil surfaces

Possible increase in noise levels

Water sprinkling of exposed surfaces, quarry and haul roads will be implemented to reduce dust suspension. Periodic checks and maintenance of vehicles and equipment will be implemented to address noise and emission concerns.

Possible impact on streams and coastal Water and sediment quality monitoring will be

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Project Phase / Environmental Aspect (Project Activity Which

Will Likely Impact the Environmental Component)

Potential Impact Options for Prevention or Mitigation or

Enhancement

waters from erosion and sedimentation

conducted on the affected tributaries and coastal waters on a periodic basis. Sedimentation control measures such as check dams will be installed in tributaries that drain the quarry area to control the amount of sediment influx into waterways

Safety issues during quarry and haulage operations

Proper Protective Personal Equipment (PPE) and devices (e.g. hard hats, gloves, goggles, safety glasses, and ear plugs) will be provided to all workers in the quarry site. An occupational safety and health management plan will be implemented for strict compliance. Health monitoring of all employees will be done on a regular basis.

Loading and unloading of materials within the wharf facilities

Possible health and safety issues concerning the handling, use and risks of handling equipment and materials within the wharf facilities

Protective Personal Equipment (PPE) and devices (e.g. hard hats, gloves, goggles, safety glasses, ear plug, respirator, acid proof uniforms) will be provided to all workers in the facility. An occupational safety and health management plan will be implemented for strict compliance. Health monitoring of all employees will be done on a regular basis.

Operational risks and safety issues

A closed perimeter system approach will be implemented in all facilities to prevent any potential leakage to the surrounding environment. Measures to reduce risks such as the installation of noise monitoring equipment, gas detectors, pressure and chemical control systems, fire control systems, and other redundant safety devices as contingency will be in place.

Possible increase in sedimentation in the coastal area immediate the wharf if materials such as ore, are not handled properly.

Establishment of coastal water management system in the wharf area

Possible water contamination from runoff coming from the coastal stockpiles of coal.

Establishment of coastal water management system in the wharf area.

Storage of Materials Possible health and safety issues concerning the handling, use and risks of handling equipment and materials within the storage facilities

Protective Personal Equipment (PPE) and devices (e.g. hard hats, gloves, goggles, safety glasses, ear plug, respirator, acid proof uniforms) will be provided to all workers in the facility. An occupational safety and health management plan will be implemented for strict compliance. Health monitoring of all employees will be done on a regular basis.

On and off-site contamination risks from substance leakage in the event of an accident and risk of fire

Strong materials such as carbon steel-based tanks will be used to store the more sensitive materials sulphuric acid and methanol. Passive containment structures such as concrete dikes with capacities equivalent to

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Project Phase / Environmental Aspect (Project Activity Which

Will Likely Impact the Environmental Component)

Potential Impact Options for Prevention or Mitigation or

Enhancement

the tanks will be erected to surround the storage facilities. Appurtenant structures will be erected with provision for open spaces to facilitate passive measures that will address any potential leakage. Active monitoring and safety systems will be installed to immediately address any leakage-related risks that may occur.

Employment Employment/ Influx of migrants Implementation of “local-first” hiring policy.

Coal-fired power plant operations Possible impact on soils from vehicle and machine fuel spills

Designated areas for refuelling and vehicle maintenance which will have oil/water separator facilities; Fuel storage areas will be bunded to contain accidental spills and leaks.

Solid and liquid waste management issues including domestic waste management issues

Establishment of solid waste management facilities and establishment of water management facilities.

Possible impact on immediate receiving body of water from thermal effluent release.

Thermal effluent will be allowed to cool down in the tailings pond; it will not be directly released into any body of water. Regular water quality monitoring.

Possible impact on soils and water in relation to ash disposal.

Ash from the power plant will be disposed in ash disposal pit. Regular water quality monitoring.

Possible health and safety issues concerning the handling, use and risks of handling equipment and materials within the storage facilities

Protective Personal Equipment (PPE) and devices (e.g. hard hats, gloves, goggles, safety glasses, ear plug, respirator, acid proof uniforms) will be provided to all workers in the power station. An occupational safety and health management plan will be implemented for strict compliance. Health monitoring of all employees will be done on a regular basis.

Stack emissions, i.e., TSP, SO2 and NO2, from the proposed coal-fired power plant and sulfuric acid plant may exceed emission standards and adversely affect the ambient air quality.

To control the power plant emissions, dust collectors will be in place and low sulphur-content coal and high efficiency combustion will be utilized for the operation. For sulfuric acid production, emissions of SO2 shall be controlled by the absorption of SO3 into H2O. Regular maintenance of the equipment for both the power plant and sulfuric acid plant must be conducted to maintain efficiencies of the different equipment.

Regular air quality monitoring and stack emissions monitoring.

IV. Abandonment Phase

Removal/dismantling of unnecessary infrastructures

Safety Issue; Aesthetic/visual impacts to the community

All infrastructures that can be used by the community will be awarded with the agreement of both parties.

Disposal and cleanup of solid wastes, unused chemicals and hazardous materials from the

Possible soil and water contamination

An environmental site assessment will be carried out to determine occurrence and degree of contamination from varied wastes.

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Project Phase / Environmental Aspect (Project Activity Which

Will Likely Impact the Environmental Component)

Potential Impact Options for Prevention or Mitigation or

Enhancement

decommissioning of the different project facilities (stockyards, waste dump, tailings dam, offices, workshops, water supply and sewerage systems)

Possible health and Safety issues regarding handling of hazardous materials

Handling and disposal of domestic wastes will be in accordance with the Solid Waste Act. Recyclable and hazardous materials will be set aside for separate handling.

Protective Personal Equipment (PPE) and devices (e.g. hard hats, gloves, goggles, safety glasses, ear plug, respirator, acid proof uniforms) will be provided to all workers during cleanup activities. An occupational safety and health management plan will be implemented for strict compliance. Health monitoring of all employees will be done on a regular basis

• Social Development Plan (SDP) Framework

TMC shall adopt a Social Development Framework (SDF) using the “Procedural Guidelines in the Implementation of the Social Development and Management Program (SDMP)”. The SDF is envisioned to be the basis for preparing the 5-year SDMP. The SDMP is an indicative planning document that sets the character of development assistance to the project’s host and neighbouring communities. • Information, Education, Communication (IEC) Framework

TMC shall implement an effective Information, Education and Communication (IEC) program to disseminate relevant information about the project to the affected communities. Emphasis of the IEC program shall be on the explanation of the different project components, the environmental management and monitoring plans which will be implemented as well as the socio-economic benefits of the project to the host communities. The IEC will be implemented through regular meetings with the different LGUs and barangays, publication of relevant informative materials, press releases on local and national media, exhibits and through the use of local community billboards. • Emergency Response Plan (ERP) Policy

It shall be the policy of TMC during emergency situations to use all available resources first to protect its employees and host communities followed by preservation of property and the environment. Systems and procedures will be established for an effective response to all identified emergency situations which will be documented in TMC’s Emergency Response Plan. Employees will be trained in the effective implementation of the Emergency Response Plan while emergency drills and exercises will be regularly conducted with the cooperation of external response organizations. The Emergency Response Plan shall describe the response actions for the following identified emergencies:

- Chemical releases - Gas leakages - Fires and explosions - Tailings dam failure and land slides - Severe weather - Floods and tsunamis

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- Earthquakes - Attacks by lawless elements

• Abandonment Policy

At the end of the project lifecycle, TMC shall implement a Decommissioning and Rehabilitation Plan which complies with relevant government regulations, mitigates environmental impacts and minimizes the socio-economic impacts to the employees and affected community. Towards this end an assessment of the impacts associated with the closure will be made and a plan for potential land uses at the end of the project life will be developed. Summary of Environmental Monitoring Plan

Key Environmental Aspects Per Project Phase

Parameter to be Monitored Compliance Frequency

Construction Phase

Clearing of vegetation

rate of rehabilitation of nursery for the propagation of the seeds which will provide seedlings for future rehabilitation requirements

Baseline Data Semi-annual

Change of landscape due to construction of various components and their appurtenant structures

pH, temperature, BOD, TSS, Oil and Grease, Coliforms Biological Indices of freshwater and marine biota where habitats exist: life forms, percentage cover and density counts

DAO 96-34 Baseline Data

Monthly throughout the construction phase Quarterly for the first year

Increased vehicular traffic and earthwork activities

TSP NAAQS Quarterly

Employment ; Taxes

Employment, Tax Revenues to LGUs, Community projects initiated by the proponent, Other benefits of the community from the project

SDMP Commitments Semi-Annual

Operation Phase

Operation of tailings dam, limestone quarry and ore preparation

rate of the rehabilitation in terms of survival rate (e.g. species, number of individuals, area, etc.) vis-a-vis growth conditions (e.g. disturbance, growing medium, etc.)

Baseline Data Semi-annual

Group 1: pH, temperature, BOD, TSS, Oil and Grease, Coliforms Group 2: As, Cd, Cr, Cu, Pb, Hg Group 1: pH, temperature, COD,BOD, TSS, TDS, Oil and

DAO 96-34 Monthly for Grp 1; Quarterly for Grp 1 and 2 Monthly for Grp 1;

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Key Environmental Aspects Per Project Phase

Parameter to be Monitored Compliance Frequency

Grease, Total Coliforms Group 2: As, Cd, Cr, Cu, Pb ,Hg Biological Indices of freshwater and marine biota where habitats exist: life forms, percentage cover and density counts

Quarterly for Grp 1 and 2 Quarterly for the first year

TSP NAAQS Quarterly

Operation of the HPP

Group 1: TSP, PM10, NOx, and SO2 Group 2: TSP, PM10, NOx, SO2, and CO, CO2, As, Cd, Cr, Cu, Pb, Hg

NAAQS Quarterly for Grp 1; Monthly for Grp 2

Group 1: pH, temperature, BOD, TSS, Oil and Grease, Coliforms Group 2: As, Cd, Cr, Cu, Pb, Hg Biological Indices of freshwater and marine biota where habitats exist: life forms, percentage cover and density counts

DAO 96-34 Monthly for Grp 1; Quarterly for Grp 1 and 2 Quarterly for the first year

Employment Tax

Employment, Tax Revenues to LGUs, Community projects initiated by the proponent, Other benefits of the community from the project

SDMP Semi-Annual

Abandonment Phase

Removal/dismantling of unnecessary infrastructures

Government regulation/requirement

Once

Decommissioning of project facilities: stockyards, HPP, limestone quarry, water system and sewerage source, tailings dam and solid waste dumps Disposal of solid wastes and hazardous materials

Baseline Data Once

Summary of MMT or Public Participation Framework in post ECC Monitoring As provided in DAO 03-30, a Multipartite Monitoring Team (MMT) will be organized. The MMT will regularly monitor the activities stipulated in the approved EMP, and conditions set in the ECC. The MMT for this project shall be composed of different stakeholders to include but not limited to the following: representative of TMC, representative from concerned government agencies (EMB-XIII, PENRO, CENRO), representative from the affected communities (Municipality of Claver, Barangay Cagdianao, Hayanggabon, Taganito and Sapa), representative from tribal communities (Mamanua), representative from concerned NGOs operating in the area.

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EMF and EGF Commitments The Environmental Guarantee and Monitoring Funds are also provided in DAO 03-30. The former is intended to ensure just and timely compensation for damages and progressive rehabilitation for any adverse effect of the project; while the latter is intended to support the activities of the MMT. For the Environmental Guarantee Fund, the amount will be determined through the agreement between TMC and the EMB. Similarly, the Environmental Monitoring Fund shall be agreed upon by these two parties, in consultation and close coordination with the MMT, which will be specified in a Memorandum of Agreement (MOA).

Summary of Preliminary Risk Assessment and Mitigation Consequence analysis, frequency analysis and estimation of risk were conducted as part of the preliminary risk assessment of the project. The identified hazardous materials associated with the project include hydrogen, hydrogen sulfide, sulfuric acid (storage), sulfur dioxide (from the production of sulfuric acid), and flammable liquids (methanol and diesel fuel). Assessment shows that the most hazardous situation during the operation phase of the project would be incidents involving the release of sulfur dioxide with an indicative risk of about 0.0000035 fatality/year. This is just slightly higher than the internationally-accepted safety risk criteria of 1 × 10-6 fatalities/year (or, 0.000001). In contrast, typical risk from using a motor vehicle is approximately 0.0001 to 0.0002 fatalities per year. It should further be noted that the worst case scenario is based on the assumption that the sulfuric acid production facility will fail at full reactor’s capacity (four tons) – an extremely unlikely case. Also, it was assumed that 50% of the surrounding area within the estimated 25 meter effect radius has the maximum population density (based on the highest number of on-site worker) – a highly conservative assumption. From another perspective, the facility (as defined/postulated) is about three order of magnitude (1,000×) safer than using a motor vehicle. Some of the general measures that will be implemented to ensure that potential hazards or risks are further minimized include the development of an emergency plan, a continuing training program regarding environmental safety and integration of accident preventive policies, procedures and activities relating to occupational safety, health and environmental protection as part of the company’s total risk management program. A detailed list of these measures is further discussed in Section 5.2 of this EIS. These measures are in addition to those presented in the Environmental Management Plan.

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1.0 Basic Project Information Project Name Taganito Hydrometallurgical Processing Plant (HPP) Project

Project Location Barangays Taganito, Hayanggabon, Cagdianao and Sapa, Municipality of

Claver, Surigao del Norte (See Figure 1.0-1)

Nature of Project Construction and operation of a HPP and auxiliary facilities

Production Capacity Annual Output: 45,000 metric tons of Nickel in Mixed Sulfide (MS) Product and/or Nickel Hydroxide (NH) Product and 4,500 metric tons of Cobalt in the Mixed Sulfide (MS) Product

Proponent Name Taganito Mining Corporation (TMC) Annex 1-1 shows the Sworn Accountability of the Project Proponent

Proponent’s Address

4th Floor, BMMC Building (formerly Solid Mills Building), De La Rosa cor. Adelantado sts., Legaspi Village, 1229 Makati City

Proponent’s Contact Numbers

Tel Nos: (02) 893-4679; (02) 8934689; (02) 8126074 Fax No: (02) 8126075

Brief Profile of TMC Taganito Mining Corporation (TMC) is a Securities and Exchange Commission registered mining company(Annex 1-2). It envisions a well-maintained and balanced ecosystem coupled with cooperative and self-reliant mining community amidst sound profitability and maximum utilization of mineral reserves toward productivity, huge foreign exchange turn-over and a people-centered industrial and labor management relations. TMC operates the Taganito mine located within the municipality of Claver, Surigao del Norte pursuant to an Operating Contract with the Government dated 14 February 1989. It has applied to convert the Taganito Operating Contract to an MPSA in accordance with the Mining Act. The application covers an expanded area of 4,584.5145 hectares and remains outstanding.

EIA Consultant Maunsell Philippines Inc. Annex 1-3 shows the Sworn Accountability of the EIA Preparers

EIA Consultant’s Address

11th Floor Ayala FGU Center Building 6811 Ayala Avenue Ayala Avenue, Makati City

EIA Consultant’s Contact Numbers

Phone -(0632) 843-6336 Fax - (0632) 843-6125 Email Address: [email protected]

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D R A F T

Figure 1.0-1 Locational Map and Site Development Plan of the Proposed Taganito HPP Project

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2.0 Description of Project’s EIA Process 2.1 Terms of Reference of the EIA Study Consistent with the Revised Procedural Manual for DAO 30-2003 (August 2007), the Terms of Reference used for this study was based on the environmental impacts identified for an ore processing project and the issues and concerns raised during the public and technical scoping meetings conducted on 29-30 January 2008 in Claver and Surigao City, respectively. Table 2.1-1 shows the most significant issues raised during these meetings. Annex 2-1 shows the Site Scoping List of Issues, Annex 2-2 the attendance sheet during the Public Scoping and Annex 2-3 the approved Technical Scoping Checklist.

Table 2.1-1 List of Significant Issues Raised During the Scoping Meetings

EIA Module Issues Remarks Project Description

• Concern on chemicals to be used and their effect on people

• Concern on why HPP to be located in Hayanggabon

Raised during the Public Scoping

• Clearing / cutting of vegetation • Loss of habitat and change in land-use • Extraction of minerals that will result in siltation and

change in topography

Raised during the Technical Scoping

The Land

• Concern on seismic activity that may affect the tailings dam

• Concern on overflow of the dam

Raised during the Public Scoping

• Potential water resource competition

Raised during the Technical Scoping

The Water

• Water source of the HPP • Concern on effect of effluent from HPP on marine

resources

Raised during the Public Scoping

• Issue of displacement and equitable remunerations

Raised during the Technical Scoping

The People

• Concern regarding fishing of IPs at Barangay Sungpoy

Raised during the Public Scoping

Others • Assurance regarding pollution control Raised during the Public Scoping

2.2 The EIA Team The members of the EIA Team are composed of multi-disciplinary specialists and experts who have extensive experience in the conduct of EIA studies for projects in various industry sectors (Table 2.2-1). Members of the proponent team are also presented in the same table.

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Table 2.2-1 The EIA Study Team

Role/Specialization Name EIA Study Team Project Director Jess Bayrante Project Manager Naniel Aragones Hydrologist Ben Rojas Water Quality Specialist Aries Milay Sediment Transport Specialist Fernando Siringan Risk Assessment Specialist Jake Tio Geologist/Geohazard Specialist Malvin Kenneth Manueli Air Dispersion Modeller Moreno Penalba Air Quality Specialist Melissa Manguiat Terrestrial Vegetation Specialist Abba Grace Sanchez Terrestrial Wildlife Specialist Michael de Guia Aquatic Biota Specialist Naniel Aragones Coral Reef Specialist Lambert Meñez Seagrass Specialist Napo Cayabyab Plankton Specialist Kathleen Silvano Reef Fish Specialist Naniel Aragones Benthos Specialist Marivene Santos Oceanographer Charina Repollo Socio-economic/Stakeholder Consultation Specialist Willy Palarca Anthropologist Felixberto Roquia Public Health Specialist Romeo Quizon Peer Reviewer Jo Rowena Garcia Environmental Scientist Kathleen Anne Cruz Environmental Scientist Ronaldo Lacsamana Proponent Team Vice President Reynaldo Vigilia Assistant Vice President Conrado Tambiloc Jr. Technical Services Manager Rogelio Cadano

2.3 EIA Study Schedule A project briefing was conducted on 28 January 2008 at the project site and was participated by TMC, Maunsell, EMB personnel and the EIA Review Committee Members. The public/site scoping meeting was conducted on 29 January 2008 at the Taganito Barangay Hall in Claver, while the technical scoping meeting was held at the Gateway Hotel in Surigao City on 30 January 2008. Primary data gathering covered both wet and dry season sampling, which started on January 2007 and April 2007, respectively. Socio-economic and public health surveys, along with focus group discussions with the project affected communities commenced on February 2008. Table 2.3-1 summarizes the Schedule of Activities for the EIA Study.

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Table 2.3-1 EIA Schedule of Activities

Date Activities 28 January 2008 Project Briefing at the Site 29 January 2008 Site Scoping 30 January 2008 Technical Scoping Meeting January 2007 Primary Data Collection – Wet Season Sampling April 2007 Primary Data Collection – Dry Season Sampling January 2007 to February 2008 Secondary Data Collection February 2008 Additional Primary Data Collection February 2007 to April 2008 Data Analysis and EIS Preparation

2.4 EIA Study Area

The study area was focused on the perceived direct impact areas which include the proposed locations of the HPP and its auxiliary facilities, all within the Municipality of Claver (Refer to Figure 1.0-1). Specific locations for the HPP, its auxiliary facilities and sampling stations for each module are identified and discussed in the succeeding sections.

2.5 EIA Methodology The EIA approach and methodology was based on the Revised Procedural Manual of DAO 03-30. Consistent with data and information requirements indicated in the approved Technical Scoping Checklist, the EIA study team conducted both primary and secondary data collection for the period January 2007 to February 2008. Sources of secondary data include:

• National Mapping and Resource Information Authority (NAMRIA) • Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) • Philippine Institute of Volcanology and Seismology (PHIVOLCS) • Municipal Government of Claver • National Statistics Office (NSO) • Mines and Geo-Sciences Bureau (MGB) • National Institute of Geological Sciences (NIGS) • National Water Resources Board (NWRB) • Department of Health (DOH)

Published and unpublished information was supplemented with primary data obtained through actual sampling and field surveys. Dialogues, liaison, coordination meetings and interviews were also conducted with TMC and local officials. A list of complete references is presented in Chapter 7.

2.6 Public Participation The series of public consultation made prior to and during the conduct of the EIA Study is presented in Table 2.6-1.

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Table 2.6-1 List of Public Consultations Conducted

Date IEC Format Issues Raised Committed Action by the Proponent /

Remarks Prior to EIA Study

March 29, 2007

Published news on company’s On Target: TMC Today newsletter which is released quarterly and distributed to all employees, the barangay and municipal LGU’s, the MGB, DTI, TESDA, DEPED and neighbouring companies

April 18, 2007

Meeting with TMC staff and employees announcing the HPP project

April 19, 2007

Meeting with Community Technical Working Group (CTWG). This is a multi-sectoral group represented by monitoring group from the community affected by TMC operations

Members had positive remarks and appreciation of the proposed project as this would provide constituents more job opportunities, businesses and development in general.

May 11, 2007

Radio program news release CTWG members announced that they are happy with the proposed undertaking but apprehensive of negative environmental impacts the project may bring especially with the chemicals to be used.

August 16, 2007

Meeting with Sangguniang Bayan

Council members were receptive of the proposed project.

September 12,17, 19, 2007

Meetings with Barangay Council Officials of Taganito, Urbiztondo and Hayanggabon.

The barangay council officials had their own stand regarding the proposed project but they are generally receptive.

EIA Study Concern on chemicals to be used and their effect on people

Chemicals to be used are listed in the fliers and explained by TMC.

Concern on which barangay the limestone will be quarried

Limestone will come from Barangay Sapa.

Site/Public Scoping

LGU, Tribal Community, Religious Group, Government Agencies

Why is the HPP to be located in Hayanggabon?

Choice of best and appropriate location has been done using studies conducted by experts.

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Date IEC Format Issues Raised Committed Action by the Proponent /

Remarks Concern on seismic activity that may affect the tailings dam

Proper studies have been conducted in choosing area for the tailings pond. Dam will be monitored regularly

Concern on overflow of the dam

Overflow will go to decant pond and pumped to the sea via a pipe.

Water source of the HPP Water from Hayanggabon and Taganito will be impounded using weirs.

Concern on effect of effluent from HPP on marine resources

Liquid discharges from HPP will be “clean”.

Concern on resource competition particularly potable water

Studies are being conducted on the use of reverse osmosis technology for water supply to the community.

Concern on effect of chemicals on people

Explanation given by TMC. Precipitators to be used in the power plant.

Priority and guarantee on hiring

Priority will be given to qualified people from Barangay Taganito and surrounding communities.

Concern on fishing by IP’s at Barangay Sungpoy

Fishing is not prohibited

Assurance regarding pollution MMT and EMP will be set up to monitor the environment

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3.0 Project Description The proposed project involves the establishment of a Hydrometallurgical Processing Plant (HPP) to produce nickel and cobalt sulfide and nickel hydroxide from existing laterite ores within the Taganito Mining Corporation (TMC) area, and auxiliary facilities which are necessary in the operation of the plant. The HPP is designed to produce 45,000 metric tons of nickel and 4,500 metric tons of cobalt per year. The 45,000 tons of nickel will be produced as mixed sulfide (MS) and/or nickel hydroxide (NH). Cobalt (4,500 tons) will also be produced as mixed sulfide (MS). Both products will be in powder form and will be contained in flexible plastic bags for shipment to foreign buyers.

3.1 Project Location and Area The Taganito HPP Project is located within Barangays Taganito, Hayanggabon, Cagdianao and Sapa in the Municipality of Claver, Surigao del Norte Province (Figure 3.1-1) and covers an approximate area of 1,000 has. It is about 71 km southeast of Surigao City, the capital city of the Province of Surigao del Norte, and approximately 700km in aerial distance from Manila. Surigao City is serviced by five weekly flights from Manila and several daily inter-island boats from Manila and Cebu.

Figure 3.1-1 Project Location Map

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Most of the project components are within the 3,279 hectare area covered by an operating contract between the TMC and Government of the Philippines (GOP) dated 14 February 1989. An application to convert the operating contract to an MPSA covering an expanded area of 4,584.5145 hectares remains outstanding (AMPSA No. SMR-036-97). The mine operations of TMC are not covered by this ECC application as it has previously been issued an Environmental Compliance Certificate dated 04 November 1993 with Reference Code No. 9209-017-301. The project site lies on the east coast of Mindanao Island within 90 28’ 56” to 90 36’ 9” north and 1250

41’ 14” to 1250 52’ 23” east. The proposed HPP Project site is at about 600 m south of Barangay Hayanggabon and two km southeast of Barangay Taganito. The site can be reached via the existing mine access road originating from Hayanggabon and is connected to the Surigao del Norte and Surigao del Sur Provincial Road. Identified primary and secondary impact areas of the project are presented in Figures 3.1-2 and 3.1-3, respectively.

3.2 Project Rationale The project will enhance the resource utilization capacity of Taganito Mining Corporation (TMC) through the processing of laterite both from stockpile and in-situ. In effect, the project will provide the technology which will enable TMC to process laterite as raw material. The project will also generate taxes and fees, provide employment and contribute to community development projects and economic activities on a local and national level and further augment the existing social development programs.

3.3 Project Alternatives Hydrometallurgical process projects are commonly dictated by the specific location of the laterite ores which are used as the raw materials. Unlike other natural resources, there are no alternative sites in mineral development and utilization projects. The only alternative is not to pursue the project at the site.

The sites for the process plant, loading/unloading pier, stockyard of sub-materials, access roads and company housing for employees have been identified for the proposed project. While alternatives exist, site selection considered the availability of usable areas (e.g. availability of flat open spaces with minimum number of occupants) and proximity to the raw materials (minimal hauling distance etc) as well as existing facilities.

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Figure 3.1-2. Map of Primary Project Impact Areas

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Figure 3.1-3. Map of Secondary Project Impact Areas

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3.4 Project Components The different project components are presented in Table 3.4-1. The Site Development Plan is shown in Figure 3.4-1.

Table 3.4-1 Project Components and Location

Component Barangay Location

Watershed Location

Estimated Area

Location with respect to

MPSA Hydrometallurgical Processing Plant and all associated facilities • High Pressure Acid Leach Circuit

- Ore Preparation Section - High Pressure Acid Leach Section - Pre-neutralization Section - Counter Current Decantation Section - Neutralization Section

• Sulfurization Circuit - Zinc Removal Section - Sulfurization Section - Final Neutralization Section

• Hydroxide Circuit - Fe-Al Removal - Preliminary Hydroxide Precipitation Section - Hydroxide Dissolution Section - Solvent Extraction Section - Hydroxide Precipitation Section

• Waste Water Treatment • Chemical and Reagent Preparation Circuits • Boiler and Power Plant • Acid Plant Facility • H2S Plant Facility

Hayanggabon and Taganito

Hayanggabon and Taganito River Watershed

70 has (including ore preparation section)

Inside MPSA

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Component Barangay Location

Watershed Location

Estimated Area

Location with respect to

MPSA • Slaked Lime Plant Facility • Other associated facilities (e.g. vehicle shelter, storage facilities, water

recycling equipment, administration building, waste management facilities) • Road networks, bridge networks and other support facilities

Tailings Storage Facility • Tailings Dam • Decant Pond • Road networks, bridge networks and other support facilities

Taganito and Hayanggabon

Taganito, Daang Suba and Hayanggabon River Watershed

630 has Inside MPSA

Limestone Quarry and other associated facilities (e.g. road) • Limestone Quarry • Associated facilities (e.g. road)

Sapa Sapa River Watershed

64 has Outside MPSA

Water Supply System • Diversion weirs • Desalinization facility

Taganito and Hayanggabon

Taganito, Daang Suba and Hayanggabon River Watershed

4 has Inside MPSA

Wharf Berths and other associated facilities • Wharf berths • Associated facilities (e.g. vehicle shelter, administration office) • Road networks, bridge networks and other support facilities

Taganito Taganito River Watershed

39 has Inside MPSA

Materials Storage Facility • Storage area for MS and NH, coal, slaked lime, sulfur and ore

Taganito Taganito River Watershed

15 has (will be located within the 39 hectare-area covered by the wharf site and its associated facilities)

Inside MPSA

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Component Barangay Location

Watershed Location

Estimated Area

Location with respect to

MPSA

Ash Disposal Pit Taganito Taganito River Watershed

7 has Inside MPSA

Townsite • Houses (for approximately 10,000 residents), buildings (e.g. school, church,

hospital, hotel), amusement facilities (e.g. golf course, park, playing field) and other amenities

• Road networks, bridge networks and other support facilities • All other waste management facilities (e.g. waste water treatment facility)

Cagdianao Townsite River 73 has Inside MPSA

Temporary Facilities (i.e. construction camp) Taganito, Cagdianao and Hayanggabon

Taganito, Daang Suba, Townsite River and Hayanggabon River Watershed

113 has Inside MPSA

Total: 1,000 has

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Figure 3.4-1 Taganito HPP Project Site Development Plan

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3.4.1 Hydrometallurgical Processing Plant (HPP) and Associated Facilities

The Hydrometallurgical Processing Plant consists of three circuits which include the High Pressure Acid Leach Circuit, Sulfurization Circuit and Hydroxide Circuit. It will also have a Waste Water Treatment section, Chemical and Reagent Preparation circuits, Boiler and Power Plant, an Acid Plant facility, a H2S facility, a Slaked Lime Plant facility, and other associated facilities (e.g. vehicle shelter, storage facilities, water recycling equipment, administration building and waste management facilities). The process flow sheet of the HPP and its circuits are shown in Figure 3.4.1-1. Table 3.4.1-1 describes each component of the HPP in detail, while Figure 3.4.1-2 presents its material balance diagram. The estimated raw water consumption of the Taganito HPP project is shown in Figure 3.4.1-3.

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B. Sulfurization Circuit

Figure 3.4.1-1 Process Flow Chart

Ni Ore

Ore Preparation of Limonite & Low Grade Ni Ore

H2OAcid & Steam /

Air

Neutralization of Ni/Co rich liquor

Fe, Al, Cr

H2S

Ni & Co precipitated as MS (Sulfurization Section)

Mixed Sulfide Product

Final Neutralization

Residue Slurry (to Tailings Dam)

Limestone (in 1st tank)

Slaked lime & Air (in succeeding

tanks)

Preliminary Hydroxide Precipitation Section

Dissolution of Ni & Co Hydroxide

Ca(OH)2or

Mg(OH)2

H2SO4 & H2O

Limestone

Solvent Extraction

Final Ni Hydroxide Precipitation Section

Nickel Hydroxide Product

Waste Water Treatment of barren liquor

Mg(OH)2

Acidic Extractant,

H2SO4 & caustic soda,

solvent

Limestone

A. HPAL Circuit

C. Hydroxide Circuit

D. Waste Water Treatment

Legend:

Process flow

Input

Output

Fe, Al, Cr, Si and Ca

ZnS

Barren liquor

Final neutralization will be carried out if waste

water treatment of barren liquor in hydroxide circuit will not be utilized before disposal to tailings dam

Co

Pre-neutralization of leach slurry (Hi Ni, Co and low Fe)

High Pressure Acid Leach Section

Nine Stage CCD

Zinc Removal Section

Page 3 - 10

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Table 3.4.1-1 Description of HPP Circuits

Circuit / Section / Facility Description / Purpose of Component Estimated Capacity /

Size

Estimated Area

occupied Proposed Location

A. High Pressure Acid Leach Circuit (HPAL)

Will include the following sections: ore preparation section, high pressure acid leach section, pre-neutralization section, counter current decantation section and neutralization section

South of Barangay Hayanggabon

1. Ore Preparation Section

Consists of four single conveying and screening train. Mixing of limonite and low grade nickel ore to the proper ratio prior to screening. The fine material is slurried during the wet screening process and thickened before being transferred to the HPAL circuit.

Ore thickener: 23mD x 3 sets

19 has Northwest of the mine site called “Taga 2”

2. High Pressure Acid Leach Section

This section will process the extraction of nickel and cobalt from the ore with minimal net extraction of iron at 245oC.

Autoclave: 5 mID x 39 mL x 3 sets

3.0 has Installed within the HPP area south of Barangay Hayanggabon

3. Pre-neutralization Section

Tanks in this section are designated to add limestone slurry to the leach slurry in the reduction of free acid and precipitate the Fe, Al and Cr in solution. The partial neutralized leach slurry is then transferred to Counter Current Decantation stage.

Tank: 8 mID x 9 mH x 3 sets

3 has Installed within the HPP area south of Barangay Hayanggabon

4. Counter Current Decantation (CCD) Section

Nine high rate thickeners in the CCD area recover the nickel and cobalt-rich solutions that remained in the barren leached solids. The underflow from the last thickener is sent to the final neutralization section at maximum solids density and minimum nickel and cobalt liquor concentration. The nickel and cobalt rich liquor from the first CCD thickener overflow is fed to the neutralization section.

Thickener: 44mD x 9 sets x 1 line

7 has Installed within the HPP area south of Barangay Hayanggabon

5. Neutralization Section

The tanks in the neutralization section is designated to remove residual free sulfuric acid from the CCD thickener and precipitate impurities like Fe, Al and Cr from the limestone slurry.

10 mD x 11 mH x 2 sets 1 ha Installed within the HPP area south of Barangay

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Circuit / Section / Facility Description / Purpose of Component Estimated Capacity /

Size

Estimated Area

occupied Proposed Location

The Underflow of neutralization thickener is transferred to CCD to recover co-precipitated Ni and Co and recover soluble nickel and cobalt adhered to the solid of underflow. The thickener overflow gravitates to the neutralization thickener overflow tank and then transferred to Zinc Removal.

Hayanggabon

B. Sulfurization Circuit

Will include the following sections: zinc removal section, sulfurization section and final neutralization section

1. Zinc Removal Section

The objective of this circuit is to remove zinc which is major impurity of the MS product. If Zn is not removed before the Sulfurization circuit, it will be completely co-precipitated with Ni and Co. Zinc is a hazardous element in the Matte Chlorine Leach Electrowinning (MCLE) process in the Niihama Refinery in Japan.

De-Zn reactor: 7 mD x 7 mH x 3 sets x 3 lines

0.2 has Installed within the HPP area south of Barangay Hayanggabon

2. Sulfurization Section

Ni and Co are completely precipitated as MS from the Zn-free solution reacted to H2S gas. H2S in the barren solution is completely removed in the subsequent process before barren solution is recycled back to the CCD circuit as wash water for residue in underflow slurry of CCD thickener.

MS reactor: 6 mD x 9 mH x 4 sets x 3 lines

2 has Installed within the HPP area south of Barangay Hayanggabon

3. Final Neutralization Section

The objective of this circuit is to completely remove hazardous element in the CCD9 U/F waste slurry and excess barren liquor, and neutralize residual acid before discharging to the Tailings Dam. Limestone is used to neutralize free acid in the first tank, and raise the pH to 5. Slaked lime is added to the succeeding tanks to increase pH to around 8.5 to 9.0 to completely remove all dissolved metals. Manganese is maintained at less than 1ppm in the neutralized solution and the slurry is sent to Tailings Dam. Air is continuously blown into the four tanks to oxidize the metals and facilitate precipitation.

F-NTRL tanks: 10 mD x 11 mH x 4 sets x 1 line

0.8 ha Installed within the HPP area south of Barangay Hayanggabon

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Circuit / Section / Facility Description / Purpose of Component Estimated Capacity /

Size

Estimated Area

occupied Proposed Location

C. Hydroxide Circuit

Will include preliminary hydroxide precipitation section, hydroxide dissolution section, solvent extraction section and final hydroxide precipitation section

1. Fe-Al Removal A portion of neutralized solution is sent to Fe-Al removal circuit. Iron and aluminium in the solution are precipitated completely as hydroxide by addition of Mg(OH)2 or Ca(OH)2. SO2 gas and the air are used in this circuit as the oxidant. The precipitate is separated from the solution by the thickener or the filter.

Installed within the HPP area south of Barangay Hayanggabon

2. Preliminary Hydroxide Precipitation Section

The solution after Fe-Al removal circuit is sent to preliminary hydroxide precipitation circuit. Nickel and cobalt in the solution are precipitated completely as hydroxide by addition of Mg (OH)2 or Ca(OH)2. The precipitate is separated from the solution by the thickener or the filter. The barren liquor is sent to waste water treatment circuit and heavy metals are removed from the solution.

8 mD x 7 mH x 2 sets x 1 line

0.3 has Installed within the HPP area south of Barangay Hayanggabon

3. Hydroxide Dissolution Section

Hydroxide is dissolved into the solution by addition of sulfuric acid and water. Nickel and cobalt are dissolved completely. The purpose of preliminary precipitation and dissolution is reduction of flow rate and equipments

5 mD x 6 mH x 2 sets x 1 line

0.4 has Installed within the HPP area south of Barangay Hayanggabon

4. Solvent Extraction Section

The solution is sent to solvent extraction circuit. Cobalt in the solution is separated from nickel. Solvent extraction technology is applied for nickel and cobalt separation. Extractant which is organic reagent is mostly utilized after dilution by kerosene. Acidic extractant will be chosen as a suitable reagent. Cobalt is once extracted into the extractant. Cobalt in the extractant is next contacted with diluted sulfuric acid and recovered to the solution. Caustic soda solution is used as the reagent for pH adjustment of the solution at cobalt extraction stage.

13 mL x 3 mH x 2 mW x 5 sets x 1 line

0.4 has Installed within the HPP area south of Barangay Hayanggabon

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Circuit / Section / Facility Description / Purpose of Component Estimated Capacity /

Size

Estimated Area

occupied Proposed Location

5. Final Hydroxide Precipitation Section

Nickel solution after cobalt separation is next sent to hydroxide precipitation circuit. Nickel in the solution is precipitated by addition of Mg(OH)2. The hydroxide precipitate is separated from the solution as the same figure as preliminary precipitation circuit. All the heavy metals are removed from the barren liquor as well. The filtered nickel hydroxide is packed in the bag and exported to foreign buyers.

5 mD x 6 mH x 2 sets x 1 line

0.6 has Installed within the HPP area south of Barangay Hayanggabon

D. Waste Water Treatment

The barren liquor from preliminary hydroxide precipitation circuit and final hydroxide precipitation circuit is sent to waste water treatment circuit. All the heavy metals in the solution are completely removed by the addition of CaCO3 or Mg(OH)2 or Ca(OH)2. SO2 gas and the air are used in this circuit as the oxidant. The treated solution is sent to the tailings storage facility. If waste water treatment will not be employed, the barren liquor from these two circuits will be sent to final neutralization before disposal to the tailings storage facility.

8mD x 7mH x 3 sets x 1 line

0.4 has Installed within the HPP area south of Barangay Hayanggabon

E. Chemical and Reagent Preparation Circuits

Sub-materials used in the plant are prepared internally. Limestone, Slaked lime, Caustic soda, Hydrogen Sulfide and Flocculant preparation circuits are part of the process operations. Majority of raw limestone is sourced from a nearby quarry site. Limestone is crushed and milled to achieve the 75µm 85% passing quality, and pulped into 25%-solid slurry. Slaked Lime dissolution tanks are available to prepare 20%-Solids slurry. Caustic Soda at a density of 1275kg/m3 is prepared from 25kg bags of caustic soda flakes. Flocculant is diluted to 0.3% stock solution from 700kg flocculant powder. Hydrogen Sulfide at more than 95% purity is produced from the reaction of hydrogen gas and sulfur. Slaked lime is produced from calcining of limestone to produce lime (CaO), and then the

Limestone: 961,000 tons/y Slaked lime: 420,000 tons/y Caustic soda: 5,500 tons/y Hydrogen Sulfide: 31,500 tons/y as 100% H2S Flocculant: 3,800 tons/y as powder

6 has Installed within the HPP area south of Barangay Hayanggabon

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Circuit / Section / Facility Description / Purpose of Component Estimated Capacity /

Size

Estimated Area

occupied Proposed Location

addition of water to produce slaked lime (Ca(OH)2).

F. Boiler and Power Plant

The plant facility includes a coal-burning boiler which converts water to steam. Majority of steam produced is utilized to run the steam turbine generator (STG) which supplies 66 MW of power to the plant. Steam is also used for high pressure acid leach in the autoclave and other heating processes in the production of mixed sulfide. High pressure steam is supplied from the acid plant and coal-fired boiler. A 10 MW diesel engine generator will also be installed. Approximately 353,000 tons of coal per year will be used for the boiler. The stockpile of coal will be located near the wharf and in the HPP. The cooling water blowdown from the power plant will be sent to final neutralization, then to the tailings dam and then to the decant pond before being discharged to the sea at ambient temperature. Three options for the boiler technology to be used in the power plant are being considered:

1. Stoker type 2. Circulated Fluidized Combustion Type 3. Pulverized Coal Burning Type

The configuration of the power station is presented in Appendix 3.4.1. – Figure 1

Boiler: 110 tons/hr x 3 sets Steam turbine generator: 22 MW x 3 sets Emergency diesel engine generator: 2.5 MW x 4 sets

3.0 has Installed within the HPP area south of Barangay Hayanggabon

G. Acid Plant Facility

There will be two acid plants in the HPP. The sulfuric acid production facilities comprises a single train, double absorption, sulfur burning acid plant with a normal capacity of 650,000 tons each per annum producing 98% sulfuric acid at 40 oC. The sulfuric

650,000 tons/y x 2 sets 9 has Installed within the HPP area south of Barangay

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Circuit / Section / Facility Description / Purpose of Component Estimated Capacity /

Size

Estimated Area

occupied Proposed Location

acid is stored in an acid tank prior to distribution. Superheated steam is generated in the acid plant as a by-product and sent to the steam turbine generator and process areas for use. SO2 gas, which will be synthesized in the acid plant, will be utilized at the waste water treatment circuit. Excess SO2 gas will be introduced into the scrubber and recovered. The cooling water blowdown from the acid plant will be sent to final neutralization, then to the tailings dam and then to the decant pond before being discharged to the sea at ambient temperature.

Hayanggabon

H. H2S Plant Facility

A dedicated H2S plant facility is needed in the process and will be established within the HPP. The specifications description of the plant is presented in Table 3.4.1-2. The properties and quality of hydrogen sulfide are presented in Table 3.4.1-3.

125 MT/day 2 has Installed within the HPP area south of Barangay Hayanggabon

I. Slaked Lime Plant Facility

Limestone materials will be baked in kiln to produce quick limes. Quick limes will be crushed and mixed with a certain amount of water to produce slaked lime milk with a concentration of 20%. The following are the main equipments of the slaked lime plant facility: • Crushing machine and screen • Rotary kiln for calcination • Crushing machine and screen for CaO • Slaking equipment • Slaked lime slurry tank

20% Ca(OH)2 milk: 2,100,000 tons/y

3 has Installed within the HPP area south of Barangay Hayanggabon

J. Associated facilities (e.g. vehicle shelter,

Two vehicle shelters will be constructed in the HPP. One will be constructed for fire trucks, mobile crane, etc., while the other one will be for services such as commuter buses. Storage facilities for

7 has (admin building

Installed within the HPP area south of Barangay

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Circuit / Section / Facility Description / Purpose of Component Estimated Capacity /

Size

Estimated Area

occupied Proposed Location

storage facilities, water recycling equipment, administration building)

chemicals, coal, limestone and products will be provided. A water recycling equipment to treat effluent that may be recycled back to the plant will also be installed. An administration building will also be built in the HPP.

and vehicle shelter only)

Hayanggabon

Table 3.4.1-2 H2S Plant Specifications

Parameters Proposed Specifications A. Capacity The production capacity is designed to meet daily consumption of 105 MT/day and annual maximum consumption of hydrogen sulfide

at the hydrometallurgical process plant. Annual consumption: 31,500 MT/y = 105 MT/d x 300d/y

B. Fluctuation Production is designed to change within a plant capacity of 23 - 120% (24-125 MT/D). C. Process 1. Hydrogen

Production Vaporized methanol and water are reacted on catalyst to produce hydrogen gas with purity of 74 % by volume %. The obtained gas is purified up to 99.9 % by volume through a PSA (pressure swing adsorption) unit. CH3OH(g) + H2O(g) = 3H2(g) + CO2(g) Q1 : - 59.5 kJ/moI

2. Hydrogen Sulfide Production

Hydrogen sulfide with purity of more than 90 % by volume is synthesized by a catalytic reaction with hydrogen gas and sulfur gas. H2(g) + S(g) = H2S(g) Q2: 37.4 kJ/mol

3. Purification Reacted gas is cooled and unreacted sulfur is recovered. Further, the gas is washed by water to remove a small amount of sulfur. 4. Compression Obtained hydrogen sulfide gas is compressed up to 350 kPaG (3.57 kg/cm2. G) and delivered to the sulfurization and zinc removal

areas. 5. Waste Treatment Exhaust gas left from the hydrogen production process is burned (generated heat is recovered) and discharged to the atmosphere.

Removed sulfur from gas at purification process is considered to be a sort of waste however the amount is very negligible and it will undergo final neutralization before going to the tailings dam.

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Parameters Proposed Specifications An H2 plant for the production of the H2 gas reactant for the H2S production is integrated in the H2S plant. This plant will be operated continuously however, it will only produce very minimal emissions of H2O, N2 and CO2 which will be released into the atmosphere intermittently.

6. Non-steady Operation

In case of non-steady operation, exhaust gases will be treated with a scrubber.

D. Safeguard As hydrogen sulfide is a poisonous, combustible and corrosive gas, special attention is needed for its safe treatment and production. The following are the inherent safety features built in to the plant facilities and operations.

1. Facility Design • All facilities are closed systems to prevent gas leakage; • Risk of gas leakage is reduced by a system in which almost all of the facilities are operated under low pressure; • Hydrogen sulfide production is discontinued in a moment at the plant by stopping the supply of hydrogen; • A DCS (Distributed Control System) control system is installed to eliminate human error except for the sulfur melting process; • A gas detector is installed within the production area to detect gas leakage; • Around the dangerous area of the PHS Plant, a hydrant is installed for fire fighting; • Around the Hydrogen Sulfide Plant, open spaces are provided to give more space for fire fighting; • The open structure of the H2S plant is adopted to disperse any leakage easily; • In hazardous areas, electrical equipment and wiring method are installed based on API (American Petroleum Institute) standard; • The facility has also other safety devices against other chemical contingencies.

2. Interlocking and Redundant Safety and Emergency Devices and Systems 2a. H2S Reactor

Guard 1st Step: At HPA (High Pressure Alarm) level, the operator change the setting value to lower reduces the hydrogen feed load

2nd Step: With increased pressure at HPZ (High Pressure Inter Locking), the hydrogen interlocking valves 1 and 2 works under the abnormal conditions are shut to protect the reactor. Simultaneously, valve 2 is opened to release purged H2 gas.

3rd Step: If pressure is not decreased, the inner gas at the reactor is purged through liquid sulfur seal and then introduced to scrubber for emergency treatment.

The gas released is treated in the scrubber for emergency treatment 2b. H2S Gasholder

guard Gasholder is controlled between LLA (Low Level Alarm) to HLA (High Level Alarm) in normal operating conditions.

1st Step: At LLA level, the operator calls to the HPP Plant to decrease consumption of H2S. At HLA, the hydrogen flow rate is

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Parameters Proposed Specifications decreased.

2nd Step: At LLZ (Low Level Inter Lock), the compressor automatically shuts down. At HLZ (High Level Inter Lock), the valve supplying H2 automatically shuts down. In normal condition, the gasholder is operated to have a capacity which is enough to hold released H2S gas at emergency conditions.

3rd Step: With further increase in pressure, purge gas is released from the liquid (paraffin) seal vessel and treated in the PHS alkaline scrubber during emergency.

3. Scrubber • Scrubber is installed for emergency • During emergency, the reaction of the scrubber with H2S is as follows:

H2S + NaOH → NaHS + H2O Since most H2S gas is removed at the scrubber, exhaust gases are introduced to a large-scale scrubber at the main plant directly where unreacted H2S is treated finally. • The generated NaHS is recovered as H2S in the HPP Plant.

4. Prevention of Disaster

• Enough fire hydrants to extinguish fire in the production area from two directions are installed. Fire extinguishers are also in place. • Large volume tanks storing combustible liquid are equipped with drainage nozzles for extinguishing. • Emergency broadcast system is installed for operators working outside.

5. Protective Equipment and Devices

Air respiratory device, safety glasses, gloves, clothes, shoes, boots, and shower are provided.

Table 3.4.1-3 Properties and Quality of Hydrogen Sulfide

Parameter Data 1. Condition Gaseous 2. Temperature 35-45°C 3. Pressure 350 kPaG maximum 4. Purity 95 volume % minimum 5. Moisture 1 volume % maximum 6. Hydrogen 7. Nitrogen 8. Oxygen

All at total 4 volume% maximum

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*Tailings residue volume of 2200k m3 was calculated as follows: 2200k m3=6700kDMT / 3.00t/m3. 3.00t/m3; specific gravity of tailings residue

Figure 3.4.1-2. Material Balance Diagram of the Taganito HPP (for 30kT-Ni as MS + 15kT-Ni as Hydroxide)

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Figure 3.4.1-3. Water Balance Diagram of the Taganito HPP Project

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3.4.2 Auxiliary Facilities

3.4.2.1 Tailings Storage Facility

Description and Quantity of waste products Waste materials generated in the Plant site, based on 120% maximum capacity are:

- HPAL Residue - Approx. 4,860,000 DMT/year - Neutralized Gypsum - Approx. 1,020,000 DMT/year - Manganese sludge - Approx. 855,000 DMT/year

The tailings storage facility will have two components: the tailings dam and the decant pond. Their specifications are presented in Table 3.4.2-1.

Table 3.4.2-1 Tailings Storage Facility Specifications

Component Proposed Specification

A. Tailings Dam 1. Purpose To collect and impound the materials generated from the process. 2. Location Southwest of the HPP facility 3. Materials Rock, sand, gravel and available laterite near the area 4. Impounding Capacity

141 million m3

5. Height 110 m 6. Elevation 120 m 7. Ground Condition

The ground condition of the dam site is composed laterite layer and weathered ultramafic rock. The bearing force of the ground the dam has enough capacity for construction.

8. Plan of Discharge

The clarified water, after settling tailing materials and rainwater from the catchment area of the tailings dam, are discharged through a culvert with intake structure provided at the bottom of the dam.

9. Waste Specifications

The project, with an annual productive capacity of 45,000 tons of nickel, will generate around 6.7 million DMT of tailings a year. The tailings discharge to the pond at a temperature of 60 to 70 oC and pH of 8.5 to 9.0. Upon discharge from decant pond, the expected temperature and pH of the effluent are ambient temperature and 8.5 to 9.0, respectively.

10. Effluent Specifications

The effluent of decant pond is conveyed through a piping by pumping from the pond. A part of the effluent is recycled back to main plant to maintain required amount of process water. The remaining supernatant is sent to wharf area through the pipe and finally discharged to the sea.

B. Decant Pond A concrete lined pond with an approximate area of 9 has or less

3.4.2.2 Limestone Quarry

The proposed project involves the establishment of limestone quarrying operations near the Taganito mining area. The proposed quarry is designed to produce an annual capacity of approximately 2 million tons of limestone. The quarried limestone shall be delivered to the Taganito HPP. The quarrying operations will employ open cast mining using conventional drilling and blasting technique.

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Location The proposed site is located in Barangay Sapa, about 13 km west of the proposed HPP site and about 120 km southeast of Surigao City along the coast. Ore Reserves The estimated ore reserves are placed at approximately 32.7 million MT. Details of the reserves estimate are presented in Table 3.4.2-2 as follows.

Table 3.4.2-2 Ore reserves of Limestone quarry

Level

meter-level (mL) Upper Section

(m2) Lower Section

(m2) Ore Reserves

(kt) 226-220 0 12,396 55 220-210 12,396 26,683 422 210-200 26,683 52,637 860 200-190 52,637 76,496 1,419 190-180 76,496 103,622 1,983 180-170 103,622 133,540 2,614 170-160 133,540 171,107 3,358 160-150 171,107 206,070 4,162 150-140 206,070 245,059 4,979 140-130 245,059 291,762 5,924 130-120 291,762 340,937 6,984

Total 32,759

The ore reserves are computed based on the following parameters: o Over all pit slope : 30o o Bench height : 10m o Width of haul road : 10.5m o Road gradient : 10% o Working bench slope : 53.13°

Quarrying Operation Table 3.4.2-3 presents the stages of the quarrying operation.

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Table 3.4.2-3 Stages of Quarrying Operation

Stage Description Area Preparation

Includes the creation of roads from the flat land to the top (226 mL) for developing work and raw limestone transportation.

Blasting Operation

Conventional drilling using a Hydraulic Crawler Drill machine equipped with a compressor will be employed with a drill hole diameter of 75-90 mm. Charging of a drill hole consists of primer using dynamite. The powder factor is 0.1kg/t.

Stockpiling / Dozing

Broken material will be gathered and removed from the bench face and stockpiled to an adjacent location after blasting to clear the area and prepare it for another round of drilling and blasting.

Loading and Transportation

Material will be loaded to a 25MT dump truck using a backhoe and hauled and dumped temporarily at a stockyard which is located at the main plant site.

Hopper Feeding / Crushing

The material will be fed to a receiving hopper using a wheel loader and crushed into the size of less than 150mm in primary crushing facilities. All the crushed raw stones are rinsed by drum washers. Rinsed ores are screened in two screens. Baking materials of 30-10mm and calcium carbonate materials of 10mm are produced. Surplus lumps are crushed in two crushers and each material is produced to the screen repeatedly.

Each material is stocked in a steel tank and then is carried to calcium carbonate facilities and baking facilities by a conveyor belt each.

Environmental Protection Program

Gravitational drainage will be employed for the quarrying face. Drainage ditches will be created on the quarrying roads and sand basins for draining supernatant water to the river. Drainage ditches will be created on the transportation roads and set facilities for sedimentary sands to prevent polluted water from flowing into the river. Facilities will be dredged periodically to maintain their functions.

Limestone Quarry Road A haul road approximately 30 km shall be constructed for the limestone quarry operations and material transport. This will be located in the limestone quarry site.

3.4.2.3 Water Supply System

Two water intake dams with 6000 cu.m storage capacity will be constructed for the HPP. These will be located at the Taganito and Daang Suba River intake. The water is led to the plant site by pumping and stored at the water pond within the plant site and distributed both within each section of the plant by pump. For this project, water requirement would be 2,200MT/h totally. Based on extrapolated water flow using rainfall data, insufficient water supply was observed in dry season; from April to October. Therefore waste water recycle from the decant pond to plant site will be planned as countermeasure for the lack of water supply. Also, other intake dams will be built to become possible sources of water of the HPP. A desalinization facility for seawater will also be constructed as an additional source of water for the project. It will be located in Barangay Hayanggabon.

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3.4.2.4 Wharf Berths and Associated Facilities

The wharf berths and its associated facilities will cover an estimated area of 39 has which will include the following:

• Platform type wharf – 1 ha • Pier site, storage etc. – 23 has • Access road to plant – 15 has

The wharf will be of a platform type (concrete slab on steel piles) and will be 400m long x 15-33m wide. Materials such as sulfuric acid, methanol, sulfur, coal and MS products will be unloaded/loaded with wharf facilities. This project will provide three ship berths; one for chemical tankers (methanol and sulfuric acid), one for coal and another for general material (MS products, sulfur, construction materials). Associated facilities of the wharf include an administration office, navigation aid, street lights and emergency shower. A sulfuric acid tank with a capacity of 20,000 m3 and a methanol tank of a capacity of 4,000 m3 will be installed at the wharf site. Each tank will be made of carbon steel and will be diked. The capacity of each dike can afford to hold the liquid of the full capacity of the tank if a leakage occurs. The methanol tank will always be inactivated by the introduction of nitrogen gas generated by N2 generator installed near the tank. The proposed layout, alignment and the sectional views of the wharf are presented in Figures 3.4.2-1, 3.4.2-2 and 3.4.2-3.

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Figure 3.4.2-1 Conceptual Lay-out Plan of the Wharf

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Figure 3.4.2-2 Proposed Alignment of the Wharf

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Figure 3.4.2-3 Sectional Views of the Wharf

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3.4.2.5 Materials Storage Facility

A facility for storage of materials will be constructed in Barangay Taganito and its description is presented in Table 3.4.2-4. It will be located within the 39 hectare-area covered by the wharf site and its associated facilities.

Table 3.4.2-4 Description of Materials Storage Facility

Material for Storage Description Proposed Size

MS and NH storage for HPP products 2,800 m2 Coal concrete paved yard 21,000 m2

Slaked lime concrete paved yard 20,000 m2 Sulfur concrete paved yard 20,000 m2 Ore unpaved 80,000 m2

3.4.2.6 Ash Disposal Pit

The boiler fuel that will be utilized will most likely be Adaro coal, which contains approximately 1% ash. Operating the boiler using Adaro coal will generate an approximate volume of 15,700 m3 of ash per year. The ash will be disposed in an ash disposal pit following DENR guidelines. It may also be sold to nearby cement factories.

3.4.2.7 Townsite and Associated Facilities

The proposed townsite will be located in Brgy. Cagdianao and will have an approximate size of 73 hectares. It will include the following components: houses (i.e., plant manager’s house, labor and staff units, dormitories for men and women, vendor and contractor, and technical advisers); buildings (i.e., switchgear building, water purifier building, schools, hotel, hospital, town hall, church, guardhouse and golf and tennis club house), and other facilities (i.e., oval and play ground, parking area, tennis court, basketball court, golf course, and market). The estimated water consumption of the new townsite will be 1000 tons per day, while power consumption will be 5000 kwh. Both water and electricity for the townsite will be supplied by the water supply system and the power plant of the HPP. Civil works for the project townsite includes site development, road and drainage, fence and gates and landscaping. Utilities shall include water purifier and waste water treatment facilities, head tanks, water supply network, sewage piping network, transformer and distribution system, and power supply network.

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Plate 3.4-2. Proposed location of HPP overlooking Telegraph Island

Plate 3.4-1. Proposed location of HPP at the southern portion of Barangay Hayanggabon

Plate 3.4-3. Proposed location of the Ore Preparation Circuit at the north western portion of the mine site called “Taga 2”

Plate 3.4-4. Proposed location of the Ore Preparation Circuit

Plate 3.4-5. Proposed location of the Ore Preparation Circuit

Plate 3.4-6. Proposed wharf berth located beside the existing wharf facility

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3.5 Description of Project Phases 3.5.1 Pre-construction / Pre-operational Phase

The three major activities during the pre-construction phase of the project include permitting, survey design and tendering works and procurement and construction tendering. Permitting. Permitting is the acquisition of necessary permits prior to project implementation. These include Environmental Compliance Certificate (ECC), foreshore lease agreement, permits for construction and operation of private port, water rights and tree cutting permits. The list of various permits is shown in Table 3.5.1-1.

Table 3.5.1-1 Project Permits

Permit/Programs Issuing Agency/Institution Status Environmental Compliance Certificate (ECC)

EMB-DENR Application in progress

FPIC- Free and Prior Informed Consent Mamanua Indigenous Community To be secured Certification Precondition (CP) National Council for Indigenous

People (NCIP) To be secured

Endorsements/Certification/ Resolutions Local Government Units To be secured Foreshore Lease Agreement DENR Partially secured Tree Cutting Permits (for limestone quarry) DENR To be secured Special Land Use DENR To be secured Construction and Operation of Mine Waste Structures

EMB – DENR To be secured

Lease Contract or Deed of Absolute Sale (for limestone quarry site)

Land Owners To be secured

Survey Design and Tendering Works. Survey design and tendering activities will involve detailed follow-up work to finalize the plan and design details of the facilities. Procurement and Construction Tendering. Activities during pre-construction works will include setting up of the construction camp and procurement of construction materials. It will also involve the establishment of buffer zones in the periphery of the proposed contractor’s equipment pool.

Plate 3.4-8. Proposed Tailings Dam Site Plate 3.4-7. Proposed location of the Quarry Site

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3.5.2 Construction / Development Phase

Construction of the HPP and the auxiliary facilities will commence once design and tendering works are completed.

3.5.3 Operational Phase

3.5.3.1 Plant Commissioning and Operation

The operation of the HPP will produce 45,000 metric tons of nickel as mixed sulfide (MS) and/or nickel hydroxide (NH) and 4,500 metric tons of cobalt as mixed sulfide (MS) per year.

3.5.3.2 Mineral Processing

As discussed earlier, the detailed mineral processing flow diagram is presented in Figure 3.4.1-1.

3.5.3.3 Processed Ore Transport

The ore preparation section, which is located near the TMC’s mine site called “Taga 2”, is separated from the HPP. After the laterite is screened and slurried at the ore preparation area, it will be transferred to the HPP by slurry transfer pump. The recycled water from the ore thickener overflow tank in the HPP used for repulping solid ore will be brought back to the ore preparation area. 3.5.4 Abandonment Phase The following are possible options that will be considered during the abandonment phase: • Removal, disposal and cleanup of unused chemicals and wastes • Decommissioning of stockyards • Decommissioning of solid waste dumps • Decommissioning of plant, offices and work shops • Site inspection for contamination; remediation if necessary • Road closure works • Decommissioning of water supply and sewage system • Removal of fences • Continued works on rehabilitation of limestone quarry • Decommissioning of tailings dam

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3.6 Project Wastes and Built-in Management Measures The potential project wastes are presented in Table 3.6-1.

Table 3.6-1 Potential Project Wastes

Nature of Wastes / Emissions Project Activity /

Facility Water Estimate Emission Estimate Solid Waste Estimate Hazardous Waste Estimate Proposed Built-in Measures

A. Hydrometallurgical Processing Plant Area HPAL Circuit Heavy Metal Leach

Residue (Al, Fe, Cr, Si, Ca)

Heavy metals - will go to tailings dam after final neutralization

Sulfurization Circuit H2S ZnS Barren liquor which contains Mg, Mn, Al, Si, Ca and H2SO4

a. Barren liquor - Identified wastes will go to the tailings dam after final neutralization b. H2S - H2S emissions will be very minimal and will pass through scrubbers. Concentration will be within the standard.

Hydroxide Circuit Barren liquor which contains Mg, Mn, Al, Si, Ca and H2SO4

Identified wastes will go to the tailings dam after final neutralization

H2S Plant Sulfur residue Identified wastes will go to the tailings dam after final neutralization

Slaked Lime Kiln Plant

TSP, SOx, NOx, CO

Concentration of emissions will be kept within standards

Acid Plant Operation Cooling tower blow down and waste heat boiler blow down

Identified wastes will go to the tailings dam after final neutralization

Coal-Fired Power Plant

TSP, SOx, NOx, CO

Ash a. Ash - ash to ash disposal pit or may be sold to nearby cement

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Nature of Wastes / Emissions Project Activity /

Facility Water Estimate Emission Estimate Solid Waste Estimate Hazardous Waste Estimate Proposed Built-in Measures

factory b. TSP, SOx, NOx - Dust collectors will be in place; low sulfur content coal and high efficiency combustion will be utilized for the operation.

B. Tailings Storage Facility (3 dams and 1 decant pond)

Decant pond effluent Effluent recycled as process water in main HPP; supernatant discharged to sea near wharf

C. Limestone Quarry

Run-off with increased hardness due to Ca+ ions from quarry

Limestone dust / TSP

Gravitational drainage will be employed for the quarrying face. Gutters will be created on the quarrying roads and sand basins for draining supernatant water to the river. Gutters will also be created on the transportation roads and set facilities for sedimentary sands to prevent polluted water from flowing into the river

D. Materials Storage Facility

TSP, Coal dust, Sulfur dust from stockyards

“Slake” formed from deposition of limestone dust

Spills/ excess / expired Ca(OH)2 or Mg(OH)2 and other chemicals; lubricants/used oils and batteries from maintenance / repair; condemned equipment; used tires

Provision for containment facility / clean up / disposal of expired materials

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Nature of Wastes / Emissions Project Activity /

Facility Water Estimate Emission Estimate Solid Waste Estimate Hazardous Waste Estimate Proposed Built-in Measures

E. Townsite (residential area for a maximum of 10,000 people with support facilities such as market, golf course, hospital, and other buildings

Sewage from residential, institutional and commercial sources; run-off contaminated by fertilizer/pesticides from golf course

Vehicle emissions; Solid waste especially from market

Fuels, oils, grease from vehicles and equipment; medical waste

Solid waste to go to MRF; water collection system/treatment; medical waste – disposal based on DOH guidelines; fuels, oils and grease will be collected by an accredited waste treatment company

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3.7 Manpower Requirements A maximum of 4,000 construction workers will be required during the peak construction period of the project. During operations, the HPP and its auxiliary facilities (excluding the limestone quarry) will potentially employ 1,100 personnel. Approximately 200 people will be needed for the limestone quarry operations.

3.8 Project Cost The total capital investment for the project is estimated at approximately US Dollars 3 Billion. Annual operation costs will be about US Dollars 200 Million based on an annual maximum output of 45,000-metric ton Nickel and 4,500-metric ton Cobalt production.

3.9 Project Duration and Schedule The estimated operating life of the HPP will be 30 years. The construction of the HPP Project will commence as soon as the necessary government approvals are issued. Table 3.9-1 presents the proposed project work schedule and duration of the various construction activities. Pre-commissioning and commissioning of the HPP will immediately follow after completion of construction activities.

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Table 3.9-1 Work Schedule of Construction Activities

-1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54

InfrastructureOre prep.&Storage

Process plant

Ore prep. & StorageProcess Plant

ConstructionInfrastructure

Process PlantOre Prep. & Storage

Ore prep. & StorageInfrastructure

Process Plant

Process PlantOre prep. & Storage

Y5

Detailed Engineering Design of Facilities

Activities Y1 Y2 Y3 Y4

Electrical and Infrastructure

Procurement

Civil

Mechanical

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4.0 Baseline Environmental Conditions, Impact Assessment and Mitigation

4.1 The Land 4.1.1 Land Use and Classification

Claver municipality comprises 14 barangays including an island and several islets and has a total land area of 33,250 hectares. Claver has few flat lands. To the south and the west are hills and mountains, the most prominent being Mt. Legaspi. There is a reported fault line between Barangay Daywan and the Poblacion in the area of the town center. The soil type is clay necessitating the application of fertilizers to increase crop productivity. The Comprehensive Land-Use Plan identifies the following general land-use problems and issues:

slash-and-burn agriculture and illegal tree-cutting in protected areas; low utilization of agricultural areas because of soil erosion, flooding and the lack of irrigation

facilities; the absence of official proclamation designating watersheds; illegal small-scale mining and treasure hunting in communal forests and agricultural areas;

and unresolved boundaries

The existing and proposed general land uses include: (Appendix 4.1.1 Figure 1 and Figure 2)

Land Use Category Existing (has) Proposed (has) Built-up 698 705 Forest 17,106 13,042 Agriculture 2,500 5,275 Mineral 10,287 11,832 Swamp/Mangrove 330 175 Other Uses/Open Area 2,329 2,221 Total 33,250 33,250

The present land uses of the sites for the proposed HPP and the auxiliary facilities are:

Facilities Land Use Category Ore preparation area Built-up Wharf Built-up Construction camp Built-up Decant pond Open area Process plant Open area Town site Open area Water storage weir Open area Tailings dam wall Open area

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Vast areas of land in Hayanggabon, Cagdianao, and Taganito are devoted to mining. Built-up and agricultural areas are limited to the lowlands towards the sea. Spatial development tend to be linear with houses and establishments located along or adjacent the roadside. There is an existing housing site comprising approximately 50 houses that were under the auspices of Gawad Kalinga. This housing site is to the south of barangay center and about half a kilometre off the main road. Sapa, a mountain barangay where the proposed quarry site will be located, is largely agricultural. The main mode of transportation to Sapa is tricycle or heavy dump trucks along a narrow two-lane unpaved road. The main crop is rice and is dependent on rainfed irrigation.

4.1.2 Geology and Geomorphology

4.1.2.1 Tectonic Setting The project area forms part of the Philippine Mobile Belt. This refers to that portion of the Philippine archipelago bounded to the west by the Manila-Negros-Cotabato Trenches and the east by the East Luzon Trough-Philippine Trench and traversed along its entire length by the active Philippine Fault. The region is therefore tectonically and seismically active.

4.1.2.2 Regional Geology

The project sites are located within a block sandwiched between the Philippine Fault and the Philippine Trench to the west and east, respectively (Figure 4.1.2-1). The Lianga Fault, a splay of the Philippine Fault, forms the southern limit of the block.

Figure 4.1.2-1. Regional Geologic Map of Mindanao

PROJECT LOCATION

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The region is underlain by ophiolitic rocks consisting of ultramafic rocks, serpentinized ultramafic rocks and basalts, which form part of the basement of the northern portion of the Pacific Cordillera of Mindanao. 4.1.2.3 Geology, Geomorphology, and Soils The project site is characterized by ultramafic rocks, mainly composed of peridotites and serpentinite and three soil units (residual soil, transported unconsolidated recent alluvial deposits and swamp deposits) (Table 4.1.2-1). The first soil unit is a residual soil that occupies the slopes and corresponds to the thick laterite deposits that overlie the ultramafic rocks. The second soil unit is a transported soil that corresponds to the unconsolidated recent alluvial deposits that occupy the small alluvial plains along the Taganito and Pangabihon Rivers. The third soil unit is a transported soil and corresponds to the unconsolidated and saturated recent swamp deposits covered by mangrove along the coastal areas.

Table 4.1.2-1 Geologic Units in the Project Site

Unit Deposit Type Age Morphology Description Cretaceous ultramafic rocks

rock Cretaceous slope (bedrock) highly fractured & sheared ultramafic rocks, serpentinite, peridotite

Laterite residual soil Recent slope (soil cover) laterite soil Recent alluvial deposits

transported soil

Recent flat alluvial plains of limited extent

unconsolidated alluviual deposits

Recent swamp deposits

transported soil

Recent mangrove swamps

unconsolidated, saturated swamp deposits

The profiles of the cross-sections show the laterites overlying peridotites in two transects done within the Taganito Mines project area (Figure 4.1.2-2). One transect, Transect A-A’, intersects with Taganito River.

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Figure 4.1.2-2 Geological Cross-sections The soil specimens obtained within the project site are represented by the Quaternary Alluvium (sample Tag-S1) and the undisturbed lateritic remnants (sample Tag-S2) presented in Table 4.1.2-2 with their respective locations in Figure 4.1.2-3.

Table 4.1.2-2 Soil Fertility Sampling Point Details

Sampling Station Coordinates Sample Description Site Description Tag-S1 09°31.695’ N

125°49.853’ E River sediments, reddish-brown clay

Along river banks of Hayanggabon River

Tag-S2 09°31.924’ N 125°49.177’ E

Fresh laterite, reddish-brown clay

Fresh soil from vegetated locale within mine area

5

4

3

2

1

A A’

Taganito

River PERIDOTITE

LATERITE

5

4

3

2

1

B B’

PERIDOTITE

LATERITE

Key Plan A’

A

B’

B

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Figure 4.1.2-3 Soil Fertility Sampling Points Results of the laboratory analysis conducted on these samples are presented on Table 4.1.2-3 together with the Bureau of Soils and Water Management (BSWM) Criteria for Soil Fertility Rating. The criteria indicates that the two soil specimens representing the type localities fall under the Deficient (unfavourable) range as shown in Table 4.1.2-3. The soil pH indicates an acidic regime for the project site, while the percentage of organic matter is deficient in the lateritic soil and adequate in the alluvium. Both samples indicate deficiencies in phosphorus, manganese and potassium, making them unfavourable in terms of soil fertility. It is otherwise adequate in terms of copper, iron and zinc, as iron is particularly expected to be enriched in the soil as a result of weathering of the laterite-bearing materials beneath the soil.

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Table 4.1.2-3 Soil Properties

Units Tag-S1 Tag-S2 Soil Fertility Rating Guidelines*

Parameter Moderate (moderately unfavorable)

Adequate (favorable)

Deficient (Unfavorable)

Soil pH 4.7 4.8 5.0 - 5.5 5.5 – 8.5 <5.0/>8.5 Organic Matter % 3.22 2.22 2 - 3 >3 <2 Nitrogen % 0.005 0.005 ** ** ** Arsenic mg/kg 1.02 4.11 ** ** ** Cadmium mg/kg 11.69 11.34 ** ** ** Copper mg/kg 48.85 45.49 ** >0.2 <0.2 Iron % 56.52 51.14 2.5 – 4.5 >4.5 <2.5 Potassium mg/kg 15.31 25.45 50 - 75 >75 <50 Lead mg/kg 147.01 77.44 ** ** ** Manganese % 0.000033 0.000050 ** >1.0 <1.0 Phosphorous % 0.0000029 0.0000027 6 - 10 >10 <6 Mercury mg/kg 0.053 0.054 ** ** ** Zinc mg/kg 222.27 228.88 0.5 – 1.5 >1.5 <0.5

*Source – Bureau of Soils and Water Management ** No prescribed criteria 4.1.2.4 Key Impacts and Mitigating Measures

Impacts Mitigating Measures

Lateritic soil underlying the proposed plant site and townsite may contain high nickel values, thus the construction of the plant and the townsite might result in loss of access to mineralization.

Prior to construction, the sites will be explored through drilling and/or test pitting, with beneficial materials to be extracted before construction.

Various earthmoving activities (e.g. road construction, mining, stockpiling, embankment construction, etc), if not done properly could result in slope stability problems, as well as alteration of the topography, erosion and siltation.

Geological investigation (e.g. landslide mapping); geotechnical investigation; hydrological investigation; slope stability analysis of critical slopes; reshaping of the slopes, installation of retaining structures; bioremediation; surface & subsurface drainage (e.g. diversion of clear water, subsurface drains beneath stockpiles on slopes if seepages are present); construction of silt traps.

Leaching of heavy metals and substances out of the extracted ores (if ever beneficial materials are found underlying the proposed site of construction) and into the soil may occur particularly during heavy rainfall. Soils surrounding and beneath the ore and processing waste stockpiles may be adversely affected by this process.

Confine the stockpile area with a low concrete barrier to isolate the stockpile from direct contact with the soil; place protective lining at the stockpile area surface and barriers to minimize, if not prevent the leaching of substances from the ore stockpile into the soil.

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4.1.3 Geohazard Analysis Figure 4.1.3-1 shows the slope map for the project area and its vicinity. The proposed facilities will generally be located in flat lands to undulating to rolling areas, reaching slopes of up to 18%. The tailings dam location, however, reaches areas of rolling to moderately steep to steep slopes (slopes of up to 50 %). Rolling to steep-sloped areas affected by the construction will be flattened to accommodate the facilities. Corresponding geohazards with each category are presented in the succeeding table.

Figure 4.1.3-1 Slope map for the Taganito Mines Project area

The geohazards for the different slope gradients are summarized in Table 4.1.3-1. The identified geohazards, occurrence, potential areas to be affected as well as the impacts and corresponding mitigating measures are presented in Table 4.1.3-2.

Table 4.1.3-1 Geohazards in relation to slopes

Slope gradient Geohazard

Level to nearly level (0 – 3 %) Flooding, siltation, bank erosion, differential settlement

Undulating to rolling (8 – 18 %) Least susceptible to slope failure and erosion Rolling to moderately steep (18 – 30%) Slope failure and erosion Steep (30 – 50 %) Most susceptible to slope failure and erosion

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Table 4.1.3-2 Geohazards, Impacts and Mitigation

Geohazard Occurrence Areas to be Affected Impacts Mitigating Measure

Earthquake Probable All Structural failure or collapse

Appropriate seismic design parameter will be taken into consideration in the design of the structures.

Landslide Probable Quarry site and vicinity of tailings dam

Structural damages

Address slope geometry; progressive rehabilitation

Liquefaction Probable Low-lying areas underlain by soft deposits or swamp deposits

Structural failure or collapse

Subsurface investigations; liquefaction potential analysis

Differential settlement

Least probable Areas underlain by soil with variations in thickness

Structural failure or collapse

Subsurface investigations; settlement analysis

Flooding Probable Low-lying coastal areas

Structural damages

Flood analysis and riverbank protection

Erosion Probable Riverbanks Structural collapse

Address slope geometry; progressive rehabilitation

Tsunami Probable Coastal areas Structural damages

Coastal protection measures

Storm surge Least Probable Port facilities and coastal areas

Structural damages

Coastal protection measures

Coastal erosion Probable Coastal areas Structural failure or collapse

Coastal protection measures

4.1.3.1 Faulting The 1:1,000,000 scale Geologic Map of the Philippines (Bureau of Mines, 1963) shows that there is no major fault – active or inactive – in the immediate vicinity of the project site. The Distribution Map of the Philippines (Philippine Institute of Volcanology and Seismology PHIVOLCS, 2000) likewise does not show any active fault in the area (Figure 4.1.3-2).

The results of the structural mapping of eastern Mindanao, conducted during the RP-France Project on the Philippine Fault between the Mines and Geosciences Bureau and the Universite Pierre et Marie Curie of Paris, France, likewise do not show the presence of any active fault in the area (Quebral, 1994).

A morphostructural interpretation of 1:50,000 scale NAMRIA topographic maps and aerial photographs as well as field geology show no active fault cutting through any of the proposed sites. Therefore there is no risk of a catastrophic ground rupture or fault creep.

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Figure 4.1.3-2 Active Faults Distribution Map of the Philippines, PHIVOLCS 2000

4.1.3.2 Ground Acceleration In case of a seismic event, the mean peak ground acceleration (PGA) that a site may experience can be estimated knowing the distance to the epicenter (R) and the magnitude of the earthquake (M) (Fukushima and Tanaka in Thenhaus et al, 1994). In a deterministic approach to earthquake prediction, a design magnitude earthquake, estimated from fault length-magnitude relationships, is assumed to occur along a point on the earthquake generator nearest to the site. Correction factors are then applied according to ground conditions: rock, 0.6; hard soil, 0.87; medium soil, 1.07; and soft soil, 1.39.

log 10 A = 0.41M - log 10 (R+0.032x10 0.4 M) – 0.0034R + 1.30 where:

A = mean peak acceleration (cm/sec2) R = shortest distance between the site and the fault rupture (km) M = surface-wave magnitude.

Major Earthquake Generators The major potential earthquake generators considered are the Philippine Trench, Philippine Fault and Lianga Fault.

Philippine Fault The Philippine Fault is an active and major left lateral strike slip fault that traverses the entire length of the Philippine archipelago over a distance of 1,200 km. As it cuts through the Surigao Peninsula, the Philippine Fault is defined by the narrow but highly linear Malimono Ridge and Tubay Valley and by Lake Mainit and Maniayao Volcano.

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There are geological, historical and seismological evidence that show that the Philippine Fault is active. The Philippine Fault, together with the Philippine Trench, is probably the most active of earthquake generators in the country.

The fault at the base of Malimono Ridge along the western margin of Tubay Valley is 38 km west of Taganito. The fault that forms the eastern limit of Tubay Valley is 34 km from the project site. • Geological Criteria Geological and geomorphological criteria show that the southern portion of the Philippine Fault in eastern Mindanao is active. From radar imagery, aerial photographs and field observations, the fault cuts through paleontologically dated late Pleistocene to Recent deposits. • Historical Criteria The catastrophic Surigao earthquake of July 1, 1879 resulted from a ground rupture from Anao-aon Valley at the northernmost tip of Surigao Peninsula to Lake Mainit and Tubay Valley (South East Asia Seismology and Earthquake Engineering, SEASEE, 1985). Much loss of life and damage to property was caused by the ground rupture, ground shaking, earthquake induced landslides, liquefaction and differential settlement. • Seismological Criteria Focal mechanism solutions over Surigao (March 31, 1971, May 1, 1979) show strike slip motion occurring along NNW-SSE nodal planes and normal motion along NW-SE nodal planes. This is consistent with geological observations from outcrops along the edge of Tubay Valley showing the superposition of normal and left lateral slickensides (Quebral, 1994). Other focal mechanism solutions (August 27, 1984, November 2, 1984 and November 2, 1984) show left lateral strike slip motion along NNW-SSE trending nodal planes parallel to the trace of the Philippine Fault. Philippine Trench The Philippine Trench, like the Philippine Fault, is probably the most active earthquake generator in the country and is located offshore eastern Mindanao. The Philippine Trench is associated with thrust focal mechanism solutions and a shallow Benioff zone as defined by earthquake hypocenters. It is likewise associated with an active volcanic arc which includes volcanism related to the Maniayao Volcano. Offshore geophysical data also suggest that the trench is active (MODEC, 1994; Quebral, 1994).

Lianga Fault The Lianga Fault branches off from the main trace of the Philippine Fault near Butuan and proceeds along the southern coast of Lianga Bay towards the Philippine Trench. Geologic, historical and seismological evidence show that the fault is active. These include deformation in Quaternary limestone in Prosperidad and the southern coast of Lianga Bay as well as earthquake data and focal mechanism solutions. Earthquake Distribution A search of the United States Geological Survey National Earthquake Information Center (USGS NEIC) earthquake database over a radius of 300 km centered around Taganito area at 9.500 N latitude and 125.800 E longitude for the period January 9, 1973 to January 28, 2007 listed a total of 3,980 events being contributed by the different earthquake generators.

Table 4.1.3-3 shows that two events greater than magnitude 7.5 and eight events between magnitudes 7.0 and 7.49 occurred during this time interval. These represent a mere 0.05 and 0.20 percents, respectively, or a total of 0.25 percent, of the total number of events. Most of the earthquakes – 3,081 events or 97.75 percent of the total – were all less than magnitude 7.0.

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Table 4.1.3-3 Earthquake Distribution

Interval No. of Events Percentage

> 7.5 2 0.05 7.0 – 7.49 8 0.20 6.5 – 6.99 12 0.30 6.0 – 6.49 29 0.73 5.5 – 5.99 128 3.22 5.0 – 5.49 720 18.09 < 5.0 3,081 77.41

Total 3,980 100.00 The magnitude 7.5 earthquakes of May 17, 1992 and January 1, 2001 may both be attributed to the Philippine Trench. Of the eight earthquakes between magnitudes 7.0 and 7.49, one originated from the Lianga Fault (December 15, 1989) while the rest were generated by the Philippine Trench (June 18, 1980, February 18, 1991, May 17, 1992, May 11, 1993, April 4, 1995, April 4, 1995, March 11, 1997). Seismic Design Parameter

The nearest earthquake generators are the Philippine Fault, Philippine Trench and Lianga Fault. The first two are capable of generating magnitude 8.0 earthquakes while the Lianga Fault can generate an earthquake of magnitude 7.8. The peak ground acceleration values with and without corrections for foundation condition are provided in Table 4.1.3-4.

Table 4.1.3-4 Major Earthquake Generators and Ground Acceleration

EQ generator R M PGA Rock Hard Med Soft Philippine Fault 34 8.0 0.31 0.19 0.33 0.27 0.43 Philippine Trench 220 8.0 0.02 0.01 0.02 0.02 0.03 Lianga Fault 87 7.8 0.12 0.07 0.13 0.10 0.17 where:

PGA = peak ground acceleration (cm/sec2) R = shortest distance between the site and the fault rupture (km) M = surface-wave magnitude.

Without taking the ground conditions into consideration, the peak ground acceleration that the sites may experience is 0.31. However, a magnitude 8.0 earthquake is such a rare event that it occurs – on the average – only once a year world wide.

The Surigao stretch of the Philippine Fault was the site of a major catastrophic earthquake on July 1, 1879. Much damage resulted from the accompanying ground rupture, ground shaking, landslides, submarine landslide, liquefaction, differential settlement. Much stress was expected to have been released at that time.

With a recurrence period in the order of hundred or even thousands of years, the ground acceleration that the slopes and structures might experience during the duration of the project might therefore be actually less than 0.31.

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4.1.3.3 Landslides In case of a major seismic event, the slopes will be subjected to seismic loading. This can result in rockfalls and rockslides in rock slopes along steep valley walls and slumping in soil material. In the same way that earthquakes can result in slope instabilities, prolonged periods of intense rainfall can also trigger rockfalls, rockslides, landslides and debris flows. The slopes are particularly vulnerable in case the seismic event occurs during the rainy season. Soil slopes fail either by parallel failure along soil-rock interfaces or by circular failure. Possible rock slope failure is by planar, wedge, toppling or raveling. 4.1.3.4 Liquefaction The Recent swamp deposits are susceptible to liquefaction. However, no structures will be built on these areas. There are no geotechnical information available to indicate the type of subsurface deposits. A liquefaction potential analysis (e.g. Seed and Idriss) may be conducted using the geotechnical information - once these are available - and estimated seismic design parameters. 4.1.3.5 Differential Settlement

Structures partly founded on rock and partly on soil are particularly susceptible to differential settlement during a strong earthquake. Differential settlement may also occur if structures are constructed on soil with thickness variations due to the presence of sloping bedrock underneath the soil cover. 4.1.3.6 Flooding The areas along Taganito River and along Pangabihon Creek are susceptible to flooding. High level water marks along Taganito River show that flood levels can be quite significant. Separate flood analyses are being conducted for both waterways. 4.1.3.7 Erosion Rains can result in sheet, rill and gully erosion. Both natural and man-made (e.g. tailings dam) slopes will be prone to erosion. The riverbanks along the proposed site along Taganito River are prone to erosion. 4.1.3.8 Tsunami Sufficiently strong shallow earthquakes with vertical displacements are likely to be tsunamogenic. One such earthquake along the Philippine Trench was responsible for historical tsunamis experienced by the eastern coast of Surigao. Tsunamis may also be generated from across the Pacific (e.g. Marianas Trench, Peru Trench). The coast can be affected by sources to the east and southeast. Those originating from the northeast might be partly deflected by Bucas Grande Island. 4.1.3.9 Storm Surge Surigao does not lie along the typhoon belt. Nevertheless, Surigao has a history of storm surges brought about by the infrequent typhoons that hit the peninsula. The port facilities might be susceptible to storm surges.

4.1.3.10 Coastal Erosion The construction of a causeway may result in the structure interfering with the transport of sediments by longshore currents leading to erosion on one side of the causeway and deposition on the other side.

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4.1.4 Terrestrial Flora

4.1.4.1 Methodology Quadrat sampling technique was used for obtaining the quantitative information about the structure and composition of the plant communities on the proposed development area. A total of 40 randomly selected quadrats were laid out and surveyed within the proposed development area (Figure 4.1.4-1). Nine transect lines were used for laying out the quadrats. Generally, the area has three vegetation types consisted of an open forest (at initial stage of succession)∗, limestone forest and brushland. Quadrats were distributed in such a way that all existing vegetation cover was represented. For large woody plants, individuals with diameter-at-breast height (dbh) equal or greater than three centimeters inside the 10m x 10m plots were assessed. In addition, 5m x 5m subplots were established for the intermediate growth or plants with dbh less than 3 cm (i.e. poles, saplings) and 1m x 1m subplots for the understorey vegetation (i.e., seedlings, grasses). For unidentified plant species, specimens were collected and brought to University of the Philippines Los Baños – College of Forestry and Natural Resources (UPLB-CFNR) Herbarium for drying and for identification. Information gathered in the field were tabulated and analyzed to characterize floral composition within the development area. The relative density, relative dominance and relative frequency values for each tree species were determined to obtain their Importance Value (IV), which is the standard measurement in forest ecology to determine the rank relationships of species. Also, the relative frequency, relative density and relative dominance indicate different aspect of the species importance in a community. Importance values were determined using the following formula:

Density = number of individuals area sampled

Relative Density = density for a species x 100 total density for all species

Frequency = number of plots in which species occur total number of plots sampled

Relative Frequency = frequency value for a species x 100

total frequency for all species Dominance = basal area or volume for a species area sampled

Relative Dominance = dominance for a species x 100 total dominance for all species

Importance Value = Relative Density + Relative Frequency + Relative Dominance

The diversity indices of the different sampling areas, which include the Shannon index (H) and Evenness index (J), were also computed. The indices were computed using the following formula:

∗ http://forestry.denr.gov.ph/Stat05/glossary.doc viewed on 05 April 2008

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Shannon-Weiner Index (H) = - Σ (ni/N) ln (ni/N) where: ni = the total number of individuals in each species

N = the total number of all individuals

Pielou’s Evenness Index (J) = H1 / ln S where: S = total number of species

4.1.4.2 Results and Discussion General Situation The proposed development area (i.e., HPP and auxillary facilities, townsite, limestone quarry area) has three general vegetation types: (1) open forest, (2) limestone forest, and (3) brushland. Of the 40 sampling quadrats, 24 quadrats were established to represent the HPP area and its vicinity, which will be located within the operation contract of TMC. Twelve sampling quadrats were surveyed at the proposed limestone quarry site located in Barangay Sapa, while the rest were established within the proposed townsite in Barangay Cagdianao. Table 4.1.4-1 and Figure 4.1.4-1 present the exact location of the different sampling quadrats.

Table 4.1.4-1 Location of the vegetation sampling quadrats

Quadrat Location (GPS Coordinates) Remarks HPQ1 N 9O 31’ 11.0” E 125O 50’ 9.7” HPQ2 N 9O 31’ 16.3” E 125O 50’ 7.1” HPQ3 N 9O 31’ 19.6” E 125O 50’ 4.5” HPQ4 N 9O 31’ 31.7” E 125O 49’ 53.4”

Transect 1 is located at the south eastern portion of Brgy. Taganito (Taga III) near the tailings dam. The general vegetation type is an open forest.

HPQ5 N 9O 31’ 18.4” E 125O 49’ 8.5” HPQ6 N 9O 31’ 24.49” E 125O 49’ 6.71” HPQ7 N 9O 31’ 26.75” E 125O 49’ 16.08” HPQ8 N 9O 31’ 20.44” E 125O 49’ 16.31”

Transect 2 is located at the southern portion of Brgy. Taganito (Taga II) which traverses the distance between the water storage weir and tailings dam. The general vegetation type is an open forest.

HPQ9 N 9O 31’ 46.74” E 125O 48’ 26.94” HPQ10 N 9O 31’ 36.26” E 125O 48’ 28.75” HPQ11 N 9O 31’ 40.61” E 125O 48’ 26.34” HPQ12 N 9O 31’ 29.74” E 125O 48’ 26.74”

Transect 3 is located at the south western portion of Brgy. Taganito (Taga I), near the vicinity of the proposed tailings dam. The general vegetation type is an open forest.

HPQ13 N 9O 32’ 21.2” E 125O 48’ 19.9” HPQ14 N 9O 32’ 21.20” E 125O 48’ 31.5” HPQ15 N 9O 32’ 22.88” E 125O 48’ 39.19” HPQ16 N 9O 31’ 19.82” E 125O 48’ 42.46”

Transect 4 is located near the vicinity of the ore preparation area where the general vegetation type is a mixed stand.

HPQ17 N 9O 32’ 10.2” E 125O 50’ 23.1” HPQ18 N 9O 32’ 6.43” E 125O 50’ 16.35” HPQ19 N 9O 32’ 0.17” E 125O 50’ 13.60” HPQ20 N 9O 31’ 54.53” E 125O 50’ 15.51”

Transect 5 is located at the southern portion of Brgy. Hayanggabon. The sampling quadrats were established at the immediate vicinity of the decant pond. The general vegetation type is brushland.

HPQ21 N 9O 31’ 58.08” E 125O 50’ 47.04” HPQ22 N 9O 31’ 54.74” E 125O 50’ 48.73” HPQ23 N 9O 31’ 50.57” E 125O 50’ 49.94” HPQ24 N 9O 32’ 4.10” E 125O 50’ 39.80”

Transect 6 is located at the southern portion of Brgy. Hayanggabon. The sampling quadrats were established within the proposed location of the processing plant, where the general vegetation cover is brushland.

LQQ1 N 9O 31’ 57.4” E 125O 42’ 43.4” LQQ2 N 9O 31’ 58.2” E 125O 42’ 45.2”

Transect 7 is located at the Buyugan limestone block in Barangay Sapa, which is one of the two proposed

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Quadrat Location (GPS Coordinates) Remarks LQQ3 N 9O 31’ 57.06” E 125O 42’ 47.73” LQQ4 N 9O 31’ 54.5” E 125O 42’ 44.9” LQQ5 N 9O 32’ 00.6” E 125O 42’ 46.7” LQQ6 N 9O 31’ 56.9” E 125O 43’ 1.0” LQQ7 N 9O 31’ 53.5” E 125O 43’ 1.5”

limestone quarry areas of the project. Compared to the other development areas, the area still has its original vegetation cover (limestone forest) particularly at the side portions of the block. However, anthropogenic disturbance (i.e., cutting of trees) was already observed.

LQQ8 N 9O 32’ 3.2” E 125O 43’ 16.9” LQQ9 N 9O 32’ 12.6” E 125O 43’ 15.6” LQQ10 N 9O 32’ 17.0” E 125O 43’ 11.3” LQQ11 N 9O 32’ 12.52” E 125O 43’ 7.75” LQQ12 N 9O 32’ 4.8” E 125O 43’ 9.3”

Transect 8 is located at the Agput limestone block in Barangay Sapa, which is also one of the proposed limestone quarry areas of the project. Similar to Transect 7, the area still has its original vegetation cover (limestone forest), although anthropogenic disturbance (i.e., cutting of trees) was observed in the area.

TSQ1 N 9O 31’ 24.0” E 125O 51’ 2.5” TSQ2 N 9O 31’ 7.5” E 125O 51’ 6.3” TSQ3 N 9O 31’ 00” E 125O 51’ 17.7” TSQ4 N 9O 30’ 57.2” E 125O 51’ 30.2”

Transect 9 is located at the proposed town site in Barangay Cagdianao. The vegetation in the area is highly similar to Transects 5 and 6, which is also a brushland.

The proposed location of the HPP and its vicinity has a vegetation cover that varies from open forest to brushland. The open forest is relatively young with the highest recorded dbh at only 36.4 cm; while majority of the individuals have dbh that falls between the ranges of 3 cm to 10 cm. The brushland area is the most dominant vegetation type, particularly at the eastern portion of the proposed HPP location (i.e., decant pond, ore processing) and extends further east to the proposed town site. The brushland is dominated by Rhodomyrtus surigaoensis (locally known as Payuspos) and Exocarpus longifolius (locally known as Sua-sua). There are also some open portions covered by a woody fern, known as Kilob (Gleichenia linearis), which has height growth of .5m to 1m.

Figure 4.1.4-1. Location of the vegetation sampling quadrats

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Another vegetation type is the limestone forest that covers the proposed limestone quarry area in Barangay Sapa. The vegetation particularly at the side portions is relatively intact compared to the top portions of the limestone blocks. Majority of the trees have recorded smaller dbh, which could be attributed to the growing condition in the area (e.g., disturbances, shallow growing medium). The forest floor has poor undergrowth due to the thick forest litter (e.g., leaves, twigs). Table 4.1.4-2 presents the species richness of the three types of vegetation cover.

Table 4.1.4-2 Species richness of the three types of vegetation cover

Species Richness

Vegetation Type Proposed Facilities Canopy Intermediate Understorey

Open forest Vicinity of the proposed tailing dams

57 45 44

Limestone forest Limestone quarry areas 70 32 19

Brushland Decant pond, HPP, townsite 12 12 11

Species Composition

A total of 163 morpho-species were recognized belonging to the seed plants, ferns and their allies from the 40 quadrats sampled. Fifteen of these have not been identified to the species level and have been tentatively assigned to the most probable genus.

The most speciose (having several species) of all families is Moraceae and Myrtaceae with 11 species followed by Apocynaceae (9) and Rubiaceae (8). Appendix 4.1.4-Table 1 presents the complete list of all the species recorded.

Plate 4.1.4-1 The three general vegetation types in the development area: (a) open forest (at the early stage of suceesion); (b) limestone forest; and (c) brushland

a

c

b

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Open Forest

From a total of 16 quadrats sampled along Transects 1 to 4 (= 1600 m2), 293 individuals belonging to 57 species of trees were recorded to have a diameter of > 3 cm. The average density is 0.1831 tree/m2 or roughly 18 trees for every 100 m2. Based on the computed importance value (IV), the most important species is Exocarpus longifolius (locally known as Sua-sua) at 33.46 (Table 4.1.4-3).

The intermediate and undergrowth layers have almost the same species richness at 45 and 44 species, respectively. The most frequent species at the intermediate layer are Buchanania arborescens (Balinghasai) and Wikstroemia polyantha (Salagong bundok), which are both present in 7 out of the 16 quadrats. The most numerous is also the B. arborescens which had recorded 14 individuals closely followed by W. polyantha and Neonauclea lanceolata (Tiroron), at 12 individuals each. At the understorey, the most dominant vegetation are Flacourtia sp. and Hemigraphis premulaefolia (Kisul-amo).

Table 4.1.4-3 List of the recorded species at the open forest and their corresponding importance value (IV)

Species Family Common Name IV Exocarpus longifolius (L.) Endl. SANTALACEAE Agsum 33.46 Buchanania arborescens (Bume) Blume ANACARDIACEAE Balinghasai 22.04 Cleistocalyx operculatus MYRTACEAE Malaruhat 14.76 Pandanus tectorius PANDANACEAE Pandan dagat 11.77 Artocarpus blancoi (Elmer) Merr. MORACEAE Antipolo 11.17

Limestone forest

Out of the 12 quadrats sampled along Transects 7 and 8 (= 1200 m2), 268 individuals belonging to 70 species of trees were recorded. The average density is 0.2233 tree/m2 or roughly 22 trees for every 100 m2. Based on the computed importance value (IV), the most important species are Shorea sp. (33.52) and Gnetum gnemon (24.89) (Table 4.1.4-4).

The intermediate and undergrowth layers have lesser species richness, which only have 32 and 19 species, respectively. The most frequent species at the intermediate layer is Lunasia amara (Lunas), which is present in 8 out of the 12 quadrats. The most numerous species, on the other hand, is Lepiniopsis ternatensis (Kolinos), which had recorded 23 individuals. The understorey layer has a relatively fewer vegetation cover due to the thick forest litter (e.g. decaying leaves, twigs). The species dominating the understorey include Microcos stylocarpa, Dioscocalyx cympianthoides, L. ternatensis and L. amara.

Table 4.1.4-4 List of the recorded species at the limestone forest and their corresponding importance value (IV)

Species Family Common Name IV Shorea sp. DIPTEROCARPACEAE Shorea sp. 32.52 Gnetum gnemon L. var. gnemon GNETACEAE Bago 24.89 Ficus tenuicuspidata Corner var. major Corner MORACEAE Kalapak-dako 18.44 Parartocarpus venenosus (Zoll. & Mor.) Becc. ssp. papuanus (Becc.) Jarr.

MORACEAE Malanangka 14.60

Lunasia amara Blanco var. amara RUTACEAE Lunas 12.75

Brushland

Of the 12 quadrats sampled along Transects 5, 6 and 9 (= 1200 m2), 96 individuals belonging to 12 species of trees were recorded to have a diameter of > 3 cm. The average density is 0.08 tree/m2 or 8 trees for every 100 m2. Similar to the open forest, the most important species based on the computed importance value is Exocarpus longifolius at 123.78 (Table 4.1.4-5).

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The intermediate and undergrowth layer have almost the same species richness at 12 and 11 species, respectively. The most frequent species at the intermediate layer are Barringtonia sp. and E. longifolius, which are present in 3 out of the 12 quadrats. The most numerous is the Rhodomyrtus surigaoensis, which had recorded 21 individuals. At the understorey, the most dominant vegetation is the woody fern Kilob.

Table 4.1.4-5 List of the recorded species at the brushland and their corresponding importance value (IV)

Species Family Common Name IV Exocarpus longifolius (L.) Endl. SANTALACEAE Agsum 123.78 Barringtonia sp. LECYTHIDACEAE Barringtonia sp. 42.08 Rhodomyrtus surigaoensis Elmer MYRTACEAE Dayapop 20.19 Xanthomyrtus diplycosifolia MYRTACEAE Pagolasan 20.11 Lepiniopsis ternatensis Val. APOCYNACEAE Kolinos 18.53

Diversity Indices

The diversity of the sampling areas was analyzed using the Shannon-Weiner Index and Pielou’s Evenness Index (Table 4.1.4-6). The Shannon index assumes that individuals are randomly sampled from a large population and that all species are represented in the sample. It gives an estimate of species richness and distribution. The Evenness index is the ratio of the observed diversity to maximum diversity.

It is very noticeable that high diversity indices, as well as evenness indices, were recorded from the transect lines/quadrats established in the limestone forest blocks (Transects 7 and 8), while low indices were recorded from the brushland areas (Transects 5, 6 and 9). The high indices of the limestone forest are attributed to the relatively intact vegetation cover of the blocks, which had obtained high species richness and abundance compared to the record of the other vegetation types On the other hand, the very low indices of the transect lines/quadrats of transect 5, 6 and 9 only validate the poor vegetation cover in the brushland, as well as the dominance of a single species (i.e. Exocarpus longifolius) in the area.

Table 4.1.4-6 Diversity indices and number of species for each transect line

Biodiversity Indices Sampling Quadrats Location Shannon

(H) Evenness

(J)

Species Richness

Number of Individuals

Transect 1 (HPQ1 to HPQ4) Near the tailings dam (Taga III) 2.6563 0.9190 18 42

Transect 2 (HPQ5 to HPQ8)

Water storage weir and tailings dam (Taga II) 2.6010 0.8682 20 67

Transect 3 (HPQ9 to HPQ12)

Near the vicinity of the proposed tailings dam (Taga I) 2.7325 0.8698 24 122

Transect 4 (HPQ13 to HPQ16)

Near the vicinity of the ore preparation area 3.0060 0.9459 24 62

Transect 5 (HPQ17 to HPQ20)

Immediate vicinity of the decant pond 0.8387 0.5211 5 22

Transect 6 (HPQ21 to HPQ24)

Proposed location of the processing plant 1.6382 0.7878 8 33

Transect 7 (LQQ1 to HPQ7)

Buyugan limestone block in Barangay Sapa 3.4266 0.9055 44 121

Transect 8 (LQQ8 to HPQ12)

Agput limestone block in Barangay Sapa 3.2134 0.8492 44 147

Transect 9 (TSQ1 to TSQ4)

Proposed town site in Barangay Cagdianao 1.1564 0.6454 6 41

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Endemism Out of the total 163 species identified, there are 58 Philippine endemics (only found in the Philippines) that were found in the sampling site (Appendix 4.1.4-Table 2). Three of which are Mindanao island endemics which were all recorded in the Agput limestone block (Transect 8) (Table 4.1.4-7).

Table 4.1.4-7 List of the Mindanao island endemics recorded from the sampling quadrats

Common Name Scientific Name Family Name Location

Yagau-yagau Elaeocarpus surigaensis Merr. ELAEOCARPACEAE Transect 8 Lakot Helicia paucinervia Merr. PROTEACEAE Transect 8 Mindanao nato Palaquium mindanaense Merr. SAPOTACEAE Transect 8

Conservation Status The conservation status of species is based on the DAO No. 2007-01 better known as ‘‘The National List of Threatened Philippine Plants and their Categories’. From the identified species in the sampling quadrats, only eight (8) species are included in the National RedList (Table 4.1.4-8). Noteworthy among the list is the Mindanao nato, which is endemic in Mindanao.

Table 4.1.4-8 List of Species included in the National List of Threatened Philippine Plants

Common Name Scientific Name Family Name Conservation

Status Location

Gisok-gisok Hopea philippinensis Dyer

DIPTEROCARPACEAE Critically Endangered

Transect 8, 9

Manggachapui Hopea acuminata Merr. DIPTEROCARPACEAE Critically Endangered

Transect 9

Narra Pterocarpus indicus Willd. Forma indicus

FABACEAE Critically Endangered

Transect 4

Talakatak Castanopsis philippensis FAGACEAE Other wildlife species

Transect 3

Balubar Aglaia rimosa (Blanco) Merr.

MELIACEAE Vulnerable species

Transect 8

Makaasim Syzygium nitidum Benth MYRTACEAE Critically Endangered

Transect 1

Mangkono Xanthostemon verdugonianus Naves

MYRTACEAE Endangered Transect 1, 2, 3, 5

Mindanao nato

Palaquium mindanaense Merr.

SAPOTACEAE Vulnerable Species

Transect 8

4.1.4.3 Key Impacts and Mitigating Measures

Impacts Mitigating Measures Removal of ecologically and economically important species

Since conservation of all species is not possible, priority shall be given to ecologically and economically important species identified in the area (refer to Tables 4.1.4-7 to 4.1.4-8 and Appendix 4.1.4-Table 2); establish a nursery to propagate the seeds/propagules of these species, which will provide seedlings for future rehabilitation requirements

Removal of wildlife habitat and displacement of wildlife

Avoid unnecessary clearing of vegetation; strictly prohibit poaching of wildlife to mitigate population reduction and allow their safe movement.

Enhanced soil erosion which will contribute to soil nutrient loss necessary for plant growth

Excavated topsoil shall be spread out in the surrounding areas; cut trees shall be chipped and spread out evenly which can serve as growing medium for rehabilitation; install erosion control facilities

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Impacts Mitigating Measures Removal of photosynthesizing plants will affect CO2 sequestration causing some degree of effect on the microclimate

Progressive rehabilitation will be undertaken to ensure the replacement of all the cut trees; secure a tree cutting permit prior to any clearing

4.1.5 Terrestrial Fauna

4.1.5.1 Methodology Amphibians and Reptiles Opportunistic survey was done to collect and record the herpetofauna in the proposed eight development sites covered by Brgys. Cagdianao, Hayanggabon, Taganito, and Sapa. Individuals were captured using bare hands and/or sticks. This portion of the study was done primarily during forest hiking, net watching, transect counts, point observations, and during re-baiting and checking of traps. Various suspected microhabitats (i.e., puddles, sections of streams and rivers, tree holes, forest floor with significant decaying leaf litter cover, tree buttresses, decaying logs, leaf axils, epiphytes, tree ferns and others) were thoroughly examined with help from the guides and the porters. Interviews were also performed but were limited only to conspicuous and easily identifiable species (e.g., python, crocodile, monitor lizard, cobra, turtles, etc.). Aside from species identification, other relevant information were recorded. Upon capture, descriptive and quantitative measurements, as well as photographs, were taken to aid in species identification. All captured individuals were released at site of capture. Birds For the entire bird survey, a 2-km transect line was established for each of the sampling sites (i.e., eight transect stations). Walking through the transect line at a pace of about 250 m per 15 minutes was followed except during rainy weather. More observation time (5 to 10 minutes) was given to mixed feeding flocks to ascertain identities of individuals. General observations were also made usually from 1800 to 2100 h, which involves listing of birds encountered even if outside the transect survey time period. All individuals observed and/or heard were noted using the following information: species name, number of individuals, habitat, elevation, singly or in group, feeding singly, as a group or in mixed flocks and others (i.e., flying, perched, heard, seen, foraging behaviour). As much as possible, individuals were identified up to the species level. Mist nets with 12 m as the standard length (4 shelves and 35-mm mesh) were also put-up (in S1, S2, and PSA) to capture cryptic and shy species that are difficult to observe during line transect survey and/or using general observation technique. These nets were left open for 24 hours (except during heavy rains) and were checked every hour from 0530 to 2200 h to minimize stress to captured individuals. A total of 129 (i.e., 60 net days each for Sites 1 and 2, and nine net days for Plant Site A) net days has been accumulated for three of the representative sites. All captured individuals were processed by taking standard biometric measurements. All birds were released thereafter. Mammals Volant mammals (bats) were captured using the same nets used for birds. A total of 129 net nights (i.e., 60 net nights each for S1 and S2, and nine net nights for PSA) has been accumulated for three of the representative sites. All the nets for this study were placed two to three meters from the ground along suspected fly paths and near feeding trees in series of three or four. All captured bats were released after processing. Small non-volant mammals (murid rodents and shrews) were captured using fabricated cage traps baited with roasted coconut meat mixed with peanut butter. Traps were set only at Sites 1 and 2. A

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total of 480 trap nights has been accumulated for these two representative sites. Any captured individual whose identity was not ascertained was automatically collected. They were properly catalogued and tagged, and were fixed in 10% formalin and stored in 70% ethanol. Medium sized to large sized non-volant mammals (i.e., warty pig, macaque, deer, Malay civet, common palm civet, etc.) were identified and their perceived abundance primarily based on interviews with knowledgeable porters and guides. For captured individuals, descriptive and standard biometric measurements were taken. Data Analysis Bird community diversity indices were calculated from a mathematical formula that takes into account both species richness and the relative abundance of each species in the community. Relative abundance refers to the number of individuals of a given species divided by the total number of all species encountered. The community diversity was mathematically calculated using the Shannon-Weiner Index. The diversity indices that were used to determine the degree of species diversity in the sampling site for both birds and mammals include: species richness index, dominance index, evenness index and sorensen similarity index (Appendix 4.1.5 – Text 1).

4.1.5.2 Sampling Sites The sampling sites were chosen because they represent the two major vegetation types (i.e., ultramafic and limestone forests) in the project area (Table 4.1.5-1). Vegetation and wildlife are heavily interconnected; the type and quality of vegetation heavily influences the wildlife composition. These sites are also within the primary impact areas which mean that they are covered by the proposed major development activities.

Table 4.1.5-1 Locations of the wildlife sampling sites

Sampling

Sites Location (GPS Coordinates)

Proposed Facilities Remarks

Site 1 (S1)∗

N 09° 31’ 27.11’’ E 125° 51’ 10.1’’

Proposed townsite

The study site is within Brgy. Cagdianao. Vegetation is of the ultramafic forest type similar to the majority of the proposed development area. This site is almost entirely covered by a species of woody fern (Gleichenia linearis) that grows very tight together and not more than a meter in height. Trees are very scarce and if present are restricted in very small patches.

Site 2 (S2)*∗

N 09° 32’ 03.0’’ E 125° 42’ 51.6’’

Proposed limestone quarry area

The study site is within Barangay Sapa. The subjects of sampling for this site are the two large blocks of limestone forest running in a north to south general direction. The surrounding steep edges of these two blocks are still covered with its original vegetation while major portions of the top and other relatively gently sloping areas had been planted to coconut, banana and pineapple.

Plant Site A (PSA)∗∗

N 09° 32' 28.6” E 125° 48' 57.2”

Ore Preparation Circuit

The study site is situated nearest to Barangay Taganito. The transect lies along the stretch of the Taga River which bisects several mosaics of

∗ Sampling sites were surveyed on 22 to 29 February 2008 ∗∗ Sampling sites were surveyed on April 27 to May 1, 2007

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Sampling Sites

Location (GPS Coordinates)

Proposed Facilities Remarks

coconut plantation and scattered fruit trees. Copses of low-lying shrubs which is comprised mostly of riparian vegetation were also present along the transect length. Occasional patches of woodlands, mostly of the pioneer types (e.g. Artocarpus sp., Macaranga sp., Terminalia sp.) were also observed along the transect route.

HPP (PSB)**

N 09° 32' 30.1” E 125° 50' 18.9”

Hydro-metallurigical Processing Plant

The study site is located within Barangay Hayanggabon. Several habitat types were seen at this site ranging from sparsely vegetated (mostly low stature shrubs) low-lying hills, dense woodlands along creeks to wetland vegetation of reed beds and tall grasses.

Taganito 1 (T1) **

N 09° 31' 31.7 E 125° 49' 52.9”

Tailings Dam is proposed to be erected

The study site is near Taga-III exploratory road. Transect is located within a flat valley and bisects vegetations of mostly shrublands, low-stature trees and dense woodlands (along Tubig River).

Taganito 2 (T2)**

N 09° 31' 31.7” E 125° 49' 52.9”

Proposed tailings dam; water storage weir

This site is near the TAGA- II exploratory road. Transect lies along an existing mining road and passes by the Daang Suba River. Vegetation within this study site is composed mainly of dense woodland areas mainly along the slopes and along the river.

Taganito 3 (T3)**

N 09° 31' 53.0” E125° 48' 26.34”

Tailings dam and another water storage weir

It is near the TAGA- I exploratory road. The transect lies along the banks and side trails of the Taganito River. The river passes along deep ravines in between steep hills. The banks of the river are heavily wooded although the slopes of some of the hills were devoid of vegetation.

Decant Pond (TS)**

N 09° 32' 17.4” E 125° 51' 03.3”

Decant Pond Study site is located in Barangay Hayanggabon. It is north of T1 and T2 and west of HPP. The topography is mostly hilly and vegetation is mostly dominated by low-lying shrubs and occasional stands of woodlands.

Plate 4.1.6-1. Stands of woody fern observed in Site 1 Plate 4.1.6-2. Vegetation cover in Site 1

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Figure 4.1.5-1. Location of the wildlife sampling sites 4.1.5.3 Results and Discussions Faunal Profile The wildlife inventory conducted from April 27 to May 1, 2007 and Feb. 22 to 29, 2008 covering Brgys. Cagdianao (S1), Hayanggabon (TS and PSB), Taganito (T1, T2, T3, and PSA), and Sapa (S2) recorded a total of 97 species (four amphibians, four reptiles, 75 birds and 14 mammals). Of this, 25 species or 26% are endemic (24 Philippine endemic and one Mindanao Island endemic) or found nowhere else in the world. Further, two species (i.e., Amaurornis oilvaceus and Terpsiphone cinnamomea) are classified as near endemics. This means that outside of their distribution in the Philippines they are also found in another country but only in one small island. Endemicity value is still high in the area more particularly for S2, T1, T2, and T3. Further, computed Species Diversity Index (H’) is relatively high for S1, S2, PSB, PSA, and TS. For S1, 37 species were noted (two amphibians, no reptiles, 32 birds, and three mammals); PSA has 35 species (three amphibians, one reptile, 28 birds and three mammals); PSB has 38 species (three amphibians, one reptile, 34 birds and no mammals); T1 has 28 species (one amphibian, one reptile, 22 birds and four mammals); T2 has 23 species (one amphibian, one reptile, 17 birds and four mammals); T3 has 23 species (one amphibian, one reptile, 17 birds and four mammals); and TS has 30 species (three frogs, one reptile, 26 birds and no mammals). These seven sites have ultramafic forest as their vegetation. For S2 which is a limestone forest, 56 species were observed (two amphibians, three reptiles, 43 birds, and eight mammals). Endemism is very low for TS with only one endemic species (i.e., Loriculus philippensis) followed by S1 with only four species (i.e., Phapitreron leucotis, L. philippensis, Collocalia troglodytes, and Dicaeum australe) and PSB also with four species (i.e., Anas luzonica, P. leucotis, C. troglodytes, and Centropus viridis). Ultramafic forest is a very distinct kind of habitat and posses its own set of wildlife. Provided that its vegetation is still intact and in relatively good condition, it could even be comparable to any other kind of habitat type in terms of

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diversity and endemicity. Endemism is highest for S2 with 13 species or 23% of the total. Current state of habitat for S2 (referring only to the two limestone blocks covered by this sampling) is below average as shown by the agriculture related plantations on top and in some portions even on the sides of the blocks. These were seen during the three day stay. Surprisingly, this observation is in great contrast with the high species diversity recorded in the area together with the relatively high number of endemics. The two limestone blocks are part of the overall landscape mosaic in the area. Neighbouring blocks and forest stands are with better habitat condition and their proximity to the study site and the mobility of many wildlife vertebrate species inevitably causes transfer and/or exchange. The two blocks have their own set of wildlife as primarily dictated by the type of vegetation that they have. Further, influence by the more pristine surrounding forests located on the western and southern part, and the non-forested areas on the eastern side is inevitable. This is clearly exhibited by the percent composition of the birds encountered: 53% or 23 species are associated with grassland-parang type, scrubland and open areas; 40% or 17 species are associated with forested habitats and large rivers or streams close to a forest; 5% or two species are associated with marshes and rice paddies; while 2% or one species is always over forest, logging roads and clearings.. In general, population status of most of the wildlife vertebrate species found in the eight sampling sites ranges from uncommon to common. Their habitats range from grassland-parang type, rice field, marshes, plantation, scrubland, open areas, forest edge, ultramafic and limestone forests (in this case heavily disturbed). Four threatened species (i.e., Anas luzonica, Alcedo argentata, Coracina mindanensis, and Sus philippensis) and only one near threatened species (i.e., Buceros hydrocorax) are identified (IUCN 2007, 2007 Red List of Threatened Species). Given the limited time allotted for field research, it could only describe the general condition of wildlife and their composition in the eight sites. Appendix 4.1.5 - Text 2 presents the detailed discussion for each group of wildlife (i.e., herpetofauna, birds and mammals). Noteworthy Species Noteworthy species are identified as indicators of the quality and dynamics of a given habitat. Some organisms can easily adapt to disturbance while sensitive ones are easily affected and takes time to adjust given that an alternative similar habitat is provided and protection is enforced. Thus, both groups are very useful in monitoring purposes to determine the health and condition of a given habitat. Most of the noteworthy species included in this study are strict forest dwellers while others are heavily hunted in the area. There are 18 noteworthy species (two amphibians, one reptile, nine birds and six mammals) identified in the overall list. This is owing to their habitat preference, restricted distribution, population and conservation status, and threat due to exploitation (i.e., for food or pets) (Table 4.1.5-2). Selected species are all Philippine endemic except for Rana cancrivora, Varanus salvator, Ducula aenea, and Macaca fascicularis. These five species are included since they are heavily hunted in the area. Further, Anas luzonica, Coracina mindanensis and Alcedo argentata are currently classified as threatened while Buceros hydrocorax is near threatened.

Table 4.1.5-2 List of noteworthy species in Brgys. Cagdianao, Hayanggabon, Taganito and Sapa

Species Distribution and Conservation Status 1. Platymantis corrugatus (rough-backed forest frog) Philippine endemic; uncommon 2. Rana cancrivora (Asian brackish water frog) Native non-endemic; common 3. Varanus salvator (water monitor lizard) Native non-endemic; heavily hunted 4. Phapitreron leucotis (white-eared brown fruit-dove) Philippine endemic; not threatened 5. Ducula aenea (green imperial pigeon) Native non-endemic; heavily hunted 6. Loriculus philippensis (colasisi) Philippine endemic; heavily hunted 7. Penelopides panini affinis (tarictic hornbill) Philippine endemic; heavily hunted 8. Buceros hydrocorax (rufous hornbill) Philippine endemic; near threatened 9. Coracina mindanensis (black-bibbed cuckoo-shrike) Philippine endemic; vulnerable

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Species Distribution and Conservation Status 10. Alcedo argentata (silvery kingfisher) Philippine endemic; vulnerable 11. Orthotomus nigriceps (black-headed tailorbird) Mindanao Island endemic; uncommon 12. Anas luzonica (Philippine duck) Philippine endemic; vulnerable 13. Macaca fascicularis (long-tailed macaque) Native non-endemic; heavily hunted 14. Rattus everetti (common Philippine forest rat) Philippine endemic; not threatened 15. Ptenochirus jagori (musky fruit bat) Philippine endemic; not threatened 16. Haplonycteris fischeri (Philippine pygmy fruit bat) Philippine endemic; not threatened 17. Sus philippensis (Philippine warty pig) Philippine endemic; vulnerable 18. Cervus mariannus (Philippine brown deer) Philippine endemic, data deficient

4.1.5.4 Key Impacts and Mitigating Measures

Impacts Mitigating Measures Removal of vegetation, top soil, leaf litter, rock crevices, decaying logs, tree stumps, etc. will lead to the complete transformation of the habitat causing displacement and even direct killing of wildlife most especially those that are less mobile (i.e., amphibians, reptiles, small non-volant mammals, nestlings and other young individuals).

- Schedule of activities (e.g. quarrying) should be carefully considered and implemented. - Personnel, heavy equipment, other vehicles, etc. shall be confined only to pre-determined designated areas and shall not occupy other areas so as to avoid further disturbances - Conduct of comprehensive IEC activities.

Formation of internal habitat fragmentation due to the creation and construction of entirely new access roads leading to isolation and decreased dispersal capabilities of different wildlife. Construction of the access and haul roads may also lead to habitat loss causing population reduction, create continuous disturbance at forest edges leading to decrease habitat quality and alteration of faunal assemblage, intrusion of commensal and other invasive species, and mortality due to vehicular traffic.

- For accessibility, existing roads will be utilized and improved. For new roads to be opened up, heavily disturbed (e.g., grassland, scrubland, etc.) areas or trails shall be prioritized as the location.

The area will be more accessible attracting more illegal hunters and poachers of animals for food, trading or pets.

- Poaching of wildlife and hunting will be strictly prohibited. - An active and continuous wildlife protection and conservation campaign will be pursued with the participation of all key stakeholders (e.g., employees and staff, communities, LGUs, etc.) within and around the project site. - Regular replacement and/or maintenance of equipment particularly mufflers of vehicles to minimize noise.

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4.2 The Water 4.2.1 Hydrology and Hydrogeology

4.2.1.1 Physical Setting The proposed Taganito HPP Project straddles four contiguous river basins near the Surigao del Norte – Surigao del Sur boundary plus two separate basins – the townsite (unnamed stream herein referred to as Townsite River) and the Baoy-Magallanes (Table 4.2.1-1). The four catchments have a south-to-north general orientation.

Table 4.2.1-1 List of catchments and corresponding Project area/facility drained

Catchment/Subcatchment Catchment/Drainage

Area (km2) Project Area/Facilities Drained

Taganito River Ore prep Water storage weir

Subcatchment: Daku Creek

26.4

Tailings dam #3 Daang Suba 7.3 Tailings dam #2

Water storage weir Hayanggabon 10.8 Decant pond

Construction Camp Tailings dam #1

Sensio 3.1 HPP Townsite 1.8 Townsite area Baoy-Magallanes 208 Subcatchment: Sapa Creek 19 Quarry area

4.2.1.2 Approach and Methodology The hydrologic and water resources component has five main activities, as follows:

a) Collect, review and analyze available climatologic, hydrologic and other pertinent data and information;

b) Conduct reconnaissance survey of the river catchments and undertake velocity measurements

at five selected river sections; c) Establish or determine existing climatologic/hydrologic condition of the river catchments within

the project area; d) Identify and assess the impacts on water resources of the proposed project; and e) Recommend possible mitigating measures for negative impacts and a hydrologic monitoring

plan. As in any water-related study, the gathering of secondary hydrologic, hydrogeologic and physical data and information and actual site visits are undertaken before computational desk work is conducted. Analysis of the different data such as statistical analysis of hydrologic/climatologic data and computer-aided mapping analysis to determine the physical properties of the sub-catchments comprising the basin is undertaken to develop the inputs to any hydrologic modelling and analysis necessary to establish the existing hydrologic conditions and to address the hydrology-related environmental issues and concerns. These activities and the methodologies for hydrological analyses are discussed in the succeeding sections.

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Data and Information Gathering, Processing and Analysis The hydrologic and climatologic data and information of rainfall/synoptic/agro-meteorological stations around the project area were obtained from the Philippine Atmospheric Geophysical and Astronomical Services Administration (PAGASA) and from the Taganito Mining Corporation (TMC). Below is a list of the stations and the data obtained:

Station Period of Record Data Agency

Mainit 1981-2005 Mo. Rainfall; Mo. Pan Evaporation

PAGASA

Hinatuan 1986-2005 Mo. Rainfall; Rainfall Intensity-Duration–Frequency (RIDF); Climatological Normal

-do -

Mine Camp 1994 - 2006 Mo. Rainfall TMC

Mine Site 1994 – 2006 Mo. Rainfall - do -

Cantilan 1966 – 1993 Mo. Rainfall PAGASA

Sison 1981- 1993 Mo. Rainfall -do-

Surigao City 1971- 1993 Mo. Rainfall -do-

Figure 4.2.1-1 Map Showing the Location of the PAGASA Stations (with MAR in mm) Relative to the Taganito Mines Project Area

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Figure 4.2.1-1 shows the location of PAGASA stations relative to the project area. The other relevant data and information gathered are river flows, contour map, climate map and typhoon frequency map. The measured flows of the nearest river basins to the study area were taken from the Philippine Water Data Summary (NWRC, 1980). Contour maps were procured from the NAMRIA while the climate map and the typhoon frequency map of the whole Philippines were also sourced from PAGASA. Water resource from which samples were taken was a ground water well tapped by TMC. Results can be found in Appendix 4.2.6. Table 1 to Table 3, Section 4.2.6 Water Quality. There were no reports of spring water source in the area. The review and analysis of the data and information is undertaken to establish their reliability and validity. Standard data quality checks include plotting of the data and simple statistical analysis like calculating the mean, maximum, minimum and standard deviation. Plotting of the annual cumulative rainfall or river flow (mass curve) was done to examine the consistency of the data. Calculating the five-year moving averages was also done to see if there are any trends in the data. Having established their reliability and consistency, the data are then used to define the existing climatologic and hydrologic regime of the study area. The watershed areas were delineated from the contour maps. These were then digitally processed to obtain physical characteristics such as the catchment areas and sub-areas and the average slope. The initial physical developments of the project in the catchments were also incorporated in the maps and used in the comparative analysis of existing and future conditions when ore processing operations commence. Site Reconnaissance and River Flow Measurements A reconnaissance and rapid appraisal of the watershed and flow measurements in five locations were conducted in mid-January 2007 (extremely wet condition) and in mid-April 2007 (“less” wet condition). The existing conditions of the watershed and the river channels were observed to validate some of the gathered data and information. This provided a first-hand view of the state of the watershed and the river channels at the peak of the wet season and during the recession or “less” wet period. Velocity measurements every 1 to 1.5-m distance along a river cross-section were done using a current meter. Figure 4.2.1-2 shows the location of the river measurement stations. Where the water is deep enough (more than 15 cm), velocity was measured at 0.2 and 0.8 of the depth. In shallow water, the velocity was taken only at 0.6 of the depth. The river discharge along a river section was calculated from the sum of the average velocity multiplied by the corresponding river sub-area. Watershed reconnaissance and velocity measurements for the Baoy-Magallanes River and Sapa Creek were conducted in mid-February 2008. Because of the great width and the strong currents at the Baoy-Magallanes River, velocity measurements were made every 5m and at 0.6d (60% of the depth) at each station only.

Water Balance Analysis The prevailing hydrologic regime of the study area is determined from the computation of the long-term monthly and annual water balance. The basin water balance defines the limits of the water resources of the basin and forms the basis for allocating available resources to different competing users. A monthly lumped-parameter watershed hydrologic model developed by the National Hydraulic Research Center was used for the water balance computation. The model uses a climatic water balance methodology. The general water balance equation given as:

P – AE – RO = ∆Storage

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Where:

P precipitation or rainfall AE actual evapotranspiration RO run-off ∆Storage (changes in the soil moisture, surface water and groundwater storages)

∆SMS + ∆SWS + ∆GWS

The unit of all the variables is millimeter (mm). On a long-term basis, the storage changes in surface water and soil moisture tend to zero and are negligible compared to the magnitudes of the other water balance components. Hence, the equation reduces to

P - AE = RO + ∆GWS which means that the net rainfall is transformed to surface runoff and change in groundwater storage (also called groundwater recharge). The percentage of surface runoff and groundwater recharge depends largely on the physical attributes of the catchment such as vegetal cover (or absence of it), land uses, type of soil, geologic formations, slope, etc.

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Figure 4.2.1-2 Map Showing the Location of the Hydrology Sampling Stations

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The actual evapotranspiration is determined using the following conditionalities:

a) if P ≥ PE (potential evapotranspiration): AE = PE

b) if P < PE: AE = P + ABS(∆SMS) ≤ PE where ABS(∆SMS) is the absolute value of the change in soil moisture storage and is equal to SMi – SMi-1. SMi and SMi-1 are the soil moisture storages at time i and i-1, respectively. During the rainy months, the condition P > PE usually exists and the excess water, P - PE, is absorbed by the soil until the maximum soil moisture storage (MSM) is reached. Any more excess water becomes a surplus. In the dry months, P < PE is often obtained. This results in the depletion of the soil moisture storage and groundwater storage. The depletion of the soil moisture is determined by an exponential decay model (derived by Thornthwaith and Mather) which is given by the equation

SMi = SMi-1 ∗ EXP (- X / MSM) where X is the positive value of PE - P at time i. The RO is composed of the combined overland flow and interflow and the baseflow which is a fraction of the groundwater recharge. The recession of the baseflow component is computed from the equation

qi+1 = qi • EXP (- αt) where qi+1 is the baseflow at the end of time step t, qi is the baseflow at the start of the time step and α = - ln Kr, the recession constant with units of /day or day-1.

In this study, the Mine site monthly rainfall and the potential evapotranspiration calculated from the Mainit monthly pan evaporation were the inputs used in the watershed water balance computations. The MSM, the recession constant α and other parameters were initially based on normal values provided in hydrology textbooks or articles and were adjusted during calibration of the model on a nearby gauged catchment. The outputs of the watershed simulations are the long-term monthly and annual water balance, the estimated average monthly discharges and the estimated flow duration curve and dependable flow for each river. 4.2.1.3 Existing Climatologic and Hydrologic Conditions

General Climatologic Condition The general climatologic condition in the project area is presented in Appendix 4.2.1.3 – General Climatologic Condition.

River Discharge As mentioned in the previous section, velocity measurements were initially conducted at five stations – two stations in the the Taganito River (H1 and H2), Daang Suba (H3), Hayanggabon River (H4) and Sensio Creek (H5). Velocity measurements at two stations in the Baoy River (~ 100 to 200 meters upstream (H6) and downstream (H7) of the confluence with Sapa Creek) and at one station in the Sapa creek (H8) were additionally made. The velocity and discharge computations at each station for the two measurement events are presented in Appendix 4.2.1, Table 3a to Table 7b. The monthly average streamflow of the main Taganito River, Daang Suba River, Hayanggabon River, the Sensio creek, the Townsite River as well as the Baoy-Magallanes River and Sapa creek was also estimated in the water balance computation using the National Hydrologic Research Center (NHRC) watershed model. The parameters used in the model were derived from the calibrated parameter values obtained for the Mayag River catchment at Lake Mainit about 35 km west of Taganito. The soil, general vegetation cover and land use in the catchments were taken into account in the

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simulation. The 12-year estimated monthly average flows of the six streams are presented in Appendix 4.2.1, Table 8 to Table 14. A comparative summary of the measured velocity and river flows and the simulated river flows is presented below:

Table 4.2.1-2 Comparative summary of measured and simulated velocity and river flows

Jan 2007 Apr 2007 Feb 2008 Simulation River Name Vave

m/s Qave

m3/s Vave

m/s Qave

m3/s Vave

m/s Qave

m3/s Qmax, m3/s

Qave, m3/s

Qmin, m3/s

Taganito River (D/S)

1.1 6.2 0.3 1.3 - - 8.5 1.7 0.2

Taganito River (U/S)

- - 0.2 1.3 - - - - -

Daku Creek 0.8 1.1 - - - - - - - Daang Suba 0.5 2.5 0.2 0.4 - - 2.4 0.5 0.1 Hayanggabon 0.6 1.4 0.1 0.2 - -- 3.5 0.7 0.1 Sensio 1.1 1.2 0.1 0.1 - - 1.0 0.2 0.02 Baoy-1 U/S - - - - 1.2 41.1 19.87 12.83 5.39 Baoy-2 D/S - - - - 0.84 42.9 - - - Sapa - - - - 0.45 0.69 1.81 1.17 0.49

It can be noted that the January 2007 discharge estimates are close to and of the same order of magnitude as the maximum values obtained in the simulation. The April 2008 measurements, on the other hand, are nearly the same as the mean flows. The February Baoy discharge is about 40% higher while the Sapa flow is 75% lower than the simulated monthly flows. The mean annual runoff amounts to around 2000 mm for each catchment. Similar to the monthly variation of rainfall, the runoff is highest in December, January and February at more than twice the mean annual discharge or equivalent to more than 340 mm/ month. It is approximately equal to the annual mean in March, April and November (>100 to 250 mm / month) and 25% to 50% of the annual mean in the middle six months of the year (>40 to 80 mm/ month).

Potential Evapotranspiration The potential evapotranspiration was estimated from the pan evaporation data at the Lake Mainit station (1996 – 2005). The pan evaporation is multiplied by a pan coefficient, kpan, assumed equal to 0.7 to determine the potential evapotranspiration. Appendix 4.2.1, Table 15 presents the calculated monthly potential evapotranspiration while Figure 4.2.1-9 shows the plots of annual and monthly statistics. The average annual potential evapotranspiration is nearly 1,000 mm.

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Page 118: Taganito Hydrometallurgical Processing Plant Project - Environmental Impact Statement

Figure 4.2.1-9 Composite Plot of Annual, Cumulative Annual and Monthly Maximum, Mean and Minimum Potential Evapotranspiration at Lake Mainit Station

Water Balance The long-term monthly and annual climatic water balance was computed using the mean monthly values and annual sum of the Taganito mine site rainfall and the mean monthly values and annual sum of the potential evapotranspiration as derived from the pan evaporation data at Mainit. A surplus occurs when rainfall is greater than the potential evapotranspiration while a deficit is the reverse condition. The surplus usually becomes runoff, replenishment of soil moisture and shallow aquifer storages and possibly percolation to the deep aquifer. A decrease in soil moisture and in shallow aquifer storage occurs when a deficit is incurred. The 1994 - 2005 general water balance computation for the five Taganito river basins and the Baoy-Magallanes River basin and Sapa Creek sub-basin is presented in Appendix 4.2.1, Table 16 to Table 22. The computation shows that the area has a surplus almost throughout the year with some small moisture deficits from May to September. The long-term annual water balance varies slightly for the five river basins because of the differences in vegetation cover. The extent of mined areas in the Taganito, Daang Suba and Hayanggabon river basins is estimated at 5%, 15% and 10%, respectively of each basin’s drainage area. Sensio and the Townsite River basins have no mined area at present. In general, the water balance computation indicates that whole Taganito project area has a large volume of surface water (ranging from 49.2% to 51.4% of MAR) and groundwater recharge (ranging from 25.8% to 26.5% of MAR).

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EIA -Taganito HPP Project

N 0 m. amslE

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4.2.2 Key Impacts and Mitigating Measures 4.2.2.1 Impacts Prior to the actual operations and ore processing activities, construction of the processing plant and its auxiliary facilities, the coal-fired power plant, the tailings dams and the houses and other structures in the new townsite will have to be undertaken. This undertaking will require potable water for the construction workers and ordinary water for construction purposes. Changes in quantity and quality of stream flows may also occur because of clearing of land and earth moving works. Effect of the Construction (Diversion Weir and Tailings Dam) Water Requirements on the Surface Water and Groundwater Resources The total water requirement during the construction phase is comprised of domestic water use of the construction personnel and the water requirement for concreting and curing, cleaning, water used by construction equipment and machineries etc. To determine the water requirements of the construction personnel and the construction site community, the following criteria based on Local Water Utilities Administration (LWUA) water supply planning guidelines for estimating water requirements are used:

domestic consumption in rural areas: 30 to 70 liters per capita per day (lcpd) commercial consumption: 0.3 to 1.2 connections per 100 population with a consumption of

1.6 cubic meters per day (cmd) institutional consumption: 1 connection per 2,000 population with a consumption of 4.5 cmd

Using the maximum values for the given range in domestic and commercial consumption and a maximum 4000 construction personnel, the estimated water requirements will be 44.6 cmd for domestic and 12.2 cmd for commercial. The water requirement for institutional purposes is 1.5 cmd and the total water supply requirement is 58.3 cmd. Groundwater water will most likely be the source of water supply since it will require minimal treatment for domestic uses. The groundwater wells will most likely be located in the Daang Suba and/or Hayanggabon River Basins since the construction camp is situated there. The groundwater recharge, as computed in the water balance, is about 20,900 cmd and 30,000 cmd for the Daang Suba and Hayanggabon River Basins, respectively. The water requirement is only 0.3% of the Daang Suba groundwater recharge. It can readily be met by the available groundwater supply and will have minimal impact on the groundwater resources of the river basin. Construction water will most likely be sourced from surface water or river runoff or even rain and water. Since the structures and facilities to be constructed are spread over the five catchments, the construction water source will be the nearest stream to the structure. Based on the existing water balance of the five catchments (excluding the Baoy-Magallanes catchment), the average daily runoff is 142,000 cmd at Taganito, 40,500 cmd at Daang Suba, 59,000 cmd at Hayanggabon, 16,000 cmd at Sensio and 9,800 at the Town site. The water requirement for construction may peak at around 200 cmd at each construction site. Hence, there is also minimal impact of construction water use on the surface water supply. Upon commissioning and during operations, the main water requirements are for the ore processing from ore preparation up to the end product storage, cooling water for 66-MW coal-fired power plant and the domestic water use of the new townsite and plant office. This will impact on the surface and groundwater resources of the different sub-basins. On the other hand, the new facilities and structures will affect the hydrologic balance condition in the sub-basin where they are situated. Change in Surface Runoff and Groundwater Recharge in the Catchments where the HPP and Auxiliary Facilities and the New Townsite Will be Located The HPP is proposed to be situated in the downstream portion of the Sensio River Basin occupying about 39 has, the decant pond in the adjacent Hayanggabon River basin with an area of 24 has, the ore preparation area in the Taganito River Basin covering around 40 has and the new townsite in the Townsite River Basin in the east spread over 60 has. In addition, the tailings dams and its respective

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Page 120: Taganito Hydrometallurgical Processing Plant Project - Environmental Impact Statement

upstream catchments cover several square kilometres of area. The effective catchment area of the Taganito River Basin and the Hayanggabon River Basin will be reduced to 7.95 sq km and 0.85 sq km, respectively. The areas to be developed are presently mostly raw lands with short brush vegetation. With the construction of plant buildings and facilities, houses and roads provided with stormwater drainage system, the infiltration/percolation in the new built-up area is expected to be reduced while surface runoff is expected to increase. In order to have an indicative assessment of the change in streamflow and groundwater recharge, the watershed model was applied to each catchment using the new land use to determine the new catchment water balance. This was then compared to the existing water balance to determine the changes. Appendix 4.2.1, Table 23 to Table 26, present the new water balance for the four catchments. A summary of the changes in surface runoff depth and groundwater recharge depth is presented below:

Table 4.2.1- 3 Summary of changes in runoff and groundwater recharge depths

In summary, the increase in runoff depth is estimated to range from 5% to 16.6% while the reduction in groundwater recharge is expected to be 5.3% to 15%. It has to be noted, though, that while the runoff depth increased in the Taganito and Hayanggabon basins, the runoff volume in MCM or the average discharge in m3/sec will actually decrease because of the reduced drainage area contributing to the flow, as will be discussed in the succeeding section. The increase in surface runoff/decrease in groundwater recharge occurs in the built-up areas where rainwater is to be collected by the stormwater drainage system designed to prevent flooding within the HPP facility and within the town. This water may be treated and used in ore processing. The proposed tailings dams will practically cut-off the flow from the headwaters of the Daku, Daang Suba and Hayanggabon catchments while the diversion weirs at Taganito and Daang Suba will reduce the streamflow (Figure 4.2.1-10). Only during times of spilling will the water flow to the downstream. The Daku tailings dam and the Taganito diversion weir have a catchment area of about 515 has and 1,792 has, respectively, so that the remaining Taganito River catchment area downstream of the two structures is 795 has or 7.95 sq km. The Daang Suba diversion weir has a catchment area of 593 hectares (5.93 sq km) and the tailings dam downstream has a 143-hectare (1.43 sq km) catchment. There will be practically no flow downstream of Daang Suba except during spills. The Hayanggabon tailings dam has a catchment area of 994 has (9.94 sq km) leaving a downstream area of only 85 has (0.85 sq km).

Change in Surface Runoff Depth

Change in Groundwater Recharge Depth River Basin

mm % mm % Taganito 98 5.0% 54 -5.3% Hayanggabon 331 16.6% 154 -15% Sensio 211 11.0% 71 -7.1% Townsite 221 11.4% 73 -7.3%

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Page 121: Taganito Hydrometallurgical Processing Plant Project - Environmental Impact Statement

Figure 4.2.1-10 Map Showing the Proposed Facilities and Developments in the Different River Basins Assuming complete isolation of the downstream catchment due to the tailings dam and the weir, the mean monthly flows of the remaining portion of the basin was generated using the watershed model to evaluate the effect of basin area reduction on the hydrologic state. The flow reduction is reflected in the monthly flow comparisons of the existing and reduced river basin area. Appendix 4.2.1, Table 13 and Table 14, present the monthly flows in the reduced Taganito and Hayanggabon River basins, respectively. The Daang Suba flow reduction is almost 100%, as mentioned above, and was no longer computed. The Taganito River will have an annual mean flow reduction of about 1.13 CMS or almost 70% from 1.65 CMS to 0.52 CMS. This is equivalent to an annual volume of about 36 million cubic meters (MCM) of runoff. The Hayanggabon River will have an annual mean flow reduction of about 0.62 CMS from nearly 0.7 CMS to only 0.06 CMS. The ~90% runoff reduction is equivalent to around 19.5 MCM annually. The reduction in streamflows in the rivers may have positive or negative effects depending on the season. During very wet months, the reduced flows will mean lesser flood water level in the downstream area. It also means lower sediment transport capacity of the river and lesser silt discharge to the sea. During the less wet period, reduced flows can cause the sea water or brackish water to move or migrate upstream farther in the river channels during high tides. The upstream migration will depend to a large extent on the river gradient. In any case, because of the large amount of rainfall in the area during the wet months, the brackish water in the affected portion may be effectively flushed out to the sea and the increase in chloride concentration is expected to be minimal. Effect of the HPP and Townsite Water Requirements on the Surface Water and Groundwater Resources The expected annual output of the HPP is 45,000 tons of nickel and 4,500 of tons of cobalt. The whole mineral processing by the HPP and the generation of power by the 66-MW coal-fired power plant to run the HPP will require a significant volume of water. The estimated water requirement is about 2,200 m3/hr or 53,000 cmd. The water is proposed to be sourced from the diversion weir in the Taganito River and in the Daang Suba River with a combined storage capacity of 6000 cu.m. A portion of the water will also be used for domestic water supply of the townsite. The new townsite that is proposed to be developed in the Townsite River basin is estimated to have a population of 10,000 persons. Using the same LWUA water supply planning guidelines and the maximum values for the given range in domestic and commercial consumption, the estimated water requirements will be 700 cmd for domestic and 192 cmd for commercial. The water requirement for institutional purposes is 22 cmd so that the total water supply requirement is 914 cmd.

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The flow duration curve (FDC) analysis provides an indication of the limits of the exploitable surface water resources at the two diversion points. The 80% dependable river flow is determined from a flow duration analysis. The NWRB requires that 10% of the dependable flow must remain in the river for environmental considerations. The flow duration curves of the Taganito and the Hayanggabon River at the point of diversion are shown in Figures 4.2.1-11 and 4.2.1-12. The 80% dependable flow is about 300 liters/second (lps) (26,000 cmd) and 120 lps (10,000 cmd) at the Taganito and Daang Suba diversion weirs, respectively. Hence, the minimum environmental flow (MEF) is 30 lps at Taganito and 12 lps at Daang Suba. The Taganito FDC also indicates that at least 100 lps is available almost 100% of the time. Subtracting the 30 lps MEF, 70 lps or about 6,000 cmd is the amount of available surface water supply. For Daang Suba, the divertible water supply available almost 100% of the time is 18 lps (30 lps – 12 lps MEF) or 1,550 cmd.

Figure 4.2.1-11 Calculated Flow Duration Curve at the Proposed Diversion Weir in the Taganito River

Figure 4.2.1-12. Calculated Flow Duration Curve at the Proposed Diversion Weir in the Daang Suba River The combined 80% dependable flow of Daang Suba and Taganito is 36,000 cmd. Subtracting the 3,600 cmd MEF, the dependable flow is 32,400 cmd. This is only about 61% of the combined total water requirement of 53,000 cmd for processing, power plant cooling and domestic water supply. Hence, it is necessary to tap additional water sources (e.g, groundwater/springs for domestic water use) and to recycle process water so that the daily water requirements can be met and will not strain the available water resources of the Taganito and Daang Suba River Basins.

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Effect of the Tailings Dams on the Flood Discharges During Storm Events The impoundment of surface runoff from the catchment area upstream of the tailings dam will bring about a decrease in the flood discharge and flood peaks at the downstream portion of the river catchment. The flow duration curve provides an indicative value of reduction in flood discharge. The comparative flow duration curves of the Taganito River under existing condition and with the proposed tailings dam and diversion weir is presented in Figure 4.2.1-13. At an exceedance probability of 1% (100-year return period), an average flow under existing condition is around 7,800 lps and only about 2,500 lps with the tailings dam and diversion weir in place. Hence, there is a reduction of 5,300 lps or 67%. At an exceedance probability of 10% (10-year return period), the flow reduction is from almost 5000 lps to 1500 lps.

Figure 4.2.1-13 Comparative Flow Duration Curve of Taganito River Under Existing Condition and With Tailings Dam and Diversion Weir

(Encircled Ordinates are 0.1 or 10 year and 0.01 or 100-year Exceedance) Figure 4.2.1-14 shows the comparative flow duration curve for Hayanggabon River under existing condition and with tailings dam. At the 1% exceedance probability, the flow reduction is about 2700 lps (~3,000 lps at existing condition and ~300 lps with tailings dam) or 90%. The flow decreased from 2,000 lps to 200 lps at the 10-year return period. Figure 4.2.1-14 Comparative Flow Duration Curve of Hayanggabon River Under Existing Condition and With Tailings Dam (Encircled Ordinates are 0.1 or 10-year and 0.01 or 100-year Exceedance

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The flow reduction in the Daang Suba is practically 100%, as earlier mentioned, meaning the water will either be diverted or stored within the tailings dam reservoir. During extreme storm events, the tailings dam will store water until such time that the reservoir water level rises above the emergency spillway crest and overflows into the downstream catchment. It is only during this period that the catchment area upstream of the dam contributes to the downstream flood discharge. The spilling discharge will depend on the design capacity of the spillway. Storage routing in reservoirs has an attenuating effect and the resulting flood discharge and flood peak in the downstream channel is expected to be lower than present conditions. Therefore, in general, the flood discharge is lower and the possible damage in the downstream due to flooding is also lessened. The other concern during spills is the quality of water that will flow from the reservoirs. Since the finer particles of the mine tailings may be re-suspended and the suspended sediment concentration is expected to be higher than under no spill condition. However, the siltation of the downstream channel down to the river mouth and coastal area is also expected to be lower than existing condition where there is no tailings dam that blocks the flow from the upstream catchment. Change in Surface Runoff and Groundwater Recharge in the Catchments Where the Limestone Quarry Will be Located The quarrying activity will basically increase the runoff because the vegetation cover (shrubs and trees) will be removed and roads will be constructed for transporting material. The recharge as well as actual evapotranspiration will then be reduced as a consequence. The limestone quarry area in Sapa Creek sub-catchment covers an estimated area of about 1 sq. km. This is about 5.3% of the 19-sq km sub-catchment area and only 0.5% of the Baoy-Magallanes River basin drainage area. Hence, the runoff increase is expected to be minimal in the Sapa creek because the affected area is only 5% and also because the quarry is located at its downstream portion just before the Baoy confluence. The effect on the Baoy River is also expected to be negligible because the quarry area is less than 0.5% of the total basin area.

Change in the Level of Sedimentation in the Baoy-Magallanes River Estuary and Coastal Area Due to the Quarry Corollary to the increase in runoff, the removal of vegetation in the quarry and the access roads will increase the volume of sediments in the Sapa Creek which will eventually find its way into the Baoy-Magallanes River. The volume of sediment that will reach the estuary and the coastal zone, however, will be minimal for the following reasons: 1) during flood conditions, the much higher flow in the Baoy-Magallanes River will induce backwater in the Sapa River causing some of the sediment to settle within the Sapa channel; 2) during recession and at lower flows, the sediment carried by the Sapa flow to Baoy-Magallanes will settle upstream of the diversion weir in the Baoy-Magallanes River as the velocity decreases when the flow approaches the weir; 3) as mentioned in the preceding section, the quarry area in Sapa Creek is only 0.5% of the total drainage area which means that the sediment volume from the quarry and the Sapa creek will still be considerably less than the volume of sediment coming from the Baoy-Magallanes watershed. 4.2.2.2 Mitigation Measures The possible mitigation measures for the main impacts and concerns are as follows:

a. Water supply during Construction – Potable water requirements for construction workers may be sourced from several groundwater wells. This will minimize over-use of a point source that may cause excessive drawdown in a single well. The possible provision of bottled water for drinking will further reduce the impact. Water for construction purposes or other purposes which does not require a level of quality like drinking water can be sourced from surface water and rain water. If the surface water at a certain construction area is not sufficient, water may be imported from another basin so that the stream will still have the required minimum flow.

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b. Water supply for HPP processing and domestic use in the new township – Since there is a deficit in the available surface water at the two proposed diversion points vis-à-vis the total project water requirement, recycling and re-use of storm water and process wastewater, proper maintenance of conveyance pipes and water distribution lines to minimize leakage and water use conservation may be implemented so that the water requirement can be met.

Use of groundwater may be considered for the domestic use of the new township. This will have lesser cost and environmental impact, as well, because there will be lesser water treatment needed and shorter conveyance pipes as the wells may be situated near or within the township.

c. Flooding in the plant facility and the town due to high surface runoff - The increase in surface

runoff in the plant facility and the town shall be drained properly to prevent flooding in these areas. A properly designed storm water drainage system shall be provided to collect the runoff and convey the water to the sea or to a water recycling plant for treatment and re-use.

d. Sedimentation of the Sapa Creek and Baoy-Magallanes River due to the quarry – Sediment traps or siltation basins may prevent part of the eroded soil which becomes the sediment from reaching the main creek. This will further minimize the amount of sediment that will eventually reach the Baoy-Magallanes River. The trap or basin will cause the larger particles to settle and only the remaining suspended sediments will be carried to the main river. Annual clearing of sediments in the trap or basin should be undertaken.

4.2.3 Oceanography

The coastal water of Taganito is located in the northwest side of the narrow passage between the Bucas Grande Island and the Northeast Mindanao (Figure 4.2.3-1). It is surrounded by several small islands that are important factors in the development of features in the water circulation of the area.

Figure 4.2.3-1. Map showing the study area

Figure 4.2.3-2 shows the complex bathymetry of the area. The channel is very shallow with depths not exceeding 80m. There is a narrow canal in between the relatively wider Taganito shelf and the shallow sill south of Bucas Grande Island. Large volumes of water may pass through this limited pathway generating high current velocities.

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125.7 125.75 125.8 125.85 125.9 125.95

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Figure 4.2.3-2. Bathymetry of study area. Contour lines in meters Methodology Field survey was conducted last June 1-2, 2007 to measure temperature and salinity profiles at each station using a Seabird SBE19 CTD (Conductivity-Temperature-Depth). Surface currents were measured at the same time using a 0.5m diameter holey-sock drogue. A handheld GPS in tracking mode was attached to the drogue and measured the position of the drogue as it drifted with the currents. Figure 4.2.3-3 shows the location of the stations during the survey.

Figure 4.2.3-3. Map showing station locations covered during the field survey

A hydrodynamic model was generated using the Princeton Ocean Model (POM) developed by Blumberg and Mellor (1987, http://www.aos.princeton.edu/WWWPUBLIC/htdocs.pom/ ). In the model domain, the whole area of the channel was included (9.21°N-9.80°N and 125.74°E-126.20°E) (Figure 4.2.3-4) to determine the general circulation pattern and how it affects the current variability in the coastal water of Taganito. The model used an orthogonal curvilinear grid to account for complex regions, e.g., bounded by a shoreline.

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29.1 29.4 29.7 30 30.3Temperature (°C)

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Figure 4.2.3-4. Map showing the model domain overlaid by bathymetry in meters 4.2.3.1 Temperature and Salinity The temperature and salinity profiles measured are shown in Figure 4.2.3-5 overlaid by its average values (red line). Vertical distributions show general characteristics of temperature and salinity, decreasing and increasing with depth, respectively. Most variability occurred in the upper 5m of the water column and became more homogenous with depth. Thermocline and halocline is very weak or almost absent in the mean value. On the average, temperature ranged 29.1 - 29.8 oC while salinity ranged 34.36 - 34.43ppt.

Figure 4.2.3-5. Vertical profiles of salinity and temperature

The decreasing characteristic of temperature with depth can be attributed to the transmission of heat from warmer surface layers to underlying waters. Vertical distribution of temperature depends on the amount of solar heating and mixing in the water column. Variabilities and the occurrences of thermocline and halocline were very shallow and evident only in some stations. Diurnal heating and/or spatio-temporal differences when the measurements were taken could account for these variabilities.

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The very small ranges of temperature (< 0.5ºC) and salinity (< 0.1psu) at a given depth indicate a homogenous water column. The mean vertical value clearly showed the absence of a thermocline and a halocline depicting a homogeneous, vertically mixed water column, dynamically consistent with the occurrence of stronger current within the channel. The strong vertical mixing in the passage is likely forced by the wind forcing, Mindanao Current and dissipation of tidal energy over complex bathymetry.

4.2.3.2 Surface Current Hydrodynamic Model

The surface current from the drogue measurements are shown in Figure 4.2.3-6. The current generally flows to the southeast into the channel with strong components flowing towards the coast of Taganito

Figure 4.2.3-6 Surface current from drogue measurements

The simulation of surface and vertically averaged current for January and August are shown in Figures 4.2.3-7 and 4.2.3-8, respectively. The surface current represented movement in the top few meters of the water column. This will be important for dispersal of materials which float on the surface while the vertically averaged velocities may be important for dispersal of materials which are mixed or suspended in the water column.

Current pattern on the surface showed reversal of the flow. In January, the flow was to the southeast. A strong current coming from the northwest entrance of the channel splits and forms recirculation cells as it approached Taganito. The current system is therefore characterized by the landward flow over the shelf of Taganito, a return flow out of the channel and an opposing flow at the eastern side of the channel. The counter flow developed from the deflection of the alongshore current and to its convergence with the flow from the southeast entrance of the passage.

In August, the general northwesterly flow through the channel is modified by the bottom topography and the geometry of the coastline. Flow along the coast conformed to the shape of the coast, adjusted with the changing depths and the presence of the small island. Current speed is reduced and direction changed over shallow areas and around small islands.

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125.7 125.75 125.8 125.85 125.9 125.95

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Figure 4.2.3-7. Simulated surface current in January (top) and August (bottom)

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Vertically averaged current vectors showed significant influence of bathymetry on the observed flow patterns. Water currents gained speed and changed directions when wind driven water was forced and funneled through the narrow canal; while currents that flow over shallow areas weakened- and ran parallel to the coast. Weaker current velocities were observed in shallow areas over Taganito shelf and within shallow embayments like Hinadkaban Bay and Dahikan Bay. Same current patterns prevailed in August but weaker in magnitude and with large variabilities in shallow areas. The presence of the shallow sill south of Bucas Grande Island and wider shelf area of Taganito limited the volume of water flowing through this passage generating high current velocity within the narrow canal.

Figure 4.2.3-8. Vertically averaged current in January (top) and August (bottom) simulated by POM

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Shown in Figure 4.2.3-9 are the tidal flow patterns. A consistent southeastern flow occurs for both ebb and flood tide. Note that strong tidal current occurs within the channel which eventually weakens as it moves out to the Pacific Ocean.

Figure 4.2.3-9. Modeled tidal velocities during ebb (left) and flood (right) conditions (from Villanoy and Magno, 2006)

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Surface current was mainly driven by monsoon wind modified by the shape of the coastline and bathymetry, evident in the simulation of the surface circulation where reversal of the flow is in accordance with the change of the monsoon wind. The bifurcation of the main current and the presence of reverse flows in the channel are interpreted as a consequence of the local geometry of the coastline and bathymetry of the area on the wind-driven surface current. Headlands, also a topographic feature, form recirculation cells that could retain water mass within the area. Surface flow patterns though taken during early June maybe an artifact of the retreating northeast monsoon and the dominating influence of the Mindanao current.

It is important to note that the study area is located in the low-latitude western Pacific where the energetic southern branch of North Equatorial Current, the Mindanao Current flows southward close to the coast and persists throughout the year (Qiu, et al., 1996 and Kim et al., 2004). The vertically averaged current, shows the dominating influence of the strong Mindanao Current in conjunction with the prevailing tidal current in the channel. Tidally generated currents are strongest within the channel because of its restricted setting (narrow and shallow water depth) and much weaker further south as it opens to the wide and deep Pacific Ocean. Effect of the wind therefore becomes negligible in the mean flow as it moves against the direction of the prevailing southwest monsoon (August). Shorelines limit and deflect currents while narrow passes accelerate them. The speed and direction of the mean current are modified by the shape of the coastline and bathymetry of the channel where weak currents were observed near the coast and over shallow areas, and gain speed along the canal. 4.2.4 Key Impacts and Mitigating Measures

Impact Mitigation Oceanography . Change in circulation pattern • Maintain temperature and salinity within effluent discharge

standards and baseline ranges to minimize disruption of thermohaline circulation

• Monitor sediment deposition in the wharf area where discharge

pipes are located

4.2.5 Sediment Transport

The sediment transport study is presented in Appendix 4.2.5.

4.2.6 Water Quality

The water quality assessment, sampling and handling procedures were based on the Australian Standards/New Zealand Standards® Water Quality Sampling Guidance: AS/NZS 5667.1 (ISO 5667-1 to 3). The analytical methods were adopted from the Standard Methods for the Examination of Water and Wastewater. The following in-situ parameters were taken using standard equipment: temperature, dissolved oxygen and pH. For the measurement of temperature and DO, the YSI Environmental® DO 200 was used. The measurement of pH was conducted using a HORIBA® D-22 model glass-electrode pH meter. A total of four groundwater stations, 15 surface water stations and eight coastal water stations were established in the study area (Table 4.2.6-1 to Table 4.2.6-3 and Figure 4.2.6-1). Samples were taken during the wet and dry seasons. Sampling activities were conducted in January 2007, April 2007 and January 2008. Some of the water quality stations are shown in Plates 4.2.6-1 to 4.2.6-15. In addition to these, a supplementary sampling was conducted in June 2007 to verify the elevated levels of copper, cadmium and lead in marine water as initially determined in the wet and dry season sampling results. A total of 31 marine water stations were established for this purpose (Figure 4.2.6-2, and 4.2.6-3) The succeeding sections will discuss the significant findings relevant to the proposed project.

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Groundwater The groundwater quality data and the appropriate quality criteria are presented in Appendix 4.2.6, Table 1 to Table 3. Bacteriological Quality. Under the PNSDW, drinking waters should have nil levels of coliforms. All groundwater stations have been tested positive for both total and fecal coliforms, except for station GW2 (Barangay Taganito) during the dry season sampling. However, station GW2 also recorded the highest total coliform count during the wet season sampling. Station GW1 is a well with pump, which is the source of water of the Taganito basecamp as well as the community. Stations GW2 and GW3 are both spring water sources located in Barangays Hayanggabon and Taganito, respectively. On the other hand, station GW4 is an open well. Spring water and open well sources are more prone to coliform contamination than closed wells. Physical and Chemical Quality: Health Significance. In this study, the physical and chemical quality parameters that were measured particularly those with health significance only include heavy metals. Heavy metals occur naturally but are not expected to have concentrations that are dangerous in normal household water systems. Results show all levels except for chromium are within PNSDW limits or are within typical values of Philippine groundwater resources. Based on laboratory results, while chromium was generally found to be within PNSDW limits (except for GW1 in Taganito basecamp) during the wet season, chromium concentration in stations GW2 in Barangay Taganito and GW3 in Hayanggabon exceeded the PNSDW limit of 0.05 mg/L during the dry season. Physical and Chemical Quality: Aesthetic Quality. These parameters refer to the characteristic of drinking water distinguished by odor, taste, color and clarity. In reference with the PNSDW standard, only TDS level particularly in station GW2 and GW3 exceeded the required limit during the wet season. All levels are within limits during the dry season. Oil/Grease and Other Parameters with No Standard Values. There were no traces of oil and grease in all groundwater stations. Other parameters that have no standard limits are generally similar to the levels recorded in groundwater samples taken from other areas.

Table 4.2.6-1 Location of the Surface Water Quality Sampling Stations

(Refer to Figure 4.2.6-1, Sampling Location Map, for the plot of the stations)

Station ID Stream Coordinates Remarks SW1 Taganito River 9°31'50.48"N

125°48'11.28"E Upstream Taganito River, western tributary (Plate 4.2.6-1)

SW2 Taganito River 9°32'9.08"N 125°48'0.46"E

Upstream Taganito River, western tributary, southwest of station SW4 (Plate 4.2.6-2).

SW3 Taganito River 9°32'4.34"N 125°48'9.79"E

Upstream Taganito River, western tributary, southeast of station SW4 (Plate 4.2.6-3).

SW4 Taganito River 9°32'13.29"N 125°48'11.70"E

Confluence of tributaries of stations SW3 and SW4. Upstream of Station SW5. (Plate 4.2.6-4).

SW5 Taganito River 9°32'27.24"N 125°49'6.50"E

Downstream Taganito River, western tributary, northeast and downstream of station SW4 (Plate 4.2.6-5)

SW6 Taganito River 9°32'6.50"N 125°49'13.62"E

Upstream Taganito River, eastern tributary (Plate 4.2.6-6)

SW7 Taganito River 9°31'43.58"N 125°49'27.52"E

Upstream Taganito River, eastern tributary, upstream of station SW6 (Plate 4.2.6-7)

SW8 Taganito River 9°32'45.33"N Downstream Taganito River, estuarine environment

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Station ID Stream Coordinates Remarks125°49'28.82"E (Plate 4.2.6-8)

SW9 HayanggabonRiver

9°31'47.79"N125°50'6.50"E

Upstream Hayanggabon River (Plate 4.2.6-9)

SW10 HayanggabonRiver

9°32'26.19"N125°50'15.34"E

Downstream Hayanggabon River, estuarineenvironment (Plate 4.2.6-10)

SW11 Sensio Creek 9°32'22.11"N125°50'36.45"E

Downstream of Sensio Creek, station is located underthe bridge (Plate 4.2.6-11)

SW12 MagallanesRiver

9°32'3.60"N125°42'39.80"E

Upstream Magallanes/Baoy River (Plate 4.2.6-12)

SW13 MagallanesRiver

9°32'16.30"N125°42'47.40"E

Downstream Magallanes/Baoy River (Plate 4.2.6-13)

SW14 Sapa River 9°33'23.90"N125°42'30.80"E

Downstream Sapa River (Plate 4.2.6-14)

SW15 MagallanesRiver

9°31'54.30"N125°43'42.90"E

Downstream Magallanes River, station is located nearthe bridge (Plate 4.2.6-15)

Table 4.2.6-2 Location of the Groundwater Quality Sampling Stations

Station ID Location Coordinates RemarksGW1 Barangay

Taganito9°32'27.01"N

125°49'13.82"EWell with pump, groundwater source of TMCbase camp and nearby community

GW2 BarangayTaganito

9°32'28.76"N125°49'22.95"E

Spring water, tap water source of Taganitocommunity

GW3 BarangayHayanggabon

9°32'24.51"N125°50'26.70"E

Spring water, tap water source, station islocated at the house of Brgy. Captain

GW4 Sitio Maibay,Barangay Sapa

9°31'57.60"N125°43'55.60"E

Open well, station is located in a residentialarea

Table 4.2.6-3 Location of the Marine and Coastal Water Quality Sampling Stations

Station ID Coordinates Location/RemarksMW1 9°33'0.45"N; 125°49'9.99"E 500 meters NW of causewayMW2 9°33'6.60"N; 125°49'36.79"E 500 meters NE of Taganito riverMW3 9°32'48.32"N; 125°50'22.47"E West of Telegrapo IslandMW4 9°33'18.17"N; 125°50'30.39"E Aling IslandMW5 9°32'11.00"N; 125°51'17.80"E Cagdianao Coastal AreaMW6 9°35'0.40"N; 125°44'4.60"E Claver River mouth1

MW7 9°35'8.20"N; 125°43'33.80"E Mabua River mouth1

MW8 9°35'49.50"N; 125°42'29.50"E Pugtoy River mouth1

1Claver, Mabua and Pugtoy Rivers emanate from Magallanes/Baoy River

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Figure 4.2.6-1. Location Map of Water Quality Sampling Stations

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Figure 4.2.6-2. Supplementary coastal water quality sampling stations in the coastal waters of Taganito, Carascal Bay,

and Canal Bay. The white rectangular outline depicts the area shown in Figure 4.2.6-3.

Figure 4.2.6-3. Supplementary coastal water quality sampling stations in the coastal waters of Taganito

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Plate 4.2.6-2. Station SW2 at Taganito River. The station drains an area of the watershed that is currently unaffected by mining operations. Waters during the dry and wet season sampling were noted to be clear. This is considered as a control station and will not be affected by the proposed HPP operations

Wet Season Dry Season

Plate 4.2.6-3. Station SW3 at Taganito River. Brownish, turbid waters were noted in the wet season while clearer waters with a much lower stream flow was noted during the dry season. The station is downstream of an existing siltation pond. It is located downstream of the proposed tailings dam

Wet Season Dry Season

Plate 4.2.6-1. Station SW1 at Taganito River. Brownish turbid waters were noted in the wet season in contrast with the clear waters observed during the dry season sampling. Runoff from exposed slopes upstream of the station contribute to the turbidity in the wet season. This station is located upstream of the proposed tailings dam in Taganito River

Wet Season Dry Season

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Plate 4.2-6-4. Station SW4 at Taganito River. The station represents the confluence of Stations SW2 and SW3. Clear waters were noted in the dry season. Turbid waters noted in the wet season was due to the turbidity of station SW2

Wet Season Dry Season

Plate 4.2.6-6. Station SW6 at Taganito River. High flow and turbid waters were noted during the wet season. Less turbid waters with lower flow was noted in the dry season. The site will be affected by the proposed tailings dam

Wet Season Dry Season

Plate 4.2.6-5. Station SW5 at Taganito River. Slightly turbid waters and high flows were noted during the wet season. Runoff from banks such as that in the foreground primarily contributes to the turbidity. Lower flows and clearer waters were noted in the dry season

Dry Season Wet Season

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Plate 4.2.6-7. Station SW7 at Taganito River. Turbid waters were noted during the wet season as compared to the dry season. The site is situated upstream of the proposed tailings disposal dam

Plate 4.2.6-8 Station SW8 at Taganito River

Wet Season

Plate 4.2.6-9. Station SW9 at Hayanggabon River. Turbid waters were noted during the wet season sampling. The site will be affected by the proposed tailings dam in Hayanggabon River

Dry Season Wet Season

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Plate 4.2.6-10. Station SW10 at Hayanggabon River

Wet Season

Plate 4.2.6-11. Station SW11 at Sensio Creek. Clear waters were observed in the wet and dry seasons. Sensio Creek is the stream nearest the town site

Dry Season Wet Season

Plate 4.2.6-12. Station SW12 at Magallanes River. The station is near the proposed quarry site Wet Season

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Wet Season

Plate 4.2.6-13. Station SW13 at Magallanes River. The station is near the proposed quarry site

Wet Season

Plate 4.2.6-14. Station SW14 at Sapa River

Wet Season

Plate 4.2.6-15. Station SW15 at Magallanes River. The station is downstream the proposed quarry site

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Surface Water Quality Presented in Appendix 4.2.6, Table 4 to Table 6 are the surface water quality data along with the appropriate quality criteria. Parameters Pertaining to Conventional and other Pollutants Contributing to Aesthetics and Oxygen Demand for Fresh Waters. Based on laboratory results, only total and fecal coliform levels exceeded the DAO 90-34 water quality criteria in direct-impact streams. Levels were exceeded in the following areas: upstream portion and river mouth of Taganito River; downstream portion of Hayanggabon river; upstream and downstream portions of Baoy River; and downstream portion of Maibay River. Fecal coliforms are expected to be high in streams draining populated areas as these receive surface runoff that contain human and domestic animal wastes. Parameters for Toxic and other Deleterious Substances for Fresh Waters (For the Protection of Public Health) and other parameters with no Prescribed values. Laboratory analysis indicates that heavy metal concentrations are less than detection in all stream water samples. Other parameters without prescribed values are generally comparable with other areas. Coastal and Marine Water Quality Analytical results for coastal and marine water quality are presented in Appendix 4.2.6, Tables 7 to 9 and Figures 4.2.6-4 to 4.2.6-6 along with the appropriate quality criteria. Parameters for Conventional and Other Pollutants Affecting Aesthetics and Exerting Oxygen Demand for Coastal and Marine Water. The different marine water stations were in compliance with the prescribed criteria for these particular set of parameters, with the exemption of dissolved copper as well as the total and fecal coliform levels. Dissolved copper levels were found to be naturally elevated in the coastal waters of Taganito as well as that of the region, regardless of season. Parameters for Toxic and Other Deleterious Substances for Coastal and Marine Waters (for the Protection of Public Health) and other parameters with no Criteria. In the case of heavy metals, laboratory analyses show that cadmium and lead concentrations exceed their respective prescribed limits set by the DAO 90-34 for marine waters. However, it should be noted that this scenario is not unique in this area but is rather a common attribute of coastal and marine waters in the Philippines. Recent water quality studies in other areas particularly in Surigao del Norte, Pangasinan, Quezon, and in Palawan support this setting.

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Figure 4.2.6-4. Cadmium levels in the coastal waters of Taganito, Canal Bay, and Carascal Bay.

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Figure 4.2.6-5. Copper levels in the coastal waters of Taganito, Canal Bay, and Carascal Bay.

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Figure 4.2.6-6. Pb levels in the coastal waters of Taganito, Canal Bay, and Carascal Bay.

4.2.7 Sediment Quality

Wet and Dry Season Sediment Sampling Sediment samples were collected in various stream water stations coincident to areas where water samples were collected (Figure 4.2.6-1). Samples were analysed using USEPA 3050B for various metal analytes. The analytical results are in Appendix 4.2.7, Table 1 and Table 2. The index of geo-accumulation (Igeo) and the pollution class based on Igeo is a tool to express the heavy metal content of sediments into pollution scenarios. Applying this to the geochemical data obtained from the marine and stream sediment samples, it was found out that the various sediment samples are practically unpolluted with arsenic and zinc. Majority of the samples are practically unpolluted with chromium, copper, iron, manganese and lead and unpolluted to moderately enriched with cobalt. The two metals that have high geo-accumulation indices are cadmium and nickel, reaching the extremely enriched class. The high indices are expected of nickel logically as the area is highly mineralized with this metal. It was observed that areas with similar geologic conditions, such as

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Berong, Quezon, Palawan (Maunsell, 2005) and Narra, Palawan (Maunsell 2008) also have enriched sediment cadmium levels.

4.2.8 Key Impacts and Mitigating Measures

Impact Mitigation Water Quality and Sediment Quality

.

Discharge from the decant pond to the coastal waters in the vicinity can potentially cause deterioration of the quality of immediate coastal water.

Regular effluent monitoring will be conducted and appropriate treatment of the effluent will be done as necessary prior to discharge.

Runoff from the limestone quarry can potentially increase TSS levels causing turbid waters. An increase in the basicity of water may also occur with increased carbonate ions in the water.

A water management system to control the runoff and sedimentation will be established to minimize water quality impacts. Regular water quality monitoring will be conducted in the streams immediate the quarry site vicinity.

Chemical spills (acids, oils and other chemicals) from storage facilities may occur in case of accidental leaks or breach of containers.

Storage facilities will be bunded to contain accidental breaches or leaks. Containment will be sufficient to contain 110% the volume of stored chemicals.

The townsite will generate solid waste and sewage that has the potential of contaminating land and water resources.

A water management system will be established in the site to collect and treat waste water. A solid waste management plan will also be established which will include a materials recovery facility and an engineered solid waste disposal site. Hazardous wastes from hospital will be collected by appropriate contractors or otherwise disposed-off in an ecologically sound manner.

4.2.9 Freshwater Biology

4.2.9.1 Freshwater Biota

Methodology For the assessment of aquatic biota, sampling stations were also coincident with the water quality sampling stations. Plates 4.2.9-3 to 4.2.9-19 show the condition of the rivers during the time of sampling. Each sampling station is described in the Water Quality Section. The triangular kick net was used to sample riffles or shallow portions of the rapidly-flowing rivers (Plate 4.2.9-1). The apparatus has a 250 mm net attached to a triangular frame with a detachable 1 m handle. With the sampler facing downstream, the net was held with the opening facing upstream. The substratum or bottom substrate was then disturbed by kicking or digging well into the river floor, while moving backward in an upstream direction, which allowed any disturbed materials to flow into the net. After about one minute, any material collected in the net was sorted (Plate 4.2.9-2) and benthic organisms retrieved were placed into plastic sampling bottles and preserved in 30% formalin. Duplicate samples were collected. Identification and counting of samples were done in the laboratory of the Zoology Department of the National Museum.

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Results and Discussion Table 4.2.9-1 lists the counts of the different aquatic fauna collected at the Taganito and Hayanggabon river systems. A total of 348 individuals of freshwater fauna were collected. These were represented by the Phylum Annelida or true worms, Phylum Arthropoda or arthropods (shrimps, crabs and aquatic insects), and Phylum Mollusca or snails/slugs. The annelids were mostly represented by nereid bristle worms found in the vicinity of the Taganito (Station SW8) and Hayanggabon (Station SW10) river mouths. Among the arthropods, the aquatic insects comprised the largest group of which the most numerous were the ephemeropterans or mayflies (98 individuals) followed by the hemipterans or water bugs (58 individuals) and trichopterans or caddisflies (49 individuals) (Figure 4.2.9-1). The ephemeropterans, hemipterans and trichopterans generally indicate clean waters or good water quality (Mason et al 2004). The most numerous was the water bug Ilyocoris sp (56 individuals) followed by the caddisfly Hydropscyche sp. (46 individuals), and the mayfly Heptagenia sp. (34 individuals).

Table 4.2.9-1 Freshwater Benthos in the River Systems Collected by Kick Net

Stations Taxa

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total

Phylum Annelida Class Polychaeta Pilargidae 2 2 Syllidae 2 2 Nereidae 1 13 14 Phylum Arthropoda Class Insecta Order Hemiptera Fam.Naucoridae

Genus Ilyocoris sp. 3 23 1 12 2 6 9 56 Fam.Mesoveliidae

Gen.Mesovelia sp. 1 1 2 Order Trichoptera F.Hydropsychidae

Gen.Hydropscyche 1 35 8 1 1 46 F. Philopotamidae

Philopotamus sp. 3 3 Order Ephemeroptera Fam.Ephemeridae Gen.Ephemera sp. 10 10 F.Leptophlebiidae

Plate 4.2.9-1. The kicknet method of sampling Plate 4.2.9-2. Sorting of aquatic fauna caught by kicknet

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Stations Taxa

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total

G.Leptophlebia sp. 5 11 16 F.Ecdyuriidae

Gen. Heptagenia sp. 32 1 1 34

Gen. Ecdyunurus sp. 2 1 3 Fam.Baetidae

Gen.Baetis 10 21 31 Fam. Caenidae

Gen. Caenis sp. 2 2 4 Order Plecoptera Fam. Perlidae

Gen Peltoperla 1 1

Gen. Togoperla 1 8 1 3 2 15 Fam.Nemouridae

Gen.Leuctra sp. 1 1 Order Diptera Fam.Simuliidae

Gen.Simulium sp. 2 4 6 Fam. Culisidae Gen. Culex sp. 1 1 Fam. Chironomidae

Gen. Chironomous 25 2 27 Order Coleoptera F.Helminthidae

Gen. Helmis sp. 10 2 12 F.Psephenidae

Gen.Psephenus sp. 1 1 2 Order Magaloptera

Sialis sp. 1 1 Order Acari Sbordr.Prostigmata 1 1 (watermites) Subphylum Crustacea Isopoda 2 2 Amphipoda Gammaridae 25 1 7 33 Tanaidacea 10 10 Decapoda Caridea Atyidae 2 2 Pallaemonidae

Macrobrachium sp, 2 4 3 9 Anomura Paguridae 1 1 Phylum Mollusca Class Gastropoda Neritidae 1 1

Totals 26 4 2 0 126 1 1 71 38 44 0 8 16 7 4 348

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Figure 4.2.9-1. Counts of Aquatic Insect Groups The highest number of aquatic fauna and taxa was collected downstream of the Taganito River (Station SW5, 126 individuals) (Figure 4.2.9-2 and Plate 4.2.9-9) which were mostly represented by aquatic insects. This sampling station had clear water during the sampling. This is followed by the river mouth station of Taganito River (Station SW8, Plate 4.2.9-12; 71 individuals) and the river mouth station of Hayanggabon River (Station SW10, Plate 4.2.9-14; 44 individuals). Station SW2 (Plate 4.2.9-6), Station SW3 (Plate 4.2.9-7), Station SW6 (Plate 4.2.9-10), Station SW7 (Plate 4.2.9-11) had only 1 to 4 organisms collected during the sampling. The very low number of aquatic organisms could be due to the highly disturbed riverbed and riverbanks in these stations. An altered habitat structure is considered one of the major stressors of aquatic systems (Barbour et al 1999). No organisms were collected in Station SW 4 (Plate 4.2.9-8) and Station SW 11 (Plate 4.2.9-15). Heavy rainfall a few days before the sampling have caused the overflow of river water in this station as evidenced by floodwater marks on the riparian vegetation (Plate 4.2.9-3). Because of this, scouring of the riverbed and fast water flow could have caused organisms to be swept away. In Station SW 11, near the mouth of the Sensio Creek, the absence of freshwater organisms could be due to the smothering effect of sediments as evidenced by the sediment-covered rocks (Plate 4.2.9-4).

Figure 4.2.9-2. Counts and Number of Taxa of Aquatic Fauna from the Different Sampling Stations

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0

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40

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140

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Plate 4.2.9-3. Brown coloration on riparian vegetation indicating water level during flooding after a heavy rainfall, and erosion of riverbanks at Station SW4

Plate 4.2.9-4. Rocks at Station SW11 heavily covered with sediments

Plate 4.2.9-5. Station SW1 located in creek at the inlet of a siltation pond Plate 4.2.9-6. Station SW 2 located at

TaganitoRiver before Station SW 4

Plate 4.2.9-7. Station SW 3 which feeds into Taganito River

Plate 4.2.9-8. Station SW 4 which is downstream of Station 2 along Taganito River

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Plate 4.2.10-9. Station 5 located further downstream of Taganito River.

Plate 4.2.10-10. Station 6 located downstream of the discharge of a siltation

pond.

Plate 4.2.9-12. Station SW 8 near the Taganito River mouth

Plate 4.2.9-9. Station SW 5 located further downstream of Taganito River

Plate 4.2.9-10. Station SW 6 located downstream of the discharge of a Siltationpond

Plate 4.2.9-11. Station SW 7 located upstream of Station 6

Plate 4.2.9-13. Station SW 9 upstream of Hayanggabon River

Plate 4.2.9-14. Station SW 10 near Hayanggabon River mouth

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Plate 4.2.9-15. Station SW 11 located near the mouth of Sensio Creek

Plate 4.2.9-16. Station SW 12 upstream of Magallanes River before confluence with Sapa River

Plate 4.2.9-17. Station SW 13 downstream of Magallanes River and Sapa River confluence

Plate 4.2.9-18. Station SW 14 upstream of Sapa River

Plate 4.2.9-19. Station SW 15 downstream of Magallanes-Baoy River

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Freshwater Fisheries It was only in the Sensio Creek (Station SW 11) and Magallanes River (Station SW 12 and Station SW 13) where fishing by the locals was observed. Fish traps are deployed at the mangroves at the mouth of the Sensio River and these usually catch crabs and small fishes. At the Magallanes River, there is also small-scale fishing conducted by the few indigenous people (IP) (Mamanua) in the area. The IPs use spear guns and hook and line to catch tilapia and shrimps.

4.2.10 Key Impacts and Mitigating Measures

Impact Mitigation Freshwater Ecology Threat to abundance, frequency and distribution of species

• Maintain river water parameters (temperature, pH, hardness, metal concentrations, turbidity) within baseline or natural ranges

• Monitor river water volume and riverbed scouring as an effect of the intake dams

4.2.11 Marine Biology

Reconnaissance of the site was made along the stretch of the coast that covers the projected primary and secondary impact areas (Figure 4.2.11-1, highlighted in pink). The area was scanned and spot-checked for identification and location of substrates and habitats (mud, sand,corals, seagrass, seaweeds, etc.); the purpose of which is to identify and establish marine monitoring stations.

Figure 4.2.11-1. Area covered by site reconnaissance of coastal waters

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4.2.11.1 Coral Reefs

Taganito is on the NE shore of Surigao del Norte fronting the Hinatuan Passage on the NE Mindanao coast. Its hilly to mountainous terrain is fringed by a narrow rocky shelf with coral and algae. Offshore are a number of shallow reefs, a few awash at low water, with a couple of coralline islands and islets likewise fringed by coral reefs. Methodology On the basis that sediments or any discharge to the sea can be dispersed either west or east of the coastal area (as stated in the Oceanography Section), five reef areas off the coast of Taganito were sampled from May 2007 these were the NE and SW fringing reef of Aling Island, the NE edge of Karaang Banwa, the northern reef at Malingin islet north of Taganito and a reef section east of Telegrapo Island (Figure 4.2.11-2). At each site two 50m transects were laid parallel the reef slope at depths ranging from 8m to 10m. At intervals of 1m along each transect, photo quadrats were captured using an Olympus Camedia C765 (4 mega pixels) digital camera encased in an underwater housing. The camera was held approximately 25cm above the substrate capturing a 0.5 x 0.5m image of the substrate. From each frame benthic lifeform attributes falling under 5 pre-determined points were identified. A total of 250 points were read for each 50m transect. Percent cover was determined by dividing the total number of points for a particular lifeform by the total number of points for the whole transect (250) multiplied by 100. The percent cover for each lifeform attribute were pooled under six major benthic categories namely: hard coral (HC), dead coral (DC/DCA), soft coral (SC), algal assemblages (AA), other fauna (OT), and non-living components or abiotics (AB). Results

A summary of the benthic components of the different sites assessed is presented in Table 4.2.11-1. Coral cover ranged from 38% east of Telegrapo Island and was highest (66%) along the northeastern reef of Aling Island. Below is a characterization of the reefs sampled.

Table 4.2.11-1 Benthic attributes for sites sampled off Barangays Taganito, Hayanggabon and Urbiztondo

East Aling Island West Aling Island Karaang Banwa Malingin Islet Benthic Components

Lifeform Category tsect

1 tsect

2 ave. tsect 1

tsect 2 ave. tsect

1 tsect

2 ave. tsect 1

tsect 2 ave.

Telegrapo Island

Hard coral 57.65 73.60 65.62 51.51 52.00 51.75 52.54 59.22 55.88 47.47 38.42 42.94 38.36 Acropora 47.46 71.60 59.53 8.07 4.80 6.43 3.53 14.12 8.82 7.06 6.67 6.86 2.16 ACB 39.22 69.60 54.41 3.85 2.40 3.12 3.14 13.73 8.43 3.53 5.10 4.31 0.36 ACE 0.40 0.20 1.15 0.57 0.39 0.19 0.78 0.39 ACS 1.18 0.80 0.99 1.15 2.00 1.57 0.00 1.57 0.78 ACT 7.06 0.80 3.93 1.92 0.40 1.16 0.39 0.19 1.18 1.57 1.37 1.80 Non-Acropora 10.19 2.00 6.09 43.44 47.20 45.32 49.01 45.10 47.05 40.41 31.75 36.08 36.20 CB 6.27 0.40 3.33 15.38 15.60 15.49 5.88 8.63 7.25 22.75 6.27 14.51 1.40 CE 1.57 0.40 0.98 5.38 2.40 3.89 9.80 5.10 7.45 10.59 9.41 10.00 22.00 CF 0.39 0.19 6.15 3.60 4.87 0.39 0.78 0.58 3.14 1.57 2.40 CM 1.96 0.40 1.18 5.00 19.20 12.10 23.14 11.37 17.25 1.18 5.88 3.53 5.12 CS 0.80 0.40 0.38 1.20 0.79 1.18 3.53 2.35 0.39 0.19 4.08 CME 5.77 0.40 3.08 4.31 8.24 6.27 5.49 2.74 CHL 1.60 0.80 0.64 CMR 5.38 3.20 4.29 4.31 7.45 5.88 2.75 4.31 3.53 0.56 Dead Coral 12.55 13.60 13.07 10.38 4.80 7.59 6.27 24.71 15.49 12.94 9.02 10.98 1.52 DC 0.60 DCA 12.55 13.60 13.07 10.38 4.80 7.59 6.27 24.71 15.49 9.02 10.98 0.92 Soft Coral SC 0.39 0.19

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East Aling Island West Aling Island Karaang Banwa Malingin Islet Benthic Components

Lifeform Category tsect

1 tsect

2 ave. tsect 1

tsect 2 ave. tsect

1 tsect

2 ave. tsect 1

tsect 2 ave.

Telegrapo Island

Sponge SP 1.18 0.40 0.79 1.92 2.40 2.16 5.49 3.14 4.31 4.31 4.31 4.31 0.28 Zoanthids 0.39 0.19 0.38 0.19 0.00 Other Living 0.39 0.40 0.39 10.77 9.60 10.18 0.39 0.19 4.31 11.37 7.84 Algae 18.83 8.00 13.42 13.07 20.40 16.73 31.37 9.41 20.39 20.00 16.86 18.43 10.28 AA 4.71 2.80 3.75 11.15 16.00 13.57 25.10 5.49 15.29 14.12 14.51 14.31 CA 4.31 2.00 3.15 0.77 2.80 1.78 6.27 3.92 5.09 5.49 2.35 3.92 HA 5.10 1.20 3.15 1.15 1.20 1.17 0.39 0.19 9.84 MA 4.71 2.00 3.35 0.40 0.20 0.44 Non-Living 9.02 4.00 6.51 11.92 10.80 11.36 3.53 3.52 3.52 1.98 20.00 15.49 49.56 R 1.18 0.59 0.40 0.20 1.57 1.57 1.57 0.39 0.39 0.39 RCK 1.57 0.78 1.17 1.18 0.59 S 7.84 4.00 5.92 7.69 3.20 5.44 0.39 0.39 0.39 0.39 3.92 2.15 7.56 SI 4.23 7.20 5.71 0.78 0.39 10.20 14.51 12.35 42.00

Aling Island Aling is a coralline island which is approx 1.3km off the northern shore of Baranggay Hayanggabon. Its shape is semi-circular. White sand beach and seagrass beds surround it. Moreover, it is fringed by reefs extending up to about 250m (widest) off the northern and northeastern shore. Along the north and northeastern fringe of the island, the reef grades gradually from the seagrass flat to a sandy rocky fore slope. This slope is characterized by extensive beds of branching and tabulate corals all the way towards deep water where rock and coral mounds slope at about 30° to a generally sandy bottom. Off the narrower southeastern shore the reef edge is generally made up of rock and coral mounds drops abruptly from 5m to a sandy-silty bottom at 10m. Two sites, northeast and southwest of the island, were sampled. The former was relatively shallow with water depth ranging from 5m to 8m. Coral cover was high (66%) consisting mostly of beds of branching Acropora formosa accounting to 80% of the total coral cover (Plate 4.2.11-1). Table, submassive and encrusting forms of Acropora were also present but in lower percentages. Other coral genera present includes: Pocillopora, Stylophora and Galaxea with massive and branching Porites as the most obvious. Dead corals consisting mostly of table and branching species over grown with algae occupied 13% of the substrate. The algal component of the reef likewise made up 13% of the benthos. Algal assemblages include some macro and coralline forms (e.g., Padina, Turbinaria and Galaxaura). At the other end of Aling Island (southwest), the reefs were narrower with a shallow reef flat that extends to a shallow edge consisting of rocks and coral mounds at 3m some 50m from shore.

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Figure 4.2.11-2 Location Map of Marine Sampling Stations

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From the edge, the reef drops abruptly for 15m to a sandy-silty bottom. Massive and branching Porites together with sturdier branched and encrusting forms of Pocillopora, Acropora, Euphyllia,and Echinopora were commonly found along the shallower slope while foliate and branching types of Echinopora, Montipora and Pectinia as well as the fire coral Millepora dominated the deeper slope.

.

Plate 4.2.11-1. Branching Acropora formosa northeast of Aling Island As with the northeast site, the southwest reef was dominated by branching forms of non-Acropora species (15%). It also has an extensive variety of coral growth forms (Plate 4.2.11-2). Living coral constitutes 52% of the benthos with algae and other living invertebrates (mostly the octocoral Isis) accounting for 16% and 10%, respectively. The base of the corals appears to be fragile. They easily topple living colonies given slight pressure. Silt appears to accumulate in spaces between rocks and coral colonies with the lower sections of (branching) species overgrown with silt laden algal assemblages.

Plate 4.2.11-2. Coral growth forms found southwest of Aling Island

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Karaang Banwa Karaang Banwa is a small uninhabited islet approx 1km north of Urbiztondo, an adjacent village west of Taganito. The area is a designated fish sanctuary (barangay ordinance) and is actively monitored by the villagers. The islet sits at the northwestern corner of an emergent reef platform detached from the reef fringing the Urbiztondo coast. The seagrass flat along shallow section adjacent the island grades towards a rocky edge with Sargassum and Turbinaria beds along the eastern edge dropping at around 30° to 4m where a steeper incline of 45°terminates in a sandy silty base 15m deep. The reef has an irregular relief characterized by the presence of large rock and coral mounds (Plate 4.2.11-3) some rising up to 3m from a generally sandy substrate. Conspicuous, however, is the presence of quite a number of dead branching and table corals (Acropora), overgrown with algae.

Plate 4.2.11-3. Corals mounds found off Karaang Banwa

Transects sampled for the site were laid along the eastern reef slope close to the southern end of the islet. An average of 56% coral cover was observed in the area dominated by massive Porites (17%) followed by branching Acropora and Porites. Also found covering considerable amounts of the substrate were the fire coral Millepora together with encrusting coral forms including Galaxea, Euphyllia, Goniastrea, Plerogyra and mushroom corals scattered along the bottom. There is a signigficant amount of dead corals overgrown with algae (15%) that could even be higher considering that 15% of the bottom was also covered with algal assemblages that could be existing on dead coral substrate. Malingin Islet Assessed was the northern reef of this small vegetated rock islet situated approx 850m north of the mouth of the Taganito River. The islet is surrounded by a narrow reef that proceeds from a shallow rocky inter tidal that extends gradually to about 50m from shore where a steeper incline of about 40° begins. Branching, massive and foliate species give the fore slope an irregular topography. There is considerable amount of silt (12%) covering the substrate particularly along depressions and spaces between rock and corals (Plate 4.2.11-4).

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Plate 4.2.11-4. Corals with silt in between depressions off Malingin Islet

Living coral cover made up 43% of the substrate dominated by branching coral growth forms of Porites, Acropora, Hydnopora and Pocillopora. Encrusting species were next in dominace represented by the genera Echinophyllia, Galaxea, Favia, Cypnastrea, Goniastrea, Echinopora and Platygyra. Porites heads, encrusting Acropora and Millepora were also present albeit in lower amounts. Dead corals covered with algae made up 11% of the benthos while the algal component accounted for 18% with more than three-fourths consisting of algal assemblages. East of Telegrapo Island Telegrapo Island is an elongated rock island 0.5km north of the Hayanggabon coast that sits along the outer edge of the reef fringing the said village. Its southern shore is presently connected to the mainland by a shallow sandy-muddy flat with a relatively thick growth of mangroves (Rhizophora) restricting the free flow of water around the island. Sampled was the reef approximately 0.5km east of the island and is essentially part of the main reef fringing the village. Along this stretch, the reef is relatively narrow with an emergent rocky reef flat extending 25m from shore. Along the edge, the rock shelf drops abruptly to 3m where a gradual slope to a depth of 5m begins. At this depth the reef grades more abruptly at about 40° terminating in a sandy-silty bottom 10 to 15m below. The fore slope has an irregular relief with rock and coral heads rising from a generally sandy substrate. Hard coral cover was estimated at 38% with massive and submassive kinds most commonly encountered. Occurring most frequently were the genera Porites, Goniastrea, Favia and Euphyllia. Aside from having the lowest coral cover estimated for all the sites visited, this area also had the highest amount of silt covering the substrate. The silt covering the bottom as well as some of the coral and coralline algae (Halimeda) had a reddish color and had a sticky consistency. Discussion The health of reefs has been assessed by examining the amount of hard corals present in an area. Gomez and Alcala (1979) introduced a 4 point scale for classifying reef condition with reefs having 0-24.9%, 25-49.9%, 50-74.9% and 75-100% hard coral cover designated as being in poor, fair, good and excellent condition, respectively. It is the primary parameter by which coral reef researchers assess the state of the reefs not only in the country but worldwide (Wilkinson, 1998).

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Using this criterion the reefs off Taganito can be classified as relatively good (ave. cover of 51%). This value is higher than the average coral cover reported by Nañola et al. (2004) for the Philippines (32.3%). The area has a relatively good cover despite its location of fronting two river mouths that discharge silt laden run-off. Other sites that are farther from the sediment source has higher coral cover (NE and SW Aling Is and Karaang Banwa). There is however, a high amount of silt covering the reef substrate along the fringing reef east of Telegrapo Island. This could have either resulted from entrainment of sediments by circular currents (eddies) generated along the coast in addition to run-off coming down the steep shoreline or both. On the other hand water movement also plays an important role in removing excess silt from the reef. The generally high cover present along the northern and eastern reef fringing Aling Is. is due to its exposure to waves and currents. Although the surface of the corals does not seem to have considerable accumulation of silt, some amount can be observed in depressions between colonies as well as on their bases. This condition does not only kill the coral base but at the same time favours the growth of some encrusting or boring organism (e.g. sponges, algae, etc.). In effect, it could erode the very foundation of the coral. Some coral colonies were also found to have weakened bases. Slight pressure on them causes collapse. 4.2.11.2 Reef Fishes Methodology In conjunction with the coral surveys, reef fish census was conducted in the same five stations using the visual census technique modified from English et al. (1997). Fish encountered 2.5 m on either side and above the line were counted, identified to species level (whenever possible) and total lengths estimated. Results and Discussion A total of 67 reef fishes belonging to 19 families were identified (Table 4.2.11-2). The most numerous were the damselfish Neoglyphidodon nigroris (176 individuals) followed by the wrasse Cirrhilabrus cyanopleura (100 individuals) and the damselfishes Pomacentrus nigromanus and P. moluccensis (74 and 71 individuals, respectively). The most speciose families were the Labridae (wrasses) with 15 species and the Pomacentridae (damselfishes) with 14 species. The highest number (479) of reef fishes was recorded at the western portion of the Aling Island. This was followed by Karaang Banwa (278 individuals) and the lowest was at Telegrapo Island (102 individuals). The high abundance of reef fishes in Aling Island and Karaang Banwa could be attributed to the high coral cover in these two reef areas. On the other hand, the low abundance of reef fishes in Telegrapo Island could be due to the low coral cover in this station as it has the lowest coral cover among the five coral stations. Despite the generally good hard coral cover in most of the sampling sites, there was a predominance of small-sized fishes such as the damselfishes and wrasses. This could be attributed to the high fishing pressure for target or commercial species such as jacks, groupers and snappers. Marine Fisheries Fishery in the area is mainly small-scale coastal fishing. Fisherfolks primarily use spear (pana), traps (bubo) and hook and line, as well as various nets (lambat) to capture fish. The fisherfolks conduct their fishing within the coastal waters adjacent to the mine site particularly at Lambuhan reef off Hayanggabon. Fishing is not allowed in the municipal marine sanctuaries off Urbiztondo at Karaang Banwa and White Island and Malingin Island off Taganito. The catch is mostly reef-associated species and most of this is landed at the Hayanggabon pier (Table 4.2.11-3).

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Table 4.2.11-2 Species list and counts per station of reef fishes off Taganito

Family Species

East Aling

West Aling Malingin

Telegrapo Island

Karaang Banwa Total

1 Acanthuridae Acanthurus triostegus 1 1 2 Acanthuridae Acanthurus xanthopterus 2 2 3 Acanthuridae Ctenochaetus binotatus 10 10 4 Acanthuridae Ctenochaetus striatus 17 8 20 1 7 53 5 Acanthuridae Ctenochaetus tominiensis 6 6 6 Acanthuridae Zebrasoma veliferum 6 6 7 Apogonidae Cheilodipterus quinquelineatus 6 6 8 Blenniidae Meiacanthus grammistes 2 2 9 Chaetodontidae Chaetodon auriga 4 1 5

10 Chaetodontidae Chaetodon ephippium 1 1 11 Chaetodontidae Chaetodon kleini 2 4 6 12 Chaetodontidae Chaetodon octofasciatus 6 2 14 22 13 Chaetodontidae Chaetodon rafflesi 2 1 3 14 Chaetodontidae Chaetodon speculum 1 1 15 Chaetodontidae Chaetodon trifascialis 1 10 11 16 Chaetodontidae Chaetodon trifasciatus 2 2 17 Chaetodontidae Chaetodon ulietensis 1 1 18 Chaetodontidae Chelmon rostratus 3 3 19 Chaetodontidae Heniochus varius 2 1 1 4 20 Ephippidae Platax teira 2 2 21 Holocentridae Sargocentron sp. 2 2 22 Labridae Anampses sp. 2 2 23 Labridae Bodianus mesothorax 4 8 12 24 Labridae Cheilinus fasciatus 2 1 1 1 2 7 25 Labridae Choerodon anchorago 1 1 26 Labridae Cirrhilabrus cyanopleura 30 50 20 100 27 Labridae Gomphosus varius 2 2 28 Labridae Halichoeres melanurus 19 6 2 6 33 29 Labridae Halichoeres prosopeion 1 1 30 Labridae Halichoeres purpurescens 1 1 31 Labridae Labrichthys unilineatus 1 1 2 4 32 Labridae Labroides dimidiatus 4 4 10 18 33 Labridae Macropharyngodon negrosensis 12 40 52 34 Labridae Pseudocheilinus octotaenia 3 2 1 2 8 35 Labridae Stethojulis strigiventer 3 3 36 Labridae Thalassoma lunare 6 4 12 22 37 Lutjanidae Lutjanus biguttatus 2 2 1 5 38 Monacanthidae Cantherhines sp. 1 1 39 Mullidae Parupeneus barberinus 0 40 Nemipteridae Scolopsis bilineatus 2 1 3 41 Pinguipedidae Parapercis clathrata 1 1 42 Plotosidae Plotosus lineatus 50 50 43 Pomacanthidae Chaetodontoplus mesoleucus 1 4 4 1 10 44 Pomacentridae Abudefduf vaigiensis 8 8 45 Pomacentridae Amblyglyphidodon curacao 1 50 16 67 46 Pomacentridae Chromis atripectoralis 10 10 47 Pomacentridae Chromis xanthura 20 4 24 48 Pomacentridae Chrysiptera rex 20 20 49 Pomacentridae Chrysiptera rollandi 12 20 24 56 50 Pomacentridae Chrysiptera talboti 1 1

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Family Species

East Aling

West Aling Malingin

Telegrapo Island

Karaang Banwa Total

51 Pomacentridae Neoglyphidodon nigroris 10 49 50 17 50 176 52 Pomacentridae Pomacentrus alexandrae 40 36 76 53 Pomacentridae Pomacentrus brachialis 4 2 6 54 Pomacentridae Pomacentrus coelestis 1 1 55 Pomacentridae Pomacentrus moluccensis 22 25 24 71 56 Pomacentridae Pomacentrus nigromanus 70 4 74 57 Pomacentridae Pomacentrus vaiuli 2 2 58 Scaridae Chlorurus frontalis 45 45 59 Scaridae Chlorurus sordidus 1 2 3 60 Scaridae Scarus chameleon 12 8 20 61 Scaridae Scarus frenatus 31 31 62 Scaridae Scarus rivulatus 6 14 20 63 Serranidae Diploprion bifasciatum 4 1 5 64 Siganidae Siganus vulpinus 1 8 4 2 15 65 Tetraodontidae Canthigaster valentini 1 1 66 Zanclidae Zanclus cornutus 16 2 18 67 unknown juveniles 50 20 70

Total 203 479 243 102 278 1305

Table 4.2.11-3 List of commercial fishes landed in Hayanggabon

Family Species Common Name Acanthuridae Acanthurus mata Yellowmask surgeonfish Caesionodae Caesio teres Yellow and blueback fusilier Caesionodae Pterocaesio sp. Fusilier Carangidae Caranx sp. Trevally Carangidae Gnathanodon speciosus Golden trevally Haemulidae Plectorhinchus chaetodontoides Many-spotted sweetlips Lethrinidae Lethrinus erythropterus Longfin emperor Lethrinidae Lethrinus sp. Emperor Lutjanidae Lutjanus fulviflamma Black-spot seaperch Mullidae Parupeneus barberinoides Swarthy-headed goatfish Mullidae Parupeneus chrysopleuron Yellow-striped goatfish Scaridae Scarus flavipectoralis Yellowfin parrotfish Scaridae Scarus forsteri White-spot parrotfish Serranidae Anyperodon leucogrammicus White-lined rockcod Serranidae Epinephelus quoyanus Long-finned rockcod Siganidae Siganus fuscescens Black spinefoot Siganidae Siganus punctatus Spotted spinefoot Siganidae Siganus virgatus Spinefoot

The fishermen practically go fishing all year-round but there is less fishing from November to January (Northeast monsoon) when the coastal waters are dangerous to small sea crafts due to rough water conditions brought about by the prevailing monsoon. There is fish cage culture of groupers (Plectropomus leopardus) in the lee-ward side of Telegrapo Island and this is impacted by silt-laden waters during the northeast monsoon.

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4.2.11.3 Soft Bottom Benthos Methodology Stations for sampling of soft bottom benthos were coincident with the marine water quality stations. Collection was done using an Ekman grab with an area of 0.0225 sq. m. Each grab sample was sieved through a 500-micron mesh, pooled and placed in pre-labeled plastic jars. Samples were then stained with Rose Bengal and fixed in 10% formalin. In the laboratory, sediment samples were washed with tap water through a 500-micron mesh sieve and studied under a stereomicroscope. Organisms were sorted from sediments, identified, counted and preserved in 70% alcohol.

Results A total of 35 taxa with an estimated average density of 3,403 individuals/m2 belonging to five phyla, were identified from the seven sampling stations, The Class Polychaeta was the most speciose (16 taxa) followed by Subphylum Crustacea (9 taxa). A summary of the taxa identified and their estimated densities is presented in Table 4.2.11-4. The soft bottom assemblage was primarily composed of crustaceans, polychaetes and foraminiferans, in decreasing order of abundance (Figure 4.2.11-3). The polychaetes dominate organic-rich sediments while foraminiferans are known to occupy species-specific habitats within the surface and near surface bottom sediments. Two genera (Peneroplis and Marginopora) dominate the foraminiferan fauna. While these genera were found in most samples, they appear to prefer different habitats, dependent upon sediment influx into the system. Table 4.2.11-4 Average estimated density (number of individuals/m2 of soft bottom benthos in the marine

environment of Taganito Nickel HPP Project, Surigao

Taxa MW-1

Causeway

MW-2 Taganito R. mouth

MW-3 Telegrapo

Is.

MW-4 Aling

MW-6 Claver R. rmouth

MW-7 Mabua R.

mouth

MW-8 Pugtoy R.

mouth Average

Phylum Protozoa

Foraminiferans

Peneroplidae

Peneroplis sp. 44.44 - 933.33 577.78 266.67 44.44 377.77 320.63 Marginopora sp. - 44.44 133.33 44.44 288.89 102.22

Amphisteginidae

Amphistegina sp. - - 177.78 88.89 - 44.44 244.44 79.36

Miliolidae

Spiroloculina sp. 88.89 - - - 22.22

Phylum Nematoda 44.44 - 666.67 933.33 411.11

Phylum Annelida

Class Polychaeta

Orbiniidae - 44.44 844.44 44.44 233.33

Paraonidae - 88.89 - - 22.22

Cossuridae 44.44 - - - 11.11

Spionidae 177.78 400.00 755.56 444.44 66.66 368.89

Cirratullidae - 44.44 - - 11.11

Capitellidae 133.33 44.44 133.33 88.89 100.00

Arenicolidae - - 44.44 - 11.11 Opheliidae - 88.89 44.44 - 33.33

Phyllodocidae - 44.44 - - 11.11

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Taxa MW-1

Causeway

MW-2 Taganito R. mouth

MW-3 Telegrapo

Is.

MW-4 Aling

MW-6 Claver R. rmouth

MW-7 Mabua R.

mouth

MW-8 Pugtoy R.

mouth Average

Pilargidae 44.44 - - - 11.11

Syllidae - 133.33 44.44 44.44 55.56

Nereidae - 133.33 44.44 - 44.44

Glyceridae - 355.56 266.67 - 155.56

Amphinomidae - 133.33 - - 33.33

Onuphidae 44.44 - - - 11.11

Arabellidae - 44.44 44.44 - 22.22

Phylum Mollusca

Class Pelecypoda

Arciidae 44.44 44.44

Carciidae 44.44 44.44 Tellinidae - - - 44.44 11.11 Veneridae 44.44 - - - 44.44 17.78

Class Pulmonata - 44.44 88.89 - 33.33 Phylum

Arthropoda

Subphylum Crustacea

Matutidae 44.44 44.44

Myodocopa - 133.33 - 311.11 111.11

Podocopa - 44.44 - 44.44 22.22

Isopoda - 133.33 1,022.22 133.33 322.22

Tanaidacea 44.44 888.89 3,022.22 266.67 1,055.56

Amphipoda

Gammaridae 133.33 4,266.67 933.33 1,377.78 1,677.78

Caprellidae - 400.00 44.44 - 111.11

Cumacea - 44.44 88.89 44.44 44.44

Order Stomatopoda 44.44 - - 44.44 22.22

Total 888.89 7,555.56 9,333.33 4,533.33 333.33 88.88 1,088.86 3,403.17

Figure 4.2.11-3. Total average densities of soft bottom benthos in the marine environment of Taganito HPP Site,

Surigao

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050

100150200250300350400450500

Tota

l Es

timat

ed A

bund

ance

(ind/

m2)

Foraminifera Cnidaria Polychaeta Crustacea Mollusca

Soft Bottom Benthos Taxa

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Crustaceans were represented by nine taxa. Their abundance was attributed to the high numbersof tanaids and gammarid amphipods (Figure 4.2.11-4). The tanaids were particularly abundant offTelegrapo Island (Station MW-3) with estimated average density of 3,022 individuals/m2. Thegammarid amphipods were numerous in Taganito rivermouth (Station MW-2) and off Aling Island(Station MW-4) with estimated average density of 1,378 to 4,267 individuals/m2. A high density ofisopods was also collected off Telegrapo Island with an estimated average density of 1,022individuals/m2.

Figure 4.2.11-4. Total estimated abundance of crustacean fauna in the marine environment of Taganito HPP Site,Surigao

The polychaetes were comprised of 16 taxa, of which the spionids had the highest total estimatedabundance (Figure 4.2.11-5). The spionid worms were particularly numerous off Telegrapo andAling Islands (Station MW-3 and Station MW-4) and orbinid worms also observed in thesestations.

Figure 4.2.11-5. Total estimated abundance of polychaetes in the marine environment of Taganito HPP Site,Surigao

The number of taxa was highest near the Taganito River mouth followed by Telegrapo Island (19),Aling Island (16) and the lowest was at the Claver and Mabua River mouths (2). The estimatedaverage density of soft bottom benthos was recorded highest off Telegrapo Island (Station MW-3)with 9,333 individuals/m2 while the lowest was documented off Mabua River (Station MW-7) with89 individuals/m2 (Appendix 4.2.11, Figure 1). The soft bottom benthos in Hayanggabon wascomposed mainly of nematodes, isopods, spionids, and tanaids.

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0

10

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30

40

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(in

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O rbiniidae S pionidae C apitellidae G lyc eridae O thers[N=13]

P olyc ha e te T a x a

020406080

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Discussion

Most of the organisms obtained were epi- and infaunal, belonging to the groups crustaceans, polychaetes, nematodes and foraminiferans. They are known to live on the sediment surface and are usually associated with surface structures such as shells, vegetation, or animal colonies.

The results suggest that there is no indication of adverse impacts on the soft bottom fauna. The high density of peracarid crustaceans such as gammarid amphipods, tanaids and isopods suggests of good habitat for the soft bottom fauna.

The amphipods can be considered as bio-indicators because of their dominance in the site. Amphipods do not have a pelagic larval stage, have specific habitat requirements, and exhibit low intrinsic rates of dispersal (Hart and Fuller, 1979). Besides acute and chronic sensitivities to pollutants and toxicants, amphipods exhibit a number of altered behavioral responses to sublethal levels of a variety of compounds that can cause reduction or elimination of their populations (Baker, 1971; Sandberg et al, 1972; Percy, 1976; Lee et al 1977; Linden, 1976a,b). Amphipods have been found to be more sensitive than other species of invertebrates to a variety of contaminants (Ahsanullah, 1976 and Swartz et al 1985). Furthermore, amphipods have been documented to show responses to other parameters including dredging, shoreline alteration, fishing practices, salinity, and dissolved oxygen (Barnard, 1958, 1961; Widdowson, 1971; McCluskey, 1967)

Another bio-indicator group are the spionid and capitellid polychaetes which are also abundant in the marine sediments in the area.

4.2.11.4 Marine Plankton

Methods Plankton samples were collected using 25 µm and 64 µm nets for phytoplankton and zooplankton, respectively, and were collected coincident with the marine water quality stations. Two (2) samples were collected from each station and were immediately preserved in 10% formalin solution. These were brought to the laboratory for sorting and identification. To determine zooplankton abundance or density, each sample was sieved through 64µm mesh sieves. One to two ml aliquotes from known sample volume served as subsamples. Organisms were identified and counted with a binocular-dissecting microscope, expressed as number of organisms per cubic meter. For phytoplankton density, samples were sieved through a 25µm mesh sieve and were diluted with a known volume of filtered seawater. Two aliquots were drawn from the sample and were allowed to settle in a Sedgewick-rafter chamber. At least 3-4 horizontal strips were randomly counted. Cell density was expressed in number of cells per cubic meter. Results and Discussion The phytoplankton assemblage collected off Taganito was typical of coastal waters, being dominated by diatoms (2,359,555 ind m-3) followed by protozoans (87,447 ind m-3), dinoflagellates and blue-green algae (69,497 ind m-3 and 66,757 ind m-3, respectively) (Table 4.2.11-5). Station MW3 (Hayanggabon rivermouth) had the highest total density (Figure 4.2.11-6).

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Table4.2.11-5 Density and list of phytoplankton for each station in Taganito, Surigao

Forms Stations Diatoms MW1 MW 2 MW 3 MW 4

Mean

Stephanopyxis - - - 14,500.75 3,625 Melosira 14,500.75 36,075.04 14,147.07 - 16,181 Leptocylindricus danicus 44,209.60 - - - 11,052 Guinardia 147,483.24 43,855.93 21,927.96 7,073.54 55,085 Coscinodiscus 33,245.62 154,910.45 21,927.96 - 52,521 Rhizosolenia alata 342,712.84 744,843.39 667,741.84 267,379.68 505,669 R. setigera 3,536.77 - 7,073.54 - 2,653 R. calcar 107,164.08 103,273.63 132,275.13 36,782.39 94,874 R. fragillisima 191,339.16 125,201.60 154,910.45 25,464.73 124,229 R. robusta 22,281.64 - 7,073.54 - 7,339 Bacteriastrum varians 232,012.00 111,054.52 213,620.80 29,355.18 146,511 Chaetoceros 1,278,541.72 221,401.69 2,277,678.75 70,381.69 962,001 Biddulphia mobiliensis 40,319.16 29,001.50 29,001.50 18,391.19 29,178 B. sinensis - - - 10,963.98 2,741 Triceratium - 7,073.54 - - 1,768 H. membranaceus - - 7,073.54 - 1,768 Eucampia zoodiacus 3,536.77 - - - 884 Climacodium biconcavum 3,536.77 - 7,073.54 - 2,653 Strepthotheca 3,536.77 - - - 884 Fragillaria cylindricus - 43,855.93 - 25,464.73 17,330 Asterionella japonica - - 7,073.54 - 1,768 Thalassionema nitzschioides 195,229.61 95,492.74 29,001.50 3,536.77 80,815 Licmophora - - 14,147.07 - 3,537 Climacosphenia 3,536.77 - - - 884 Navicula cancelata 7,427.21 7,073.54 - 3,536.77 4,509 Pleurosigma 21,574.29 29,001.50 43,855.93 7,073.54 25,376 Mestogloia minuta - - 125,201.60 - 31,300 Nitzchia 298,503.24 229,182.58 132,982.49 21,927.96 170,649 Bacillaria paradoxa - - 7,073.54 - 1,768

subtotal 2,994,227.99 1,981,297.57 3,920,861.27 541,832.89 2,359,555 Dinoflagellates Dinophysis caudata 7,427.21 - 14,854.43 - 5,570 Gymnodinium 3,536.77 - - - 884 Pyrophacus - 7,073.54 7,073.54 - 3,537 Gonyaulax - 7,073.54 - - 1,768 Ceratium teres - 29,001.50 - 10,610.30 9,903 C. lunula - - 7,073.54 - 1,768 C. furca 18,037.52 72,857.43 14,147.07 - 26,261 C. fusus 7,073.54 7,073.54 7,073.54 - 5,305 C. trichoceros 18,391.19 - 29,001.50 - 11,848 Protopreridinium sp1 3,536.77 - - - 884 P. conicum - 7,073.54 - - 1,768

subtotal 58,003.00 130,153.07 79,223.61 10,610.30 69,497 Blue-green algae Trichodesmium eryhtraeum (strand)

18,037.52 7,073.54 14,147.07 14,500.75 13,440

Richelia intracellularis - 43,855.93 125,201.60 44,209.60 53,317

subtotal 18,037.52 50,929.46 139,348.67 58,710.35 66,757 Protozoa

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Forms Stations Diatoms MW1 MW 2 MW 3 MW 4

Mean

Tintinnopsis - 7,073.54 - - 1,768 Codonellopsis 95,492.74 36,075.04 65,783.89 10,963.98 52,079 Epiplocyclis - - 21,927.96 7,073.54 7,250 Protorhabdonella 40,319.16 21,927.96 7,073.54 - 17,330 Steenstruptella 3,536.77 - - - 884 Amphorellopsis 3,536.77 21,927.96 - - 6,366 Eutintinnus - 7,073.54 - - 1,768

subtotal 142,885.44 94,078.04 94,785.39 18,037.52 87,447 Radilolarians Pleurpsis - - - - - Foramineferans - - - - -

TOTAL 3,213,153.95 2,256,458.14 4,234,218.94 629,191.07 2,583,255.52

Figure 4.2.11-6. Phytoplankton densities in 4 marine stations within the vicinity of Taganito, Surigao Zooplankton forms identified show the dominance of larval forms particularly nauplii (137,668 ind m-3) and copepodite (78,427 ind m-3) (Table 4.2.11-6). These larval forms are positive indicators of good turnover of standing stock translating to food available for pelagic fish. The number of fish larvae is also quite notable at 1,061 ind m-3 ., for a promising fish stock. Other larval forms identified were of benthic organisms, indicating continuity of the benthic population. Among adult forms, Calanoid copepods were most numerous, followed by Cyclopoid copepods and Larvaceans.

Figure 4.2.11-7. Zooplankton densities in 4 marine stations within the vicinity of Taganito, Surigao

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Similar to phytoplankton, Station MW3 also had the highest total density of zooplankton across the stations (Figure 4.2.11-6). Consistent with the densities, zooplankton biomass was also highest in Station MW3 (Figure 4.2.11-8). Biomass and density are not necessarily correlated as biomass is dependent on weights of individuals, not numbers. In this case where density and biomass coincidentally correlated means that despite the dominance of larval forms, they are numerous enough to contribute to a high biomass.

Table 4.2.11-6 Density and list of zooplankton for each station in Taganito, Surigao

Station Forms

MW1 MW 2 MW 3 MW 4 Mean Adult Forms

Hydromedusae (Sarsia) 353.68 0.00 0.00 0.00 88.42

Polychaetes 1061.03 1768.38 2122.06 1768.38 1679.96

Cladocerans (Daphnia) 0.00 0.00 0.00 353.68 88.42

Calanoids (Calanus) 4951.48 7427.21 19098.55 3536.77 8753.50

Calanoids (Acartia) 707.35 707.35 4244.12 707.35 1591.55

Calanoids (Oncaea) 1768.38 4597.80 7780.89 2475.74 4155.70

Cyclopoids (Oithona) 2475.74 4597.80 7780.89 2475.74 4332.54

Cyclopoids (Epilabadocera) 1061.03 2829.41 2829.41 1768.38 2122.06

Harpacticoids (Microstella) 1061.03 2829.41 2829.41 1768.38 2122.06

Chaeotognaths (Sagitta) 1061.03 1768.38 5658.83 1061.03 2387.32

Larvaceans (Oikopleura) 4597.80 4244.12 3536.77 1768.38 3536.77

Larval forms

Gastropod 1414.71 2475.74 6366.18 2122.06 3094.67

Bivalve 1414.71 707.35 5658.83 707.35 2122.06

Barnacle 707.35 1768.38 0.00 0.00 618.93

Nauplii 62600.80 114237.61 329626.80 44209.60 137668.70

Copepode copepodite 31123.56 68259.63 178253.12 36075.04 78427.84

Porcenallid zoea 0.00 707.35 707.35 0.00 353.68

Brachyuran zoea 0.00 353.68 0.00 0.00 88.42

Pluteus 0.00 707.35 0.00 353.68 265.26

Fish 353.68 1061.03 2829.41 0.00 1061.03

Eggs 0.00 353.68 0.00 2122.06 618.93

Total 113,883.94 213,974.48 568,712.33 99,029.51 248,900.07

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Figure 4.2.11-8. Zooplankton biomass in 4 marine stations within the vicinity of Taganito, Surigao Plankton growth and turnover are influenced by nutrient regimes. Nutrient concentrations were determined for this purpose. Nitrates were highest in Stations 1 and 3 at 2.741 and 3.096 µM, respectively (Appendix 4.2.11, Figure 2). Nitrites, ammonium and phosphates were consistent with nitrates having high concentrations in the same stations (Appendix 4.2.11, Figure 3 to Figure 5). Nitrates are the bioavailable forms of nitrogen for plankton growth and production. Ammonium and nitrites on the other hand are sources and intermediates of nitrate production. From these results, Stations 1 and 3 has potential for high productivity indicating a healthy water column. 4.2.11.5 Seagrass and Associated Seaweeds

Methodology

The transect-quadrat method for both seagrasses and associated seaweeds was utilized in this survey. Sampling was done in two stations in Aling Island, Karaang Banwa Marine Sanctuary (KBMS), off Urbiztondo and off Taganito (Figure 4.2.6-1). A 100-m transect was laid perpendicular to the shore at each site. A 0.25 m2 quadrat (divided into 25 equally sized grids) was then used to estimate percentage frequency and cover of each observed seaweed species (following the method of Saito and Atobe 1970) and seagrass density (following the method of English et al. (1994) at 10 m intervals along the laid transect line. Species of seagrasses and seaweeds were all identified in situ. For biomass, five representative cores for each site were collected using 7.3 cm diameter corer. The samples were cleaned in situ and segregated per species. The samples were then dried in an oven at 80oC for 24 hours or until constant weight was attained. The weight was measured using a four-digit balance. Collection of cores in the KBMS was not possible during the survey due to the rocky substratum.

Results

Seagrass Species composition and shoot abundance

Two species, Enhalus acoroides and Thalassia hemprichii, (belonging to family Hydrocharitaceae) and five species, Halodule uninervis, Halophila ovalis, Cymodocea rotundata, C. serrulata, and Syringodium isoetifolium, (belonging to family Cymodoceae) were recorded. In Site 1 (east of Aling Island), the seagrass species recorded were H. uninervis, H. ovalis, T. hemprichii and C. rotundata with density of 336 ± 223, 311 ± 122, 187 ± 40, and 181 ± 61 shoots m-2, respectively (Figure 4.2.11-8). In Site 2 (west of Aling Island), dense mixed seagrass meadows have been found comprising of H. uninervis (863 ± 261), H. ovalis (198 ± 79), T. hemprichii (240 ± 75), C. rotundata (263 ± 106) and S. isoetifolium (233 ± 140 shoots m-2). Site 3 (Karaang Banwa Marine Sanctuary) had only three seagrass species dominated by T. hemprichii and E. acoroides with shoot abundance of 85 ± 26 and 16 ± 5 shoots m-2, respectively. Site 4 (Urbiztondo), was

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dominated mainly by C. serrulata (295 ± 46) and S. isoetifolium (258 ± 126 shoots m-2). On the other hand, the shallow seagrass bed of Taganito was dominated by T. hemprichii with abundance of 360 ± 43 shoots m-2. Other seagrass species present in the area were H. uninervis, H. ovalis, and C. rotundata. Seagrass areas that were surveyed in the island of Aling had the densest shoot with total shoot abundance ranging from 1015 ± 285 (east Aling Island) to 1848 ± 326 (west) shoots m-2 (Figure 4.2.11.5-9). Conversely, KBMS had the lowest total shoot density (123 ± 34 shoots m-2). Urbiztondo and Taganito had moderate seagrass density with a total abundance of 620 ± 145 and 668 ± 96 shoots m-2, respectively.

Seagrass Above- and below-ground biomass allocation

Seagrass species allocated more of its biomass in the belowground tissues consisting of roots and vertical rhizome than in the aboveground photosynthetic tissues (Figure 4.2.11.5-10 and Figure 4.2.11.5-11). This allocation accounted for more than half of its biomass. In Site1, seagrass biomass was dominated by T. hemprichii accounting to 65 and 50% of the total above- and below-ground biomass, respectively. A significant biomass was contributed by C. rotundata and H. uninervis in Site 1. The contribution of aboveground biomass of C. rotundata in Site 2 was highest (36.95 ± 8.81) followed by T. hemprichii (32.25 ± 6.17 g DW m-2). In contrast, the belowground allocation of T. hemprichii in the same site had the highest biomass with allocation of 181.10 ± 31.91 g DW m-2, followed by C. rotundata (53.55 ± 17.64 g DW m-2). C. serrulata contributed as high as 34 ± 3.80 for aboveground and 52.85 ± 3.84 g DW m-2 for the roots and rhizome biomass in Urbiztondo. In Taganito, T. hemprichii allocated significant portion to the total biomass of seagrasses with allocation ranging from 38.95 ± 17.45 (leaf tissues) to 134.19 ± 31.63 (roots and rhizome) g DW m-2. In terms of total biomass, the highest was in Site 2 (96.24 ± 18.26) followed by Site 3 (48.52 ± 19.30), Site 4 (43.16 ± 5.64) and the lowest was reported in was in Site 1 (28.81 ± 6.04 g DW m-2; Figure 4.2.11.5-12).

Seaweeds

Only four species of seagrass-associated macroalgae were observed, namely Neomeris, Padina, Halimeda and Sargassum (Table 4.2.11-7). These were all found in Site 1. The genus Sargassum was the dominant seaweed resource. Discussion

The variation in seagrass shoot abundance in the different stations surveyed may reflect the variability in the biophysical features of the area. The white sand portion of Aling Island (Site 1) had a relatively hard substrate and was exposed to waves during the survey. The type of substrate and the wave action in the area may result to the vulnerability of the different seagrass species to sand migration and subsequently burial. Also, the seagrass bed in the area is quite narrow, only 60 m distance from the shore. Afterwards, Sargassum dominates the remaining rocky portion towards the reef area.

Site 2 had coral rubble and sandy substratum. The area is relatively protected from wave action during the time of survey and possibly all year round. This protection allows the proliferation and growth of the seagrass meadows resulting into higher seagrass shoot density and biomass. However, the seagrass bed in the area is located in the shallow portion of the reef where seagrass photosynthetic tissues may be exposed directly to air and light resulting to desiccation. Some desiccated and burned leaves were observed during the survey. A similar environmental condition was observed in the Karaang Banwa Marine Sanctuary where the substrate is rocky and sandy. The hard substratum made the biomass sampling unsuitable during the survey resulting to the absence of seagrass biomass data for this site.

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Site 4 had a sandy-muddy substratum, hence the proliferation of mounds and burrows within the seagrass meadows. C. serrulata, S. isoetifolium and H. uninervis are abundant in the area because these three species have high capacity for horizontal growth to compensate for the light reduction brought about by the turbid surface water conditions and bioturbation.

Figure 4.2.11-9. Shoot density of the different seagrass species recorded per station. Data presented are mean ± standard error (SE). Hun: Halodule uninervis, Hovs: Halophila ovalis, Thal: Thalassia hemprichii, Cyro: Cymodocea rotundata, Syri: Syringdoium isoetifolium, Enha: Enhalus acoroides, and Cyse: Cymodocea serrulata

Figure 4.2.11-10. Total shoot density of seagrasses in the different sites surveyed in Claver area. Data presented are mean ± standard error (SE)

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Figure 4.2.11-11. Above- (white shaded area) and below- (gray shade area) ground biomass allocation (g dry weight m-2) of the different seagrass species located in white sand (Site 1,

A) and north (Site 2, B) of Aling Island, Urbiztondo (Site 4, C), and Taganito (Site 5, D). Data presented are mean ± standard error (SE)

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Figure 4.2.11-12. Total biomass allocation of seagrasses in the different Sites surveyed around the municipality of Claver. White shaded portion: aboveground; gray shaded portion: belowground biomass. Data presented are mean ± standard error (SE) Table 4.2.11-7. List of seaweed-associated species in seagrass meadows and their relative cover and frequency of occurrences in Claver

Seaweed Genera Relative Cover Relative Frequency Site 1: White Sand, Aling Island Neomeris Padina Halimeda Sargassum Sargassum bed beyond 60m from the shore

0.04 0.08 0.04 0.4

0.08 0.2 0.12 0.6

Site 2: North of Aling Island Neomeris Sargassum

0.12 0.24

0.2 0.32

Site 3: Karaang Banwa Sanctuary Sargassum bed with some Padina

Site 4: Sargassum bed beyond 40m from the shore

4.2.12 Key Impacts and Mitigating Measures

Impact Mitigation Marine Ecology (Corals, reef fishes, soft bottom benthos,plankton)

Threat to abundance, frequency and distribution of species

• Maintain temperature and salinity within effluent discharge standards and baseline ranges to minimize effects on habitat and thermohaline circulation

• Efficient decantation ponds for less sediment discharge that would affect turbidity of the water column and smothering of benthic organisms and habitats

• Use of sediment/silt traps along or near surface waters during earth works to minimize sediment movement into surface waters

• Efficient water treatment (from chemicals during extraction operations) of water to be discharged in the wharf area

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4.3 The Air 4.3.1 Meteorology

The climatologic data and information of rainfall/synoptic/agro-meteorological stations nearest to the project area were obtained from the Philippine Atmospheric Geophysical and Astronomical Services Administration (PAGASA). The 30-year climatological normals and climatological extremes were taken from the Surigao City station (Appendix 4.3.1- Tables 1 and 2). Climatologic indicators for the area include mean temperature, relative humidity and wind speed and direction. Data from the mine site and camp site weather stations were also provided by TMC. The weather stations data were from 1994 to 2006 with intermittent disparity as a result of equipment malfunction. The monthly rainfall data were obtained for the Mainit station (1981 to 2005) and the Hinatuan station (1986 to 2005). The other relevant data and information gathered are contour map, climate map and typhoon frequency map. Contour maps were procured from the NAMRIA while the climate map and the typhoon frequency map of the whole Philippines were also sourced from PAGASA. The review and analysis of the data and information is undertaken to establish their reliability and validity. Standard data quality checks include plotting of the data and simple statistical analysis like calculating the mean, maximum and minimum. 4.3.1.1 General Climate The prevailing climate in the project area falls under Type II of the Modified Corona’s Classification of the Philippines (Appendix 4.3.1.1-Figure 1). This climate type prevails over Surigao Province. In general, this type of climate is characterized by rainfall that is distributed throughout the year, with lack of distinction between the rainy and dry periods. The maximum rainfall period is from December to January. This type of climate also prevails over the eastern sectors of Bicol and Visayas regions. Rainfall Rainfall depth (in millimeters) at the Taganito “camp site” in the low land and “mine site” at elevation 240 meters has been recorded since 1994. The 1994 – 2006 mean annual rainfall (MAR) between the two stations is about 3,750 millimeters. This has the same level of magnitude as the MAR of the PAGASA stations in Surigao del Norte (Surigao City, Mainit and Sison) and Surigao del Sur (Cantilan and Hinatuan) which ranges from about 3,600 to 5,000 millimeters. The 1994 – 2005 mine site records indicate a mean monthly rainfall from November to March of more than 400 millimeters. December and January are the rainiest months with more than 600 millimeters. The five months of high rainfall comprise about 80% of the annual total. The less wet months from May to September have about 100 to 150 millimeters of rain while the transitions months of April and October have about 200 to 250 millimeters depth. There are about 20 to 25 rainy days during the peak wet months and about 10 to 15 rainy days in the months of less rainfall. Surface Winds The average monthly wind speed is a constant 2 meters/second the whole year with a predominant northeast to east direction in the first five months and a predominant west direction in the rest. Annual wind rose diagrams were taken from the Surigao City station (Appendix 4.3.1.1 – Figure 2). Tropical Cyclones In general, typhoons greatly influence the climate and weather conditions of the country. A great portion of the rainfall, humidity and cloudiness are due to the influence of typhoons. The frequency of tropical cyclones crossing the project site ranges from 16 to 30 (Appendix 4.3.1.1-Figure 3).

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4.3.2 Ambient Air Quality and Noise

Ten sampling stations were established at the project locale. The stations were selected based on theareas with the most probable critical receptors. These areas are located in the four host barangays(Taganito, Hayanggabon, Cagdianao and Sapa), and in Brgy. Ladgaron and Brgy. Urbiztondo.

The locations and descriptions of the selected sampling sites are provided in Table 4.3.2-1 and Figure4.3.2-1. Plates 4.3.2-1 to 4.3.2-11 show the stations’ location in the project area.

Table 4.3.2-1 Air Quality and Noise Sampling Stations

StationID Location Coordinates Description

AQ-1 TMC CompoundStaff House(Ore PreparationVicinity)

N 09°32’38.1”E 125°49’07.8”

The station is located in front of TMC offices, alongsidethe existing mine road. The nearest project componentto this station is the proposed ore preparation areaapproximately 1.2km in distance (Plate 4.3.2-1).

AQ-2 Mine Pit(Tailings DamVicinity)

N 09°31’32.3”E 125°48’51.5”

The station is located within one of the mining lots ofTMC specifically in Taga-2 area with an EL +200m. Thisis near the location of one of the proposed tailings dams(Plate 4.3.2-2).

AQ-3 Mine Yard(Tailings DamVicinity)

N 09°31’44.4”E 125°49’40.0”

Located within one of the mining lots of TMC specificallyin Taga-3 area with an EL +140m. This is near the otherlocation for the proposed tailing dam (Plate 4.3.2-3).

AQ-4 Relocation Area ofIPs(Ore PreparationVicinity)

N 09°32’52.1” E 125°48’26.4”

Area within Brgy Urbiztondo allotted for the houses ofIPs. This is overlooking the coast, approximately 20mabove sea level. This is the station nearest the proposedore preparation area, about 0.6km away (Plate 4.3.2-4).

AQ-5 Brgy. TaganitoProper(Ore PreparationVicinity)

N 09°32’38.7”E 125°49’21.3”

Located at the back of the church in Brgy. Taganito,surrounded by residential area (Plate 4.3.2-5).

AQ-6 Gawad Kalinga(Townsite Vicinity)

N 09°30’45”E 125°52’21.4”

The station is within an existing town area for PGMCwithin Brgy Calasaguen, east of the project site. This isnear the proposed townsite for TMC (Plate 4.3.2-6).

AQ-7 HayangabonElementary School(HPP Vicinity)

N 09°32’23.4”E 125°50’36.3”

Located adjacent to the school; besides the proposedHPP with an approximate distance of 0.6km. This is alsoalongside the main road of Brgy. Hayanggabon (Plate4.3.2-7).

AQ-8 Hayangabon nearIglesia ni Kristo(HPP Vicinity)

N 09°32’24.4”E 125°50’06.4”

Located within the open area along the main road ofBrgy Hayanggabon. 0.67km away from the proposedHPP (Plate 4.3.2-8).

AQ-9 Brgy. Sapa(Quarry Vicinity)

N 09°31’ 55.7”E 125°43’38.1”

Located in the nearest community to the proposedlimestone quarry area with an approximate distance of1.4km (Plate 4.3.2-9)

AQ-10 Brgy. Ladgaron(Quarry Vicinity)

N 09°34’8.34”E 125°44’7.32”

Located in the feeder road which will be passed by goingto the proposed limestone quarry area. This isapproximately 4.6km away from the proposed limestonequarry area. This road may possibly be an option for thehaul road going to the quarry area (Plate 4.3.2-10).

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4.3.2.1 Methodology The ambient air quality at the project locale was assessed following the DENR Administrative Order (DAO) 2000-81 (Implementing Rules and Regulations of the Philippine Clean Air Act of 1999). Samples of particulate matter (TSP and PM10) and gaseous pollutants (NO2 and SO2 ) were brought to Ostrea Mineral Laboratories Inc. in Mamplasan, Laguna, a DENR accredited laboratory for analyses. A Sound Level Meter that meets the American National Standard Institute (ANSI) standards was used in measuring noise in the areas coincident with the air quality sampling points. A total of sixty readings were recorded at 15-second intervals for 15 minutes. The arithmetic median of the readings was taken and compared with the National Pollution Control Commission (NPCC-1981) noise standards.

Table 4.3.2-2 Methods of Noise Sampling and Air Analysis for SO2, NOx,TSP and PM-10

Parameter Sampling and Analytical Method Noise Level Sound Level Meter* Nitrogen Oxides Gas Bubbler – Griess Saltzman Method Sulfur Dioxide Gas Bubbler – Pararosaniline Method Total Suspended Particulates High Volume – Gravimetric Method Particulate Matter 10microns High Volume – Gravimetric Method

*Meets the ANSI Standard 4.3.2.2 Ambient Air Quality The analytical results of the 1-hour and 24-hour sampling are shown in Tables 4.3.2-3 and 4.3.2-4, respectively. For the purpose of comparison, the prescribed limits, i.e., the National Ambient Air Quality Guidelines Values (NAAQGV) and National Ambient Air Quality Standards (NAAQS), under the Philippine Clean Air Act (CAA) or Republic Act 8749 are shown in the last rows of the tables. The NAAQS are the 1-hour concentration limits, which are not to be exceeded as a result of the operation of an industrial facility. The NAAQGV, in contrast, are the 24-hour air pollutant concentration limits published by the DENR, which are intended for protection of public health, safety and general welfare. The NAAQGV are typically used in the assessment of the air quality of an airshed or a region/locale. The air quality indices (24-hour concentration) as provided in the DAO 2000-81, i.e., the implementing rules and regulations of the CAA, is shown in Table 4.3.2-5. Plate 4.3.2-1. Air Quality Station No. 1 at TMC Staff

House (February 2007) (near Ore Preparation Area)

Plate 4.3.2-2. Air Quality Station No. 2 at the Mine Pit (Taga-2) (February 2007) (near Proposed Tailings Dam)

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Plate 4.3.2-6. Air Quality Station No. 6 at Gawad Kalinga (February 2007) (near Ore Preparation Area)

Plate 4.3.2-3. Air Quality Station No. 3 at the Mine Yard (Taga-3) (February 2007) (near Proposed Tailings Dam)

Plate 4.3.2-4. Air Quality Station No. 4 at the IPs Relocation Site (February 2007) (near Ore Preparation Area)

Plate 4.3.2-5. Air Quality Station No. 5 at Brgy. Taganito (February 2007) (near Ore Preparation Area)

Plate 4.3.2-7. Air Quality Station No. 7 at Hayanggabon Elementary School (February 2007) (proposed HPP vicinity)

Plate 4.3.2-8. Air Quality Station No. 8 at Brgy. Hayanggabon (February 2007) (proposed HPP vicinity)

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Plate 4.3.2-9. Air Quality Station No. 9 at Brgy. Sapa (February 2008) (near proposed Limestone quarry area)

Plate 4.3.2-10. Air Quality Station No. 10 at Brgy. Ladgaron (February 2008) (near proposed Limestone quarry area)

Plate 4.3.2-11. A Truck Generating Dust in the Mine Yard (May 2007)

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Figure 4.3.2-1. Location of Air Sampling Stations

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Table 4.3.2-3 Results of 1-Hour Ambient Air Quality Monitoring

TSP ug/Ncm PM10 ug/Ncm SO2, ug/Ncm NO2 ug/Ncm Station ID Locations wet dry wet dry wet dry wet dry

AQ-1 TMC Compound Staff House (Ore Preparation vicinity) 32 62 21 42 ND ND 3 ND

AQ-2 Mines Pit (Tailings Dam vicinity) 26 96 3 28 ND ND ND ND

AQ-3 Mines Yard (Tailings Dam vicinity) 56 2119 43 128 ND ND 3 1

AQ-4 Relocation Area (Ore Preparation vicinity) 40 174 38 18 ND ND ND 5

AQ-5 Brgy. Taganito (Ore Preparation vicinity) 53 106 47 19 ND ND ND ND

AQ-6 Gawad Kalinga (Townsite vicinity) 45 52 35 38 ND ND ND ND

AQ-7 Hayanggabon Elem. School (HPP vicinity) 61 120 58 43 ND ND ND 1

AQ-8 Brgy. Hayanggabon near Iglesia ni Cristo (HPP vicinity) 83 47 14 14 9 ND 5 ND

AQ-9 Brgy. Sapa* (Quarry vicinity) 17 - 3 - 7 - ND -

AQ-10 Brgy. Ladgaron* (Quarry vicinity) 48 - 5 - ND - ND -

Detection Limit - - <1 - <7 <7 <1 <1 DENR National Ambient Air

Quality Standards (NAAQS) 300 300 200 200 340 340 260 260

* sampling was only conducted during the wet season; part of the variation ND for SO2- not detected values; concentration is lower than 7ug/Ncm ND for NO2- not detected values; concentration is lower than 1ug/Ncm

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Table 4.3.2-4 Results of 24-Hour Ambient Air Quality Monitoring

TSP ug/Ncm PM10 ug/Ncm SO2, ug/Ncm NOx ug/Ncm Station ID

Locations wet dry wet dry wet dry wet Dry

AQ-1 TMC Compound Staff House (Ore Preparation vicinity) 31 35 25 13 ND ND ND 2.3

AQ-2 Mines Pit (Tailings Dam vicinity) 7 49 2 4 ND ND 0.6 0.7 AQ-3 Mines Yard (Tailings Dam vicinity) 9 844 5 75 ND ND 3.7 1.7

AQ-4 Relocation Area (Ore Preparation vicinity) 9 44 4 22 ND ND 1.3 ND

AQ-5 Brgy. Taganito (Ore Preparation vicinity) 16 47 8 11 ND ND 0.2 0.8

AQ-6 Gawad Kalinga (Townsite vicinity) 76 21 10 9 ND ND 0.1 0.7

AQ-7 Hayanggabon Elem. School (HPP vicinity) 28 34 4 6 ND ND 1 0.4

AQ-8 Brgy. Hayanggabon near Iglesia ni Cristo (HPP vicinity) 31 19 11 7 ND ND 5.6 0.3

AQ-9 Brgy. Sapa* (Quarry vicinity) 26 - 6 - ND - 0.7 - AQ-10 Brgy. Ladgaron* (Quarry vicinity) 96 - 11 - ND - 1 -

Detection Limit - - - - <4.0 <4.0 <0.1 <0.1 DENR National Ambient Air Quality

Guideline Values (NAAQGV) 230 230 150 150 180 180 150 150

* sampling was only conducted during the wet season; part of the variation ND for SO2- not detected values; concentration is lower than 4ug/Ncm ND for NO2- not detected values; concentration is lower than 0.1ug/Ncm ** no NAAQGV set for 24-hour sampling

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Table 4.3.2-5 Air Quality Indices (Source: Annex A of DAO 2000-81)

Type TSP, ug/Nm3

(24-hour average)PM-10, ug/Nm3

(24-hour average)SO2, ppm*

(24-hour average) NO2, ppm*

(1-hour average)Good 0 to 80 0 to 54 0.000 to 0.034

(0 to 88.8) **

Fair 81 to 230 55 to 154 0.035 to 0.144 (91.4 to 376.2)

**

Unhealthy for sensitive groups

231 to 349 155 to 254 0.145 to 0.244 (378.8 to 637.4)

**

Very unhealthy 350 to 599 255 to 354 0.225 to 0.304 (587.8 to 794.2)

**

Acutely unhealthy 600 to 899 355 to 424 0.305 to 0.604 (796.8 to 1577.9)

0.65 to 1.24 (1220.5 to 2328.3)

Emergency 900 and above 425 to 504 0.605 to 0.804 (1580.5 to 2100.3)

1.25 to 1.64 2347.0 to 3079.3)

Note: *Values in parenthesis are expressed in units of µg/Nm3, conversion factor for SO2: 1 ppm = 2,612.4 µg/Nm3; for NO2: 1ppm = 1,877.6 ug/Nm3 ** No prescribed index

Total Suspended Particulates

Detected 1-hour concentrations of TSP range from 17 to 83 ug/Ncm during the wet season, while 47 to 2119 ug/Ncm during the dry season (Table 4.3.2-3). The detected concentrations are lower than the NAAQS limit of 300ug/Ncm for the 1-hour averaging period except at Station AQ-3 during the dry period. Similarly, results from the 24-hour sampling indicate low concentrations of TSP in comparison with the NAAQGV of 230ug/Ncm. During the wet season sampling, the detected 24-hour concentrations range from 9 to 96ug/Ncm, while 4 to 844ug/Ncm during the dry season sampling (Table 4.3.2-4). On the average, the wet season data is lower than the dry season data in terms of particulate matter. Station AQ-3 however, exceeded the NAAQS and NAAQGV during the dry season. The weather condition greatly influences the generated dust in an area. Nonetheless, the short-term concentrations of TSP detected at the study sites are typical of a mining industry. Note that the town is a mining community, with several on-going mining projects. Selected sampling stations are either existing components of the mining project or developed residential areas which may also be the impact areas for the HPP project. Compared with the DAO 2000-81 air quality indices, the air quality of the project area based on the 24-hour concentrations of TSP can generally be classified with good to fair condition (Table 4.3.2-5).

TSP is primarily a measure of the concentration of airborne particulate matter in air. Based on the study team’s observations, the probable sources of TSP at the study area include fugitive dust from unpaved grounds (i.e., roads, farms and cleared areas), emissions from haul trucks and smoke from burning of fuel wood from the nearby households.

Particulate Matter - 10

Results of the PM-10 sampling show 1-hour concentrations ranging from 3 to 58ug/Ncm during the wet season and 14 to 128ug/Ncm during the dry season (Table 4.3.2-3). For the 24-hour sampling, the wet season data range from 2 to 25ug/Ncm, while the dry season data range from 4 to 75ug/Ncm (Table 4.3.2-4). Both the 1-hour and 24-hour PM-10 data are significantly lower than the NAAQS and NAAQGV of 200 and 150ug/Ncm, respectively. Moreover, compared with the DAO 2000-81 indices, the PM-10 concentrations are within the classification of “good condition” (Table 4.3.2-5).

PM-10 represents the inhalable fraction of suspended particulates, i.e., those having aerodynamic diameter of less than 10µm (microns). While PM-10 represents a fraction of TSP, there is no generally accepted average PM-10 to TSP ratio.

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Sulfur Dioxide

Sulfur dioxide is undetected for all the stations during the wet and dry seasons except at Stations AQ-9 and AQ-10 which recorded very low concentrations of 9ug/Ncm and 7ug/Ncm, respectively during the wet season (Table 4.3.2-3). As for the 24-hour sampling, both seasons showed undetectable SO2 concentrations (Table 4.3.2-4). The SO2 levels at the project area are very low compared with the NAAQS and NAAQGV, which are 340 and 180 ug/Ncm, respectively. The very low detected SO2 concentrations indicate natural background levels, in the absence of a major emission source at the study area.

Nitrogen Dioxide

Wet season sampling yielded low NO2 concentrations, with 1-hour readings ranging from <1 to 5 ug/Ncm and 24-hour readings ranging from <1 to 3.7 ug/Ncm (Tables 4.3.2-3 and 4.3.2-4). Similar with the SO2, NO2 levels are very low. The detected levels are significantly lower than the prescribed concentrations in the NAAQS and NAAQGV, which are set at 260 and 150 ug/Ncm, respectively. Similar with SO2, the very low detected NO2 levels most probably indicate natural background levels. Anthropogenic NO2 are primarily formed from fuel combustion. These are derived from emissions from vehicles/fuel burning equipment and use of fire wood for cooking. Anthropogenic sources of NO2 at the project locale are almost insignificant. 4.3.2.3 Ambient Noise The daytime noise levels are presented in Table 4.3.2-6 with the applicable DENR Class shown in the last column. The Philippine Ambient Noise Standard fro the different DENR class are shown in Table 4.3.2-7. As shown on Table 4.3.2-6 measured noise levels are less than the prescribed noise limits. The detected noise levels are typical of remote rural areas. Using the NPCC classification, Stations AQ-1, AQ-2 and AQ-3 are classified as Class D, as they are primary components of the on-going mining project. Stations AQ-7 and AQ-8 can be classified as Class AA, as these stations are within the compound of Hayanggabon Elementary School and an Iglesia ni Kristo chapel, respectively. The rest of the stations are within/near residential areas, therefore categorizing them under Class A.

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Table 4.3.2-6 Ambient Noise Levels

Station ID Locations Morning 5:00am- 9:00am

Daytime 9:00am- 6:00pm

Evening 6:00pm-10:00pm

Night time 10:00pm –

5:00am

DENR Classification

Description wet dry wet dry wet Dry wet dry Class Description AQ-1 TMC Compound Staff House

(Ore Preparation vicinity) 53 57 57 60 53 53 51 51 D Industrial Area AQ-2 Mines Pit (Tailings Dam

vicinity) 45 51 47 58 45 51 45 50 D Industrial Area AQ-3 Mines Yard (Tailings Dam

vicinity) 49 49 51 53 47 61 47 47 D Industrial Area AQ-4 Relocation Area (Ore

Preparation vicinity) 45 40 45 39 44 42 45 45 A Residential Area AQ-5 Brgy. Taganito (Ore

Preparation vicinity) 44 40 44 45 44 42 42 39 A Residential Area AQ-6 Gawad Kalinga (Townsite

vicinity) 43 48 44 51 42 48 42 44 A Residential Area AQ-7 Hayanggabon Elem. School

(HPP vicinity) 39 33 38 55 39 45 38 27 AA Special quiet area AQ-8 Brgy. Hayanggabon near

Iglesia ni Cristo (HPP vicinity) 45 45 43 46 43 44 42 41 AA Special quiet area

AQ-9 Brgy. Sapa* (Quarry vicinity) 45 - 53 - 49 - 39 - A Residential Area AQ-10 Brgy. Ladgaron* (Quarry

vicinity) 51 - 50 - 49 - 37 - A Residential Area

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Table 4.3.2-7 Philippine Ambient Noise Standards

Maximum Allowable Noise (dBA) by Time Periods[2] Category[1] Daytime Morning/Evening Nighttime

AA 50 45 40 A 55 50 45 B 65 60 55 C 70 65 60 D 75 70 65

Note: [1]Class AA - a section of contiguous area, which requires quietness, such as areas within 100 meters from school sites, nursery schools, hospitals and special houses for the aged; Class A- a section of contiguous area, which is primarily used for residential areas; Class B – a section or contiguous area, which is primarily a commercial area; Class C – a section primarily zoned or used as a light industrial area and Class D – a section, which is primarily reserved, zoned or used as a heavy industrial area.

[2]Morning - 5:00 A.M. to 9:00 AM; Daytime - 9:00 A.M. to 6:00 P.M; Evening - 6:00 P.M. to 10:00 P.M.; Nighttime - 10:00 P.M. to 5:00 A.M.

4.3.3 Key Impacts and Mitigating Measures

Potential Impact Preventive Measures or Mitigations

Site preparation, rehabilitation/construction of the haul roads and clearing activities for the pile area for ore preparation, equipment service area, pier and HPP area, as well as the limestone quarry will generate fugitive dusts. Earthworks and transport of the mined ore will also generate dust emissions.

Road dust emissions will be suppressed with water, as necessary on a regular basis, especially in areas where there are nearby settlements. In addition, drivers’ awareness on the effect of vehicular speed on dust generation will be instigated by the company in order to minimize it. Buffer zones will also be established to reduce wind blown losses of dusts. Pipelines will be constructed to transport the ore slurry from the ore preparation area to the HPP that will reduce vehicular traffic in the project area, thus, lessening generation of dusts together with noise.

Noise will be generated from the operation of various equipment and vehicles including vehicular movement, quarrying and hauling.

Heavy equipment will be appropriately muffled. Speed limits for vehicular movements will be set and monitored. Workers operating heavy equipment will be provided with appropriate personal protective equipment (PPE), as necessary. Noise will be reduced with the pipeline construction as stated previously.

The operation of motorized heavy equipment, vehicles and diesel power sources (i.e., gensets) during the construction phase will generate SO2 and NO2 emissions.

All diesel-powered equipment and vehicles will be maintained in accordance with the manufacturer’s specification. The company will also comply with LTO registration requirements for emissions testing of vehicles and with the DENR on the RA 8749 (Clean Air Act) requirements for level of emissions.

Exposure of the workers to dust emissions, acid fumes and gaseous pollutants may pose health hazards for workers.

All employees will be provided with appropriate PPE. Employee/contractor compliance with company safety procedures will be strictly monitored.

Stack emissions, i.e., TSP, SO2 and NO2, from the proposed coal-fired power plant, sulfuric acid plant, slake lime plant, HPAL scrubber and MS scrubbers may exceed emission standards and adversely affect the ambient air quality.

To control the power plant emissions, dust collectors will be in place and low sulfur-content coal and high efficiency combustion will be utilized for the operation. For sulfuric acid production, emissions of SO2 shall be controlled by the absorption of SO3 into H2O. Regular maintenance of the facilities of the HPP will be conducted to maintain efficiencies of the different equipment (i.e. scrubber). To aid in the

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Potential Impact Preventive Measures or Mitigations

assessment of the cumulative impacts on air quality, air dispersion modelling was carried out. Details of the modelling are discussed below.

Air Emissions Dispersion Modelling

Ground level concentrations (GLCs) of atmospheric pollutants such as particulate matter (of dust) and other gaseous pollutants associated with earth movement and equipment operations of the project were predicted using ISCLT32, an approved USEPA dispersion modelling tool. It is a steady state Gaussian Plume Equation for continuous elevated sources whether sources are classified as point or stationary, area or volume sources, to determine ground level concentration as influenced by their emissions in a specified area or industrial complex. For this purpose, the following data were used as input in the model: • Meteorological data taken from PAGASA were used as input to the ISC model. These included

monthly and annual meteorological data to determine the effect of ore processing activities unto the resulting ambient air quality; Only the prevailing wind and average wind speed were used in the model to calculate the highest hourly air quality concentrations or ground level concentration (GLC).

• The terrain height and elevation of the receptor locations were determined using the available topographic maps; and

• Emissions from the facility were determined based on available information for the HPP operation and associated operations including the sulfuric acid plant.

The operation of the support facilities, namely: power plant, sulfur acid plant, lime kiln plant, HPAL, MS gas scrubbers and H2 plant generate emissions which may affect local air quality. Impacts may be short-term or long-term depending the physical, chemical and toxicological properties. Emissions generally include sulfur oxides, nitrogen oxides, particulate matter, carbon monoxide, hydrogen sulfide, and greenhouse gases. Data and limitations for the air modelling are presented in Appendix 4.3.3.

Computed Ground Level Concentrations

TSP, SO2, and NO2 Predicted GLCs (1-hour) Figures 4.3.3-1 to 4.3.3-6 show the predicted 1-hour and 24-hour average concentration of TSP, SO2 and NO2. Based on the dispersion modelling, the highest 1-hour average air quality concentrations are 94ug/Ncm, 335ug/Ncm and 230ug/Ncm for TSP, SO2 and NO2, respectively. These are within the 1-hour air quality standard of 300ug/Ncm for TSP, 340ug/Ncm for SO2 and 260ug/Ncm for NO2. For the calculated 1-hour TSP concentration, the areas of highest concentration are as follows: 1) within the ore preparation area; 2) near the wharf; and 3) at the north of the proposed townsite radiating offshore towards the northwest direction (Figure 4.3.3-1). Highest SO2 1-hour concentration occurred at three areas: 1) at the open area enclosed by the decant pond, HPP and the northern section of tailings dam 1; 2) at the tailings dam 1 (southwest of the proposed HPP); and 3) at the north of the townsite, radiating northeast off the coast (Figure 4.3.3-2). Predicted highest 1-hour NO2 concentration occurred within the same locations as those of the locations with the highest 1-hour SO2 concentration (Figure 4.3.3-3). The concentration of SO2 is mostly from the combustion of coal in the power plant and the sulfuric acid production. On the other hand, the concentration of NO2 is mainly contributed by the power plant operations. Mining operations may only contribute much to the particulate levels. It was noted that there are no settlers residing in the locations which had the highest computed GLCs.

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Figure 4.3.3-1 Predicted 1-hour TSP Ground Level Concentration (ug/Ncm) TSP Highest Value of 94ug/Ncm vs DENR NAAQS of 300ug/Ncm

Figure 4.3.3-2 Predicted 1-hour SO2 Ground Level Concentration (ug/Ncm) SO2 Highest Value of 335ug/Ncm vs. DENR NAAQS of 340ug/Ncm

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      TSP, SO2, and NO2 Predicted GLCs (24-hour) The 24-hour predicted air quality concentration of TSP, SO2 and NO2 are 54ug/Ncm, 135ug/Ncm and 92ug/Ncm, respectively. They are within the NAAQGV of 230ug/Ncm for TSP, 180ug/Ncm for SO2 and 150 ug/Ncm for NO2. Highest 24-hour concentration is only concentrated in one area for each pollutant. The highest GLC of TSP is located within the ore preparation area, where dust generation is expected to be elevated since the mining products will be directly stored in here for further preparation (Figure 4.3.3-4). It should be noted however, that results of the dispersion modelling is independent of the results of the baseline studies. Thus, monitored TSP emissions during the actual operations may vary with the inclusion of the effect of the mining operations. The highest SO2 and NO2 GLCs are located within the open area enclosed by the decant pond, HPP and the northern section of tailings dam 1 (Figures 4.3.3-5 and 4.3.3-6). These predicted values are all conservative estimates and did not consider scrubbing effect of rainfall. If the average annual rainfall recorded was considered, the concentration will be much lower than the predicted or calculated air quality (or resulting ground level) concentration.

                  

Figure 4.3.3-3 Predicted 1-hour NO2 Ground Level Concentration (ug/Ncm) NO2 highest value of 230ug/Ncm vs. DENR NAAQS of 260ug/Ncm

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Figure 4.3.3-4 Predicted 24-hour TSP Ground Level Concentration (ug/Ncm) TSP Highest Value of 54ug/Ncm vs DENR NAAQGV of 230ug/Ncm

Figure 4.3.3-5 Predicted 24-hour SO2 Ground Level Concentration (ug/Ncm) SO2 Highest Value of 135ug/Ncm vs. DENR NAAQGV of 180ug/Ncm

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H2S Predicted GLC (30-minute) The hydrogen sulfide are very low compared to the NAAQS of 100ug/Ncm. Predicted highest value is 3.7ug/Ncm and is expected to occur in the following areas: 1) within the HPP, east of the point source (MS Scrubber) and 2) at the northern region of the townsite (Figure 4.3.3-7). CO Predicted GLCs (1-hour and 8-hour). Carbon Monoxide (CO) levels are within their 1-hour and 8-hour air quality guidelines values of 35 ug/Ncm and 10 ug/Ncm. Figures 4.3.3-8 and 4.3.3-9 show the calculated 1-hour and 8-hour average concentration of CO. Dispersal pattern for the 1-hour GLCs are similar to the pattern of SO2 and NO2 GLCs. Predicted levels of CO are 28 ug/Ncm and 10 ug/Ncm for the 1-hour and 8-hour averaging periods, respectively. This is due to high exit gas velocity from the slaked lime kiln plant, which aided in better dispersion aside from the relative weight of CO compared to air. The highest 1-hour GLC is predicted to occur at the following areas: 1) the open area enclosed by the decant pond, HPP and the northern section of tailings dam 1; and 2) within the tailings dam 1 (southwest of the proposed HPP). The highest 8-hour GLC is within the open area enclosed by the decant pond, HPP and the northern section of tailings dam 1 extending beyond the decant pond area.     

Figure 4.3.3-6 Predicted 24-hour NO2 Ground Level Concentration (ug/Ncm) NO2 highest value of 92ug/Ncm vs. DENR NAAGQV of 150ug/Ncm

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Figure 4.3.3-7. Predicted 30-min H2S Ground Level Concentration (ug/Ncm) H2S highest value of 3.7ug/Ncm vs. DENR NAAQS of 100ug/Ncm

                                                    

Figure 4.3.3-8. Predicted 1-hour CO Ground Level Concentration (ug/Ncm) CO highest value of 28ug/Ncm vs. DENR NAAQGV of 35ug/Ncm

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Figure 4.3.3-9. Predicted 8-hour CO Ground Level Concentration (ug/Ncm) CO highest value of 10ug/Ncm vs. DENR NAAQGV of 10ug/Ncm

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4.4 The People 4.4.1 Demographic Data Claver is a municipality on the northeastern coast of Surigao del Norte. The municipality consists of 14 barangays covering 32,250 has. The average annual population growth rate from 1990-95 registered 0.95 % and 1995-2000, 1.23%. Population in 2000 was officially recorded at 16,353 (3,248 households), 25% of which live in two urban barangays. The municipal population is projected at 20,974 by 2008. Summary demographic data of the project-affected barangays are presented in Table 4.4.1-1, Figure 4.4.1 and Appendix 4.4.1a to c.

Table 4.4.1- 1 Summary Demographic Profile: Project-Affected Communities (PACs)

Feature All PACs Hayanggabon Cagdianao Taganito Sapa

Land Area (sqm) 194.31 44.54 51.96 50.21 47.60

Persons 3630 647 699 1635 649 Population (2000) Households 747 128 166 320 133

Population Density (2000; sqm) 18.73 15 13 34 14

Population (est. 2008; persons) 4286 760 820 2041 765

Source: Municipal Comprehensive Land-Use Plan, Claver (MPDO, 2006)

Figure 4.4.1 Settlement Map of Project-Affected Areas

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Power Supply and Demand Table 4.4.1- 2 shows the power supply and demand of the municipality of Claver in 2004.

Table 4.4.1-2 Power Supply and Demand

Kinds of Fuel Used for Lightning Number of Household Electricity 2,891 Kerosene 194

LPG 1,594 Oil -

Others (Fire Wood) 1,460 Source: Municipal Comprehensive Land-Use Plan, Claver (MPDO, 2006) Water Supply and Demand The water supply and demand of the municipality of Claver in 2004 is shown in Table 4.4.1-3 Water demand pertaining to the townsite is estimated at 200 liters per capita or 1,000 liters (1m³) for a family unit of 5 members. Water may be available from a number of resources and technologies including reverse-osmosis. Consistent with the findings of the hydro-geological study, there is enough supply to accommodate water demand including the town site.

Table 4.4.1-3 Water Supply and Demand

Main Source of Drinking Number of Household Own Faucet, community water system -

Shared Faucet, community system - Own use, tube/piped deep well 1866 Shared tube/piped deep well 1594

Dug well - Spring lake, river, rain, etc 140

Peddler - Source: Municipal Comprehensive Land-Use Plan, Claver (MPDO, 2006) Transportation/Traffic Situation The major modes of transportation include:

Buses (mostly inter-provincial) Jeepneys (mostly inter-municipal and to a significant extent intra-municipal) Tricycle (mostly intra-municipal and barangay)

Travel to the interior barangays is mostly done by jeepneys, tricycle and converted motorcycles (“skylab”, “habal-habal”). The latter are converted motorbikes to accommodate as much as 6-8 passengers from the normal 2-3. These modes of transportation are particularly common in Sapa. Even within the town center or the barangay, traffic is light with vehicles far and between. It is likely that there will be more vehicles crossing the main road from HPP on its way to the wharf and other facilities on the opposite side. The establishment of the HPP and other high density development (e.g., town site) will see an increase in vehicular traffic along existing roads.

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4.4.2 Household Survey 4.4.2.1 Methodology Three hundred five households were surveyed using a structured interview schedule regarding:

respondent’s profile household composition and structure housing and residential profile awareness of the project housing amenities income and livelihood services and community needs; and general assessment

Thirty-four percent of households in all PACs taken as one unit were interviewed. The proportion of households interviewed for each project-affected barangay are: a) Hayanggabon (46%), b) Cagdianao (34%), Taganito (29%), and Sapa (42%). Respondent-households were chosen according to their availability at the time the survey team visited the barangay. Courtesy calls to barangay officials were made prior to conducting the interviews. Areas that were regarded as “security problems” were deliberately excluded. Table 4.4.2-1 presents survey features of the PACs.1 The PACs are basically of mainstream stock (Surigaonon and Cebuano-speaking settlers and their descendants). Only Barangay Taganito has a compact visible indigenous community of 20 Mamanwa families. Appendix 4.4.2-1 provides a copy of the survey instrument.

Table 4.4.2-1. Key Features of Project-Affected Communities (PACs)

PAC Sample Site No. of

Households (est 2008)

Ethnic Background

No. of Households Interviewed

Project Feature

Hayanggabon Centro Decant

Area Cluster of

houses adjacent elementary school along the highway

Purok 1 Purok 2

150

Overwhelmingly Surigaonon (64%) and Cebuano-speaking (30%)

69

Host barangay of the Hydro-metallurgical Processing Plant (HPP)

Cagdianao

Centro GK

Housing Site

195

Overwhelmingly Surigaonon (78%) and Cebuano-speaking (19%)

67

Townsite for TMC and HPP officers and staff. (to accommodate an estimated 10000 persons)

Puroks 1 –

Surigaonon

Port, Ore

1 The project-affected communities are barangays Hayanggabon (host barangay of the HPP), Cagdianao, Taganito, and Sapa. Sample sizes were determined based on the number of households in each barangays. The sample size for each barangay was distributed among the designated sampling sites.

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PAC Sample Site No. of

Households (est 2008)

Ethnic Background

No. of Households Interviewed

Project Feature

Taganito 7; Center

area along highway

Mamanua housing site

399 (51%; visible minority of Mamanua 17%); Cebuano-speaking 16%; other “Bisaya” 17%)

103 Preparation Site

Sapa

Purok 1 Purok 3 Purok 4 -

Centro

157

Overwhelmingly Surigaonon (93%)

66

Quarry site

Sampling sites included the poblacion (also known as centro) and areas that will be impacted or perceived to be impacted by the project. The main household informant (respondent) was chosen in the following order of preference: a) household head, b) spouse of the household head, c) son or daughter at least 18 years old of the household head, and d) other relative at least 18 years old of the household head. 4.4.3 Key Socio-Economic Conditions Table 4.4.3- 1 presents basic household features of the PACs. Seventy-six percent of households have at least one member who is working with the highest proportion in Sapa (85%) and the lowest in Cagdianao (57%) where 30% do not have any working member. Two-income earner households make 13% of all PACs with the highest proportion in Hayanggabon (16%) and the lowest in Sapa at 8%. The highest proportion of those who are schooling vis-à-vis the total population of the community is found in Sapa at 29% and the lowest in Cagdianao at 20%, for an average for all PACs of 23%. The majority of households is Roman Catholic (82%) with the largest proportion in Sapa at 98% and the lowest in Hayanggabon at 66%. The data indicate that 29% of households in Hayanggabon are Aglipayans.

Table 4.4.3- 1. Summary Basic Household Features of Project-Affected Communities (PACs) (Column percentages except those in bold, average age of respondent, average household size; percentages may not add to

100 because of rounding-off)

Features All PACs Hayanggabon Cagdianao Taganito Sapa Base: 305 Base: 69 Base: 67 Base: 103 Base: 66 Respondent’s position in

household %Base %Base %Base %Base %Base Household Head (HH) Spouse of HH Son / daughter of HH Other relative of HH

58 38 4 -

55 42 3 -

55 40 4 -

62 34 4 -

59 38 3 -

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Base: 305 Base: 69 Base: 67 Base: 103 Base: 66

Respondent’s sex %Base %Base %Base %Base %Base

Male Female

57 43

49 51

60 40

61 39

56 44

Average age of respondent (Yrs) 42 42 42 41 44

Average no. of persons in household 4.80 5.16 4.85 4.66 4.58

Base: 1463 Base: 356 Base: 325 Base: 480 Base: 302 Age structure of in households %Base %Base %Base %Base %Base 0 – 14 15 – 64 65 & over

36 62 2

39 60 1

38 60 2

33 65 2

36 61 2

Base: 302 Base: 69 Base: 67 Base: 101* Base: 65**Number of household members who are working / household %Base %Base %Base %Base %Base

0 1 Hh member 2 3 4 5

7 76 13 3 1 1

- 80 16 3 - 1

30 57 10 3 - -

- 81 17 2 - -

- 85 8 5 3 -

Household members who are schooling as a percentage of total number of household members

23 21 20 23 29

Base: 305 Base: 69 Base: 67 Base: 103 Base: 66 Religion of HH

%Base %Base %Base %Base %Base Roman Catholic Protestant Aglipayan INK Islam Others

82 8 7 3 - -

66 3 29 3 - -

88 11 - - - -

78 15 2 5 - -

98 - - 2 - -

*2 No response (Taganito); **1 No response (Sapa) Except for Sapa, employment and self-employment (42% and 20%, respectively) are the most frequently-mentioned major sources of monthly household cash income for all PACs.3 Employment is considered as the single biggest contributor to a household’s monthly cash income at 42%, with the highest proportion in Taganito and Hayanggabon (53%) and the lowest, Sapa (6%). The data suggest that households in Hayanggabon, Cagdianao, and Taganito are significantly linked to the mining industry in terms of employment. Farming and fishing in combination were only regarded from 15 to 28% of households in these communities as the largest sources of income, less than half of employment and self-employment together. Sapa, in contrast, presents a different picture. Eighty-three percent of all responses cited farming as a major source of income as against employment (6%) and self-employment 11%). Eighty-nine percent in this community regard farming as the biggest source of

3 Base: 361 multiple responses. Question: “What are the main sources of cash income of your family?” Mention as many.

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monthly household cash income. Unlike the other three barangays, farming is dominant in the local and household economies of Sapa. Table 4.4.3-2 shows the main sources of income of the PACs. A detailed presentation of the monthly cash income of the households surveyed is attached in Table 4.4.3-1. The average monthly household cash income for all communities is Php 5,678 with the highest reported in Taganito at Php 6,133 and the lowest in Sapa at Php 3,546.4 How do the individual communities compare to the all PACs average?5

Hayanggabon, the host community, is 3% more than the All PACs average; Cagdianao, 1% less; Taganito, 7% more; and Sapa, 38% less.

Table 4.4.3-2. Main Sources of Income of PACs

Income Feature All PACs Hayanggabon Cagdianao Taganito Sapa

Base: 352 Base: 76 Base: 82 Base: 124 Base: 70 Main sources of monthly household cash income (multiple responses) %Base %Base %Base %Base %Base

Farming Fishing Employment Self-employment Pension, remittances,

assistance Others

22 11 42 20 4 -

9 20 53 14 -

4

2 18 45 30 1

2

8 6

53 23

7

83 - 6 11 - -

4.4.4 Community Perception and Social Acceptability The following question was asked to measure the degree of support or opposition to the proposed HPP project:

Let’s say in a scale of 0 to 10 where “10 means that you are strongly in favor of the Taganito HPP project and “0”, you are strongly against it, where do you stand?

Scale

0 “strongly against”

1 2 3 4 5 6 7 8 9 10

“strongly in favor”

The scale not only measures the breadth (pervasiveness) but also the depth (intensity) of support or opposition to the project. The scale has three regions:

0 – 3 strong opposition; 4 – 6 mild opposition to mild support with “5” as neutral; 7 – 10 strong support

Overall, for all PACs as one area, respondents gave a mean rating of 7.58 and were distributed as follows:

4 The average cash income in Taganito includes 16 families of the Mamanua indigenous community. Average monthly household cash income for these IP families is Php 3843, 41% and 33% less than the Taganito and the All PACs averages, respectively 5 All PACs average = average of all communities taken as one geographical unit, that is, all four PACs treated as one area.

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Table 4.4.4-1. Degree of Support or Opposition to the Proposed HPP Project, All PACs (Base: 305 respondents; percentages may not total 100 because of rounding-off)

Scale 0 1 2 3 4 5 6 7 8 9 10 %

Distribution of Respondents

5

2

1

2

1

15

7

6

8

5

47

Summary Ratings (% Respondents)

“Strongly Against”

10

“Mildly against to Mildly in favor”

23

“Strongly in Favor”

66 People are strongly in favor of the proposed HPP project. This strong support is not only for all communities taken as one (“All PACs) but for individual barangays as well. Mean ratings for individual barangays are:

Hayanggabon 8.52 Cagdianao 7.25 Taganito 7.456 Sapa 7.12

Sixty-six percent strongly supports the project, of whom 144 of 204 (71%) are totally in favor. Strong supporters outnumber those who are strongly against by more than 7: 1. Those who are strongly against (29 of 305) are merely 10%, a little more than half of whom are totally opposed and the rest opposed in varying degrees. Twenty-three percent of all respondents is “undecided or neutral”, i.e., mildly against to mildly in favor and neutral; the neutrals are 15%. The support or opposition of those who are “undecided or neutral” is tentative. Mild opposition can be converted to strong support or strong opposition; the same is true for mild support, and even a neutral position. Appendix 4.4.4 Tables 1a – 1d provide the percentage distribution of respondents in the scale for individual PACs. 4.4.5 Project Awareness The three most frequently cited sources of project information include:7

Neighbors / community discussions 56% Taganito Mining Corporation 19% Family / relatives 13%

Of 1,835 multiple responses, 55% of these accounts for the respondents’ knowledge of the proposed HPP project:8

“will generate more employment / jobs” 11% ”more income and taxes for Taganito and

project-affected barangays” 8%

“harmful to health” 8% “will result to more community projects

and benefits for communities” 8% “will generate more business opportunities” 8% “might bring in more settlers and people” 7%

A significant proportion of respondents thinks that their houses (63%), farms (43%) and livelihoods (47%) will be affected by the proposed project.9

6 The Mamanua community, a sub-set of Taganito, however, gave the proposed project a rating of 5.06 or “neutral”. 7 Base: 400 multiple responses from 305 respondents. The same relative order holds for individual PACs, except for Sapa where the second most frequently mentioned was “barangay officials / community leaders” with TMC placing fourth. 8 Question: “What do you know of the Taganito HPP project?” Mentioned as many. Findings pertain to All PACs as one area. 9 No answer / not applicable: house (1%); farms (16%); livelihoods (9%)

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Fears and apprehensions about the project chiefly relate to health and the environment, and flooding (Appendix 4.4.5 Table 1). Respondents think that the proposed HPP project is:10

“generally good for the community, Surigao del Norte, and the Philippines”, 66% “will benefit only other people but not me, my family or my community”, 2% “neither good nor bad but not harmful”, 12% “harmful / risky”, 13%

Eighty-nine percent of respondents are not aware of any archaelogical, historic, cultural, or religious site that could be affected by the construction, and operation, of the HPP. A protocol is appended to this report that specifies procedures to be followed in case an archaeological find is made (Appendix 4.4.5 Table 2). The three most frequently-cited community problems or needs that people are willing to cooperate with others in order to solve these in the next three years are:

Water (22% of multiple responses; all PACs); Infrastructure (18%); and Livelihood/Income (17%)

Barangay Cagdianao, however, lists a) the need for health services and electricity (15.72% each) among the top three.

4.4.6 Indigenous Peoples

4.4.6.1 General Description of the Mamanua Tribe

Mamanuas, in the old Visayan language means 'going to town' and are the ancestral people of several indigenous people in the Northern area of Surigao, Philippines. The Mamanuas are nomadic tribes who inhabit the mountains in North East Mindanao. They are a relatively small aboriginal tribe, perhaps numbering no more than 10,000.

They are believed to be direct descendants of the raft-travelling Polynesians who were said to have travelled throughout the Pacific on balsa-wood rafts. Except for their brown skin, they resemble in looks to the Africans. Physically, they are bigger than the Negritos of Luzon but their kinky hair gives the possibility of blood relations to the aforementioned groups of people. They speak their own dialect which noticeably has some phonetic similarities with that of Surigaonon.

They transfer from place to place and this usually happens in case of deaths for it was the custom to move to another place when death occurs even if their crops are ready for harvest. The Mamanuas of today, however, mix with the lowland people they call Bisayans. It is observed that both out-groups have trust and confidence with the lowlanders though shyness prevails in any deal they have with them. They have the characteristic habit of building constant and eternal fires at the sides or under their makeshifts. The purpose is to drive away mosquitoes and flies, their most dreaded insects. Until now, some Mamanuas still believe that flies bring bad omens. To them, these insects are harbingers and heralds of deaths as the old Mamanuas said. One of the causes of their being nomadic is the prevalence of flies. The Mamanuas are not fond of weaponries. They also seldom wear necklaces, armlets, and some other trinkets. The Mamanuas are python meat-eaters hence catching one sizeable python would mean a feast for the tribe. They congregate and partake of the commonly broiled or roasted python meat. A python would also mean money for these people. Not a few lowlanders would buy and eat python meat that 10 Base: 305 single responses; no comment – 7%. Relative order of frequency of mention is comparable for individual PACs.

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the Mamanuas trap. Aside from the meat, the Mamanuas get the skin, lard and bile of the reptile as the latter is used for medicinal purposes.

4.4.6.2 The Mamanuas of Taganito

Presently, the mountains of Claver, Surigao del Norte is home to about 37 Mamanua families within the political territories of Barangay Taganito and Urbiztondo in the Municipality of Claver. The Mamanuas have claimed the area their ancestral domain and a Certificate of Ancestral Domain Title has been applied for at the National Commission on Indigenous People (NCIP) office. Most of them are Roman Catholic (63%), while other denominations include mainstream Protestants and other Christian churches. A Free and Prior Informed Consent (FPIC) was conducted and a Memorandum of Agreement (MOA) was established with the Mamanuas in 2006. Based on the MOA, the Mamanuas were given houses in two designated sites in Barangay Urbiztondo and Taganito as most of them were previously staying under the bridge between Taganito and Hayanggabon. They were also provided with a learning center, thus most of them had some degree of schooling. Several Mamanuas are also engaged as contractual workers in the mines. Aside from working in the mines, other sources of livelihood of the Mamanuas in Taganito include swidden farming and rattan weaving. Most of the Mamanua families were already staying together under the bridge between Barangay Taganito and Hayanggabon prior to their transfer to the two designated settlement sites in Barangay Taganito and Urbiztondo. However, due to concerns regarding safety, they were moved to the settlement sites and given houses as part of their MOA with TMC. The settlement of the Mamanuas in a compact area has given them access to education and basic goods due to the presence of a learning center and a sari-sari store in their settlement sites. Most of them have also been Christianized. They have also been exposed to ther forms of recreation such as basketball, watching television and drinking alcohol. Aside from these, there is an uneven use in resources since they are no longer nomadic. An example of this is the concentration of their hunting in areas near their settlement only. .

Plate 4.4.6-1. Mamanua Relocation Site

4.4.6.3 IP Household Survey There are officially 20 Mamanua households who were resettled. Only 16 households were surveyed as the others were either out in the field or refused to be interviewed.

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Basic demographic information includes the following:

Majority religion: Roman Catholic (63%); other denominations: mainstream protestants and other Christian churches at 6.25% each;

Main household informant: household head (50%); spouse of household head (44%); son or daughter of household head (6%). Household informants are evenly split between males and females. Their primary occupation are lumbering (25%), farming (19%), housekeeping (19%), drilling aides (13%), and the rest at 6% each in operating a sari-sari store, handicraft, studying, or none (no occupation). Eighty-two percent are married.

Educational attainment: Sixty percent of household members have had some schooling of which 21% did not go further than grade 3; 12%, grade 5; 9% each, grades 1 or 2; 6%, grade 4; and 3% (or one household member), first year high school. Of those who are currently attending school, the majority (86%), are in elementary school, and 14%, high school.

Household size and age structure: The majority of households (56%) have 3 – 5 members; 32%, 6-8 members; and 13%, 2 members. Forty-one percent are 0-14 years old; 57% belong to the economically productive age group of 15-64; and only one respondent is 65 years old and over. All respondent-households have at least 1 to 2 members who are working.

Housing and Residential Profile Mamanua families in the project-affected communities were resettled on a hillside site overlooking the sea and barangay Taganito. Land was cleared for 20 houses provided by the company. A school house was also built. There is also ample open space for people to gather and play. The resettlement site is accessible by road from the center of the barangay. Respondents said that their families have been living in Taganito for seven years. Tenureship of house and/or lot includes the following:

owner-occupied houses but rent-free lots with lot-owner consent (50%); owner-like possession of houses and lots (25%); rent-free houses and lots with owner’s consent (19%); and rental housing and lot (6%)

No respondent claimed to have knowledge of any document regarding their occupancy of house and lot. Seventy-five percent of houses have light walling materials; 13%, strong; and another 13%, mixed but predominantly light materials. Sixty-three percent have light roofing materials; 25%, mixed but predominantly light; and 13%, strong materials. Virtually all houses have lumber for flooring materials. Sixty-three percent of houses do not need major repair. Twenty-five percent need major repair while 13% are undergoing major repair or renovation. All households claimed that they obtain their water by directly fetching it from water bodies (e.g., spring). All use kerosene/”gaas”/petromax for lighting, and wood for cooking. Virtually all households have no toilets. Project Awareness Information about the proposed project was obtained from:11

neighbors and community discussions (50%); the company [Taganito Mining] (35%);

11 20 multiple responses

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families and relatives (10%); and NGOs (5%)

Neither the mass media, local political or religious leaders were reported to be sources of project information. The Taganito HPP Project is known among the Mamanuas in the following light (top five):12

"harmful to health” (24%); “might cause displacement of families/natives” (11%); “might have accidents like explosion of chemicals” (9%); “will generate more employment / jobs” (7%); and “more income and taxes for Taganito and project-affected barangays” and “might lose our

land and houses” (each at 5%) No families of IPs are envisioned to be displaced because of the project; IP families have already been relocated to a site in Taganito even before the household survey was undertaken. Fears and apprehensions of Mamanuas regarding the project include (top three):13

“dangerous / too risky: might cause pollution, sickness” (44%); “might cause flooding / landslides” (15%); and “will negatively affect my source of livelihood; damage crops” (12%)

More than half (56%) of respondents think that the Taganito HPP Project is “neither good nor bad but not harmful”.14 The rest said that the project is generally good for their community, the province and the country (25%) while 19% think it is risky and harmful. Income and Livelihood IPs derived their monthly household cash incomes mainly from the following sources:15

farming, and employment (each at 29%); self-employment (24%); and lumbering (19%)

Employment is regarded as the largest contributor to monthly household cash income by 38% of households. Average monthly household income is Php 3,843, 49% less than the average for Taganito. In other words, a Mamanua household in Taganito earns only half of what an average household in the same barangay does. Thirty-eight percent of households regard employment as the major and largest contributor to monthly household cash income followed by farming and self-employment (each at 25%), and lumbering at 13%.16 Community Needs and Problems The three most frequently cited community needs and problems Mamanua are willing to work with other persons and organizations in order to address these are:17

water (30%); electricity (25%); and toilets (20%), followed by livelihood (18%)

12 55 multiple responses 13 34 multiple responses 14 16 single responses 15 21 multiple responses 16 16 single responses 17 40 multiple responses

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General Assessment Asked the following question in order to gauge the degree of their support or opposition to the project (“Let’s say in a scale of 0 to 10 where 10 means that you are strongly in favor of the Taganito HPP project and 0, strongly against it, where do you stand?”), the results suggest that the IPs are neutral, or at best, mildly in favor, rating the project 5. There is a large body (50%) that rated the project 5. There are as much as those who are strongly against the project as those who are strongly for it. The data indicate that more IEC work among the Mamanuas is needed in order to allay their fears and apprehensions about the project. Others None are aware of any archaeological, historic, cultural or religious site of significance that could be affected by the construction and operation of the Taganito HPP project and its associated facilities. 4.4.7 Key Impacts and Mitigating Measures 4.4.7.1 Impacts

• Fears and Apprehensions. The major impact in the pre-construction stage is the fears and apprehensions of project-affected households regarding the proposed project. Three major issues were voiced: a) environmental and health risks, e.g., pollution, b) the threat of flooding, and c) the influx of outsiders. These concerns are home-grown in that they are perceived to affect the daily lives of people. The influx of new settlers, for example, could lead to resource competition in a number of ways like job. Notwithstanding the subjective character of these concerns, these nonetheless contribute to the people’s feelings of uncertainty about the future, psychological discomfort and anxiety, a sense of powerlessness and loss, or at least diminished control over their lives. In combination, these could lead to strong, if not, hostile opposition to the project and force people to put plans (e.g., investments or capital improvements) on hold.

• It is estimated that construction will be undertaken in three (3) years spread over a period of four (4) years. Two major impacts are anticipated in this connection: a) employment and its consequences to household incomes, job creation in other sectors, and migration, and b) changes in the landscape including vehicular traffic, and road and pedestrian safety.

• Employment. The most immediate impact during the construction stage will be employment. It is estimated that over 34 months of construction, direct and indirect employment will be generated. About 2,000 workers, mostly in the building trades, will be needed during this period. Their consumer expenditures, largely derived from wages, will generate indirect employment in other sectors of the local economy. The following assumptions were used to illustrate the immediate impact of the project to employment:

- Labor cost was set at Php 258 / day for unskilled workers and Php 350 / day for skilled

workers.18 - Fifty percent of the 1,000 construction will be composed of unskilled workers; the other 50%,

skilled. - Working days: 26 days / month;

During the 34 months of construction, Php 608 thousand / day will be pumped into the local economy by way of wages of those who are formally employed in construction activities. (Appendix 4.4.7 Table 1) It is estimated that anywhere from 30 to 50% of wages will be spent on food and services, principally from local suppliers; the bulk of these expenditures will be on food. For purposes of illustration,

18 This only pertains to daily wage; it excludes cost of benefits. Php 258 is the daily minimum wage in Claver and is applied to unskilled workers. For skilled workers, the rate is Php 350. Prices are for 2008.

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Appendix 4.4.7 Table 2 uses 30% and 50%.19 The impact of such purchases will mainly be on the local economies of the project-affected communities, and still to a considerable extent, the sub-regional economy (the municipality and the province). On a daily basis, anywhere from Php 91.2 – 152 thousand pesos worth of purchases, principally food and associated items, will be made. Such purchases are local in character and would benefit the local economy. The above direct purchases will translate to an expansion of local commerce and agriculture with corresponding impacts on employment in these sectors as shown in Appendix 4.4.7 Tables 3 and 420 This employment, expressed in employment days, will involve jobs of various durations directly attributable to consumer expenditures of construction workers. The municipality of Claver, and the project-affected communities of Hayanggabon, Cagdianao, Taganito, and Sapa will be the first to experience the impact of these local purchases in terms of the money that will circulate because of food expenditures and employment days that will be created or sustained.

The sub-regional impact21 would be four times the business turnover and consequently four times the employment days created in the host municipality.

• Migration. The employment that would be generated by the proposed development, however, has implications on migration. Unless a policy of “local-first” hiring is instituted, project activities could attract people from outside Claver, the host municipality, conservatively estimated at 4,000 people.22 Such development could in turn start off a series of other migration and lead to competition with the local population in regard resources, economic opportunities, and public services. Among the migrants could be providers of commercial intimate services that would cater to a largely male-dominated construction work force. Local community norms and social control would have little effect on transient workers; they would be the most likely patrons of these services. Such a situation could lead to social hygiene problems specifically sexually transmitted diseases. Migration could also lead to non-conforming land-uses in the form of informal settlements with consequent impacts on public health and sanitation and the landscape. These settlements could mar the landscape and become permanent in time even after construction of the HPP and other associated infrastructures has been completed.

• Traffic and Road Safety. Construction will bring about an increase in vehicular traffic including vehicles of various sizes. This would include passenger, personal (most likely motorcycles), and hauling vehicles. There will also be movements of heavy equipment. This traffic of various durations would make use of existing roads including those that are in populated areas or where pedestrian activities are concentrated like schools along the main road. The risks of accidents, vehicular and pedestrian, would increase.

• Employment. It is estimated that the operation of the HPP and auxiliary facilities (i.e schools, hospitals, maintenance, quarry operations, etc.) will require 1100 workers of various skill levels. These workers will consist of 600 in the HPP plant itself, 200 in logistics support, 200 in maintenance support and 100 in the town site hospital and school. The impact of employment during this stage will be similar in character to, but lower in magnitude than, the construction phase but of a more long-term and sustainable level. Industry estimate of the job multiplier of mining is in the order of 4 – 10 allied jobs; in other words, 4-10 jobs are created by every mining job. Not all these jobs will be availed of locally. However, it is safe to say that some of them will. Assuming that at least one-half of the 1100 workers are from the PACs, the impact on household incomes would be significant. Present average monthly household cash income is Php 5,678 for all PACs taken as one geographical area.23 Households that would at least have one member working in the HPP stand to at least double their monthly cash incomes. Assuming a daily wage

19 NSO estimates that 45% of wages is spent on food by households outside of Mega Manila. We use 30% and 50% to account for variations in buying patterns; those with more income tend to proportionately have less food expenses in contrast to those with less income. 20 Assuming that 15% - 25% of purchases goes to pay for wages at Php 258/day; other sectors and places, e.g., agriculture and predominantly rural areas have lower wage rates. 21 The sub-region pertains to the nearby municipalities. 22 At say, each construction worker conservatively attracting or bringing two other persons (e.g., relatives) in search of jobs or as companions. It is probable, of course, that other workers may be bringing in more, especially immediate members of the family for comfort and companionship. 23 There are variations, however, for each project-affected barangay.

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of Php 258 (minimum for unskilled workers at current prices), a household would have an additional income of Php 6,500 on top of what its current cash earnings of Php 5,678 for a total monthly cash intake of Php 12,178.24 This would allow these households more access to goods and services. Employment in the HPP would also increase in time the skill levels of workers. Local purchases of HPP workers would also create employment days and sustain these in the long-run. The immediate impact of such purchases and employment generation would be felt first by the PACs. Appendix 4.4.7 Table 5 shows the aggregate value of wages of workers in the HPP.25

At least Php 334.40 thousand would be flowing to the local economy because of wages. Assuming the same level of expenditures on food as the construction workers cited earlier, Appendix 4.4.7 Table 6 shows the value of their purchases while Appendix 4.4.7 Tables 7 and 8 present the employment days that would be created and sustained on a regular basis.

Average daily purchases would be Php 100.32 – 167.2 thousand, mostly locally, benefiting micro-, small-, and medium-scale businesses, including local cooperatives and local growers.

Assuming current levels of cash earnings, local households that are engaged in providing goods and services to HPP workers stand to at least double their monthly cash incomes. The sub-regional impact would be about four times by way of business turnover with corresponding employment days created and sustained in other sectors. • Town site Development. Cagdianao is the location of a proposed town site development that is

envisioned to accommodate 10,000 people. The town site will feature staff housing, community facilities including recreation areas, and other infrastructure and services that make for a modern urban community albeit in a largely rural setting. The major impact would be the conversion of a greenfield area to a built-up area. The community would be self-contained and is some distance from the poblacion of Cagdianao. The sheer size of the town site, its isolation, and its features would virtually set it apart from the larger community of Cagdianao. There exists the possibility that the economic and other linkages of the town site to the municipality of Claver, and the barangay of Cagdianao that hosts it, may be weak unless initiatives are made to identify, foster and develop such linkages. The lack of linkages would only highlight the social and economic disparity between the town site and Cagdianao. On the other hand, there would be opportunities that if properly harnessed could benefit the local inhabitants of Cagdianao as well as the other PACs, and indeed even the whole municipality of Claver. With a population of 10,000 residents, the potential to supply the town site with various goods, primarily food, and other services is enormous. These 10,000 residents would be the equivalent of 2,000 family units.26 Town site residents would be relatively high income earners. Even assuming a daily household expenditure of Php 100 per family unit, admittedly a low estimate, the aggregate value of household purchases would amount to Php 200 thousand a day or Php 6 million a month on a regular and sustained basis. Appendix 4.4.7 Table 9 shows the aggregate value of these purchases and the corresponding employment days created or sustained. These figures pertain only to household purchases and do not include services. The impact would be higher with the inclusion of purchases of services. The town site will generate household solid waste and wastewater that will require in situ treatment, e.g., Materials Recovery Facility (MRF) and Septage Treatment Plant (STP). These concerns, however, can only be assessed when detailed plans of the town site are completed and made available.

24 In average earnings from employment would be higher since workers would have differential wages depending on their skill levels. The household given as example is assumed to be earning the minimum wage (Phjp 258). 25 Assuming that one-half of the 500 workers would be skilled and unskilled. Working days: 26 / month. 26 These may not be actual families but nonetheless would be the measure of a common consumption unit especially with regard to food.

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• Quarry Site. The quarrying operations in Sapa will employ 200 workers (100 skilled; 100 unskilled).Most of these workers will be locally sourced and are expected to be engaged 12 months a year. At Php 258/day/unskilled worker and Php 350/day/skilled worker for an average of Php304 a day for both categories27 Php 60.8 thousand will be infused into the local economy by way of wages which impacts are shown in Tables 4.4.7-1 to Tables 4.4.7-4. The average household cash income in Sapa is 3,546, a household with at least 1 member working in the quarry site stand to earn Php 7,904 a month in wages28 such household would have more than tripled its income from the present Php 3,546 to Php 11,450. This increase in household cash income would allow people in Sapa access to a wide range of goods and services and bring Sapa closer to the mainstream economy of Claver particularly the PACs. Anywhere from 3696 to 10,440 employment days a year will be created or sustained because of consumer purchases of quarry workers.

Table 4.4.7-1 Aggregate Wages of Quarry Workers (Skilled & Unskilled)

Type of Worker Daily (Php) (‘000)

Monthly (Php) (‘000)

Yearly (Php) (‘000)

Skilled @ 350 / day for 100 workers 35 910 10920 Unskilled @ 258 / day for 100 workers 25.80 774 9288 Total 6.08 1684 20208

Table 4.4.7-2. Aggregate Value of Local Purchases of Quarry Workers

Purchase Level Daily (Php) (‘000)

Monthly (Php) (‘000)

Yearly (Php) (‘000)

At 30% 18.24 547.20 6566

At 50% 30.40 912 10944

*Based on average combined wage rate (Php 304/ day) of skilled (Php 350) and unskilled (Php 258). Assumes daily purchases (30 days).

Table 4.4.7-3. Employment Days Created or Sustained by Local Purchases of Quarry Workers

(Based on Labor Cost Constituting 15% of Retail Price; Daily wage at Php 258)

Purchase Level Daily (Employment Days)

Monthly (Employment Days)

1 Year (Employment Days)

At 30% of wages 11 330 3696

At 50% of wages 18 540 6480

Table 4.4.7-4. Employment Days Created or Sustained by Local Purchases of Quarry Workers (Based on Labor Cost Constituting 25% of Retail Price; Daily wage at Php 258)

Purchase Level Daily (Employment Days)

Monthly (Employment Days)

1 Year (Employment Days)

At 30% of wages 18 540 6480

At 50% of wages 29 870 10440

27 Php 258 unskilled + Php350 skilled = 608/2= 304 28 Php 304 x 26 = 7904

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• Relocation of Residents Downstream of Tailings Dam. A total of 27 families of temporary settlers downstream of the tailings dam in Barangay Hayanggabon may be transferred. They have been staying in their present site for less than five years. Their dwelling units are made of light materials, and they are engaged in contract labor. The only impact on them if they are resettled will be a change of physical location.

4.4.7.2 Mitigating Measures / Enhancement

• The project proponent will conduct a stakeholder focused and community-based IEC campaign that would address the sources of apprehensions and fears of households based on the results of the perception survey. The major objective of the pre-construction IEC program is for stakeholders to be able to objectively comprehend and understand the project, to make informed decisions and opinions about it, and to develop their sense of self-confidence in confronting the issues regarding the project. Community stakeholders will also be informed of their rights and the obligations of the proponent to them according to law, e.g., benefits, royalties, preferential offers in jobs, etc. Compensation packages, if any, will be taken up.

• In view of the findings, the project proponent will use primary encounters, e.g., community consultations, neighborhood discussions, focus groups as the main channels for its IEC campaign. Such primary encounters would also be more effective in that it will impress upon community stakeholders and project-affected persons that the company cares for them as persons. Feedback from them would also be faster.

• The benefits from job openings during the construction stage will only be realized if a policy, and corresponding protocol, of preferential hiring of locally qualified labor is in place. The project proponent together with the local government will announce a list of positions that need to be filled up at various stages of construction. The protocol will specify a scheme where the first shot at a job is offered to qualified residents of the project-affected communities and then to other adjacent barangays, and municipalities.

• The project proponent in partnership with the LGUs and other NGOs will assist in training local residents of project-affected communities forming, organizing and managing cooperatives. These cooperatives will offer a range of services including labor contracting, credit assistance, stores, etc. that construction workers and workers at the operational phase could avail of. Through these cooperatives, the project-affected communities are given a chance to participate in the economic and livelihood opportunities brought about by the sheer number of workers over the 34 months of construction.

• A “local first” hiring policy will also lessen the likelihood of massive migration to the project-affected communities, and thereby avoid the stress and competition on local resources, job opportunities, and public services because of newcomers.

• Forward land-use planning and enforcement will help control, if not avoid, spontaneous and non-conforming land-use like informal settlements including areas for commercial intimate services. Areas for housing and other services that would be needed because of the increase in population could be identified and correspondingly zoned.

• Warning and directional signages will be posted at appropriate places. • Traffic wardens will also be posted along roads traversed by the project’s delivery trucks. • Speed limits will be set for delivery trucks. • Road safety seminars will be given both for drivers and residents including students. • “Local first” hiring policy and protocol to be instituted; • Identification of work processes that could be outsourced to local service cooperatives; • Training and development of local service cooperatives for possible outsourced job contracts /

orders • Identification of economic and market linkages (buyer and supplier) between town site and local

communities, especially PACs and host municipality; • Entrepreneurship training • Cooperative training and development

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• Skills training and development • A one-hectare site also in Hayanggabon has been designated as a resettlement area for the

affected families downstream of the tailings dam. No diminution of their present standard of living will occur. Quite the contrary, there will be an improvement since the resettlement area is a planned site. Appropriate compensation according to law will be made with respect to disruption (e.g., loss or damaged) to livelihood and to dwelling units and other assets, except land.

4.4.8 Public Health

4.4.8.1 Municipality of Claver, Surigao del Norte Appendix 4.4.8.1 Table 1 shows the vital health statistics of the municipality of Claver. The crude birth rate of Claver is lower compared to that of the crude birth rates in the provincial and national levels. The crude death rate of Claver, which is 6.0 per 1,000 population is higher than that of Surigao del Norte (4.0 per 1,000 population) and the Philippines (4.3 per 1,000 population). This can be ascribed to the fact that the health care needs of the entire municipality are attended only by one doctor, one nurse, and eight rural health midwives. The infant death rate at the municipal level is relatively lower than that of the province and the country. No neonatal and maternal deaths were recorded in the Municipality of Claver thus giving a neonatal and maternal death rate of zero. Neonatal death rate in the national level is equal to 0.09 whereas maternal death rates in the provincial and national levels are 0.9 and 0.6, respectively. Appendix 4.4.8.1 Table 2 features the ten leading causes of morbidity in the Municipality of Claver from 2003 to 2007. Most of these are infectious and communicable. Only hypertension, which is the second leading morbidity cause in Claver, is non-communicable. Acute respiratory infection is consistently on top of the list of morbidity causes in the municipal, provincial, and national levels. The rate of ARI in Claver is higher when compared to that of the province and the country. The same is true for hypertension with a rate of 1,293.9 in Claver and 518.0 and 522.8 in Surigao del Norte and the Philippines, respectively. The rate of morbidity due to all forms of wound in Claver is higher as compared to that of Surigao del Norte. The rate of influenza, however, is lower in Claver when compared to Surigao del Norte and the Philippines. The ten leading causes of mortality in Claver, Surigao del Norte include cardiovascular disease, multiple organ failure, tuberculosis, drowning and measles (Appendix 4.4.8.1 Table 3). These are mostly non-infectious and non-communicable. From 2003 to 2007, mortality from cardiovascular diseases (CVDs) has remained high with the highest rate recorded in 2006. CVD mortality rate is higher in Claver than in Surigao del Norte. This is also true for the mortality rate due to diabetes mellitus and all types of cancer. Mortality rates for multiple organ failure and tuberculosis are relatively lower than those of the provincial level. Of the 3,600 households in Claver, 2,880 or 80.0% have access to safe water. Thirty-eight percent (38.0%) of these households obtain water from level I water source whereas 30.8% and 11.2% get water from level II and III water sources, respectively. Based on the 2004 MPDO report (Appendix 4.4.8.1 Table 4), 2,437 households or 67.7% have sanitary toilets. The remaining 1,163 households utilize open pits and other forms of waste disposal facilities like the pail system. In the same report, 66.4% or 2,389 households were reported to have satisfactory garbage disposal. Other modes of garbage disposal in the community are composting, dumping in individual open pits, incineration and collection by service garbage trucks or vehicles. From 2003 to 2007, there is only one doctor, one nurse, and one medical technologist in the rural health unit of Claver as shown in Appendix 4.4.8.1 Table 5. There are eight (8) midwives and one sanitary inspector in the municipality. Claver is served by one (1) government clinic, three (3) private medical clinics, one (1) pharmacy, and one (1) private dental clinic (Appendix 4.4.8.1 Table 6). There is no government hospital located within the municipality.

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4.4.8.2 Vital Health Statistics of Impact Communities The vital health statistics of the four impact barangays are presented in Appendix 4.4.8.2 Table 1. The crude birth rate (CBR) in Cagdianao which is 20.3 per 1,000 population is higher than that of Claver (14.0 per 1,000 population). In 2006, there were no recorded infant, neonatal and maternal deaths in the barangay thus death rates were zero, which could indicate sufficient maternal and infant health care in the community. Crude death rates in Hayanggabon range from 0.28 in 2004 to 1.01 in 2003. Crude birth and death rates are lower in the barangay level when compared to the rates in the municipal level. The total number of live births range from 16 in 2004 and 2006 to 30 in 2007. The highest crude birth rate was in 2007 with a CBR of 4.03 per 1,000 population. There are no recorded infant and maternal deaths in the barangay from 2003 to 2007 although one neonatal death was reported in 2006 thus a neonatal death rate of 6.25 The CBR in Sapa is also higher compared with Claver. The crude death rate of Sapa which is equal to 5.5 per 1,000 population is lower as compared to that of the municipality. Infant, neonatal, and maternal death rates in the barangay level are zero. Neonatal and maternal death rates in the municipal level are also zero although the infant death rate is 7.7 per 1,000 live births. In Taganito, the highest number of live births was recorded in 2005 with 52 live births listed. Twelve (12) deaths were reported in 2006 while two infant deaths were reported in 2003. In 2004, two (2) neonatal deaths were recorded. Based on the records of the BHS, there are no maternal deaths from 2003 to 2004 and in 2006. Data for crude birth and death rates as well as infant, neonatal, and maternal death rates are not available in the BHS records. 4.4.8.3 Morbidity Appendix 4.4.8.3 Tables 1 to 5 show the leading causes of morbidity in Barangays Cagdianao, Hayanggabon, Sapa and Taganito. Cases of acute respiratory infection and diarrhea have consistently remained high in Cagdianao from 2003 to 2007. In Hayanggabon, morbidity causes are mostly communicable (cough, colds and parasitism). Parasitism and acute respiratory infection is also a leading cause of morbidity in Sapa, while in Taganito, diarrhea, cough and colds are the top illnesses in the barangay. A considerable number of households in these impact barangays still have no access to sanitary toilet facilities which increases the risk of the spread of disease such as diarrhea and parasitism. There are no known endemic diseases in the four project affected areas. 4.4.8.4 Mortality Leading causes of mortality in the four impact barangays are shown in Appendix 4.4.8.4 Tables 1 to 3. The reported causes of mortality in Barangay Cagdianao are all infectious and communicable (meningitis, bronchopneumonia, diarrhea and tuberculosis). In Hayanggabon, leading causes of death include cardiovascular diseases, pneumonia, cancer of the liver and pulmonary tuberculosis. Recorded mortality cases in Barangay Sapa were due to multiple gun shot wounds, hepatic cirrhosis, sepsis due to multiple dental extraction, myocardial infarction, drowning, cerebral stroke, and severe dehydration. There was one recorded death in Sapa in 2006 due to filariasis.

4.4.8.5 Environmental Indices A summary of the water sources, toilet facilities and garbage disposal practices of the impact barangays based on the public health household survey conducted for the project is presented in Appendix 4.4.8.5 Table 1

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4.4.8.6 Health Personnel The inventory of the health personnel in the impact barangays is presented in Appendix 4.4.8.6 Table 1. There are midwives, barangay health workers and trained birth attendants in the area. An interview with selected households in the community revealed that residents seek consultation in the rural health unit of Claver since there are no doctors and nurses in their barangays. 4.4.8.7 Health Facilities Basic health services in Barangays Cagdianao, Hayanggabon and Sapa are provided by their Barangay Health Stations (BHS) (Appendix 4.4.8.7 Table 1). Taganito is also serviced by a barangay health station, plus a private medical clinic in the community. 4.4.8.8 Mamanuas (IP) of Barangay Taganito, Claver, Surigao del Norte Barangay Taganito is inhabited by the indigenous people Mamanuas. Based on the TMC-MC SDMP 5-year Plan (2006-2010), there are about 136 Mamanuas comprising 19 households in the community. In a survey that covered 16 households in the community, all households were found to utilize water for drinking and domestic use from rivers, springs, lakes, and other bodies of water. The survey also revealed the need of the community for water, electricity, and sanitary toilets. Majority (93.8%) of these households do not have toilets while one (1) household utilizes an open pit for excreta disposal. Of the 16 households, nine (9) or 56.3% were observed to have garbage receptacles while seven (7) do not have garbage bins. Majority (75.0%) of the Mamanua households incinerate garbage while only two (2) households have their garbage collected by trash collectors. Around 44.0% of the Mamanuas avail of the services of the rural health unit although majority still seek medical treatment from indigenous health providers. Although no data on morbidity and mortality rates were provided for the community of Mamanuas in Taganito, the use of water from rivers, streams, lakes, and other bodies of water for drinking and cooking presents serious threat to the health of the residents in the community. Moreover, 93.0% of the 16 households surveyed still do not have toilet facilities. Poor environmental sanitation in the area can subsequently affect the well-being of the locals in the community.

4.4.9 Key Impacts and Mitigating Measures

4.4.9.1 Impacts

Direct Health Impacts

• Physical – noise, vibration, extremes of temperature may affect the workers involved in the various phases of the project; community exposures to noise and other nuisance may be considered

• Chemical - exposure to solid particulates or aerosols like dust produced in the construction and operations of the HPP, gases like SO2, NOx, CO, CO2, other volatile compounds, metals, etc., may manifest as acute or chronic signs, symptoms and illnesses; community exposure may come from hazards from various environmental pathways, i.e. air, water, land, which reaches the vulnerable sectors of the population; chemical health impacts may gain entry into the body either through skin contact, inhalation of polluted air, or ingestion of contaminated food or water.

• Biological - potential spread of microorganisms, infectious diseases, biologically contaminated waste materials, certain diseases like malaria may happen due to indiscriminate and improper disposal of biological waste products or by-products potentially contaminated with microbes and inadequate toilet facilities and access to safe water supply.

• Ergonomic - may arise from poor match between people and machines and other work situations. The HPP and the limestone quarry has this potential because it involves processes

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that entail transport and machinery operations; may cause poor productivity and adverse health conditions, e.g. repetitive strain injury, low back pain

Indirect Health Impacts

• Indirect Health Impact - may include economic dislocation, inadequacy or disruption of social services, community disintegration as a consequence of development caused by factors that include in-migration into the community because of availability of work, increasing demand for limited community health resources and other services, increasing criminality and social problems like drugs, alcohol, gambling, and prostitution. Effects on health are indirect but pervasive since it affects all members of the community.

4.4.9.2 Mitigating Measures

• Construction workers should follow Health and Safety Procedures. • Chemicals will be stored properly in bunded facility. Chemical handling will be done using

proper PPEs.

• A Chemical Spill Response Plan will be in place and implemented. • Materials Safety Data Sheets (MSDS) will be provided for all chemicals that will be used.

• Process Instrumentation devices (i.e. alarm systems) within the plants will be in place that will

alert personnel to evacuate the facility in case of any gas leakage (i.e. H2S). Alarm systems are set lower than the threshold levels.

• Emergency Response Team will be formed for emergency cases. • First Aid Training will be provided to workers. • Proper solid waste collection, handling and disposal will be strictly observed. Final disposal of

residual wastes will be at sanitary landfills as mandated by Republic Act 9003. • Special handling and treatment of any infectious and healthcare wastes will be facilitated by

accredited collectors and treaters. • Trained personnel will be employed to operate specific equipment and machinery.

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5.0 Preliminary Risk Assessment 5.1 General Risk Assessment The objective of the study is to perform a preliminary risk screening study to assess the risks of the project to the users and the surrounding population areas. This risk screening study is essentially limited to the proposed HPP. The results of the study will provide the basis to ensure that identified hazards from the proposed HPP to the users and surrounding public are considered in the final design. In general, the study shall systematically examine the safety of the project by addressing the following issues: • the identification of hazardous materials; • the handling and storage of hazardous materials; • the determination of where and how inadvertent releases, leakages or explosions are likely to

occur, if there are any; • the assessment of the effects in case of leaks or releases of hazardous materials involved in the

project operations; and • the estimation of frequency of leaks, releases and/or explosion of hazardous substances used in

the process. 5.1.1 Conceptual Framework, Approach and Methodology As a preliminary risk screening exercise, the study shall adopt the methodology prescribed by the IAEA manual (IAEA-TECDOC-727: Manual for the Classification and Prioritization of Risks due to Major Accidents in Process and Related Industries) developed by the Inter-Agency Programme on the Assessment and Management of Health and Environmental Risks from Energy and Other Complex Industrial Systems.1 The estimation method is based on the average failure frequencies as observed in other countries, correction factors related to the differences between industrial activities and practices, and the use of related probability number concept. And, whenever available, information (e.g., ERA studies, technical reports, etc.) from secondary sources will be used to validate and/or complement the assessment. The risk results produced in this Study are indicative only. Caution should also be exercised in determining the risk acceptability of the project using such results. Notwithstanding these limitations, certain observations can be derived from the results. Figure 5.1.1-1 shows the schematic flow diagram of the risk assessment process.

1 Relevant tables from the IAEA-TECDOC-727 manual which were used in the risk assessment of the project are presented in Appendix 5.1.1.

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HazardIdentification

FrequencyAnalysis

ConsequenceAnalysis

RiskAssessment

RiskManagement

RiskCommunication

SystemDefinition

RiskAssessment

RiskEvaluation

HazardAssessmentProcess

Information

MaterialInformation

FailureData

RiskCriteria

Other Data(pop., met., etc.)

Figure 5.1.1-1. Schematic Flow of Risk Assessment

5.1.2 Hazard Identification This study gives emphasis on the environmental hazards and risks associated with certain components of the proposed HPP which are deemed to be most critical such as the high-pressure acid leach (HPAL) facility, power plant, acid plant facility, the H2S plant and the material storage facilities, as well as wharf operations. The hazards and risks associated with the tailing dam and the quarry are discussed in Section 4.1 with respect to geological and other geotechnical aspects.

5.1.3 Risk Analysis

In the absence of adequate and reliable historical data (needed for ERA), definite estimates on risks to the general public cannot be undertaken. The needed data to undertake a fairly reliable frequency and consequence are simply not available. As such, the methodology prescribed in the manual (IAEA-TECDOC-727) developed by the Inter-Agency Programme on the Assessment and Management of Health and Environmental Risks from Energy and Other Complex Industrial Systems shall be used in obtaining an indicative or preliminary risk estimates.

5.1.4 Hazard Analysis

The hazards identified for or associated with this project (that may affect a settlement) are associated with the use, transport and storage of the following materials (Table 5.1.4-1):

Table 5.1.4-1 Hazard Materials Associated with the Project

Case Hazard Material Reference Number*

1 Hydrogen 13

2 Hydrogen Sulfide 32

3 Sulfuric acid (storage) 16

4 Sulfur dioxide (from sulfuric acid production) 45

5 Flammable Liquids (methanol and diesel fuel) 43

* Derived from IAEA-TECDOC-727 Manual Checklist

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The hazards are highly associated with the following initiating causes: • Mechanical failures such as corrosion, erosion, excessive stress, fatigue, object impact, or

external factors. • Human errors such as system maloperation, inappropriate maintenance or inadequate supervision

and task checking. • Naturally-occurring extreme events such as seismic activity and extreme weather or external

events such as damages to the pipeline from external sources (vehicular collisions, sabotage, intentional destruction, etc.)

A summary, covering the entire HPP facility in general, is presented in the Hazard Analysis Matrix (Table 5.4.1-2).

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Table 5.1.4-2 Hazard Analysis Matrix

Substance of Concern Cause(s) Consequence

Event(s) Outcomes Frequency Safety Measure

Natural hazards • earthquake/related

events • subsidence • other hazards

• fire • explosion • spills/leakage

Fatality/ injury Low

• adequate site investigation • adequate engineering design • adequate safety training • adequate safety measures (alarms,

extinguishers, etc.) • adequate safety system (e.g., monitoring,

automatic shutdown, etc.)

Operational factors • human error • operational error • mechanical failure • electrical failure

• structural failure • fire • explosion • spills/leakage

Fatality/ injury Low

• adequate (mechanical) engineering design

• adequate safety training • adequate safety measures (alarms,

extinguishers, etc.) • regular maintenance and monitoring

Process chemicals (H2, H2S, H2SO4,

etc.)

Fuels (diesel)

Combustion gases

Coal (Dusts)

Vehicular movement • collision • overturn • brake failure • puncture • other mechanical/

structural failure

• spills • fires • explosion

Fatality/ injury

High Low

Very Low

• strict adherence to prescribed standard operating procedure

• regular and adequate training for personnel

• coordination with traffic agency • regular traffic monitoring and control

dust particles

airborne contaminants

• regular operations • health hazards Fatality/ injury High

• adequate training • regular monitoring • regular medical check-up • adequate ventilation • adequate personal protective equipment • adequate dust reduction measures

TSP, SO2, NOx, CO

(vehicular movements

and

• maloperation: • insufficient/loss of

air supply • failure of control

system

• uncontrolled release

Fatality/ injury Very Low

• provision for fire control devices • safety provisions (shut valve, bypass,

etc.) • proper operation and maintenance of

unit/s

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Substance of Concern Cause(s) Consequence

Event(s) Outcomes Frequency Safety Measure

power plant operations)

• overloading • insulation failure • structural failure

• proper and adequate staff training & orientation

• proper implementation of emergency plan

TSP, SO2, NOx, CO, fuel

(Fuel Storage)

• ignition • breach of

containment

• explosion • spills/leakage • catastrophic

rupture

Fatality/ injury very low

• provision for fire control devices • proper and adequate staff training &

orientation • proper implementation of emergency plan

Process chemicals (H2, H2S, H2SO4,

etc.)

Fuels (diesel)

Coal (Dusts)

(Ship movement Loading/

Unloading)

• grounding • collision • leakage • ship movement • overfilling • overpressure • pressure surge

• spills • fires • explosion

Fatality/ injury very low

• strict adherence to prescribed standard operating procedure

• regular and adequate training for personnel

• coordination with fire fighting agency, Philippine Coast Guard and other appropriate agencies

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5.1.5 Consequence Analysis

The next step upon completing the hazard identification process is the consequence analysis. Consequence analysis involves the quantification of consequences or effects of the projected hazardous incidents. Among the incidents identified earlier, over which the proponent has control, are fires and explosion brought about by mechanical errors, human errors, extreme conditions or combinations thereof. Estimation of the adverse consequences involves the calculations of its physical effects. Generally, consequence calculations are carried out to determine effect distances of various postulated incident scenarios especially worst-case events to determine the level and nature of the impacts if such events occur.

Estimation of Consequences to Humans of Major Accidents

Results of the external consequence (Ci, number of fatalities/accident) computation are presented in Table 5.1.5-1:

Table 5.1.5-1 Results of External Consequence Computation

Max. Extent of Effect Case Hazard Material

Assumed Quantity

(tons)

Effect Category Area

(hectare) Distance (meters)

External Consequence, Ci

(fatalities/accident)

2 Hydrogen Sulfide 1.5 CII 1.5 50 – 100 1.05

3 Sulfuric acid (storage)

40,000 CIII 0.3 50 – 100 0.105

4 Sulfur dioxide

(from sulfuric acid production)

4 AII 0.1 0 – 25 0.035

5 Flammable Liquids (methanol and diesel fuel)

5,000 CII 1.5 50 – 100 10.5

• Inasmuch as the total capacity of the hydrogen is only 0.30 ton, this case has been excluded as the quantity involved is below the threshold inventory as contained in the IAEA-TECDOC-727 manual.

• Formula for the computation of external consequence is: Ci = A × δ × fa × fd × fm where: A = affected area, hectares

δ = population density, persons/hectares fa = area correction factor (% area exposed) fd = area correction factor (distance) fm = correction factor for mitigation effects

• Population density is pegged at 7 person/hectare based on the maximum personnel (490) on-site which occurs during the second shift. Based on the maximum effect distance, consequences are essentially limited on-site since the nearest community (Cagdianao) is 0.5 km away

• The correction factor for populated area mitigation (fa and fb) based on the IAEA-TECDOC-727 Manual is assumed at 1.0 for a scenario where the circular area of interest is completely populated – a very conservative estimate considering the significant distance from settlements.

• In terms of correction factor for mitigation, the value for fm is set using Table VIII of the manual at 0.1 for hydrogen and H2S; 0.05 for sulfuric acid; and 1.0 for flammables.

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5.1.6 Frequency Analysis This particular aspect of the risk assessment process appropriately addresses the question of "how likely are these adverse consequences." Frequency analysis involves the estimation of the likelihood of occurrence of the postulated possible impact scenarios. Factors such as frequency of failure and/or failure probabilities in the plant operations are used in the analysis. Estimation of frequency, represented by symbol Pi,s, as the number of accidents/year, involving the hazardous substance (subscript s) for each cases of the postulated population density (subscript i), entails the calculation of the related "probability number Ni,s. Results are presented Table 5.1.6-1:

Table 5.1.6-1 Results of Frequency Calculation

Case Hazard Material Average

Probability Number, Ni,s

Frequency, P (accidents/year)

2 Hydrogen Sulfide 5 1 x 10-5

3 Sulfuric acid (storage) 5 1 x 10-5

4 Sulfur dioxide (from sulfuric acid production)

3 1 x 10-3

5 Flammable Liquids (methanol and diesel fuel) 7 1 x 10-7

• The formula used in the computation of average probability is: Ni,s = N*

i,s + nl + nf + no + np where:

N*i,s = the average probability number

nl = probability number correction parameter for the frequency of loading/unloading operations;

nf = probability number correction parameter for the safety conditions; no = probability number correction parameter for the organization and management

safety; np = probability number correction parameter for wind direction towards the

populated area. • For the estimation of N*

i,s for each of the hazardous substance (or group of substances) identified for each of the activity, the various tables in the manuals are used.

• The relationship between N and P is: N =⏐ log10 P ⏐

5.1.7 Estimation of Risk

The risk level is expressed as the product of probability of fatality from a lethal dose and frequency of occurrence of the postulated failure events. These results are interlinked with the effect distances. For this particular study, the results of the consequence calculation using the developed scenarios and the frequency analysis shall be multiplied to obtain preliminary estimates of the risks posed by the project’s operations (Table 5.1.7-1).

Table 5.1.7-1 Results of Preliminary Risks Posed by the Project’s Operations

Case Hazard Material Computed Risk (fatalities/year)

2 Hydrogen Sulfide 1.05 × 10-5 3 Sulfuric acid (storage) 1.05 × 10-6 4 Sulfur dioxide 3.5 × 10-5

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Case Hazard Material Computed Risk (fatalities/year)

(from sulfuric acid production) 5 Flammable Liquids (methanol and diesel fuel) 1.05 × 10-6

5.1.8 Risk Assessment

Assessment shows that the most hazardous situation during the operation phase of the project would be incidents involving the release of sulfur dioxide (from the production of sulfuric acid). It should be noted that the estimates obtained were based on worst-case scenarios. The assumption was that the project area is surrounded by populated area, however, inspection of the site development plan will show that the nearest populated area (i.e., town site) is 0.5 kilometer away. And note that the estimated effect distance for the production of sulfuric acid is only a maximum of 0.025 kilometer. From another perspective, alternative assumption can be made that (a) the safety system is above average, and (b) that the wind will not always be in the direction of the populated area every time an incident occur (only 50% of the time), the resulting estimates are as follows:

N*t,s (reference #45) 3

Nl 0 (1 – 10 unloading/year) Nf 0 No 0.5 (above average industry practice) np 0.5 (50% populated area) Ni,s = N*

i,s + nl + nf + no + np = 3 + 0 + 0 + 0.5 + 0.5 = 4

P = 1 × 10-4 accidents/year Computed risk: 3.5 × 10-6 fatalities/year

Thus, the “worse” of the cases, the one involving the release of sulfur dioxide has an indicative risk of about 0.0000035. This is just slightly higher than the internationally-accepted safety risk criteria of 1 × 10-

6 fatalities/year (or, 0.000001). In contrast, typical risk from using a motor vehicle is approximately 0.0001 to 0.0002 fatalities per year. It should further be noted that the worst case scenario is based on the assumption that the sulfuric acid production facility will fail at full reactor’s capacity (four tons) – an extremely unlikely case. Also, it was assumed that 50% of the surrounding area within the estimated 25 meter effect radius has the maximum population density (based on the highest number of on-site worker) – a highly conservative assumption. From another perspective, the facility (as defined/postulated) is about three order of magnitude (1,000×) safer than using a motor vehicle.

5.2 Environmental Risk Management Plan 5.2.1 Emergency Response Policy and General Measures It shall be the policy of the proponent during emergency situations to use all available resources first to protect the employees and host communities followed by preservation of property and the environment. Systems and procedures will be established for an effective response to all identified emergency situations which will be documented in the proponent’s Emergency Response Plan. Employees will be trained in the effective implementation of the emergency response while emergency drills and exercises will be regularly conducted with the cooperation of external response organizations. The Emergency Response Plan shall describe the response actions for the following identified emergencies:

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• Chemical releases • Gas leakages • Fires and explosions • Tailings dam failure and land slides • Severe weather • Floods and tsunamis • Earthquakes • Attacks by lawless elements To ensure that hazards or risks that may be posed by the project are further minimized, the following measures are recommended: • Adoption of corporate safety policies incorporating environmental concerns in the entire operation

for strict adherence by all employees and with full support by top management. • Manpower complement should consist of professional, technical and competent employees who

possess a high regard for health and safety and are environmentally conscious. • A continuing training program to educate and inculcate safety and environmental consciousness

among its employees shall be instituted. Trained personnel are expected to be competent in the fulfilment of their tasks under both normal and abnormal or emergency conditions

• Personnel participation at all levels should be encouraged in the development and review of safety

management procedures. • Development of emergency plan/s that embodies an effective and ensured organizational

structure with clear definition of the roles of each actors or participants. The plans must have well-understood response procedures. It must also provide for the conduct of testing/drills to determine its adequacy. Most importantly, the plan must be flexible enough so that corrective modification, whenever necessary, can be made.

• Personnel development and job rotations should be consistent with operational safety

requirements. • A system for reporting and investigating significant accidents in the project site should be

established. • Compliance with structural requirements as stipulated in the Structural Code of the Philippines

must be strictly enforced. In particular, structural requirements related to ground movement and subsidence must be complied with.

• Compliance with international standards must be enforced when applicable. Such standards

include the ASME code for pressure piping and vessels. • Accident preventive policies, procedures and activities should be integrated with those relating to

occupational safety, health and environmental protection as part of the company's total risk management program. A management scheme on transport of hazardous materials must be incorporated in the program.

These measures are in addition to those already indicated in the Environmental Management Plan. The list of equipment that the company will maintain to handle emergency conditions/situations is presented in Table 5.2.1-1.

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Table 5.2.1-1 List of Equipments for Various Emergency Conditions No. Items Equipment Emergency Condition 1 Power Supply Emergency Generator (EG) Boiler / STG Shutdown

2 Water Supply Water Pond Malfunction of water supply system; drying up of water resources

3 Off Gas Treatment H2S Gas Scrubber Boiler / STG Shutdown (To be run automatically with EG by Shutdown sequence)

4 H2S Gas Leak

Gas Detector Oxygen mask Ventilation system

H2S leak from any process equipments (H2S Plant to be shutdown sequence if H2S concentration will reach HH set point)

5 Fire Fighting Hydrant Fire Extinguisher Fire Truck

Fire accident

6 Acidic / alkaline solution leak

Submersible pump Vacuum truck pH detector / gate for the ditch

Process solution leakage (Gate to be shut automatically in the case of HH or LL pH detector)

7 Others Automatic shutdown system Abnormal status of operation

8 Personal Gas mask, rubber gloves, safety goggles, rubber boots and hard hat

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6.0 Environmental Management Plan 6.1 Impacts Management Plan

Table 6.1-1 Summary of the various impacts and mitigation measures for the different project phases

Project Phase / Environmental Aspect (Project Activity Which Will

Likely Impact the Environmental Component)

Environmental Component

Likely to be Affected Potential Impact Options for Prevention or Mitigation or

Enhancement Responsible

Entity Cost

Guarantee / Financial

Arrangements

I. Pre-Construction Phase

• Social Preparation

• Negotiations for Land Purchase

A. The People Fears and apprehensions of the people

Possibility of displacement and/or not properly compensated

Conduct of community-based IEC to address sources of fears and apprehensions of households

This impact pertains to the purchase or lease of land where the plant and auxiliary facilities will be located. Landowners/tenants and/or status of ownership will be identified. An agreement between the owner and TMC will be made. In the event of unlikely displacement, TMC will implement a compensation package based on existing laws and regulations.

A one-hectare site in Hayanggabon has been designated as a resettlement area for the affected families living downstream of the proposed tailings dam site. Appropriate compensation according to law will be made with respect to disruption (e.g., loss or damaged) to livelihood and to dwelling units

TMC

TMC

Php

500,000

Part of the Project Cost

Part of the Project Cost

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Project Phase / Environmental Aspect (Project Activity Which Will

Likely Impact the Environmental Component)

Environmental Component

Likely to be Affected Potential Impact Options for Prevention or Mitigation or

Enhancement Responsible

Entity Cost

Guarantee / Financial

Arrangements

and other assets, except land.

II. Construction Phase (include only applicable modules)

Construction of various components including ore preparation circuit, HPAL, counter current decantation circuit, wharf facilities, townsite, coal-fired power plant, quarry facilities, and tailings dam

The Land/The Water

The Air

• Possible impact on soils from vehicle and machine fuel spills

• Possible impact on streams and coastal waters from erosion and sedimentation

• Solid and liquid waste management issues

• Effects on marine and aquatic biota associated with water quality impacts such as erosional impacts causing increased levels of TSS and possible petroleum contamination

• Noise generation from vehicles , construction activities and operation of construction equipment

• Proper housekeeping • Provision of hygiene and sanitary

facilities • Enforcement of a solid and liquid waste

management plan • Enforcement of proper management

practices for the handling of fuels and oils

• Establishment of mine water and coastal water management systems which will serve as controls in minimizing sedimentation impacts on water ways

• To minimize noise, heavy equipment will be appropriately muffled. Workers operating heavy equipment will be provided with appropriate PPE, as

TMC

TMC

TMC

Php

7,000,000

Part of the Project Cost

Part of the Project Cost

Part of the Project Cost

Part of the Project Cost

Part of the Project Cost

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Project Phase / Environmental Aspect (Project Activity Which Will

Likely Impact the Environmental Component)

Environmental Component

Likely to be Affected Potential Impact Options for Prevention or Mitigation or

Enhancement Responsible

Entity Cost

Guarantee / Financial

Arrangements

Employment

The People

• Site preparation, construction of the haul roads and clearing activities, and earth works will generate fugitive dusts.

Employment/Influx of migrants

necessary.

• Road dust emissions will be suppressed with water, as necessary on a regular basis. In addition, drivers’ will be educated on the effects of vehicular speed on dust generation. Speed limits will be enforced by the company.

Implementation of local-first hiring policy

TMC

TMC

Part of the Project Cost

Part of Project Cost

III. Operation Phase

HPP Operations The People

Possible Health Issues

Protective Personal Equipment (PPE) and devices (e.g. hard hats, gloves, goggles, safety glasses, ear plug, respirator, acid proof uniforms) will be provided to all workers in the facility. An occupational safety and health management plan will be implemented for strict compliance. Health monitoring of all employees will be done on a regular basis.

TMC Php 500,000 Part of Project Cost

The People/The Land/The Air

Operational risks and safety issues; On and off-site contamination risks in the event of an accident

A closed system approach shall be implemented in all facilities to prevent any potential gas leakage to the surrounding environment. An emergency shut down system will also be installed to prevent any risks of emission to the surrounding

TMC Part of Project Cost

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Project Phase / Environmental Aspect (Project Activity Which Will

Likely Impact the Environmental Component)

Environmental Component

Likely to be Affected Potential Impact Options for Prevention or Mitigation or

Enhancement Responsible

Entity Cost

Guarantee / Financial

Arrangements

environment. Measures to reduce risks such as the installation of Distributed Control System (DCS), noise monitoring equipment, gas detectors, pressure and chemical control systems, fire control systems, and other redundant safety devices as contingency will be in place. Parameters such as gas concentration, pH, pressure, temperature etc. will be monitored by DCS. Electrical systems to be installed in hazardous areas will be based on American Petroleum Institute (API) standard. The facilities in particular will be designed with provision for more open spaces as a passive measure to disperse any leakage of Hydrogen Sulfide.

The Water/The Land

Solid and liquid waste management issues

Processing waste will be subject to monitoring and treatment will be done prior to disposal into the tailings dam. Disposal of domestic wastes from office and plant operations will be in accordance with acceptable waste management practice. Waste such as worn out electrical components, processing and handling facilities will be subject to materials recovery prior to proper disposal.

TMC Part of the Project Cost

Tailings dam operations The Land, The Water

Possible failure and leakage of tailings

Periodic monitoring of structural integrity will be conducted on the dam and appurtenant structures during its entire operational life.

Processing waste will be pre-treated prior to disposal at the tailings facility to guarantee a

TMC Part of the Project Cost

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Project Phase / Environmental Aspect (Project Activity Which Will

Likely Impact the Environmental Component)

Environmental Component

Likely to be Affected Potential Impact Options for Prevention or Mitigation or

Enhancement Responsible

Entity Cost

Guarantee / Financial

Arrangements

safe release into the environment. Periodic water and sediment quality monitoring will be implemented in tributaries immediately downstream of the tailings dam.

Limestone quarry operations

The Land

Erosion along disturbed slopes and exposed soil surfaces; Increased landslide potential in quarry areas with unstable slopes

Benching will be implemented in quarry areas to reduce the risk of slope failure as well as minimize surface erosion. Slope stabilization measures will be implemented as needed in areas prone to collapse. A plan for surface water drainage management will be developed to further reduce the risk of related slope failure.

TMC Part of the Project Cost

The Land, The Water

Possible impact on soils and water from vehicle and machine fuel spills

Environmental best practice in the handling and proper management practices for the handling of fuels and oils will be implemented. Periodic checks and maintenance of vehicles and equipment will be implemented. Procedures on the proper disposal of used oil will be observed.

TMC Part of the Project Cost

The Land, The Water

Solid and liquid waste management issues

Disposal of domestic wastes from office and plant operations will be in accordance with acceptable waste management practice. Waste materials generated from the quarry operations will be subject to materials recovery prior to proper disposal.

TMC Part of the Project Cost

The Land Impacts on vegetation cover and wildlife within the quarry site

Threatened wildlife will be captured and released off-site or turned over to the DENR. A proactive rehabilitation program will be implemented in the disturbed areas during the

TMC Part of the Project Cost

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Project Phase / Environmental Aspect (Project Activity Which Will

Likely Impact the Environmental Component)

Environmental Component

Likely to be Affected Potential Impact Options for Prevention or Mitigation or

Enhancement Responsible

Entity Cost

Guarantee / Financial

Arrangements

cessation of quarrying activities.

The Air Possible increase of emission and dust suspension in disturbed and exposed soil surfaces

Possible increase in noise levels

Sprinkling of exposed surfaces of quarry and haul roads will be implemented to reduce dust suspension. Periodic checks and maintenance of vehicles and equipment will be implemented to address noise and emission concerns.

TMC Part of the Project Cost

The Water

Possible impact on streams and coastal waters from erosion and sedimentation

Water and sediment quality monitoring will be conducted on the affected tributaries and coastal waters on a periodic basis. Sedimentation control measures such as check dams will be installed in tributaries that drain the quarry area to control the amount of sediment influx into waterways

TMC Part of the Project Cost

The People Safety issues during quarry and haulage operations

Proper Protective Personal Equipment (PPE) and devices (e.g. hard hats, gloves, goggles, safety glasses, and ear plugs) will be provided to all workers in the quarry site. An occupational safety and health management plan will be implemented for strict compliance. Health monitoring of all employees will be done on a regular basis.

TMC Part of the Project Cost

Loading and unloading of materials within the wharf facilities

The People

Possible health and safety issues concerning the handling, use and risks of handling equipment and materials within the wharf facilities

Protective Personal Equipment (PPE) and devices (e.g. hard hats, gloves, goggles, safety glasses, ear plug, respirator, acid proof uniforms) will be provided to all workers in the facility. An occupational safety and health management plan will be implemented for

TMC Part of the Project Cost

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Project Phase / Environmental Aspect (Project Activity Which Will

Likely Impact the Environmental Component)

Environmental Component

Likely to be Affected Potential Impact Options for Prevention or Mitigation or

Enhancement Responsible

Entity Cost

Guarantee / Financial

Arrangements

strict compliance. Health monitoring of all employees will be done on a regular basis.

The Land/The People

Operational risks and safety issues

A closed perimeter system approach will be implemented in all facilities to prevent any potential leakage to the surrounding environment. Measures to reduce risks such as the installation of noise monitoring equipment, gas detectors, pressure and chemical control systems, fire control systems, and other redundant safety devices as contingency will be in place.

TMC Part of Project Cost

Storage of Materials

The Land / The People

Possible health and safety issues concerning the handling, use and risks of handling equipment and materials within the storage facilities

Protective Personal Equipment (PPE) and devices (e.g. hard hats, gloves, goggles, safety glasses, ear plug, respirator, acid proof uniforms) will be provided to all workers in the facility. An occupational safety and health management plan will be implemented for strict compliance. Health monitoring of all employees will be done on a regular basis.

TMC Part of Project Cost

The Water / The Land

On and off-site contamination risks from substance leakage in the event of an accident and risk of combustion/fire

Strong materials such as carbon steel-based tanks will be used to store the more sensitive materials such as sulphuric acid and methanol. Passive containment structures such as concrete dikes with capacities equivalent to the tanks will be erected to surround the storage facilities. Appurtenant structures will be erected with provision for open spaces to facilitate passive measures that will address any potential leakage. Active

TMC Part of Project Cost

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Project Phase / Environmental Aspect (Project Activity Which Will

Likely Impact the Environmental Component)

Environmental Component

Likely to be Affected Potential Impact Options for Prevention or Mitigation or

Enhancement Responsible

Entity Cost

Guarantee / Financial

Arrangements

monitoring and safety systems will be installed to immediately address any leakage-related risks that may occur.

Employment The People Employment/ Influx of

migrants Implementation of “local-first” hiring policy.

LGU/TMC Part of Project Cost

Coal-fired power plant operations

The Land, The Water

Possible impact on soils from vehicle and machine fuel spills

Designated areas for refuelling and vehicle maintenance which will have oil/water separator facilities; Fuel storage areas will be bunded to contain accidental spills and leaks.

TMC Part of the Project Cost

The Land, The Water

Solid and liquid waste management issues including domestic waste management issues

Establishment of solid waste management facilities and establishment of water management facilities.

TMC Part of the Project Cost

The Land, The Water

Possible impact on immediate receiving body of water from thermal effluent release.

Thermal effluent will be allowed to cool down in the tailings pond; it will not be directly released into any body of water. Regular water quality monitoring.

TMC Part of the Project Cost

The Land, The

Water Possible impact on soils and water in relation to ash disposal.

Ash from the power plant will be disposed in ash disposal pit. Regular water quality monitoring.

TMC Part of the Project Cost

The People Possible health and safety issues concerning the handling, use and risks of handling equipment and materials within the storage facilities

Protective Personal Equipment (PPE) and devices (e.g. hard hats, gloves, goggles, safety glasses, ear plug, respirator, acid proof uniforms) will be provided to all workers in the power station. An occupational safety and health management plan will be implemented for strict compliance. Health monitoring of all employees will be done on a regular basis.

TMC Part of the Project Cost

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Project Phase / Environmental Aspect (Project Activity Which Will

Likely Impact the Environmental Component)

Environmental Component

Likely to be Affected Potential Impact Options for Prevention or Mitigation or

Enhancement Responsible

Entity Cost

Guarantee / Financial

Arrangements

The Air Stack emissions, i.e., TSP, SO2 and NO2, from the proposed coal-fired power plant and sulfuric acid plant may exceed emission standards and adversely affect the ambient air quality.

To control the power plant emissions, dust collectors will be in place and low sulfur-content coal and high efficiency combustion will be utilized for the operation. For sulfuric acid production, emissions of SO2 shall be controlled by the absorption of SO3 into H2O. Regular maintenance of the equipment for both the power plant and sulfuric acid plant must be conducted to maintain efficiencies of the different equipment.

Regular air quality monitoring and stack emissions monitoring.

TMC Part of the Project Cost

IV. Abandonment Phase

(include only applicable modules)

Removal/dismantling of unnecessary infrastructures

The People Safety Issue; Aesthetic/visual impacts to the community

All infrastructures that can be used by the community will be awarded with the agreement of both parties.

TMC EGF

Disposal and cleanup of solid wastes, unused chemicals and hazardous materials from the decommissioning of the different project facilities (stockyards, waste dump, tailings dam, offices, workshops, water supply and sewerage systems)

The Water

The People

Possible soil and water contamination

Possible health and Safety issues regarding handling of hazardous materials

An environmental site assessment will be carried out to determine occurrence and degree of contamination from varied wastes. Handling and disposal of domestic wastes will be in accordance with the Solid Waste Act. Recyclable and hazardous materials will be set aside for separate handling.

Protective Personal Equipment (PPE) and devices (e.g. hard hats, gloves, goggles, safety glasses, ear plug, respirator, acid proof

TMC EGF

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Project Phase / Environmental Aspect (Project Activity Which Will

Likely Impact the Environmental Component)

Environmental Component

Likely to be Affected Potential Impact Options for Prevention or Mitigation or

Enhancement Responsible

Entity Cost

Guarantee / Financial

Arrangements

uniforms) will be provided to all workers during cleanup activities. An occupational safety and health management plan will be implemented for strict compliance. Health monitoring of all employees will be done on a regular basis

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6.2 Social Development Framework To comply with Republic Act No. 7942 or “The Philippine Mining Act of 1995”, TMC is presenting a Social Development Framework (SDF) (Table 5.1.1) using the “Procedural Guidelines in the Implementation of the Social Development and Management Program (SDMP)”. The SDF is envisioned to the basis for preparing the 5-year SDMP. The SDMP is an indicative planning document that sets the character of development assistance to its host and neighboring communities. The SDF aims to create responsible, self-reliant, resource-based communities capable of developing, implementing and managing community development programs consistent with the principles of people empowerment and sustainable development.2 SDF projects will be formulated according to the needs of the communities as expressed in household surveys, and other community participatory exercises (e.g., community consultations, focus group discussions, key informant interviews, etc.) keeping in mind the following primary areas of concern: basic social services, human resource development and institution building, enterprise development and networking, resource mobilization and protection and respect of socio-cultural values. To allow flexibility and adaptability to changing conditions in the community, the SDMP will have a maximum coverage period of five years. An annual SDMP based on the 5 year SDMP will also be prepared.

Table 6.2.1 The Social Development Framework

Concern

Responsible Community Member /

Beneficiary

Government

Agency / Non-Government

Agency & Services

Proponent

Indicative Timeline

Source of

Fund

Minimum Basic Needs of Project-Affected Communities (Based on results of household survey: water supply, infrastructure, and livelihood)

Barangay Captain Project-

Affected Families

MPDC Municipal

Engineer’s Office

Municipal Health Officer

PESO

Community Relations Officer

Commencing Pre-Construction: Validation, consultation, planning; Implementation: Construction

LGU Project Proponent

Human Resources Development of Self-Reliant Communities (Skills Development; Cooperative Training & Development)

Barangay Kagawad for Cooperatives and Livelihood Project-

Affected Communities: women, out-of-school youth, farmers, unemployed / underem-ployed

Local DILG Officer

Community Relations Officer

Commencing Pre-Construction: Validation, consultation, planning, training Implementation including initial formation of cooperatives and continuation of training:

LGU Project Proponent

2 From the “Procedural Guidelines in the Implementation of the Social Development and Management Program (SDMP)”

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Concern

Responsible Community Member /

Beneficiary

Government

Agency / Non-Government

Agency & Services

Proponent

Indicative Timeline

Source of

Fund

Construction stage

Self-Sustaining Livelihood (Identification and development of livelihood opportunities related to mining operations and independent of mining operations)

Barangay Kagawad for Livelihood Project-

Affected Families: women, out-of-school youth, families with no member who is employed by the mining company

PESO Community Relations Officer

Commencing Pre-Construction: validation, consultation, planning, training Implementation: Construction

LGU Project Proponent

Environmental Conservation (Based on household survey: household wastes disposal; community sanitation; environmental protection and enhancement,etc)

Barangay Captain Barangay Kagawad for Environment Project-

Affected Communities

MENRO CENRO MHO

Community Relations Officer

Commencing Pre-Construction: validation, consultation, planning, training Implementation: Construction

LGU Project Proponent

Socio-Cultural Values (Protection and enhancement of family life; local traditions; way of life of IPs; spiritual formation)

Mothers and heads of families

Local traditional leaders

Local religious leaders

Barangay Council (Barangay

Local Social Welfare Officer

Local IP organiza-tions

Community Relations Officer

Commencing Pre-Construction: validation, consultation, planning, training Implementation: Construction

LGU Project Proponent

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Concern

Responsible Community Member /

Beneficiary

Government

Agency / Non-Government

Agency & Services

Proponent

Indicative Timeline

Source of

Fund

Kagawad in-charge or designated for culture and/or welfare)

The above areas of concern correspond to the policy objectives specified in the “Procedural Guidelines” for preparing the SDMP. These areas of concern are broad enough as to accommodate specific projects that address the particular needs of project-affected communities. An SDMP has been prepared by TMC covering Taganito, Hayanggabon, and Urbiztondo in connection with its mining operations. The same areas of concern are addressed by the TMC-mining SDMP. There are areas of convergence in Human Resources, Self-Sustaining Livelihood, and Environmental Conservation. One area of emphasis for the HPP-SDMP3 would be in the area of Socio-Cultural Values (Protection of family values; local traditions; way of life of IPs; spiritual formation) that is not as explicit in the TMC-mining SDMP. The emphasis on Socio-Cultural Values in the HPP-SDMP assumes more importance in light of the number of workers that is likely to increase in the PACs notwithstanding the institution of a local-first hiring policy. The amount of money that will be circulating in the PACs and the increase in household incomes because of wage-based employment will have tremendous impact on family life for better or for worse. Coping mechanisms and the preservation of family life in light people being increasingly engaged in the cash economy and consumer spending are important for community cohesion and stability. These coping mechanisms would be particularly important for indigenous peoples and even members of the mainstream society who have a largely rural and pastoral lifestyle such as Sapa.

6.3 IEC Framework TMC shall institute an effective Information, Education and Communication (IEC) program to disseminate relevant information about the project to the affected communities. Emphasis of the IEC program shall be on the explanation of the different project components, the environmental management and monitoring plans which will be implemented as well as the socio-economic benefits of the project to the host communities. The IEC will be implemented through regular meetings with the different LGUs and barangays, publication of relevant informative materials, press releases on local and national media, exhibits and through the use of local community billboards. The draft IEC Plan/Framework is presented in Table 6.3-1.

3 Social Development & Management Program 2007 Plan. This SDMP covers Hayanggabon, Taganito, Cagdianao, and Sapa

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Table 6.3-1 Information, Education and Communication (IEC) Plan/Framework

Target Sector Major Topic/s IEC Scheme/Strategy

Method Information Material Indicative Timelines Indicative Cost Items

LGU (Municipal Council, MPDC, MENRO, Mayor’s Office, Local Social Welfare Officer,MHO)

Project Description (Character & nature of the project; location; project benefits; mitigation measures, etc.)

Project Status

Group Meetings Hand-outs Audio-visual presentations

Pre-Construction: Project Description Every 6 months: Project Status

Costs of meals, venues, IEC materials

Barangay Officials and Community Leaders of Project-Affected Communities (Barangay Captain / Kagawads; leaders of community-based organizations;)

Project Description (The Mining Industry in General; Character & nature of the project; location; project benefits; mitigation measures, etc.)

Project Status

Group Meetings Hand-outs Audio-visual presentations

Pre-Construction: Project Description

Every 6 months: Project Status

Costs of meals, venues, IEC materials

General Population of Project-Affected Communities (Heads of households, adult members of households, key local leaders)

Stakeholder Relations Management (Confidence-building; shared responsibilities in community development; civic values formation; complaints management;)

Group Meetings (Seminar-Workshops)

Hand-outs Audio-visual presentations Comics Newsletters

Pre-Construction & Construction: Every 6 months Operations: Every 6 months

Costs of meals, venues, IEC materials

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Target Sector Major Topic/s IEC Scheme/Strategy

Method Information Material Indicative Timelines Indicative Cost Items

Adult members of Project-Affected Communities (Household heads and / or their spouses; students & out-of-school youth

Environmental Ethics (Why take care of the environment?

Corporate, Community, and Individual Responsibilities towards the Environment)

Group Meetings (Seminar-Workshops)

Hand-outs Audio-visual presentations Comics Newsletters

Pre-Construction & Construction: Every 6 months Operations: Every 6 months

Costs of meals, venues, IEC materials

LGU Officials Barangay officials of project-affected communities General Public of project-affected communities

The SDMP (Social Development Management Program): Nature and Character

Group Meetings, separately for each category of audience (e.g., LGU officials, barangay officials, general public)

Hand-outs Audio-visual presentations Comics Newsletters

Two months before commencement of commercial operations Yearly briefing on SDMP after first year of SDMP implementation

Costs of meals, venues, IEC materials

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6.4 Abandonment / Decommissioning / Rehabilitation Policies At the end of the project lifecycle, TMC shall implement a Decommissioning and Rehabilitation Plan which complies with relevant government regulations, mitigates environmental impacts and minimizes the socio-economic impacts to the employees and affected community. Towards this end an assessment of the impacts associated with the closure will be made and a plan for potential land uses at the end of the project life will be developed. The Plan will be submitted to DENR-EMB for approval.

6.5 Environmental Monitoring Plan 6.5.1 Self Monitoring Plan Table 6.5-1 summarizes the Self Monitoring Plan for the proposed project.

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Table 6.5-1 Environmental Monitoring Plan (EMoP) with Environmental Quality Performance Levels (EQPLs)

Sampling & Measurement Plan EQPL Management Scheme

EQPL Range Management Measure

Key Environmental Aspects

Per Project Phase

Potential Impacts Per

Envit’l Sector

Parameter to be Monitored Method Frequency Location

Lead

Person Estimated Cost (PhP)

Alert Action Limit Alert Action Limit

II. Construction Phase

Clearing of vegetation

The Land: Loss of habitats and species indicators

rate of rehabilitation of nursery for the propagation of the seeds which will provide seedlings for future rehabilitation requirements

Transect / Quadrat method

Semi-annual Baseline sampling stations

PCO P150,000/ sampling

Change of landscape due to construction of various components and their appurtenant structures

The Water: Ambient Water Quality Biota/ Oceanography Siltation

pH, temperature, BOD, TSS, Oil and Grease, Coliforms Biological Indices of freshwater and marine biota; where habitats exist: life forms, percentage

AS/NZS 5667.1 (ISO 5667-1 to 3) Scientifically accepted methodolo-gies; phototransect and visual census

Monthly throughout the construction phase Quarterly for the first year

Baseline sampling stations

PCO P150,000/ Sampling

See DAO 96-34

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Sampling & Measurement Plan EQPL Management Scheme

EQPL Range Management Measure

Key Environmental Aspects

Per Project Phase

Potential Impacts Per

Envit’l Sector

Parameter to be Monitored Method Frequency Location

Lead

Person Estimated Cost (PhP)

Alert Action Limit Alert Action Limit

• Wharf

construction

cover and density counts Cover of associated benthos

phototransect and visual census

Before wharf construction

Wharf area

Increased vehicular traffic and earthwork activities

The Air: Dust Generation

TSP 1-hour averaging period

Quarterly Baseline sampling stations

PCO P25,000/ Monitoring

230ug/Ncm

Employment ; Taxes

The People: Community benefits from the project

Employment, Tax Revenues to LGUs, Community projects initiated by the proponent, Other benefits of the community from the project

FGD’s, KII’s, Household Survey (when necessary)

Semi-Annual Project-affected barangays

Third Party Consultant

P150,000/ monitoring

III. Operation Phase

Operation of tailings dam, limestone quarry and ore preparation

Vegetation and Wildlife

rate of the rehabilitation in terms of survival rate (e.g. species, number of individuals, area, etc.) vis-

Transect /Quadrat method

Semi-annual Baseline sampling stations

PCO P250,000/ sampling

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Sampling & Measurement Plan EQPL Management Scheme

EQPL Range Management Measure

Key Environmental Aspects

Per Project Phase

Potential Impacts Per

Envit’l Sector

Parameter to be Monitored Method Frequency Location

Lead

Person Estimated Cost (PhP)

Alert Action Limit Alert Action Limit

a-vis growth conditions (e.g. disturbance, growing medium, etc.)

The Water: Ambient Water Quality Effluent Quality Biota/ Oceanography Siltation

Group 1: pH, temperature, BOD, TSS, Oil and Grease, Coliforms Group 2: As, Cd, Cr, Cu, Pb Hg Group 1: pH, temperature, COD,BOD, TSS, TDS, Oil and Grease, Total Coliforms Group 2: As, Cd, Cr, Cu, Pb Hg Biological Indices of freshwater and marine biota; where habitats exist: life forms,

AS/NZS 5667.1 (ISO 5667-1 to 3) Scientifically accepted methodolo-gies; phototransect and visual census

Monthly for Grp 1; Quarterly for Grp 1 and 2 Monthly for Grp 1; Quarterly for Grp 1 and 2 Quarterly for the first year

Baseline sampling stations/or may vary depending on the final project design (i.e. where appropriate)

PCO P300,000/ sampling

See DAO 96-34

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Sampling & Measurement Plan EQPL Management Scheme

EQPL Range Management Measure

Key Environmental Aspects

Per Project Phase

Potential Impacts Per

Envit’l Sector

Parameter to be Monitored Method Frequency Location

Lead

Person Estimated Cost (PhP)

Alert Action Limit Alert Action Limit

percentage cover and density counts

The Air Dust Generation

TSP 1-hour averaging period

Quarterly Baseline sampling stations/or may vary depending on the final project design (i.e. where appropriate)

PCO P50,000/ sampling

230ug/Ncm

Operation of the HPP

The Air Ambient Air Quality Stack Emissions

Group 1: TSP, PM10, NOx, and SO2 Group 2: TSP, PM10, NOx, SO2 and CO,CO2, As, Cd, Cr, Cu, Pb, Hg

1-hour averaging period

Quarterly for Grp 1; Monthly for Grp 2

Baseline sampling stations/or may vary depending on the final project design (i.e. where appropriate)

P150,000/ sampling

See DENR NAAQS

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Sampling & Measurement Plan EQPL Management Scheme

EQPL Range Management Measure

Key Environmental Aspects

Per Project Phase

Potential Impacts Per

Envit’l Sector

Parameter to be Monitored Method Frequency Location

Lead

Person Estimated Cost (PhP)

Alert Action Limit Alert Action Limit

The Water: Ambient Water Quality Biota/ Oceanography Siltation

Group 1: pH, temperature, BOD, TSS, Oil and Grease, Coliforms Group 2: As, Cd, Cr, Cu, Pb Hg Biological Indices of freshwater and marine biota; where habitats exist: life forms, percentage cover and density counts where habitats exist: life forms, percentage cover and density counts

AS/NZS 5667.1 (ISO 5667-1 to 3) Scientifically accepted methodolo-gies; phototransect and visual census

Monthly for Grp 1; Quarterly for Grp 1 and 2 Quarterly for the first year

Baseline sampling stations/or may vary depending on the final project design (i.e. where appropriate)

300,000/ sampling

See DAO 96-34

Employment Tax

Community benefits from the project

Employment, Tax Revenues to LGUs, Community projects initiated by the proponent, Other benefits

FGD’s, KII’s, Household Survey (when necessary)

Semi-Annual Project-affected barangays

Third Party Consultant

Php 150,000 per monitoring

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Sampling & Measurement Plan EQPL Management Scheme

EQPL Range Management Measure

Key Environmental Aspects

Per Project Phase

Potential Impacts Per

Envit’l Sector

Parameter to be Monitored Method Frequency Location

Lead

Person Estimated Cost (PhP)

Alert Action Limit Alert Action Limit

of the community from the project

IV. Abandonment Phase

Removal/dismantling of unnecessary infrastructures

The People: Safety Issue; Eyesore to landscape

Once Site location of ancillary facilities

TMC

Decommissioning of project facilities: stockyards, HPP, limestone quarry, water system and sewerage source, tailings dam and solid waste dumps Disposal of solid wastes and hazardous materials

The Water: Water Quality The People: Health Hazard

Based on the recommendation of the ESA that will be conducted prior to abandon-ment

Once Project site TMC

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For monitoring of the marine components, initial stations identified were surveyed/sampled using methods respective to the substrate/habitat for the EIA. These stations will be retained as monitoring stations for the EMP (Figure 6.5.1-1). Stations for habitat monitoring are located where the respective habitat (seagrass or coral) exist. Two plankton stations were added to cover the area off the limestone quarry site, which are also coincident with the benthos sampling stations.

Figure 6.5.1-1 Proposed Marine Monitoring Points

Karaang Banwa

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6.5.2 Multi-Sectoral Monitoring Framework

As provided in DAO 03-30, a Multipartite Monitoring Team (MMT) will be organized. The MMT will regularly monitor the activities stipulated in the approved EMP, and conditions set in the ECC. The MMT for this project shall be composed of the different stakeholders to include but not limited to the following:

• Representative of the Proponent (TMC) • Representative from concerned government agencies (EMB-XIII, PENRO, CENRO) • Representative from the affected communities (Municipality of Claver, Barangay Cagdianao,

Hayanggabon, Taganito and Sapa) • Representative from Tribal communities (Mamanua) • Representative from concerned NGOs operating in the area

6.5.3 Environmental Guarantee and Monitoring Fund Commitment

The Environmental Guarantee and Monitoring Funds are also provided in DAO 03-30. The former is intended to ensure just and timely compensation for damages and progressive rehabilitation for any adverse effect of the project; while the latter is intended to support the activities of the MMT. For the Environmental Guarantee Fund, the amount will be determined through the agreement between TMC and the EMB. Similarly, the Environmental Monitoring Fund shall be agreed upon by these two parties, in consultation and coordination with the MMT, which will be specified in a Memorandum of Agreement (MOA).

6.5.4 Institutional Plan for EMP Implementation

The Taganito HPP Project will be managed and operated by Taganito Mining Corporation. TMC commits to:

• Comply with the conditions that will be stipulated in the ECC and other related environmental laws;

• Foster mutually beneficial partnership and cooperation with host communities; • Promote sustainable use and responsible development of resources by adopting appropriate

technologies; • Develop livelihood programs and upgrade skills of host communities to contribute and

enhance the quality of life; and • Develop training programs for its employees which will ensure them to be continually

prepared for the specified tasks assigned to them.

The organizational chart of the TMC is shown in Figure 6.5.4-1.

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Figure 6.5.4-1 TMC Organizational Chart for EMP implementation

PLANT MANAGER

ENVIRONMENTAL MANAGEMENT OFFICE

Head/Pollution Control Officer SAFETY

DEPARTMENT Department Head

INDUSTRIAL HEALTH DEPARTMENT Department Head

Tailing Dam/Effluent Management Sec (1).

Head (1)

Tailing Dam Integrity

Supervisor (1)

Soil Laboratory Technician

(1)

Environmental Management Section

Environmental Officer (1)

Effluent Management Supervisor

(1)

Environmental Supervisor

(1)

Effluent Management Supervisor Assistants

(3)

EMO Staff

(1)

Marine Biologist

(1)

Forester

(1) Safety Inspector

(9)

Safety Supervisor

(3)

Supervisor

(1)

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