TVI Pacific - Accomplishments & Challenges - December 2011
-
Upload
tvi-pacific -
Category
Investor Relations
-
view
12.026 -
download
4
description
Transcript of TVI Pacific - Accomplishments & Challenges - December 2011
Mining in the Philippines
Our Accomplishments and Our Challenges
2
Our PropertiesNorth Zamboanga Tenement Area = 162,403 hectares (401,307 acres)
0Kilometres
Miles0 25.0
15.5Manila
Tamarok & Tapisa Copper / Gold
Projects
Canatuan Copper / Zinc
Mine
Bonbon Gold Prospect
Balabag Gold / Silver
Project
Zamboanga Sibugay
Zamboanga del NorteZamboanga del SurGutalac
Municipality
BaliguianMunicipality
SioconMunicipality
Dipolog City
3
TVIRD Timeline
1994 Signs an Exploration Agreement with Option to Purchase
1996-1998 Exploration commences under approved MPSA
2001 Executes MOU with Siocon Subanon Association, Inc.
2002 - 2004 Buys and processes tailings from illegal small-scale miners (the “Environmental Cleanup”)
2004 Gossan Project begins
2005 Recommences definition drilling/development program
2006 Completes Gossan Dam, applauded by Canadian Ambassador and DENR Secretary
2008 Gossan Project ends – Construction begins for Sulphide Project
2009 Commercial operations at Sulphide Project commence
2010 2010 Presidential Mineral Industry Environmental Awards Platinum Achievement.
20112011 Presidential Mineral Industry Environmental Awards Titanium Award for Excellence in Environmental ManagementSafest Mine Award
2011 Ordinance Banning New Open Pit Mining Filed
4
Canatuan Before…
The area was an ecological disaster with a degraded water supply as a result of small-scale mining
5
Canatuan Before…
Crude, leaky small-scale mining tailings ponds pouring mercury and cyanide into the watershed
6
Canatuan Before…
6
Young children, with no access to basic education, often labour along with their families
Child Labor
A 12-year old child here is shown unloading goods
8
Canatuan Today - Mining, Production & Shipment
PIT PLANT
PROCESSPRODUCTPORT
9
Canatuan Today
Canatuan Today
Today, children from Canatuan and surrounding communities go to school to learn and play
What we had to contend with…
Actions and Attacks Allegations Actors
• Blockades of company equipment and personnel
• Protest actions and rallies• Complaints lodged in
Philippine Congress, Senate, Provincial Board, and Canadian Parliament
• Complaint filed with the UN Committee on the Elimination of all forms of Racial Discrimination
• Report: “Mining or Food”• Philippine and
International media• Internet
• Human Rights abuses• IP Rights violations• Harassment• Encroachment on
ancestral domain• Lack of social acceptance• Militarization• Environmental destruction
(e.g. “collapse” of tailings dam)
• Cyanide poisoning
• Local government officials • DIOPIM Committee on
Mining Issues (DCMI) and other Roman Catholic Church-based groups such as CAFOD
• Philippine Indigenous People’s Links
• Mining Watch Canada • Christian Aid• Rights and Democracy• Alyansa Tigil Mina• Former illegal small-scale
miners in Canatuan• National government
executives and legislators
Mining in the PhilippinesOur Accomplishments
Strong Indigenous leadership support
Subanon Chieftain Timuoy Jose Anoy (right) with Subanon Seven Rivers Overall Chieftain Timuoy Noval Lambo protesting against mining.
Subanon Chieftain Timuoy Jose Anoy (far right) with Mansaka Chieftain Datu Cristante Alfons and B’laan Chieftain Folong Motom Madule leading the opening ceremonies of Coalition for Responsible Mining in Mindanao launching program in September 2010.
Canatuan before… Canatuan today…
14
Social Development & Management Program
Health, Sanitation and Fresh Water Sustainable Livelihood: Demo Farms
15
Health and SanitationBuilt health clinic that provides free 24/7 healthcare and ambulance service to impact communities
Responsive EducationBuilt 6 schools, currently 2,500 students, 56 high school graduates & 48 college scholarships
InfrastructureBuilt or improved 85 kilometres (52.8 miles) of roads, including 4 bridges & a spillway
Sustainable LivelihoodFocused on sustainability, economics and social well-being of community including micro-finance, technical skills, training & apprenticeship programs
Royalty & Support for Ancestral DomainExtended technical & financial assistance for crafting of Ancestral Domain Sustainable Development & Protection Plan
Development for Impact CommunitiesInitiated projects in areas outside Canatuan: Built Sta. Maria water system Built 11 kilometres (6.8 miles) of farm- to-market road
Corporate Social Commitment
16
Biodiversity50% of mining area remains in original habitat condition
Watershed ManagementMore than 25 locations subject to daily, weekly and quarterly water quality monitoring
Reclamation and RehabilitationMore than 200,000 trees have been planted since 2004
Tailings ManagementFour tailings storage facilities constructed with three undergoing reclamation
Monitoring ProgramsMonitoring by third party professionals completed on weekly, quarterly and annual basis
Research ProgramsOnsite research and studies for passive wetland acid mine treatment using indigenous plants
Environmental Commitment
17
We are Transparent
• Mine Tours – “Our Doors Are Open”• Quad-Media Information Campaign• Strategic Industry IEC Alliance
National Mine Safety and Environment Conference (November 2011)
2011 Presidential Mineral Industry Environmental Awards
• Titanium Award for Excellence in Environmental Management
• Safest Mining Operation
• Safest Surface Mining Operation
• Safest Mineral Processing, Concentrator Category
18
Num
ber
1 P
riorit
y“Best of the best” – and No FatalitiesSafety & Environmental Awards
National Mine Safety and Environment Conference (November 2010)
2010 Presidential Mineral Industry Environmental Awards
• Platinum Achievement Award, Surface Mining Category
• First runner-up in the Safest Mines Awards, Concentrator Category
• Runner-up in the Mining Forest Award, Metallic Category
19
Num
ber
1 P
riorit
y
Over 6 million man hours worked with only one lost-time incident
Department of Labor and Employment, the Rotary Club of Zamboanga City-East and the Zamboanga Peninsula Tripartite Industrial Peace Council(June 2011)
• Most Outstanding Employer in Region 9 (Zamboanga Peninsula)
Over 4 million man hours worked with no lost-time incidents
“Best of the best” – and No FatalitiesSafety & Employer Awards
Department of Labor and Employment(May 2011)
• Outstanding Employer of Zamboanga del Norte, Industrial Category
Philippine Bureau of Working Conditions Awards, Department of Labor (Sept 2010)
• TVI Safety for its 2009 performance of zero lost-time accidents
• Top Occupational Safety & Health Manager, Mining Category
TVI’s Contribution to the Economy
20
TVI has provided all of these to the local and regional communities advancing Siocon from a Class 4 to a Class 1 municipality: Jobs Roads, transportation across the peninsula Power & Communications (cell tower) Multiple levels of Education Hospitals, 24/7 Ambulance Security, peace & order Port facilities Water purification systems Training –agriculture, crafts, apprenticeship programs Environmental cleanup from pre-illegal small scale miners Taxes and royalties to Subanon and others
TVI’s Contribution to the Economy
21
2004-2008 2009 2010 2011As of Sept Total
Excise Tax Paid (PhP) 77.8 M 62 M 68 M 53.6 M 261.4 M
Royalties Paid to IP (PhP)1%, now 1.5% of gross revenue 39.6 M 30.6 M 35 M 41.7M 146.9 M
Actual SDMP (PhP)Expenses 23.2 M 7.4 M 11.5 M 25.9M 68.0 MBusiness Permit (PhP)(Siocon) 6.7 M 0.35M 4.4 M 11.5M 22.9 MReal Property Tax (PhP)(Siocon / Baliguian) 0.7M 0.3 M 1.5M 4.1M 6.6 M
CONTRIBUTION 148 M 100.6 M 120.4 M 136.8 M 505.8 M
Operating Costs (PhP) 4.0 B 1.3 B 2.0 B 2.1 B 9.0 B
CapEx 1.8 B 0.2 B 0.3 B 0.3 B 2.6 B
Mining in the PhilippinesThe Challenges
Ordinance Banning New Open Pit Mining
The Ordinance
The Ordinance was approved by the Sangguniang Panlalawigan (Provincial Board) of Zamboanga del Norte
Bans open pit mining – but expressly permits small-scale mining, and mining by tunneling (i.e. underground)
Gives current open pit operations one year to operate, after which they have to cease operations and become completely rehabilitated
After 60 days, it requires existing open pit operations to have “totally curtailed” any siltation, erosion and mudflows
The Ordinance
• GIVES THE GOVERNOR EFFECTIVE CONTROL OVER MINING • IS DRACONIAN
Governor is entitled to issue cease and desist orders, and to seize the mining assets, as well as the inventory of product produced, and of course, throw management in jail.
Requires that for any new application for mining (non open-pit) tenements, the Governor must give clearance of consultation – and there must be approval by all LGUs including the Province.
Gives any SEC accredited NGO the power of citizen’s arrest against any officer of a mining company if the NGO believes there is a violation of any provision of the Ordinance.
Levies 10% Environment Fund on new projects
The Ordinance
Is Invalid and Unconstitutional
Ordinance violates the due process, equal protection and non-impairment of contracts clauses of the 1987 Constitution
Ordinance is contrary to the applicable provisions of the Local Government Code and the Mining Act, and runs counter to the public policies espoused in these laws.
Ordinance would adversely affect the successful environmental protection and enhancement programs and the positive socio-economic impact that TVIRD operations has had on the community
The Ordinance
What It REALLY Means
Good Mining versus Bad Mining• Designed to promote irresponsible small-scale mining
Enforcement versus Non-Enforcement• Removes National Government Responsibility to ensure
responsible mining
Accountability versus Non-Accountability• Removes National Government Responsibility for a clean
environment versus destructive small-scale mining devastation to the environment
The Ordinance
Will shut down an operation that has become a major contributor of economic benefit to the Province.
a. Cleaned up the toxic waste of previous, illegal small-scale miners;b. Extensively rehabilitating impact and non-impact areas (230,000 trees to date); c. Invested US$60 million in exploring and developing Canatuan; b. Invested US$23 million in the construction of world-class dams;c. In operation for seven years with full accountability; c. We employ ~1,000 people and positively affect the lives of thousands
more;
The Negative Impact
If the Ordinance is Not Stopped…..
CANCELLEDHealth and SanitationBuilt health clinic that provides free 24/7 healthcare and ambulance service to impact communities
Responsive EducationBuilt 6 schools, currently 2,500 students, 56 high school graduates & 48 college scholarships
InfrastructureBuilt or improved 85 kilometres (52.8 miles) of roads, including 4 bridges & a spillway
Sustainable LivelihoodFocused on sustainability, economics and social well-being of community including micro-finance, technical skills, training & apprenticeship programs
Royalty & Support for Ancestral DomainExtended technical & financial assistance for crafting of Ancestral Domain Sustainable Development & Protection Plan
Development for Impact CommunitiesInitiated projects in areas outside Canatuan: Built Sta. Maria water system Built 11 kilometres (6.8 miles) of farm- to-market road
Corporate Social Commitments
CANCELLED
Security personnel participate inCreating models for community livelihood projects Backyard poultry raising and marketing Farm products supply food for mine personnel20 medical missions since 2009
Professionalizing the security organizationIntegrated with the communityCommitment to Voluntary Principles on Security and Human Rights trainingFormed Emergency Response Team for the community’s safety
Have earned tremendous, widespread community support
Biodiversity50% of mining area remains in original habitat condition
Watershed ManagementMore than 25 locations subject to daily, weekly and quarterly water quality monitoring
Reclamation and RehabilitationMore than 200,000 trees have been planted since 2004
Tailings ManagementFour tailings storage facilities constructed with three undergoing reclamation
Monitoring ProgramsMonitoring by third party professionals completed on weekly, quarterly and annual basis
Research ProgramsOnsite research and studies for passive wetland acid mine treatment using indigenous plants
The Negative Impact
If the Ordinance is Not Stopped…..
CANCELLED
Environmental Commitments
CANCELLED
Safety & Security
30
The Negative Impact
Health, Sanitation and Fresh Water Sustainable Livelihood: Demo Farms
CANCELLEDIf the Ordinance is Not Stopped…..
Our Action PlanLegal Initiatives
November 2, announces preparation of legal challenge to nullify the Ordinance
November 8, launched an action in court for a temporary restraining order (TRO) and/or a preliminary injunction against any officers, agents, employees, representatives and anyone acting on behalf and within the control of Zamboanga del Norte from implementing an ordinance banning open pit mining in the province.
November 17, first of four hearings
November 24, second of four hearings
December 1, third of four hearings
December 8, final hearing to present our evidence to support permanent injunction
Our Action Plan
1. Key National Initiatives• Enlist support of Canadian Ambassador/Embassy• Plan meetings with key National Government Secretaries• Lobby DENR/MGB for support• Chamber of Mines, CoreMin2, Joint Foreign Chambers, Jaycees
2. Key Provincial Initiatives• PR campaign in ZdN detailing benefits of TVIRD operations• Mobilizing regional support from affected:
• Municipalities, Indigenous People, businesses
3. Municipal Initiatives• Working closely with the Siocon Town Officials• Assisting concerned voters from Impact Barangays
• Petition from voters in Impact Barangays • Mobilizing municipal IPs, affected municipal businesses
TVI Recommendations
1. Decisive action by the National Governmento Intervene – LGU’s cannot overturn an Act of Congress like
the Mining Acto DENR needs to use its powers of supervision over LGU’s on
Mining/Environment
2. Enhance the revenue base and capacities of LGU’so Allow excise tax to be paid directlyo Increase revenue share of LGU’s from existing mining taxes
3. Streamline the administration process for miningo A heavy, expensive, time-consuming processo Coordination of NCIP - DENRo Reinstitute the Minerals Development Council
Our Continued Commitment
We are
Proud of what we’ve achievedExpressly proud of our social and environmental success
Our Continued Commitment
WE WILL VIGOROUSLY FIGHT THE ORDINANCEWe will continue to invest in mineral development for the benefit of the PhilippinesWe will continue working with all of our stakeholders – including the LGU’s, but we need strong National Government support, now.
35
The Negative ImpactIf the Ordinance is Not Stopped…..
The area was an ecological disaster with a degraded water supply as a result of small-scale mining
Mining projects in Zamboanga del Norte will revert to what Canatuan was before…
This presentation should be read in conjunction
with the Ordinance and associated TVI issued
news releases that can be found here http://
bit.ly/tvvkcq
Disclaimer
There can be no assurance that any litigation commenced by TVIRD in the Philippines courts or negotiations with Zamboanga del Norte officials will result in nullification or retraction of the Ordinance or otherwise mitigate the effects of the Ordinance on the operations of TVIRD at Canatuan.
Connect With Us
37
Rhonda BennettoVP IR & Corporate [email protected]
Ian McCollInvestor Relations [email protected]
www.twitter.com/tvipacific www.facebook.com/tvipacific Create your own news links