Mar 12 at 9:51 AM

Vizcaya’s mining works on hold

by Leander C. Domingo –

12 March 2016

BAYOMBONG, Nueva Vizcaya: The commercial operation of a British-owned
mining firm in Quezon town remains suspended this month on orders of the
Mines and Geosciences Bureau (MGB) until rehabilitation is completed on
its facility damaged by a typhoon last year.

MGB regional director Mario Ancheta ordered in October last year the
suspension of construction and development work on the FCF Minerals
Gold-Molybdenum Project in Runruno village after the onslaught of
Typhoon Lando.

The MGB has directed the mining company to implement rehabilitation,
clean up the area and submit its action plan, which is still reportedly
being reviewed.

“We cannot allow a mining company to go on with its commercial
operations due to lack of compliance with the requirements based on
existing mining laws and regulations,” Ancheta said.

The MGB report showed that the residual storage impounded (RSI) of FCF
Minerals failed to contain the volume of runoff water brought about by
heavy rains, which overflowed, causing soil erosion.

But until the MGB issues a clearance for the firm, its expected
resumption of operations this month remains uncertain.

With a capital cost of $149.3 million and an estimated average annual
operation cost of $46.2 million, FCF Minerals expects to produce an
average of 96,700 ounces of gold per year over a mine life of 10.4 years.

According to FCF country manager Craig Watkins, the company has at least
672 employees in the mining project.