EXECUTIVE SUMMARY FOR THE PUBLIC

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ESP Zambales Ferro-Nickel Plant and Mining Project

WESTCHINAMIN CORP.

EXECUTIVE SUMMARY FOR THE PUBLIC

I.

Project Information

Project Name / Title

:

WESTCHINAMIN ZAMBALES FERRO-NICKEL PLANT AND MINING PROJECT

Project Location

:

Municipality of Candelaria, Province of Zambales

Project Components

:

1. Ferro-Nickel Plant and Facilities 2. Mining within the following Parcels

MPSA No. 316-2010-III, Amended I

Ha.

Parcel 1 (existing)

286.2500

Parcel II

164.7884

Parcel VII

1,483.3508

Parcel VIII

82.4208

Total

2,016.81

3. Support Facilities/Infrastructure a) Access and Mine roads b) Solar Farm for a 48MW c) Gen Set 30 MW d) Camp Facilities a. Assay Laboratory - housed the equipment in assaying the different grade of the ore b. Core house- stockpile for core samples c. Staff House – living quarters of some personnel d. Guest House – receiving quarters for guest e. Environment and Community Development Office f. g.

Mine Engineering Office

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ESP Zambales Ferro-Nickel Plant and Mining Project

WESTCHINAMIN CORP. II.

PROJECT PROPONENT PROFILE

Project Proponent

:

WESTCHINAMIN CORPORATION

Contact Person

:

Mary Grace M. De Leon President

Address

:

Penthouse, S & L Bldg., Esteban Street Corner De La Rosa Street, Legaspi Village, Makati City

Telephone Nos.

:

(+632) 706 7488; (+63) 977 324 7781

Email address

:

[email protected]

1.0

PROJECT LOCATION AND AREA

The proposed three (3) Parcels of MPSA No. 316-2010-III, Amended I where the Project is located are within the Barangays of Uacon, Malimanga, Taposo, San Roque, Sibacan, Lauis, Malabon and Pinagrealan, Municipality of Candelaria, and Barangay Guinabon Minicipality of Sta. Cruz both in the Province of Zambales. It is bounded on the North by Neutron Mining, on the South by Zambales Diversified Mining Corp. on the East by Eramen Minerals, Inc., and on the West by Barangay Lucapon South, with the following geographical coordinates stated below. Parcel I Corner

Latitude

Longitude

1

15°47’45.20”

120°02’51.40”

2

15°47’54.30”

120°02’51.40”

3 4 5

15°47’54.30” 15°48’09.80’ 15°48’09.80”

120°02’41.50” 120°02’41.50” 120°02’30.00”

6 7 8

15°49’00.00” 15°49’00.00” 15°48’30.00”

120°02’30.00” 120°03’00.00” 120°03’00.00”

9

15°48’30.00”

120°03’30.00”

10

15°47’55.10”

120°03’30.00”

11

15°47’55.10”

120°03’21.00”

12

15°47’45.20”

120°03’21.30”

Parcel I Area = 286.2531hectares

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ESP Zambales Ferro-Nickel Plant and Mining Project

WESTCHINAMIN CORP. Parcel II Corner

Latitude

Longitude

1

15°37’00.00”

119°58’30.00”

2

15°38’00.00”

119°58’30.00”

3

15°38’00.00”

119°58’00.00”

4

15°39’30.00”

119°58’00.00”

5

15°39’30.00”

120°00’00.00”

6

15°37’00.00”

120°00’00.00”

Parcel II Area = 1,483.3508 hectares Parcel VII Corner

Latitude

Longitude

1

15°40’00.00”

119°58’00.00”

2

15°41’00.00”

119°58’00.00”

3

15°41’00.00”

119°58’30.00”

4

15°40’00.00”

119°58’30.00”

Parcel VIII Area = 164.7884 hectares Parcel VIII Corner

Latitude

Longitude

1

15°36’00.00”

119°59’30.00”

2

15°36’30.00”

119°59’30.00”

3

15°36’30.00”

120°00’00.00”

4

15°36’00.00”

120°00’00.00”

Parcel VIII Area = 82.4208 hectares

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WESTCHINAMIN CORP.

ESP Zambales Ferro-Nickel Plant and Mining Project

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WESTCHINAMIN CORP. 1.1

ESP Zambales Ferro-Nickel Plant and Mining Project

Accessibility

Candelaria, Zambales is about two hundred seventy four (274) kilometers north of Manila and sixty four(64) kilometers north of Iba, the capitol town of Zambales. It is the second most northernly town of Zambales and is bounded on the north by Sta. Cruz, on the south by Masinloc, on the east by the Province of Pangasinan and by the West Philippine Sea on the west. The town can be reached from Manila via the Olongapo-Gapan Road of the Subic-Clark-Tarlac Expressway (SCTEX) up to the Subic Bay Metropolitan Authority (SBMA) then through the ZambalesPangasinan National Highway with a travel time of about six (6) hours by motor vehicle. From the north, it can be accessed through the Western Pangasinan National Highway. 1.2

Impact Areas

The area subjected to the EIA was based on the perceived direct and indirect impact areas of the proposed project. As stipulated in DAO No. 2003-30, direct impact areas, in terms of physical environment, are those where all project facilities are to be constructed/situated and the designated project area. The entire area within the Parcels being applied for ECC are all considered direct impact areas. The direct impact barangay are Barangays of Uacon, Malimanga, Taposo, San Roque, Sibacan, Lauis, Malabon and Pinagrealan all within the Municipality of Candelaria and Barangay Guinabon, Municipality of Sta. Cruz. On the other hand, areas not directly subjected to any activities/construction and those outside the project area but are within the jurisdiction of the Municipality of Candelaria and Sta. Cruz (e.g. stretch of the river draining the project area, communities along haul roads) are considered as indirect impact areas.

2.0

PROJECT RATIONALE1

The project will contribute to the national economy by way of generating direct employment to 508 people with an annual payroll of PhP 285,724,050 excluding bonuses and other fringe benefits. Providing employment government revenues in the form of excise and income taxes amounting to the following:

1

PARTIAL MINING PROJECT FEASIBILITY STUDY, Engr. Graciano M. Calanog, Jr. 2018

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ESP Zambales Ferro-Nickel Plant and Mining Project

WESTCHINAMIN CORP.

Table 1 - Excise and Income Taxes Taxes

Per Year

Total, 14 Years

Excise Tax

42,129,742

589,816,381

Income Tax

960,343,804

13,444,813,262

1,002,473,546

14,034,629,644

Sub-Total



Increasing local taxes and licenses by PhP 54,342,114 per year, on the average or a total of PhP760,789,596 over a 14-year period.



Allotment of Social Development expenditures amounting to PhP197,365,904 annual average or PhP2,763,122,656 over a 14-year period.



Developing business enterprises



Extending much needed assistance to the immediate community in terms of health, training, livelihood programs, education and technology



Generating foreign exchange revenues of US$ 2,915,237,338 over a 14-year period



This project is vital and would be a major contributor to the national economy.



to service contractors, sub-contractors and service providers



Increasing national

3.0

PROJECT ALTERNATIVE

3.1

Mining

The Project components are located inside the mining tenements issued by the Philippine Government. Issuance of MPSAs over these areas indicates that these are mineralized lands as validated by the Final Exploration Report over these areas. As such, currently, there are no known possible project alternatives for the area. Further, considering the type and location of mineral to be extracted, the only feasible mining method for the project is surface mining method, thus, there were no other alternative method considered for the project. 3.2

Processing Plant

The common nickel processing plant being use by the industry is the High-Pressure Acid Leach (HPAL) method. The HPAL process utilizes elevated temperatures (roughly 255 degrees Celsius), elevated pressures (roughly 50 bar or 725 psi), and sulfuric acid to separate nickel to the laterite ore. However, there are some challenges to be considered in this process:

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WESTCHINAMIN CORP.

3.3

ESP Zambales Ferro-Nickel Plant and Mining Project



Patented Technology by Sumitomo



Corrosion and Erosion



Highly Acidic Process



Energy Requirements



Location, larger project footprint and treatment of spent ore

Resource Utilization

The project will source its power requirements to National Grid Corporation, in the event of power shortage/interruption the solar power plant and stand-by generator sets will be utilized. 3.4

Consequences of not Proceeding with Project

In terms of physical environment, the project will be idle and will remain to its current state. In terms of socio economic, opportunities for employment to be provided by WestChinaMin that will extend in the Municipalities Candelaria and Sta. Cruz and the entire Province of Zambales. Additional employment will be generated once the project is implemented. With no “project option”,the opportunity for additional workforce is not possible.

4.0

PROJECT COMPONENTS

The Project Site Development Plan is shown in Figure 4. 4.1

Mining

The company is proposing to mine nickel laterite within three (4) parcel within the area of MPSA 316-2010-III, Amended I. Each mining area will have the following component: a) Stockyard Area b) Over burden or waste dumps c) Settling Ponds and Erosion Control Facilities 4.1.1

Stockyard Area and Overburden

The company will maintain an ore stockpile area, topsoil area and wastedump. Topsoil stockpiles will be located in mined-out areas to minimize creating additional disturbed areas. Stockpile slope will be kept at a low angle and height to minimize slumping. The proposed height of the stockpile

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WESTCHINAMIN CORP.

ESP Zambales Ferro-Nickel Plant and Mining Project

will depend on the angle-of-repose of the material. This is to ensure that the maximum volume of materials will be stockpiled without sacrificing safety. Angle of repose is the maximum angle of descent or dip of the stockpile slope relative to the horizontal plane. Stockpiling of the topsoil for prolonged periods may also deteriorate the biological components in the soil deteriorating its quality. Stripping of soil at unsuitable moisture content (i.e. when wet or saturated) may also lead to compaction and loss of soil structure. 4.1.2

Settling Pond

Settling ponds will be constructed in series. These ponds shall be appropriately designed to effectively arrest the silt coming from the mining area to meet the required water quality of the recycled water and DAO 35 effluent standards in case of water discharge. Sediments shall be impounded from the first to the third pond in succession. While, the second pond is utilized, the first pond shall be drained and allowed to dry and desilted. Recovered silt materials will be used to backfill mined out areas. The third pond shall act a buffer for the first two ponds and shall be the source of recycled water for the plant. To minimize the silt load, from the mining areas, siltation traps along the drainage system will be built inside the active areas. Settling ponds will be desilted as the need arises.

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ESP Zambales Ferro-Nickel Plant and Mining Project

WESTCHINAMIN CORP.

Figure 1 - Settling Pond Design 4.1.3

Ferro-Nickel Processing Plant

It will also construct a Ferro Nickel Microwave Technology Processing Plant which is to be located in Candelaria and will have the following components: a) Raw Materials Storage (Nickel, Coal, Dolomite and Flux) and Distribution b) Crushing, Screening and Air/Sun Drying area c) Material Forming/Mixing d) Low Temperature Reduction and Grain Growth e) Pulverized Coal Preparation f) Slag Stockpile Area 4.1.4

Support Facilities/Infrastructures

Support Infrastructures for both Mining and Processing will have the following components: e) Access and Mine roads f) Solar Farm for with 48MW Capacity

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WESTCHINAMIN CORP.

ESP Zambales Ferro-Nickel Plant and Mining Project

g) Gen Set 30 MW h) Camp Facilities 

Assay Laboratory - housed the equipment in assaying the different grade of the ore

i)



Core house- stockpile for core samples



Staff House – living quarters of some personnel



Guest House – receiving quarters for guest



Environment and Community Development Office



Mine Engineering Office



Motor pool – to be used for maintenance of vehicles and equipment.

Nursery - This will be for plants propagation to be used for rehabilitation

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WESTCHINAMIN CORP.

ESP Zambales Ferro-Nickel Plant and Mining Project

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WESTCHINAMIN CORP.

5.0

ESP Zambales Ferro-Nickel Plant and Mining Project

FERRO-NICKEL PLANT PROCESS TECHNOLOGY

This involves the construction if six (6) industrial production lines of nickel laterite ore low temperature reduction process utilizing microwave metallurgy and producing nickel alloy with a capacity of 300,000 metric annually. The coal and flux will be pulverized and will be blended with the raw nickel ore. From the mixer, the mixture will be dried using Microwave Technology. It will then pass thru the Low Temperature Reduction Section (from 1,500°C to 150°C) that will recover the ferro-nickel alloy through microwave metallurgy using bituminous coal as a reducing agent. From the LTRS, the nickel will be quench with water to cool the granules before processing to the pelletizing plant. The nickel pellets will be the final product containing 8% nickel.

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ESP Zambales Ferro-Nickel Plant and Mining Project

WESTCHINAMIN CORP.

Figure 2 - Process Flow

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ESP Zambales Ferro-Nickel Plant and Mining Project

WESTCHINAMIN CORP. 6.0

SUMMARY OF ENVIRONMENTAL IMPACTS AND MANAGEMENT AND MONITORING PLAN

6.1

Summary of Impact Management Plan Identified Impact

Mitigating Measure Major - Long Term Impact

Water Degradation of marine water quality

Water use competition

 Regular (at least monthly) ocular inspection of wastewater systems/pollution control facilities  Maintenance and desilting of oil and grease traps and silt ponds as needed;  Implementation of existing Emergency Preparedness and Response for Oil Spills;  Provision of secondary containment  To improve groundwater recharge, the vegetation at the hilly portions bordering the Plant at the east side must be maintained or enhanced through forest protection, reforestation or enhancement planting.

Air Air pollution (criteria pollutants and trace metals) from kiln operations

Air pollution (SOx, NOx, CO, and particulates) from other process sources

Contribution to climate change from greenhouse gas emissions Noise

     

Proper operation of the ESP Proper monitoring at the off-site ambient air quality monitors Conduct validation air dispersion modelling Regular compacting of unpaved access roads Proper operation and maintenance of air pollution control devices Formulation and implementation of a motor vehicle maintenance program, including emissions testing  Proper monitoring at the off-site ambient air quality monitors  Implement and maintain a GHG inventory program  Formulation and implementation of a greening program

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ESP Zambales Ferro-Nickel Plant and Mining Project

WESTCHINAMIN CORP. Identified Impact Noise pollution

Mitigating Measure  Incorporation of noise criteria in the specifications and selection of equipment  Use of effective noise-attenuating materials for the plant structure and walling



Planting of the appropriate vegetation as buffer

People Threat to public health and safety  Health effects due to dust inhalation  Exposure to other health and safety hazards associated with WestChinaMin activities

 Conduct of regular maintenance of plant equipment specifically the installed pollution control devices  Conduct routine monitoring to assess effectiveness of installed pollution control devices  Formation of Team that will serve as Complaint Desk to address Pollution- and Safety and Health- related concerns of the community  Effective implementation of Environmental Management Program and Safety and Health Program

 Disturbance on the peace and order of the area because of influx of workers and economic activities  Generation of Local Benefits from the Proposed Project  Increase in income-earning opportunities will increase spending potential, providing opportunities to increase the demand and supply of goods and services indirectly increasing the overall wealth of the area  Introduction of new economic activities and establishment of new businesses will increase revenue collection of the LGUs from taxes and fees

 Provide assistance and coordination with the Barangay Council, Barangay Peace and Security Officers (BPSO), as well as the Local Police.  Coordination with the Barangay and Municipal LGUs to ensure proper zoning of business area, peace and order, sanitation, and solid waste management  Westchinamin Corp to ensure the payment of taxes and fees of their suppliers and service providers. This may be included as part of evaluation criteria for contact renewal  Offer training opportunities for business and livelihood development and management 

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ESP Zambales Ferro-Nickel Plant and Mining Project

WESTCHINAMIN CORP. Identified Impact

Mitigating Measure Major Short Term Impact

Air Air pollution from fugitive dust during ground clearing operations and structure erection.

Noise Noise from construction activities

People  In-migration and increase in day-time population may compete with the locals in terms of employment, project benefits, natural resources, local health, welfare services and infrastructure  In migration may also lead to proliferation of informal settlers for temporary abode during construction phase  Immigrant workers may also introduce lifestyles and behaviors different from the locals which may lead to social tensions

 Dust suppression in active construction areas  Compacting of exposed soil  Provision of tarpaulin cover on trucks transporting construction materials  Immediate hauling of spoils  Impose speed restrictions  Regular maintenance of motor vehicle  Provision of barriers and shielding stationary vibrating equipment  Proper scheduling of noisy activities during day time  Priority hiring of unskilled and semi-skilled workers from the local communities in construction and expansion works ;  Require and monitor contractors’ commitment on providing local employment;  Implementation of skills development program to ensure support to local population in obtaining employment opportunities;  Proper induction of workers and haulers to prevent occurrence of peace and order problems or security breaches;

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ESP Zambales Ferro-Nickel Plant and Mining Project

WESTCHINAMIN CORP. 6.2

Summary of Environmental Monitoring Plan Sampling and Measurement \

Water Quality

Environmental Sector

Effluent Class C

Parameters to be monitored

▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫

pH Temperature TSS COD As, Cd, Pb, Hg, Ni, Mn Nitrate Sulfate Oil and Grease Color pH TSS Ammonia Nitrate Ni, Cd, Hg, Pb Oil &Grease Benzo(a)pyrene Surfactants BOD Fecal Coliform Ammonia Nitrate Phosphate Oil and Grease Surfactants Temperature pH COD TSS Ammonia Nitrate Sulfate Chloride

Method

Frequency

Monthly

In-situ measurement using handheld water quality tester (pH, DO, temperature)

Monthly

Location

Sedimentation Ponds at the mining area

Oil and Water Separator discharge outlet

Motorpool/shop

Grab sampling and laboratory analysis Monthly

Sewage Treatment Plant

Monthly

Ferro-Nickel Processing Plant wastewater discharge

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ESP Zambales Ferro-Nickel Plant and Mining Project

WESTCHINAMIN CORP.

Sampling and Measurement \

Water Quality

Environmental Sector

Freshwater / Surface Water (Ambient)

Parameters to be monitored

▫ ▫ ▫ ▫ ▫ ▫

Fe, As, Cd, Hg, Pb Oil and Grease Phenol and Phenolic Substances pH Temperature DO

▫ ▫ ▫ ▫ ▫

TSS As, Cd, Pb, Hg, Ni, Mn Nitrate Sulfate Oil & Grease

Method

Frequency

Location

Class C:

In-situ measurement using handheld water quality tester

Monthly Grab sampling and laboratory analysis

P2-C, P2-D, P2-E, P2F, P2-G, P7-A, P7-B, P7-C

Class B: P8-A, P8-C

Water Quality

Water Quality

Marine (Ambient)

Groundwater

▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫ ▫

pH Temperature DO TSS As, Cd, Pb, Hg, Ni, Mn Oil & Grease Nitrate Sulfate Fecal Coliforms pH Temperature Conductivity TDS TSS Oil &Grease As, Cd, Pb, Hg, Ni, Mn Nitrate Chloride Fecal Coliforms Sulfate

In-situ measurement using handheld water quality tester Class SC: Quarterly Grab sampling and laboratory analysis

MW1, MW2, MW3, MW4

In-situ measurement using handheld water quality tester Deepwell/s to be installed Monthly Grab sampling and laboratory analysis

GW1 and GW2

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ESP Zambales Ferro-Nickel Plant and Mining Project

WESTCHINAMIN CORP.

Sampling and Measurement \

Environmental Sector

Parameters to be monitored

Method

Rivers/creeks within the project area

Standard scientific methods used in baseline assessmentLine Transect Method Fish Visual Census, plankton/benthos sampling, mangrove and seagrass assessment; Key Informant Interview

Annual

Same stations during baseline study

▫ Deterioration of water quality; algal blooms

Water quality measurement and monitoring; plankton community sampling

Plankton net and diversity indices; assess harmful algal blooms (HABs)

Same plankton stations during baseline study

▫ Disruption in mangrove recruitment; loss of fish nursery and habitat

Periodic mangrove and river ecology monitoring

Standard methods

Same as baseline stations

Flooding / river overflow

▫ Date of occurrence ▫ Frequency in a year

Observation

Water Component

Negative impacts on marine ecology in coastal areas fronting the project site; reduction in marine ecology parameters compared to baseline

▫ Species composition, density and relative abundance of phytoplankton, zooplankton, bottom benthos, fish, corals, seagrass, seaweeds

Marine ecology-marine pollution

Domestic wastewater pollution

Mangrove and river ecology-

Alteration of mangrove habitats due to sedimentation and waste material

sedimentation and siltation in coastal waters and river system

Location

As needed; Yearly summary

Hydrologic Hazards

(deterioration of Marine Ecology parameters compared to baseline)

Frequency

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WESTCHINAMIN CORP. 7.0

ESP Zambales Ferro-Nickel Plant and Mining Project

LIST OF STAKEHOLDERS

- Provincial Government of Zambales - Municipality of Candelaria - Municipality of Sta. Cruz - Barangay Uacon

- Barangay Malimanga - Barangay Taposo - Barangay San Roque - Barangay Sibacan - Barangay Lauis - Barangay Malabon - Barangay Pinagrealan - Barangay Guinabon - Non-Government Organizations (Transportation, Fisherfolks, Senior Citizen, Education, Religious, Cooperative, Agricultural, Samahan ng Kabataasn, etc.)