PHILKAIROS, INC.

EXECUTIVE SUMMARY

ES 1. Project Brief

ES 1.1 Project Fact Sheet

Proposed Increase in Extraction Volume of the Cagayan Offshore

Project Name
Magnetite Mining Project
Municipalities of Aparri, Buguey and Gonzaga
Project Location
Province of Cagayan
Project Type Resource Extractive Industry (Magnetite Extraction)
1,902.5939 hectares (Gonzaga)
Project Size 3,096.6419 hectares (Buguey and portion of Aparri)
4,999.2358 hectares (Total)
MPSA No. • 338-2010-II OMR
ECC Reference • ECC-CO-1409-0021
Number Date Issued: May 20, 2016

Existing Proposed (modification)

• 1.3 MMT production rate • 30 MMT production rate
• 1 Siphon vessel (dredge • 4 Siphon vessels equipped
barge) with generator sets,
Project • 3 Separator Barges magnetic and gravity
Components • 1 Panamax Vessel separators and hoppers /
• Gravity Separator chute
• Magnetic Separator • 12 LCT / Storage Barges
• Hopper / Chute • Anchors handling tugs
• Generator Set

Project Duration 25 years

Administraton: 29 personnel
Manpower
Operation and Maintenance: 45 personnel
Requirements
Onshore (Environmental and Social Division): 192 personnel
Project Cost PhP 6,023,625,006.00
Project Proponent JDVC Resources Corporation
Unit 504 Galleria Center, EDSA corner Ortigas Avenue,
Office Address
Barangay Ugong Norte, Quezon City 1110, Metro Manila
Authorized Mr. Louis Santos
Representative for VP – Engineering, Exploration, Research and Development
the Principal Contact Details: 0926.677.0598
Proponent Email Address: louistsantos@jdvcresources.com
Mr. Joel A. Espineli
Philkairos, Inc.
Authorized JE Business Center,
Representative Pinesville Road corner Ortigas Avenue Extension
for EIS application Taytay, Rizal 1920
Telephone Number: (02) 8727-9005
Email Address: admin@philkairos.com
ECC Application For ECC Amendment

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JDVC Resources Corporation (hereinafter referred to as the “Company”) holds a Mineral

Production Sharing Agreement (MPSA No. OMR 338-2010-II) with the Republic of the
Philippines for a 14,240-hectare mining area. The Company has a Partial DMPF mining
concession and commercial extraction of minerals like magnetite iron sand, titanium,
vanadium and other valuable minerals with a life of 25 years and renewable for another 25
years.

MPSA-338-2010-II-OMR was approved on June 2010 as a contract between the Republic of

the Philippines and Bo Go Resources Mining Corporation (Bo Go). It was transferred to JDVC
Resources Corporation by Bo Go on November 25, 2011 by virtue of a Deed of Assignment.
The Deed of Assignment was duly registered with MGB Region II, Tuguegarao City, Cagayan
on January 27, 2012 and was duly approved by Department of Environment and Natural
Resources (DENR) Secretary.

The Environmental Compliance Certificate (ECC-CO-1409-0021) was issued to JDVC for its
proposed “Cagayan Offshore Magnetite Mining Project” covering the 4,999.2358-hectare area
of MPSA No. 338-2010-II-OMR-Amended A located in Gonzaga, Buguey and Aparri,
Cagayan, allowing a maximum production rate of 1.3 million dry metric tons of magnetite iron
sand concentrate per annum last May 20, 2016. The proponent, thru the amendment of this
ECC, intends to apply for increase in the production rate from 1.3 MMT to 30 MMT.

The Mines and Geosciences Bureau (MGB) approved the Declaration of Mining Project
Feasibility (DMPF) for the said 4,999.2530-hectare area of MPSA No. 338-2010-II-OMR-
Amended A, thereby, authorizing JDVC to proceed to the Development and Operating
Periods, including extraction and commercial disposition of magnetite sand and other
associated minerals, subject to compliance with certain conditions.

ES 1.2. Project Location and Accessibility

MPSA Number 338-2010-II-OMR containing an area of 14,240 hectares is located 14-15

kilometers away from the shore of the municipalities of Sanchez Mira, Pamplona, Abulug,
Ballesteros, Aparri, Buguey, and Gonzaga in the Province of Cagayan (as shown in Figure 1-
1). Out of the 14,420 hectares, JDVC Resources Corporation has decided to take a portion
of the mining tenement located within the municipal waters of Aparri, Buguey and Gonzaga
as its operation area having and approximate are of 4,999.2358 hectares (as shown in Figure
1-2). Shown in Figures 1-4, 1-5 and 1-6 are the maps of each municipalities of the affected
coastal communities.

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14-15 km from the shoreline

Above the municipal waters (10 km)

Figure 1-1 Location of the Proposed Project

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Figure 1-2: Location of JDVC’s partial DMPF Area

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Figure 1-3: Satellite Image of the whole MPSA area and partial DMPF area (in yellow)

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Figure 1-4: Map showing the affected Coastal Barangays in the Municipality of Aparri

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Figure 1-5: Map showing the affected Coastal Barangays in the Municipality of Buguey

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Figure 1-6: Map showing the affected Coastal Barangays in the Municipality of Gonzaga

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Accessibility to the Project Area

The MPSA area embracing 14,240 hectares is situated within the municipal waters of the Municipalities
of Sanchez Mira, Pamplona, Abulug, Ballesteros, Aparri, Buguey, and Gonzaga in the Province of
Cagayan. Tuguegarao City is about 485 kilometers north of Manila via the Maharlika Highway and can
be accessed through air transport by Air Philippines and Cebu Pacific and through land by different bus
transports, i.e., Victory Liner, Dalin Liner, RCJ Lines, Florida Transport Inc., etc. The Municipality of
Gonzaga is in northwest of Tuguegarao City and can be reached from Tuguegarao via Pan-Philippine
Highway passing thru Iguig-Alcala-Gattaran-Lallo National Road. Municipality of Buguey is 1 and a half
hour away from the Municipality of Gonzaga via land. Municipality of Aparri is accessible from Manila
via commercial airlines to Tuguegarao City and by land travel via private cars or buses (2-3 hours),
thereafter. Public buses also travel directly from Manila to Gonzaga on a regular basis. Land travel from
Manila usually takes 12 to 14 hours.

The Province of Cagayan has one national port and several municipal ports. Republic Act 7922 created
the Cagayan Special Economic Zone and Free Port (CSEZFP) at Sta. Ana, Cagayan to be managed
by the Cagayan Economic Zone Authority (CEZA). The Port of Irene, which will be the main port of
entry for all the vessels and equipment that will be used during the offshore mining operations, is located
in Sta. Ana, Cagayan. It can be reached by plane (1 hour) and by bus (11 hours) via Tuguegarao, and
then by bus or van (2-3 hours) from Tuguegarao. If by private car, it would take about 12-14 hours
depending on the number of stopovers.

The project area is located about 14 kilometers offshore and parallel to the coast of the said coastal
municipalities, can be reached by motorized boat (banca) or any marine vessel. Travel to the portion of
the tenement area directly north of the Cagayan River mouth using a motorized boat usually takes 1.5
to 2 hours.

Direct and Indirect Impact Areas

In accordance with Annex 2-2 of the Revised Procedural Manual (RPM), Sec 3.a, the Direct Impact
Area (DIA) is initially delimited at the pre-EIA stage as “the area where ALL project facilities are
proposed to be situated and where all operations are proposed to be undertaken.” Based on that
definition, the DIA is the 4,999.2358-hectare project area in Gonzaga, Buguey and Aparri.

Potential Indirect Impact Areas (IIA) at the pre-EIA stage, on the other hand, generally refers to the
influenced area that could be indirectly affected by the proposed exploration and operation activities.
The (indirect) impact area is composed of the entire coastline of Aparri, Buguey and Gonzaga
municipalities. This area includes eight (8) coastal barangays in Aparri namely: Bulala Sur, Bulala Norte,
Linao, Punta, Minanga, San Antonio, Maura, Dodan, Paddaya; thirteen (13) coastal barangays in
Buguey to include Paddaya Weste, Paddaya Este, San Isidro, Cabaritan, Centro West, Centro, Santa
Maria, Leron, Mala Weste, Mala Este, Villa Leonora, Minanga Weste and Minanga Estes; and eleven
(11) coastal barangays in Gonzaga consisting of Caroan, Casitan, Callao, Minanga, Batangan, Tapel,
Ipil, Amunitan, Santa Cruz, Baua and San Jose

ES 1.3. Project Rationale

The increase in production capacity aims to contribute to the increasing demand of iron and steel due
to the rapid development of the Philippines and global market demand on steel. The construction sector
is a major contributor driven by demand for private residential and office buildings and infrastructure
spending by the government, which led to an upswing in demand for steel products. Philippine-based
iron and steel manufacturers have expanded their production capacities in the long products sector, but
still fall short of domestic demand, mainly because of the absence of an integrated steel mill.

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ES 1.4. Project Components

The extraction component of the proposed project will all be operating offshore, or beyond 14
– 15 kilometers from the shoreline and there will be no permanent structures to be built in the
project area. There will be no ore / mineral processing on board the siphon vessel, only
extraction of magnetite sands will be involved in the mining operation with the use of magnetic
separator. The operation of the siphon vessels will be subcontracted to local shipping
company that can provide the required services of the Proponent. Table 1-1 shows the
proposed modification of the project expansion in terms of its components.

Table 1-1: Proposed Modification

I. Existing II. Proposed
• 1.3 MMT production rate • 30 MMT production rate
• 1 Siphon vessel (dredge barge) • 4 Siphon vessels equipped with
• 3 Separator Barges generator sets, magnetic and gravity
• 1 Panamax Vessel separators and hoppers / chute
• Gravity Separator • 12 LCT / Storage Barges
• Magnetic Separator • 4 Anchor handling tugs
• Hopper / Chute • 4 Support Tug Boats
• Generator Set

Siphon Vessel (Cape Size Vessel)

The Siphon Vessel will acts as the offshore floating production and storage vessel. It uses its
differential pressure suction system to suck the sand and water from the sea bottom to vessel
deck where the equipment (e.g. Differential Suction Systems with airlift system, arrays of
Magnetic Separators and Distributors, Transport Conveyor, etc.) are located. The proprietary
suction system with air lift capability will suck gross sand from sea bottom to be directed to
our rotary slurry distributor and onwards to our array of magnetic separators. The tables below
shows the description and itemized layout of the siphon vessel.

Magnetic Separator

Magnetic Separators are arranged in three (3) stages. One (1) Roughing Single Magnetic
Separator (RSMS) and Two (2) Final Stage Magnetic Separator (FTMS) for every set will
separate the magnetite sand from the slurry. Magnetite content of sand suction from the sea
bed is 10 percent by weight.

Anchor Handling Tugs

Anchor Handling Tug is part of the complement for the offshore mining operations which sole
responsibility is to move and position anchor blocks used in securing the Siphon Vessel and
Drill Barge. The tugboat will assist in Foreign Vessels to load Magnetically separated Iron Ore
from siphon vessel and it will also be used to retain the Oil Spill Response Equipment to be
used in case of emergencies (Oil Spills, Etc.)

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Landing Craft (LCT) / Storage Barges

Landing Craft or LCT is part of the complement for the offshore mining operations which will
be alongside the Siphon Vessel to receive Magnetite Iron Sand. It will also be used as
transport magnetite iron sand from vessel to Foreign vessel for onward foreign delivery.

Existing Facilities (Onshore)

The admin office and staff house which are already existing, used during the exploration
drilling activities has been established in CEZA. Power is supplied by CAGELCO and
communication facilities by mobile phones and internet are also pre-existing. This onshore
facility is not covered by this application.

Table 1-2: Description of the Siphon Vessel

Length Over All 100.548 M (330 Feet)
(LOA)
Beam 36.576 (120 Feet)
Depth MLD 7.620 M (25 Feet)
Design Draft abt. 6M
Deck Loading 25 T/M2
Equipment • 2 cranes;
• 12 sets (1 x 3 or 36 magnetic separator), and;
• Anchor Handling tug filled with oil spill response
system

ES 1.5. Process and Technology

1.5.1 Method and Technology of Offshore Mining

The process of magnetic separation is a mechanical process where the iron sand will be
attracted to the magnet and will separate it from the pure sand (waste materials) using
magnetic separator on board the siphon vessel. The main processes for the project are:
mineral extraction, sand and water separation, magnetic separation, and storage before
importation. There will be no chemical process involved in the operations.

The sand extraction process will be conducted using the main facility of the project. Siphon
Vessel are vessels that extract materials through a suction hose connected to the vacuum
pump. The pump produces a vacuum, which pulls the materials into the suction hose. For
extraction of compacted materials, dredgers have a cutter head at the end of the suction tube.
The cutter head is used to loosen the materials and feed it to the opening of the suction tube.

The extracted sand will then be properly stored in the ship’s holding compartments for
processing in the magnetic separator. The sand and water separation process will be
conducted on the piling barges. The materials will be transferred from the suction vessel to
the piling barge through a hopper or chute. The denser materials are then processed in the
magnetic separator. It will pass through a two-stage magnetic separation process. The non-
commercially important sand will then be returned to the seabed using a separate pipe and

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pump. The discarded sand shall be brought as close as possible to the sea bottom, in order
to minimize the suspension of the fine sediments during operations.

The denser materials are then separated using a magnetic separator. This process will
separate the magnetic sand, those that are attracted by a magnet, from those that are not.
Magnetite is the most magnetic mineral on earth based on published records. Figure 1-7 is a
diagram of the magnetic separation process.

Figure 1-7. Magnetic Separator

As discussed above, the project will utilize mechanical processes in extracting the
commercially viable sand. All activities, as shown in Figure 1-8, from the extraction using the
siphon vessel, to the processing which will use magnetic separators, up to the storage and
exportation of the sand, will be done offshore.

Figure 1-8: Flowchart of Mining Operation

ES 2. Process Documentation of the Conduct of EIA Study

ES 2.1 EIA Methodology

The preparation of the EPRMP is in accordance with the steps indicated in the Revised
Procedural Manual (RPM) for DAO 2003 – 30. The conduct of public participation activities
are based on the guidelines as indicated in DAO 2017-15 (Guidelines on Public Participation
under the Philippine EIS System).

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The EIA Team followed the Participatory Impact Assessment Method (PIAM) wherein the
stakeholders were involved in the conduct of the EIA through project briefing, focused group
discussions, and formal scoping meeting as prescribed in DAO 2017-15.

Data gathering involved infield surveys for the assessment of the existing physical and
biological conditions of the project site. Based on the standard EIA procedures, collection of
secondary data was sourced from the concerned government agencies and offices, desktop
research and literature review of relevant studies. The succeeding tables show the
methodologies employed during the study.

Table 1-3: Data Gathering Matrix

Gathered Data/Activity
Methodology Source Person/s
Conducted
Primary Data
• Project information,
EIA Study Team and project site boundary,
Meetings
Proponent and conceptual site
layout and plans
• Perception of the
Project
• Level of awareness on
the proposed project
Consultations
• Municipal Profiles
Perception Surveys EIA Study Team
Interviews • Anecdotal accounts of
past earthquakes,
typhoons, flooding and
storm surges in the
area
Infield Surveys and
Fieldworks using the
following methodologies:
• Site inspection
• Coastal Mapping
• Rapid Bioassessment
for freshwater
macroinvertebrate
• Marine Ecology
• Transect-quadrat
Assessment of the
method for marine
Project Site
ecology survey
• Marine Water Quality
• Grab sampling for EIA Study Team
Assessment
water sample
• Ambient Air Quality and
collection
Noise Level
• Gas Bubbler and
Assessment
Pararosaniline
Method for SOx and
NOx
• High Volume and
Gravimetric Method
for TSP and PM10
• Noise meter for
ambient noise level
Secondary Data

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Gathered Data/Activity
Methodology Source Person/s
Conducted
• Physical, biological,
• Philippine Statistics socio-economic and
Desktop Research and Authority (PSA) demographic profiles of
Literature Review • LGUs of Aparri, Buguey the municipalities of
and Gonzaga Aparri, Buguey and
Gonzaga
• Philippine Atmospheric,
Geophysical and
Astronomical Services • Climatological normal
Administration (PAGASA) and extremes
Desktop Research • Philippine Institute of • Risks and hazards
Volcanology and Geological data and
Seismology (PHIVOLCS) maps
Mines and Geosciences
Bureau (MGB)
• Feasibility Study of the
project
• Integrated (Amended)
Environmental protection
and Enhancement
Other Sources Program of the project
• Final Mine Rehabilitation
and/or Decommissioning
Plan of the project
• Final Exploration Report
(FER) of the project

Stakeholders’ Engagement / Public Participation

The Information, Education and Communication (IEC) campaign was conducted last
November 7 and 29, 2019 with the pre-scoping, perception survey and distribution of IEC
materials on the EIA process. A public scoping for the proposed expansion of the project was
conducted last January 30 and 31, 2020. Present during the activity were the LGU officials of
the affected municipalities, barangay council members and concerned stakeholders from the
host coastal barangays, and representatives from other concerned government agencies and
NGOs. Representatives of proponent were also present.

ES 2.2 EIA Study Team

The proponent, JDVC Resources Corporation, has contracted the services of Philkairos, Inc.
as a third party consultant in the preparation if the EIS. The EIA study team is composed of
specialists who have extensive experiences in the conduct of baseline characterization and
impact assessments for similar projects.

Table 1-4: EIS Study Team

Name of Preparers Field of Expertise
Jose Leonilo A. Espineli Project Director
(IPCO-088)
Maria Luisa M. Gutierrez Project Manager
(IPCO-097)
Hillel Cabria Geology and Geohazards
Raymond Rodolfo Geology and Geohazards

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Name of Preparers Field of Expertise

Water Quality Specialist
Rodolfo Romarate Jr.
Marine Ecology Specialist
Isabel B. Espineli Sociologist
Jan Julio A. Espiritu Environmental Impact Assessment
Deza Mae P. Mondragon Environmental Impact Assessment
Ana Karmela S. Miranda Research Assistant
(IPCO-070)
Demelyn Macalinao Research Assistant
Rexadi Roy Zamora Mapping

ES 2.3 EIA Study Schedule

The overall schedule of activities conducted is presented as follows:

Table 1-5: EIS Preparation Schedule of Activities

MONTHS
ACTIVITIES
1 2 3 4 5 6 7 8
1. Planning with Technical Experts
2. Gathering of baseline and secondary information
3. Interpretation and analysis
4. EIS Report Preparation
5. EIS Review and Evaluation
6. Public Consultations

ES 2.4 EIA Study Area

The Direct and Indirect Impact Areas of the proposed project in terms of biophysical and socio-
cultural impacts are summarized in Table ES-5.

Table 1-6: Impact Areas of the Project

Area Classification Area Coverage
In terms of biophysical impact:
• The 4,999.2358-hectare project area within the municipalities of
Direct Impact Areas Aparri, Buguey, and Gonzaga;
• Surrounding areas and seabed in the channel where the offshore
mining project is located
In terms of biophysical impact and socio-cultural impact:
• The (indirect) impact area is composed of the entire coastline of
Aparri, Buguey and Gonzaga municipalities. This area includes eight
(8) coastal barangays in Aparri namely: Bulala Sur, Bulala Norte,
Linao, Punta, Minanga, San Antonio, Maura, Dodan, Paddaya;
thirteen (13) coastal barangays in Buguey to include Paddaya
Indirect Impact
Weste, Paddaya Este, San Isidro, Cabaritan, Centro West, Centro,
Areas
Santa Maria, Leron, Mala Weste, Mala Este, Villa Leonora, Minanga
Weste and Minanga Estes; and eleven (11) coastal barangays in
Gonzaga consisting of Caroan, Casitan, Callao, Minanga, Batangan,
Tapel, Ipil, Amunitan, Santa Cruz, Baua and San Jose as the primary
beneficiaries of the SDMP that will benefit the provincial and regional
level from potential revenues and taxes of the project

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ES 3. EIA Summary

3.1 Project Alternatives

The project considered other alternatives for the current project based on considerations of
facility siting, development design, process/technology selection and resource utilization. The
consequences of not proceeding with the project were also discussed.

The project is within the area bounded by the coordinates stipulated in the MPSA by virtue of
the Deed of Assignment in favor of JDVC Resources Corporation and as approved by the
Mines and Geosciences Bureau. No alternative sites were considered inland or within the
vicinity of Cagayan River since this will not be practical from economic point of view and in
addition, the construction of site facility inland will have greater negative social impacts to the
community.

The proponent considered the extraction of magnetite starting only within mine operational
area from a distance of 14 – 15 km away from Cagayan shoreline. This is to prevent the
negative impact of disturbed sand on the quality of water that was traditionally used by the
people for fishing.

The best practical technology that would result to reduced pollution and damage to
environment and people.

The extraction for magnetite sand will simply utilize a siphon vessel. The extracted sand will
then be temporarily stored, dewatered, and separated from the non-magnetite sands on board
barges. All the processes for extraction will be strictly mechanical, no chemicals will be used.
In addition, all phases of the operation, from the extraction up to the magnetic separation, will
be done offshore. The process is smaller in scale compared to the extraction methods to be
used inland.

Only magnetite materials will be extracted. Caution will be practiced by the proponent to keep
the edge of the pipe as close as possible to the sea floor to lessen the agitation of the sand,
which may cause the deterioration of the quality of the water, which will impact negatively on
marine organisms.

Such process entails less impact to the environment in general. The method to be used will
depend on a number of factors including the depth to the seabed, the degree of consolidation
of the sands, ocean weather conditions, capital and operating costs, etc. At this early stage
the preferred option is the plain siphon.

The negative environmental impact of the magnetite offshore extraction and recovery process
is NIL. The extraction process is via siphon vessel with magnetic separator, and processing
apparatuses on board. This system is no hazard at all and no social complication as the siphon
vessel is stationed at the ocean far from the shore. The siphoning action of the siphon vessel
for magnetite sand offshore based on findings of the experts and specialists does not produce
significant sea bottom topography disturbances due to the following reasons:

1. There is no explosive use, hence there is no blasting activities;

2. There is no permanent structure buried to the sea bottom;

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3. The siphoning area underneath the sea agitated by the siphon pipe/s, while it can
cause localize turbidity, would immediately cave in upon pull out of the siphon pipe/s
due to continuing action of the sea under current;
4. The magnetic separator on the siphon vessel would only qualify about 10% average
for quality grading required hence, will return back to the same area the 90% of the
lesser grade magnetite Iron Sand;
5. The sand mounts with lesser magnetite that can be created by the return after
magnetic separation under the sea may even become series of new fishing areas
during calm season nearer the shorelines, and
6. The continuing replacement every time it rains allow continuing replacement of the
10% extracted for higher grade as separated for export shipment.

ES 3.2 Baseline Characterization, Impacts Management and Monitoring Plan

3.2.1 Impacts on Land

There will be no significant impacts on land during all phases of magnetite extraction in the
offshore areas of Aparri, Buguey, and Gonzaga. All extraction and mining activities will be
done at least 15 km away from the shores of these towns.

Based on the baseline assessment, the host municipalities are highly susceptible to flooding
due to the topography and the coastal barangays are considered low-lying flood plains based
on the regional and MGB maps. These areas are moderately susceptible to erosion due to
poor vegetation and weak soil structure along the river system.

3.2.2 Impacts on Water

Since the project site is located approximately 14-15 km away from the shoreline of the coastal
municipalities and from the outfall of the river, the project will not have a significant impact on
the depth and drainage of the river. The host municipalities are endowed with deep wells and
productive aquifers. But since the project is located approximately 14 – 15 kilometers away
from shore, the water supply both for drinking and for utilities, will be sourced and processed
on-shore. Estimated daily domestic consumption is 30 cubic meters. No water requirement is
needed for the operation.

In terms of marine water quality and ecology, significant impacts would be the loss of benthic
types, conversion of substrate/habitat and changes in community structure, siltation,
sedimentation, turbidity, and water pollution due to oil spills. Mitigating measures such as,
regular monitoring of water quality based on DENR standards for Class SC, provisions of
pollution control devices to prevent will be implemented to reduce or prevent negative impacts
to the marine environment. Offshore extraction of magnetite sand can increase the water
turbidity which, can result to a sedimentation. The crew will keep the edge of the suction pipe
as close as possible to the ocean floor to lessen the agitation of the sand which, may cause
the deterioration of the quality of water. All offshore mining operation MUST have one (1)
tugboat equipped with Oil Spill response equipment, one (1) fast boat and personnel that are
adequately trained to address oil spills.

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To mitigate impacts on increased turbidity, an accordion type pollution prevention curtain or

screen shall be installed to surround the suction and discharge lines. Also, the pollution
prevention curtain or screen can be used to reduce the impact of silts and sand from rivers
flowing into the basin.

Residual effects are moderately significant, water pollution may have an adverse effect on
marine water quality and ecology if not mitigated.

3.2.3 Impacts on Air

There will not be much impact on air except for the emission of diesel powered magnetite
separator. Pollutants include CO2, SOx and NOx. The emission will be easily dispersed
because of high velocity wind in the sea. All equipment (e.g. Generators) on board are
designed as silent types to avoid noise generation exposure even to siphon vessel crew. The
Vessel’s main engine is housed inside the engine room with sufficient sound absorbing
insulation installed. The proponent will comply with the regulations from the MARPOL
(Maritime Pollution) 73/78 and those set-forth by the Marine Environmental Protection Rules
and Regulations of the Philippine Coast Guard (PCG) will be adopted. Residual effects are
temporary and will cease after closure

3.2.4 Impacts on People

The operation of the project may result in several impacts to the communities. The project is
located approximately 14 – 15 kilometers away from the shore, likewise, the office of its
employees are located in the existing facilities of CEZA. Hence, there will be no displaced
settlers and/or properties, ownership of land, and right of way conflict. The effects may include
in-migration during development and operation, out-migration upon closure, safety and health
risks to the employees and workers and the communities, peace and order in the area.

During Operation, the mining activity will fuel economic growth, safety and health risk
employees/workers and the communities. Upon closure, the potential impact will be on the
economic aspects and psycho-social concerns on job, livelihood, and opportunities loss
because of the seizure of the operation. The implementation of the project will not alter the
lifestyle of the resident. On the other hand, improved community services through the
company’s SDMPs and CSRs are also expected from the project. The company’s community
relations officers have to conduct regular or annual social functions like sports competition to
be able to gain good social relationships among in-migrants and local residents with respect
to their ethnicity or culture. The enhancement may remain permanent depending on the
cooperation of the communities.

To mitigate potential impacts due to in-migration, the following management measures shall
be implemented:

• Implement priority local hiring policy for qualified local workers;

• Coordinate with barangay or/and municipal LGU as to relevant ordinance on providing
opportunities for local employment;

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• Conduct consultation with barangay LGUs on requirements and process of hiring to

maximize employment of local residents;
• Require and monitor contractor commitments on providing local employment;
• Coordination with the municipal and barangay peace and order councils to ensure
peace and order; and,
• Coordination meetings shall also be undertaken regularly with the LGUs to identify
threats and vulnerabilities in the society as well as to develop programs to prevent
foreseen social problems.

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Table 1-7. Summary of Main Impacts, Mitigation Measures and Residual Effects
Option for Prevention, Mitigation and/or
Project Activity Potential Impacts Target Efficiency
Enhancement
Operational Phase
1. Positioning of the Disturbance to marine • Limiting the movement of the vessels in the marked • 1% to very minimal impact to
Siphoning vessels with the biodiversity project / mining area once positioned per block. marine biodiversity.
use of Anchor Handling • Siphon vessels will be operated in the boundaries • Reversible effect to the
Tugs of the mining block to enforce a form of progressive environment.
mining. This process will give the impacted
organisms time to recolonize the previously mined
out area.
2. Use of Siphon vessels in Disturbance of marine • Minimizing/reducing the movement of the vessels • 1% very minimal impact to
extracting the magnetite iron biodiversity in the marked project / mining area once positioned marine biodiversity.
sand per block. • Reversible effect to the
• Siphon vessels will be operated in the boundaries environment.
3. Processing of extracted of the mining block to enforce a form of progressive
san in the magnetic mining. This process will give the impacted
separator with sand and organisms time to recolonize the previously mined
water separation process out area.
Increased water turbidity • Use of suction pipe to extract the sand and return • 100% Compliance with Clean
3. Transport/loading of which can result to the non-magnetic sand to the seafloor. A pollution Water Act and its implementing
magnetite iron sand from sedimentation due to prevention curtain or screen / silt curtain will be rules and regulations
Siphon vessels to foreign extraction of magnetite sand used to lessen the impact of turbidity.
vessel thru conveyor belt for • Regular water quality monitoring to mitigate and
from the seafloor and non-
prevent negative impacts of pollution to marine
export magnetic sands returned to water
the sea • The water for disposal should pass the parameters
for class SD.
Contamination of water body • Regular checking of all equipment including • 100% implementation of
due to oil spills from vessels for leakage will be done. Oil spill kit on environmental best practices
equipment/vessel standby. in handling marine vessels
• Immediate clean-up of affected areas when including proper
necessary
management practices in
handling fuels for regular

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Option for Prevention, Mitigation and/or

Project Activity Potential Impacts Target Efficiency
Enhancement
• The company will include strategies to prevent maintenance of vessel and
and/or mitigate the negative impacts of oil spill in equipment.
water body and marine life. • 100% compliance with
MARPOL 73/78 for the
prevention of pollution from
ships
• Separate storage and proper
handling and labelling of
used oil for identification
• In case of oil spill, an oil spill
response equipment and
qualified personnel will be
available on the anchor
handling tug or vessel.
• Short term; Irreversible effect
to the environment
Emission of CO2, SO2 and • The proponent will ensure that the siphon vessels • 100% conduct of
NO2 and suction equipment are in good condition. assessment, monitoring, and
• The vessels will document the regular maintenance maintenance of all vessels
activities of the extraction equipment and the and equipment involved in
vessel itself. No maintenance work will be
this project will be strictly
conducted offshore to minimize the risk of spillage
of oil. implemented.
• International and local rules and regulations on • 100% compliance with
minimizing air pollution will be implemented during MARPOL (Maritime
operations. Pollution) 73/78 and Marine
Environmental Protection
Rules and Regulations of
Philippine Coast Guard
(PCG)
• Long term, Reversible effects
to the environment

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Option for Prevention, Mitigation and/or

Project Activity Potential Impacts Target Efficiency
Enhancement
Noise generation • Use of low noise diesel generator set with • 100% compliance with DENR
enclosure and muffler for the vacuum pump. Air quality standards, noise
• Regular maintenance of equipment and vessels to level set by DENR and EQPL.
maintain good working condition. • Regular inspection and
• Equipment including vessels will be operated at low maintenance of vessels and
speed and/or power whenever practical and equipment prior to start of
switched off when not in use. daily operations.
• Long term, Reversible once
operations are done.
Disturbance of • Operational area will be set on an annual basis so • 1% to very minimal impact to
local/traditional fishing as to better identify the municipality affected. The marine biodiversity.
grounds proponent and it’s CRU in cooperation with the • Reversible effect to the
LGU will identify projects that will be included in the environment.
SDMP to be implemented by the project.
• Buffer zones from the vessels to allowable distance
of 500 m for fishing boats
Maritime Traffic • Coordinate with PCG and/or PPA on the traffic • 100% compliance with the
routes or schemes that are likely to be used by government agencies with
large vessels jurisdiction in the Philippine
waters
• Long term, Reversible
Possible accidents and • Provision of PPE to all workers and implementation • 100% compliance to DOLE
exposure to occupational of strict safety protocols especially when onboard and Occupational Health and
hazards the vessels Safety Standards and
• Conduct safety orientation prior to employment Guidelines
• Conduct regular trainings and drills (at least twice • Short term, Irreversible
a year) in handling and responding to accidents and
disasters
4. Other mine operational Entry of migrant workers with • The company will prioritize employment of qualified • 100% conduct of population
activities families which might cause local residents. Proponent will coordinate with survey and monitoring of
health problems due to every barangays in terms of employment

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Option for Prevention, Mitigation and/or

Project Activity Potential Impacts Target Efficiency
Enhancement
diseases, overuse of public • Management of entry of migrant workers by migrant workers in
utilities /services, competition increasing and/or training barangay tanods to be coordination with LGU
of resources, social conflicts, deployed in areas where migrant workers reside. • Short term, Reversible
peace and order, increase in • Proponent provide Health clinic with a Doctor,
pollution due to solid and Nurse and Health workers. Health certificate for
liquid wastes workers prior to hiring into the project.
• Partner with LGUs in the implementation of the
Social Development and Management Program.
Possible proliferation of • Require health examination and submission of • 100% compliance to DOLE
diseases health certificate prior to employment and Occupational Health and
• Require fit to work certification for returning workers Safety Standards and
from illness Guidelines
• Implement proper health and sanitation protocols • Short Term, Reversible
and facilities
Possible effects on health • Workforce will be provided with clean and potable • 100% compliance to DOLE
and sanitation water and sanitary toilets and Occupational Health and
• Domestic wastes segregation shall be practiced Safety Standards and
and strict implementation of solid waste Guidelines
management • Short term, Reversible
Generation of Solid/Domestic • Proper segregation and disposal to the accredited • 100% compliance with RA
Wastes collector and disposal facility 9003
• The company will promote the 3R’s of solid waste • Collected wastes shall be
management
weighed to monitor volume
• Color-coded garbage bins/trash bins placed in
of generated wastes
relevant areas
• Long term, Reversible
Domestic solid wastes maybe • A solid waste management plan will be strictly • 100% compliance and
indiscriminately disposed in enforced; implementation of
adjacent areas management plan
• Long term, Reversible

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Option for Prevention, Mitigation and/or

Project Activity Potential Impacts Target Efficiency
Enhancement
Generation of Hazardous • The proper storage and documentation of the used • 100% in compliance with RA
wastes - Production of waste oil and oily rags will be implemented as stated in RA 6969 in proper handling and
oil during maintenance 6969. The waste will then be properly disposed of management
activity of the vessels and the using PPA or DENR accredited waste handlers/ • Long term, Reversible
equipment transporters.
• Grease traps installed to prevent discharge of oily
material
Generation of sewage • Provision of septic vaults and usable toilets for the • 100% compliance and
workers/staffs for infectious wastes implementation of RA 9275
• Long term, Reversible
Generation of employment • Prioritizing qualified residents from affected • 100% compliance to DOLE
opportunities Municipalities and Occupational Health and
• Only qualified locals will be hired for operation Safety Standards and
phase Guidelines
• Possible conduct of training programs to develop • Long term, Reversible
and enhance skills of residents for a high chance of
employment
Increase in government • As part of the proponent’s corporate social • 100% assurance that due
revenues responsibility, the local government together with and fair benefits shall be
the affected communities will benefit from the given to the LGU
project by hiring of local workers, remit taxes to the
LGU, and implement Social Development
Programs (SDP). While the national government
will benefit from to the high demand and use of
magnetite sand in steel manufacturing industry.
Abandonment Phase
1. Pulling out of marine Marine water pollution from • The proper storage and documentation of the used • 100% compliance and
vessels from the mining area oil and grease, etc. oil and oily rags will be implemented as stated in implementation of RA 9275
RA 6969. The waste will then be properly disposed • 100% implementation of
of using PPA or DENR accredited waste handlers/ environmental best practices
transporters. in handling marine vessels

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Option for Prevention, Mitigation and/or

Project Activity Potential Impacts Target Efficiency
Enhancement
including proper
management practices in
handling fuels for regular
maintenance of vessels and
equipment.
• Separate storage and proper
handling and labelling of
used oil for identification
• In case of oil spill, an oil spill
response equipment and
qualified personnel will be
available on the anchor
handling tug or vessel.
• 100% compliance with
MARPOL 73/78
• Long term, Reversible
Maritime traffic congestion • Coordinate with PCG and/or PPA on the traffic • 100% compliance with the
routes or schemes that are likely to be used by government agencies with
large vessels jurisdiction in the Philippine
waters

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