PROPOSED BROOKE’S POINT NICKEL MINING PROJECT

PROJECT DESCRIPTION FOR PUBLIC SCOPING

1. BASIC PROJECT INFORMATION

Project Name Proposed Brooke’s Point Nickel Mining Project

Barangays Ipilan, Aribungos, Mambalot, Barong barong

Project Location Municipality of Brooke’s Point
Province of Palawan

Commodity Nickel and Associated Minerals

Project Type Extraction of Metallic Ore

Category A: Environmentally Critical Project (ECP)

Project Classification Item 2.1.5: Extraction of metallic and non-metallic minerals
including extraction of oil and gas, deuterium (off-shore)

2,573.33 hectares (MPSA)

Project Area
200 hectares disturbed area per year

Annual Extraction 3,000,000 WMT

Major Components:

COMPONENT Description / Size

Mine Site / Mine Pit 200 has.

Stockpile Area/Ore Stock 5 hectares

Yard/Waste Dumps (aggregate area)

Siltation Ponds 3,200 cubic meters

(approximate capacity)

Project Components Camp site (Staff houses, 0.5 hectare

admin Office, laboratory,
warehouse, motorpool,
parking area)

Nursery 0.1 hectare

Haul Roads 9 – 10 kilometers

(approximately) and width of
14-meter wide

Port Area 3 hectares

ECC Application New

Project Proponent Lebach Mining Corporation

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PROPOSED BROOKE’S POINT NICKEL MINING PROJECT

Mezzanine Floor, South City Homes Recreation Center

Proponent Address South City Drive, South City Homes, Brgy. Sto. Tomas, Biñan,
Laguna

President Ms. Michelle Rodrigueza

Authorized Engr. Aniceto Popa

Representative
Contact Number : 0915.200.5296
Contact Details Email Address : anicetopopa@gmail.com

2. PROJECT DESCRIPTION

Lebach Mining Corporation (Lebach), is a 100% Filipino-owned corporation registered with the
Securities and Exchange Commission, to carry on the business of prospecting, exploration, mining
and processing of all kinds of mineral ores located in the Philippines. The company had its Articles
of Incorporation amended in July 2015. A copy of its SEC Registration, the corresponding amended
Articles of Incorporation and General Information Sheet listing its incorporators attached as ANNEX
A.

The Proponent has entered into an Agreement with the Philippine government in November 2009
to provide for the rational exploration, development and commercial utilization of nickel, chromite,
cobalt, copper, gold and other associated mineral deposits existing within the contract area and
covered by Mineral Production Sharing Agreement (MPSA) with No. 285-2009 IVB (amended),
which is currently under process for conditional registration. The copy of the aforementioned MPSA
is herein attached as Annex B.

2.1 Project Location

2.1.1 Location and Area

The Project Contract area is estimated at 2,573.33 hectares located in Barangays Ipilan, Aribungos,
Mambalot, and support facilities in Barangay Barong barong, municipality of Brooke’s Point,
Province of Palawan, as shown in Figure 1.1 and 1.2. The boundaries of the Project Area are
delineated by thirty-eight (38) points whose geographic coordinates are presented in Table 1.

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MPSA Boundary

Figure 1.1: Location Map of the Project Area (Map : Google Earth)
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MPSA Boundary

Figure 1.2: MPSA area on NAMRIA map

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Figure 1.3: MPSA area on MGB-4B Tenement Control Map

(Source : Mines and Geosciences Bureau Region IV-B)
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Figure 1.4-1 : Environmentally Critical Area Network (ECAN) Map

(Map Source : Palawan Council for Sustainable Development, PCSD)

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Figure 1.4-2 : Location of the MPSA area relative to Environmentally Critical Areas Network (ECAN)
(Map Source : Lebach Mining Corporation)
PROPOSED BROOKE’S POINT NICKEL MINING PROJECT

Figure 1.4-3 : Relative location of the MPSA area relative to the Mt. Matalingahan Protected Landscape
(Map Source : DENR-MIMAROPA, GIS generated for Lebach Mining Corporation)
PROPOSED BROOKE’S POINT NICKEL MINING PROJECT

Table 1: Geographic Coordinates of the Project Area

GEOGRAPHIC COORDINATESD OF MPSA No. 285-2009-IVB (Amended)

Corner Latitude Longitude

1 8°52'30"N 117°51'17"E
2 8°52'33"N 117°51'16"E
3 8°52'38"N 117°51'14"E
4 8°52'40"N 117°51'8"E
5 8°52'40"N 117°51'4"E
6 8°52'37"N 117°50'57"E
7 8°52'37"N 117°50'54"E
8 8°52'39"N 117°50'50"E
9 8°52'44"N 117°50'50"E
10 8°52'46"N 117°50'50"E
11 8°52'48"N 117°50'49"E
12 8°52'50"N 117°50'47"E
13 8°52'50"N 117°50'45"E
14 8°52'49"N 117°50'42"E
15 8°52'49"N 117°50'36"E
16 8°52'50"N 117°50'34"E
17 8°52'56"N 117°50'31"E
18 8°53'0"N 117°50'32"E
19 8°53'0"N 117°50'0"E
20 8°54'25"N 117°49'59.7"E
21 8°54'15"N 117°50'7"E
22 8°54'23.6"N 117°50'28.9"E
23 8°54'53.3"N 117°50'53.76"E
24 8°55'0"N 117°50'55"E
25 8°55'0"N 117°51'5"E
26 8°55'10"N 117°51'12"E
27 8°55'16"N 117°51'24.68"E
28 8°54'34.1"N 117°51'24.68"E
29 8°54'33.8"N 117°51'34.45"E
30 8°54'24.1"N 117°51'34.53"E
31 8°54'24.2"N 117°52'17.21"E
32 8°54'7.57"N 117°52'17.2"E
33 8°54'7.6"N 117°52'31.37"E
34 8°54'0"N 117°52'31.37"E
35 8°54'0"N 117°54'3"E
36 8°53'41"N 117°54'25"E
37 8°53'35"N 117°54'30"E
38 8°52'30"N 117°54'30"E
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The project area is approximately 3 kilometers away from the national highway and about
approximately 4.8 kilometers away from the coast of fronting Barangay Barong barong. Host
barangays and indirect impact barangays are summarized in the Table 2.

Table 2: List of Host and Impact Barangays

Direct Impact (Host) Barangays
Host / Direct Impact 1. Ipilan
Barangays 2. Aribungos
3. Mambalot
4. Barong Barong
Adjacent / Indirect Impact 1. Maasin
barangays

2.1.2 Project Accessibility

Brooke's Point is situated in the south-eastern section of Palawan Island, approximately 192
kilometres from Puerto Princesa City. Brooke's Point is bounded by Sofronio Española in the north,
Bataraza in the south, Rizal in the west, and the Sulu Sea in the east.

The projectBoundary
MPSA area is accessible through an all-weather road from Puerto Princesa City. The site is
more or less 10 kilometers northeast of the town proper.

MPSA Boundary
Proposed Haul Road

Figure 2: Map of the MPSA Area showing barangay boundaries

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2.2 Project Rationale

The price of nickel has exhibited a considerable volatility in the last forty years. The chart below
shows the historic LME price for nickel in nominal values from 1991 to 2018H1. In the late 1980s
there was a peak in the price of nickel. In the first half of the 1990s the economic collapse of the
former “Eastern Bloc” countries resulted in a surge of nickel exports that drove nickel prices lower
than the cash costs of production resulting in reduced nickel production in the “West”. Until 2003
the nickel cash price remained below US$10,000 per tonne. The price breached $14,000 per tonne
in 2005 and then escalated dramatically through 2006 before peaking at $52,179 per tonne in May
2007. Nickel prices then declined until the end of 2008, when the average cash price in December
hit a low of $9,678. In early 2009, nickel prices began to once again climb and reached $24,103
by the end of 2010. In 2011 the price continued to move up and reached a peak in February, with
an average price of $28,247. It has declined since then until the end of 2013 when it stayed below
$14,000. The initial reaction to the implementation of the export ban of unprocessed ores in
Indonesia in January 2014, nickel price climbed to just below $20,000 in July 2014, but since then
it declined almost every month until February2016 to be traded at around $8,300. After this trough,
a year of volatility at around $10,000 followed and from the end of 2017, monthly average prices have
consistently surpassed $10,000, showing rising trend and a peak at $15,111 in June 2018.

LME stocks of nickel were relatively stable during the period 2001 to 2005 at around 20,000 tonnes.
In2005 stocks increased somewhat and again declined in 2006. During the period 2007 to 2009
stocks rapidly increased to over 158,000 tonnes at the end of the period. In 2010 and 2011
destocking took place with stocks at the end of December 2011 at 91,000 tonnes. Since the
beginning of 2012 to March2016 a long period of stocking took place, reaching over 470,000 tonnes
in June 2015. In the second quarter of 2015, the Shanghai Futures Exchange (SHFE) launched
the nickel contract and stocks havebeen rising there to a level of 73,000 in March 2016. By the end
of March 2016, the combined LME and SHFE stocks were over 500,000 tonnes. A period of
destocking then started, that became more accentuated in the beginning of 2018. By the end of
2018H1, inventories at LME and SHFE registered warehouses combined were under 300,000
tonnes.

Figure 3: Nickel Prices and Stocks

(Source: International Nickel Study Group https://insg.org/index.php/about-nickel/production-

usage/#:~:text=World%20nickel%20demand%20increased%20from,rate%20of%203.8%25%20since%202000.,Retrieved:
2020)

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PROPOSED BROOKE’S POINT NICKEL MINING PROJECT

With the growing losses in the Philippine economy resulting from the health crisis in the past two
(2) years, investors in the mining industry are looking into priority areas with the Philippine
Government in its thrust to wisely utilize existing natural resources and contribute to economic
recovery. The proof of the Philippine Government's aspiration to explore, develop ,and utilize the
country's mineral resources is reflected in the enactment of Republic Act No.7942 (Philippine Mining
Act of 1995), the promulgation of its revised implementing Rules and Regulations (DENR)
Administrative Order No.96-40), the issuance of Executive Order No.270 (National Policy Agenda
on Revitalizing Mining in the Philippines), and the issuance of the Memorandum Circular No.67,
which directs the Operationalization of the Mineral Action Plan for Resources Development.

The Government, both national and local (regional included), will benefit from the project through
taxes, fees, and duties, both direct and indirect including labor and employment. Since the products
of the mine will be exported, the foreign revenue earnings of the country will also gain from this
proposed undertaking. The proposed amendment to the Project, in including the mining of Nickel
reserves, will further complement the present positive contributions of the project to the Philippine
economy.

2.3 Project Alternatives

In terms of mining area, the proposed project has already obtained an MPSA and the proponent
therefore has no option to relocate. Mining projects are site specific, as mineral extraction only be
undertaken in areas where economic ore deposits occur. Unlike other natural resources, there is no
opportunity to consider other alternative sites in mineral development and utilization project the only
alternative is not having the project. This was further strengthened after initial exploration activities
show a viable area where nickel deposits are found to be substantial for commercial mining.

2.3.1 Facility Siting

The proposed project intends to utilize existing haul roads as access to the project area. Mine pits
and stock piles would be developed that may require additional haul roads yet this is foreseen to
be minimal in terms of works and capitalization. Support facilities are to be located within the MPSA
area expect for the portions of haul roads leading to the proposed Port/Jetty which will serve as
transport point for sea vessels.

2.3.2 Process and Technology

The project will implement Surface Mining Method, specifically Contour Mining Method. Such is
selected because of the proximity of the deposits to the surface. Generally, the thin top soil or
overburden will be removed and stock piled at strategic areas and will eventually be used for
rehabilitation as topsoil for excavated areas. The exposed laterite will be excavated and hauled at
stockpile areas until ready for transport.

The mining method will utilize hydraulic excavators in backhoe mode loading rear dump trucks.
Initially, the bench height is designed at, at least 1M to ensure good grade control. Pre-production
activity involves stripping of over burden materials. The ore benches will then be progressively
mined by excavating the overlying bench to allow the progression of the mine to the lower benches
until the pit bottom is reached. Mining width or benches is projected to be at least 5M wide panels.
These panels will be advanced along the contour, with the truck loaded from beside or below the
excavator, depending on the pit design detail and the condition of the surface.

Mining will be done progressively or in panels/strips to minimize ground disturbance.

2.3.3 Resource Utilization

From the initial exploration on mineral resources in 2007, Inferred Ore Resources can be found in
the proposed mine pits or blocks shown in Figure 4-2. A deposit thickness of 15 meters was
assumed for this calculation rendering a total inferred resource of 40.6 million tons. At this volume,
3,000,000 WMT of mineral is estimated to be extracted per year for a period of 12 years.

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The project area has a considerable formation of foot slope ultramafic rocks as shown in Figure 4 . In
2007 and 2009, Lebach Mining Corporation (LMC) initiated a rapid assessment of a 200-hectare area
with the MPSA claim. In the reserve estimation, it was able to come up with a positive reserve of 6.6
million tons of 1.21% Ni laterite and 3.7 million tons of 1.96% Ni saprolite at 1.0% Ni cut off.

Figure 4 : Local Geology and Section of the Claim area

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Total reserve including probable and possible reserve estimation is about 31.07 million tons of 1.41% Ni
Laterite, from this total, about 10.66 million tons is 1.8% Ni Saprolite.

Table 3 : Summary of reserve category of the laterite in Brooke’s Point

Considering the higher grade nickel at 1.3% cut-off, the operation would be able to block 3.2 million tons of
positive reserve with 1.33% Ni laterite and about 3.7 million tons of 1.96% Ni saprolite . If this cut off is
considered , the total reserve of 1.0% Ni cut off will be reduced from 31.07 million tons (of 1.4% Ni laterite)
to 18.5 million tons of 1.6% Ni . The reduction in tonnage calculation can be seen in the possible reserve,
but the positive-probable-positive reserves becomes comparative at this 1.3% cut off which suggests similar
dispersion of the higher grade nickel in the depth and saprolite section of the laterite formation.

In the calculation of the total tonnage per nickel grade as shown in Table 4, wherein 25% of the laterite is
confined within the 1% cut off that has about 7.7% million tons of about 1.06% Ni (4.a). A considerable
portion of the reserve (24%) is under the 1.2% cut off that comprises about 7.4 million tons of laterite with
1.22% Ni (4b). The high grade nickel laterite in the 1.4% and 1.6% Ni cut off is about 15.3% of the laterite
deposit composed of 2.2 and 2.5 million tons with 1.32% Ni and 1.52% Ni grade (4c & 4d), respectively.
The high grade saprolite is about 34.2% of the deposit comprising of about 10.6 million tons with 1.79% Ni
saprolite. This means that about 50% of the laterite in the project area is on the high side composed of
34% saprolite and 15% of the 1.4-1.6% Ni laterite. This reserve estimate can be extensive by additional
deeper test pits that will also increase the proportion of high grade nickel in the reserve calculation.

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Figure 5 : Laterite Zoning seen in Brooke’s Point during the 1970 survey

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Table 4 : Total tonnage per 1%(a), 1.2%(b), 1.4%(c) & 1.6% (d)

The 2010 evaluation report has confined the study to a small test area of about 200 hectares out
of the entire MPSA claim. The study involved the test pitting and auger drilling over gridded
area of Block B and random test pitting in Block A, as shown in Figure 6. However, in the
presence of relative horizontal continuity of the laterite especially in plateau condition in Blocks A
& B. The positive reserve was based on 150 x 150M grid of srilling pits inside the 100 x 300M
rectangle set in Block A. The positive reserve calculation at 1% Ni cut off came up with about
6.6 million tons Ni. The probable reserve came up with 5.1 million tons of laterite at 1.21% Ni
and about 3.7 million tons of saprolite at 1.96% Ni. The probable reserve came up with 5.1
million otns of laterite with 1.23$Ni and 1.97 million tons of saprolite with 1.75% Ni. The possible
laterite reserve is about 5.0 million tons with about 1.7%Ni and 4.9 million tons saprolite with
1.69% Ni.

In the presence of small area sampled (the 200 hectare are a is only 10% of the total laterite
area), there’s considerable resource potential in the MPSA claim that may be approached.

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Figure 6 : Topography and Sampling Blocks

During the geological survey and test pits sampling, many of the test pits were deep enough and evenly
distributed in the south Block B while test pits in the north Block A is randomly distributed with varied
thickness. The test pits in random distribution were arbitrarily clustered into a rectangle set in Block A with
each hole’s proportionate area influence used to generate the positive reserve estimate while gridded
influence were used in generating the positive and probable reserve estimate in Block B.

The area of influence of test pits in Block A is in random location within the 100 x 300M arbitrary set, wherein
the test pits ranges from 2-4 test pits per set. On each 100 x 300M set, the area of influence for positive
reserve estimation for each test pit is proportionate to its location within the set and depth sampling. In
calculating the probable reserve , the area of influence is similar to the positive reserve estimation but
calculated at deeper location to a depth of 20M (based on the same test pits and extensive test pitting done
in 1970).

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2.3.4 Power Source

The National Power Corporation through the Palawan Electric Cooperative (PALECO) provides
electricity to Brooke's Point. The Lebach Nickel project will not involve milling or mineral processing
and is limited to a single-shift daytime mining operation, and therefore, very minimal electrical power
requirements are foreseen. Electric power usage will come mostly from lighting and other domestic
consumption by company employees and staff, Assay Laboratory equipment/appliances and the
welding, and miscellaneous machine shop equipment of the Mine Equipment Mechanical Maintenance
shop. The mine camp/field office site is located only about 5 kilometers away from the National Highway
junction at KM 181, therefore can easily be connected by ordinary household transmission wires to the
PALEO power grid that traverses the National Highway. Likewise, the company's shipping port/pier site
is also very close to the National Highway, less than two kilometers road distance.

2.3.5 Water supply

No milling operations will be done and therefore very minimal water requirements are
expected for the project which will come mostly from domestic consumption by company
employees, Assay Laboratory operations, Mine Equipment washing/cleaning, mine-site
housekeeping, and environment-related operations such as mine road dust control and
watering of plant/tree nurseries and mine rehabilitation/mining reforestation plantations. The
Brooke's Point Rural Waterworks and Sanitation (BPRWRSAI) services the water
consumption requirements of the municipality. It operates 2 deep wells with discharging
capacities of 20.0 and 15.2 liters per second, respectively. The mine camp which is only 5
kilometers away from the National Highway and 16 kilometers road distance from the town
proper can easily tap from the BPRWRSAI pipeline system or network. Other options for the
company are to drill its own deep well or tap from rivers/streams or free-flowing water springs
and operate its own pumping station. Bottled water for a health-conscious company staff is
available at the numerous town proper stores and public markets.

2.3.6 No Project Option

In the event that the project is not developed or pursued, the major implication will be missing out the
potential regional and national contribution to the economy. Considering the potential mine lifeof 12
years coterminous with the MPSA, which is expected to yield a considerable benefits, the contribution
to the country’s recovery from the current health crisis and long term development is undoubtedly
substantial.

Table 5 : Summary of Alternatives

Particulars Options Environmental Aspects Considered

Facility Siting 1. Current location – covered by an - Shallow depth of mineral deposits

MPSA and area intended for based on geologic evaluation;
mineral extraction has potential - Strategic location of the support
and viable deposits based on the and ancillary facilities reference to
preliminary Geologic assessment the mine site, that will minimize
report. environmental impacts (e.g.,
suitable areas for drainage lines,
catch basins, settlement ponds,
et.al. based on slope and drainage,
et.al.), maximizing production, in
terms of extraction, with efficient
mine operations planning.
- Use of existing haul roads vs. - Utilization of existing roads instead
development of new haul of opting to built new and separate
route haul route will eliminate
earthmoving, change in land cover,
disturbance to residents /
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Particulars Options Environmental Aspects Considered

communities, tenurial issues,
degradation of ambient air quality
brought about by road construction,
degradation of water quality in
terms of increased particle
suspension in run-off water, et.al.;
- Deterioration of existing hauls
roads to be utilized during
operation. Maintenance measures
to prevent grave deterioration of
existing roads should be
considered and factored in the
operation of the project;
- In the event that additional hauls
roads are necessary, this will only
be done to the minimum and only
as required. Such should also be
appropriately maintained;
- Locating support facilities - Area for support facilities such as
within the MPSA area the stock yard, camp site,
laboratory, warehouses, and
offices should be on relatively flat
terrain or smooth slopes only,
requiring minimal earth moving if
none at all;
- Eliminates concerns that may arise
as to tenurial issues;
- Minimal disturbance (or none at all)
to people or the community.
2. No Project Option – missing out on
the potential regional and national
contribution to the economy.

Process and 1. Surface Mining Method - - Surface disturbance is larger

technology Considering the shallow nature of - To compensate for surface
the mineral deposits, the surface disturbance, an Environmental
mining method particularly protection and Enhancement
Contour Mining would be the most Program will be implemented
appropriate mining method which - Higher percentage of mineral
would involve removal of top soil recovery
to expose the laterite deposits.
2. Underground Mining - Not applicable for shallow deposits
- Selective for high grade
underground mineral deposits

Resources
A. Minerals Availability of mineral resources
Resources - Considering the initial exploration At this stage, the mineable area will be
area, confined to the 200 hectares confined within the 200-hectares area
study area shown in the subject of the preliminary geologic
discussion above, the resulting assessment and exploration. The
reserve estimation of 6.6 million dispersion and depth, the quality of
tons of 1.21% Nickel laterite and Nickel (rating) of the estimated reserve
3.7 million tons of Ni saprolite at rendered the explored area viable for
1.0% Nickel cut-off including the commercial extraction.
probable reserve estimations as
detailed in the attached Based on initial examination relative to
Preliminary Geologic Evaluation hazard susceptibility, areas within the
(Annex A), were taken into project area fall within highly, moderate

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Particulars Options Environmental Aspects Considered

account as the source of mineral and low landslide susceptibility areas.
reserve. It is not susceptible to liquefaction.
While the general project area is not
susceptible to flooding, areas within
the periphery of rivers and streams
may be susceptible to high, medium
and low risks to flooding.

B. Water 1. Water supply from Brooke's Point Since this source is readily available
Rural Waterworks and Sanitation and its conveyance facilities (lines)
(BPRWRSAI) within the 5-16 Km distance from the
- it is projected that the project will mine site, Tapping into Brooke’s Point
have minimal water requirements Rural Waterworks’ system would be
mostly from domestic the most viable option at this stage of
consumption by employees, the study. Coordination has to be made
Assay Laboratory, Mine with the local water concessionaire in
Equipment washing / cleaning, order to determine if it is still capable of
mine site housekeeping, and accommodating the water requirement
environment-related operations of the project with the current 20L and
such as mine road dust control 15L per second extraction rate from
and watering of plant/tree operating its 2 wells.
nurseries and mine rehabilitation
activities.

Further, the company may also

opt to provide treated drinking
water (mineral/processed water)
from local commercial water
stations for its employees.
2. Development of a new well Depletion of water resources and/or
– As an alternative, the water resource competition – while a
development of a new well may be thorough study on options 2 & 3 has
taken into consideration. In doing not been conducted (yet), the
so, a well log should first be possibility of the project contributing to
developed and determined if depletion of water from well sources or
developing a well source would be competing with current water users
beneficial and worthwhile cannot be discounted. The existence
considering the actual water of wells and surface water utilized for
demand during mining operations. domestic and irrigation purposes
3. Surface water source around the project area should be
(rivers/streams) considered.
- Free flowing water from rivers or
streams may be conveyed to the
project area by developing its own
pumping station. This would
however require the permitting,
4. Power 1. Power supply from Palawan Since power supply is readily available
Electric Cooperative (PALECO) through a grid source, it is expected
- (PALECO) provides electricity to that there will be minimal impact on the
Brooke's Point. The project will not environment in terms of contribution to
involve any mineral processing greenhouse gas emissions as
and will be limited to a single-shift compared to totally relying on onsite
(daytime) operation which will generator sets which directly
require minimal power/electrical contributes to degradation of air quality
requirements. Electricity from the considering its SO2 and NO2 emissions
local power concessionaire will from burning of fuel. Greenhouse gas
power lighting and other domestic emission resulting from drawing power
requirements of its support from the grid will be calculated in the
facilities. impact assessment of this study.
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Particulars Options Environmental Aspects Considered

2. Use of Generator Sets Though the projected power
requirement is expected to be minimal,
totally depending on generator sets for
the mining operations would not only
be costly but will become a major
contributor in terms of the degradation
of ambient air quality (e.g., gaseous
emissions, noise level).

While sound suppressing elements

may be introduced to minimize noise
with the use of gensets, such would still
contribute to air pollution.

However, the use of a standby

generator as back up power supply in
cases of outages is still taken into
consideration. With genset/s provided
for back-up supply only, these would
minimize impacts on air quality and
mitigation measure manageable.

2.4 Project Components

Th summary of project components is presented in Table 6. Correspondingly, the Site layout of the
proposed mining project is presented in Figure 5-1 and 5-2.

Table 6: Project Components

COMPONENT LOCATION Description / Size

Mine Site / Mine Pit Barangay Ipilan 200 has.

Stockpile Area/Ore Stock Barangay Ipilan 5 hectares (aggregate area)
Yard/Waste Dumps
Siltation Ponds Barangay Ipilan and 3,200 cubic meters (approximate
Barong barong capacity)
Camp site (Staff houses, Barangay Ipilan 0.5 hectare
admin Office, laboratory,
warehouse, motorpool,
parking area)
Nursery Barangay Ipilan 0.1 hectare

Haul Roads Barangay Ipilan and 9 – 10 kilometers (approximately) and

Barong barong widthof 14-meter wide
Port Area Barangay Barong 3 hectares
barong

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Figure 5-1: Mine Development Plan

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Figure 5-2: Layout of Support Facilities

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2.5 Process and Technology

There will be no ore processing to be done. The Nickel laterite extraction will be direct shipping
operation (DSO) and will not require mineral processing. The primary work flow of the mining
operations after survey and exploration will be: clearing, grubbing and construction of access roads
and haul roads; bench forming; ore extraction and loading; pre-pile stockpiling for ore classification;
ore hauling going to port stockpiling; and loading to the mother vessel for shipping.On-pit or pre-
pilestockpiling will categorize the Nickel laterite grades. The categories/grade on Nickel laterite ore
will be reclassified, blended to achieve the desired Nickel grade and moisture content for shipment.
As these activities are undertaken, the progressive mine rehabilitation activities will also be done
simultaneously.

A graphic illustration of the mining process flow is presented in Figure 6.

Figure 6: Surface Mining Process Flow

2.6 Project Size

The project contract covers an area of 2,573.33 hectares. With the initial resource assessment
conducted, the annual extraction rate is pegged at 3,000,000 WMT.

2.7 Project Phases

2.7.1 Pre-Operation Phase

The pre-operation phase will cover the continuing exploration of other areas within the
contracted area and securing of necessary permits and clearances from the LGU and other
agencies having jurisdiction over the project and activities related to mine operations.

During this stage, support facilities will also be developed/constructed.

2.7.2 Operations Phase

The operation phase activities are discussed and the corresponding process flow is presented inthe
preceding section, Sec. 2.5 under Process and Technology.

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2.7.3 Rehabilitation and Decommissioning Phase

Progressive rehabilitation will be implemented, integrating mitigation and management of adverse

impacts to the mining operation. The progressive rehabilitation scheme will minimize the extent of
disturbance and the time of exposure of disturbed areas. Whenever possible, backfilling of the mind-
out voids will be undertaken. The details of the work program for a specific area will dependon the
bench design. Small steep benches will be left exposed, while mined areas and shallow trenches will
be backfilled and graded to long-term stable slopes.

Other conditions that will be stipulated in the ECC relative to decommissioning will also be complied
with. Demobilization activities will be conducted in coordination with the LGUs, the EMB-DENR, the
MGB and other concerned agencies.

Prior to the actual abandonment and rehabilitation phase, a detail abandonment and rehabilitationplan
will be developed based on the detailed biological, geological and engineering assessment. The
company forester will lead the terrestrial and fresh water biological assessment to the update the plan.

2.8 Project Schedule

The five-year work plan of the proposed project has yet to be finalized as the application for the
Declaration of Mining Project Feasibility (DMPF) is currently on process. Initially, an annual extraction
rate of 3,000,000 WMT annually is projected for a 12-year period (estimated mine life). Shown in Table
7 below is the initial activity schedule until target commencement of the mining operations in 2023.

2.9 Project Cost

The project’s estimated cost for the first 3 years is estimated at Nine Hundred Seventy Million Pesos
(PhP 970,000,000.00).

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Table 7. Preliminary Activity Schedule

PROPOSED BROOKE’S POINT NICKEL MINING PROJECT

2.10 Photos of the Project Area

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2.11 Potential Impacts

Module / Sector Potential Impact

A. Land 1. Disturbance to flora and fauna and wild life
2. Change on topography
3. Generation of solid waste
4. Possible migration of pollutants from heavy eqpt if
nit properly managed

B. Water 1. Turbidity
2. Sedimentation

C. Air 1. Dust dispersion

2. Noise generation
3. Greenhouse gas emission

D. People 1. Occupational Hazards

2. Psycho-social concerns
3. Health and Sanitation concerns
4. Increased economic activities (e.g., employment
generation, creation of small enterprises, tax
revenues, etc.)

2.12 EIA Team

Name Task / Specialization

Joel A. Espineli Project Director
Maria Luisa M. Guiterrez Project Manager
Geology and Geohazards / Climate Change and Disaster Risk
Dennis S. Tojos
Assessment
Emerito C. Hernandez Hydrology / Oceanography
Isabel B. Espineli Socio-economic Aspect
Rodolfo A. Romarate Jr. Terrestrial and Aquatic Ecology
Jan Julio A. Espiritu Air and Water Quality
John Elton Chua Public Engagement Specialist, Community Organizer
Demelyn L. Macalinao Research and Mapping
Justin Delos Reyes Research Assistant
Shirley E. Biong Project Coordinator

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