HEXAT MINING Inc.

,
An accomplishment in Ecology and Business Management

Introduction

In the year of 1990s, many mining corporation had develop and functionalize for the reason that it is where small scale of mining operation became period of making precious and fine gold and silver. In this period (1990), it is where the HEXAT mining name had created. On October 1, 1994, the business group under the leadership of Mr. Noe Taojo took a new name of HEXAT mining. On July of 1995, the group formed the umbrella organization-HEXAT holdings, Inc. which was registered with the Securities and Exchange Commission (SEC) on July 26, 1995. Right of the same year October 25, 1995 it was registered with SEC. many developers of the company had invested much money and effort to develop and expand the said corporation. The HEXAT Corporation is part of province of Davao del Norte, in Barangay Magdum, Tagum

I-Industry Study The HEXAT Mining Corporation has evidently secured Environmental Compliance Certificate (ECC), the Housing and Land Use Regulatory Board; application to construct Waste Water Treatment Works and Processors Permit, the ECC, is a requisite; this report follows the annotated out line provided by Environmental Management Bureau (EMB) of Department of Environment and Natural Recourses (DENR).

II-Project Description A. Basic Project Information Project Name : HEXAT Gold Processing Address : Km. 61, Barangay Magdum, Tagum City,

Davao del Norte

Type of Project : Mineral Processing Project Proponent : HEXAT MINING

CORPORATION

Contact Person : Mr. Ferdinand Galang Manager

B. Project Location The milling plant of Hexat Mining Corporation is located at Km. 61, Barangay Magdum, Tagum City, Davao del Norte. The plant site can be reached by vehicle via the paved Daang Maharlika Highway and 61 km from Davao City.

C. Project Rationale The project is highly operational it is the gathering of raw mineral material (like natural stones/rocks) which produces ores, metals, minerals and hydrocarbon. Acids and chemicals are producing in other forms of elements. The project is using heavy and bid machines and useful pure metal equipments for grinding, mining, milling, concentrating, converting, transporting, manufacturing, buying and selling of different product produces.

D. Alternatives Another substitute process that can be utilize in order to recover a gold but not using cyanide as the main source for hydrometallurgical recovery for gold: Chlorination, Chlorination was used two centuries ago before the use of cyanidation. Chlorine was first used to recover gold from residues from amalgamation. Later, was used in big operations in the American and Australian gold fields. At the present time, chlorination for gold recovery is used on extremely small scale where gold is a minor constituent with other precious metals.

E. Description of Project Phases

Pre-construction/Operation Phase In Pre- construction, first on the list is clearing of a grassy site removing of different forms of grasses (cogon) and wild plants. Secondly is the leveling of the land take assure that the land is evenly plane in constructing buildings, offices, canteen, laboratories and tanks and tunnels. Thirdly, is creating a boarding fence where estimated location is highly covered in the territory. Construction Phase The construction phase involved civil, mechanical and electrical works. Civil works were construction of buildings, drainage system and the tailings ponds. Mechanical were the installation various CIP tanks and commissioning of equipment related to gold recovery from the ore. Electrical works were installation of wirings and other electrical accessories.

 Operational Phase

The processes are shown which can picture out the flow of designed and chart of the study. These are the following procedures in their operational phase. Washing The materials (rocks) are washed using the water to remove the mud and fine dirt. Crushing The materials are prepared for crushing and screening processes and the small thin fines will come out from the scrubber then to be move transferred to the open launder with washed water. Repulping Some materials are transferred by pump going to the grinding circuit and the materials are discharged by using chute and go through a feeder and moved to crusher by using a conveyor

Grinding The materials like wood chips, debris, and fibers will be grind until they will be separated by using a ballmill. Classification The waste material will be separated. Concentration and thickening The materials will go through a thickener for pulp thickening. Leaching The pulp will be treated using cyanide solution to make sure that the cyanide strength will be maintained at its required level. Then the air compresses at the tanks to enhance that dissolution of the gold with cyanide solution. Floatation There will be floatation after the grinding sections wherein those fine thin materials left will be re-grind again.

Adsorption Separation of gold from final trails leaves the adsorption tank then let it flow to the pond below the mining plant then the carbon should be removed from the tank, it will be placed in the vessel to be washed. Desorption The carbon should be moved where the gold is to the desorption vessel. Electrowinning Prepare for electrowinning process. Carbon Regeneration The plated steel will be removed from the electrowinning to be smelted to be produced the gold and silver.

Gravity Concentration The mill plant has a gravity concentration place. The plant contains elements like gold. After producing it the circuits will be placed in the sacks for the continuing process. Smelting After the amalgam has been removed from the mercury then it will be put in a protected vessel. Refining The metallic mercury will be separated from gold. Bullion It will be filtered to the bullion. After this processes, you must repeat it until you can produce a refined gold.

 Abandonment

Phases

First, HEXAT Mining Corporation should remove all the equipments that they use during their operation. They should carefully detach that heavy equipment (such heavy metals and steel). In removing it they should rest assure that the equipment used is very clean like the tanks and pipes. Second, they should move out the materials that they used in the structure of their company. Rests assure that all the materials that had used in the construction should be disengaging into acquired pieces. Such materials that had used can be sold to any steel buyers. Third, HEXAT should mostly take actions in detoxifying the ponds near Hijo River. The ponds they had accumulated should be free from any harmful chemicals. After the abandonment activities the company must create plans that are helpful in relieving the site like cultivating plants for the benefiting in the environment cycle.

F. Baseline Environmental Conditions

Land The land surface is just like a typical land forms. The land is a hill like that where grasses like Cogon grass and Makahiya and tree plants like banana, Falcata and Ipil-ipil planted in the area. Air The air quality is typical in rural setting.

Water HEXAT water supply is located downstream of the plant of the site. It is a creek located with estimated distance of 250 meters from the pump house. Hijo River is located across the street of the site and the River is totally brown like in color, it is to the fact that some of the waste is being plunk on the river. People As of 2007 barangay Magdum in Tagum city has 8,900 populations. It has 1,780 numbers of households and 1,754 families. The people use to engage in agriculture and other are employ in different field such as labor, services and professionals. Magdum is highly productive and has big contributions in the economic stability of the place.

G. Impact Assessment and Mitigation

Impact Identification Air pollution is expected during the transport of raw materials from the gold rush areas to the mill sites. Air pollution is responsible for major health effects. Many diseases could be caused by air pollution without their becoming apparent for a long time. Diseases such as bronchitis, lung cancer, and heart disease may all eventually appear in people exposed to air pollution. Air pollutants such as ozone, nitrogen oxides, and sulfur dioxide also have harmful effects on natural ecosystems. But carbon dioxide is the main cause of greenhouse effects.

ACTIVITIES 1.) Transport of Gold Bearing Ore and tails 2.) Receiving of ore and tails

IMPACTS Air Pollution exposed to vehicular emission (CO2 and dust) Air Pollution CO2 and dust Land Pollution Cyanide from tails and other solid wastes. Air Pollution CO2 and dust Health Hazard Accident in the site Land Pollution Solid wastes Health Risk Expose to cyanide and other chemicals Land Pollution Empty cyanide drums. Air Pollution Cyanide Water Pollution tails and other chemicals Health Risk exposure to acid Water Pollution spent solvent Health Risk exposure of chemicals

3.) Crushing and Grinding

4.) Leaching

5.) Carbon Washing, Stripping 6.) Electro Winning

Impact Prediction There would be air, water and noise pollution. Ore is mineralized rock containing a valued metal such as gold or copper, or other mineral substance such as coal. The ore is then crushed into finely ground tailings for processing with various chemicals and Separating processes to extract the final product and it generate noise and large volume of waste water that contains traces of sodium hydroxide and cyanide. Future Environmental Conditions without the Project Gold, copper, diamonds, and other precious metals and gemstones are important resources that are found in rainforests around the world. Extracting these natural resources is frequently a destructive activity that damages the rainforest ecosystem and causes problems for people living nearby and downstream from mining operations. It would have a stable and peaceful ecosystem in that particular site regardless of human intervention such as activities by the community living nearby.

Future Environmental Conditions with the Project Mining will give unemployed people in the barangay to get at least the simplest job. Good drainage system will be constructed in order to reduce landslide and swampy areas that could cause serious diseases like dengue to the community. Unavoidable and Residual Impacts For the sake of current and future generations we need to safeguard the purity and quantity of our water against irresponsible mineral development. We need to ensure the best pollution prevention strategies are employed in cases where the risks can be managed. We also need to recognize that in some places mining should not be allowed to proceed because the identified risks to other resources, such as water, are too great.

H. Environmental Management Plan

Mitigation/Enhancement Measures/Plan (Impact/Risk) In every project, we encounter risks and impacts. HEXAT Mining Inc., in regards to the pollution, there are risks that cannot be avoided (i.e. air pollution due to smoke when separating the gold into copper and silver). The water waste disposal treatment is treated accordingly with due processes. They are responsible in physical, chemical, and biological treatment. Each pollutant has its designated removal procedures and treatments. Mitigating measures should be implemented to help safe guard the personnel and visitors. Examples of these are: First aid Programs Wearing of proper protective equipments to secure employees safety and heath Issuance of health insurance and other benefits

Construction Contractors Environmental Program

Potential Environmental impacts and geologic hazards
Construction *Employment

Mitigating Measures

Manner of Implementation

Schedule

Employees hired Hire employees should be within that fits the line of near the vicinity to work avoid tardiness and to help people to be employed
Proper use of equipments and safety precautions Cleaning the site after each operation to avoid dumping of solid wastes during construction

*Accidents

Providing of safety equipments

During the construction phase

*Solid Wastes

Contractor to implement

Social Development Program Hexat Mining Company has conducted feeding program in Brgy. Magdum, Tagum City and they have also implemented tree planting which is done quarterly within their vicinity at Pantukan, Compostela Valley is part of their social development program. Complying government requirements and necessary documents, proper storage of documents and keep them secure, prevent leakings and spills to avoid damage of properties are should be part of their contingency response plan. In case the company will abandon their operation, the company will have a year to empty the place and ensure that there wouldnt be any harmful incidents that will occur and especially cleaning the chemicals left that may affect the place in the future.

 Contingency Response 1. All mining within the

Plan borders of Magdum must be regulated, monitored and policed. This may seem a monumental task but can be done with creative methods. 2. Mining activities should be confined to specific geographic areas over a predetermined period, for all scales of mining. 3. Mining disaster insurance should be required for all mining activity. 4. Environmental disaster planning for any given mining project must be part of the environmental and social impact assessment. 5. General knowledge of the technologies to be used must be made available to the regulatory agency.

Abandonment Plan If HEXAT make a decision to end up their operation they should set into proper pieces the equipments they had used and clean everything in the operation site as well as detoxifying all the ponds that they utilize. Environmental Monitoring Action Plan All business that involve in production is highly monitored and screen. Of course the business especially the HEXAT must be monitored yearly by scrutinizing the process of making the product and its by-product, the materials used and the equipment that consumed, the monitoring division also should examine the operation and how the company give specialize in cleaning the equipments especially the tanks and tunnels.

 Environmental Monitoring Action

Plan All business that involve in production is highly monitored and screen. Of course the business especially the HEXAT must be monitored yearly by scrutinizing the process of making the product and its by-product, the materials used and the equipment that consumed, the monitoring division also should examine the operation and how the company give specialize in cleaning the equipments especially the tanks and tunnels.

 Institutional

Plan The company must comply with the department DENR with the Philippines Environmental Impact Assessment System regarding with the compliance of the environmental issues and laws. Education, Communication Plan HEXAT must secure informative signs and symbols in order to have a proper position and attire in handling the operation for mining. Symbols like warnings and sign board must properly impose. The company must also secure or conduct some seminars regarding with the business they took up. They should also participate in some of the national or international conference for them to be able to achieve the right control over the company. They must be competitive in all aspects.

Information,

III-Attachments or Annexes

Photos or Plates of Proposed Project Site

Impact Areas, Affected Areas and Communities

Maps of the Following Scale -Vicinity Map

-Site Development Map

Process Flow Chart

The End