Project Development Of The Berong Nickel Deposit,
Quezon, Palawan, Philippines
(Extended Abstract)
R.A.L. Flores1, R.N. Santos2, and P.B. Azarcon3
1Resource Data Manager, TMM Management Inc.
2Principal Mining Engineer, TMM Management Inc.
3Government and Community Relations Advisor, TMM Management Inc.
Extendedabstract of paper to be presented at GEOCON 2005, Makati Philippines,December 2005.
Palawan is richly-endowed with nickel mineralization due to its ultramafic rocks, locally-suitable rolling topography with gentle relief, a fluctuating water table, and geological stability since the late Tertiary. Nickel, primarily from garnierite, is mainly derived from the mineral olivine. Weathering produces garnierite enrichment and deposition of the less-mobile elements especially in the dry season, as well as continual leaching and transport of the more-mobile elements near the surface particularly in the wet season.
The Berong nickel deposit, on the west coast of Quezon in south-central Palawan, was explored mainly by test pitting by Atlas Consolidated Mining and Development Corporation (ACMDC) during the 1970s and was reexplored by Stellar Metals, Inc. in the 1990s. This pioneering work has established the large potential of the area for laterite-hosted nickel resources. An earlier Environmental Impact Assessment was made by Gaia South, Inc. in 1996, and a pre-feasibility study was undertaken by Rescan in 1997.
In 2004, ACMDC entered into a joint venture with Toledo Mining Corporation plc of UK, jointly establishing TMM Management Inc. to act as Managers of certain Palawan nickel projects. The Berong Nickel Project aims to produce direct shipping ore (>=2% Ni and Fe <=15%) from the saprolite layer. The saprolite layer in the laterite profile lies in between the overlying limonite and the unweathered ultramafic bedrock below. More recent resource figures quote a combined limonite and saprolite indicated resource of at least 11.6 million tonnes averaging 1.9% Ni at 1.5% Ni cutoff, using a conservative variogram-derived 75m search radius, still uncorrected for topography, and using old aqua regia/AAS Ni data. A minimum seven-year mine life with targeted production of 0.5 dry MMT/yr of saprolite is planned, with additional potential for mine life extension from economic resources (>=1.5% Ni) in the more voluminous limonite layer.
To bring a mineral deposit into a producing mine is no simple matter. Palawan Province is nationally unique as all significant development activities requires an endorsement from the Palawan Council for Sustainable Development under the Environmentally Critical Area Network established under in RA7611.
From the earliest stage, permitting is necessary to allow detailed exploration. Major permits include NCIP-supervised Free and Informed Prior Consent from the Indigenous People in the area (Tagbanuas), as well as MGB approval of the Mineral Production Sharing Agreement application, administered previously in Manila, and now through the Iloilo Regional Office. A new Environmental Impact Assessment is required to be undertaken to form the basis for an eventual Environmental Compliance Certificate from the DENR. LGU (Barangay, Municipal, and Provincial) endorsements are needed to evince the project’s social acceptability. Exploration work, involving test pitting and/or drilling, is to be performed to model and estimate resources and reserves, which are the main bases for filing a Declaration of Mining Feasibility with the MGB for its approval.
During the construction stage, necessary infrastructure (e.g., roads, bridges, campsite, wharf) need to be set up, including construction of environmental mitigation facilities, the sediment ponds and overburden storage areas included. Mine development includes construction of the mine access road, preparation of the stockpile area, drying pad, and stripping to expose ore zones. A foreshore lease from the DENR is among those permits that must be obtained to allow marine ore loading and transport.
The production phase involves grade control, loading, hauling, drying, stockpiling, barging, and shipment. Concurrent are progressive rehabilitation of mined-out areas and planting of buffer zones until eventual decommissioning of the mine after depletion of the economic mineral resource.
The large number of tasks to bring a deposit into production is a complex process that requires coordinated and timely acquisition of necessary permits and judicious use of manpower and financial resources and careful scheduling. An operating mine is a testament to the confluence of the project proponent’s dedicated efforts in assumption of risk in its investment; consent, cooperation and partnership with local and indigenous communities, NGOS and People’s Organizations; Government, from the barangay up to the national level; ore purchasers, smelters and refiners; distributors and consumers of nickel and other mineral products.
Nickel laterite mining can be a most productive venture due to high revenue per unit weight and large extensive deposits. It has low, mainly reversible and short-term negative environmental impacts due to its surficial nature and simple ore preparation. More importantly, the Berong Nickel Project will provide significant positive, direct, economic benefits for residents of a remote Philippine barangay. Mining of carefully-developed locations in West Palawan has the real potential to uplift the collective quality of life and standard of living on a sustainable basis for a long-neglected, underserviced community of hardworking Filipinos. |