INFORMATION SHEET RE DENR CANCELLATION ORDER FOR MPSA-031-94-X VISTA BUENA MINING CORP. / WELLEX MINING CORP. [Roforance: DENR mailed to WMCa NOTICE OF ISSUANCE OF AN ORDER dated 08-February-2017 pertalning to the ‘mining operations under Mineral Production Sharing Agreement No, 031-94-X for CANCELLATION. Transmittal of the Order through registered mall which was received by WMC on 14-February-2017. ‘The complete set of Information on the alleged violations is avallable on a mine ausit report transmitted to WMC by DENR through letter dated 21-October-2036. Sellen point ‘+ The Mine Aucit Report recommended therein SUSPENSION of Wellex-1 and Wellex-2 but not CANCELLATION. ‘+ On top of the mine aust team isthe Technical Review Committee, chaired by Atty. Danilo U. Uykleng, Ass. Director of MGB, who recommended NO CANCELLATION but a fine In the totel mount of Php 130,000.00 to MGB and Php $90,000.00 to EMB, among others. ‘+ DENR-EMB issued a Notice of Adverse Findings for Wellex-2 dated 14-December-2016; none for Weller ‘+The Wellax and Wellex-2 mining operations is under the watch of the Multi-patite Monitoring Team and the ‘Mine Rehabilitation Fund Committee as mandated by lew and had not recommended suspension or any order to terminate the mining operations and its aularies. ‘+ Thermine audit schedule or an aust plan was not transmitted to WMC prior to actual site vist ofthe audit team, [7 Ground for Gancatation | Bent wine Audit Report” “Acne takan by WMG] Remar | Deliiener 8-00-0018] To reay by Wie transiting mine au report and Informing to submit explanation within even das. Ft aldaton candace by DENK TWIN raced on 27-anuary-2017 determined corresponding report or notice from that VME’ mining operation has Dew as tothe ndings brett out impaired the functions of watershed during the field validation. Although and caused extensive station of ‘the al visi by DENR headed by iiaherpoabig DENA Sec. Regine Lopes Was publy known. Volton af isin provons of P| El Wace of Adverse Findings |) Theres paral compliance 41586 Envronmentalimpach dated 14-Dee-2016 for Area-2 ced ‘Statement Systern and ts Rf ‘that WMC violated condition No. | Ther@are two EMB-accredited PCO, (CMR and SMR submission partially. although no water quality ‘monitoring in 2036. 16.doof the ECC for Area-2. Letter received by WMC on 20-Deeember- 2016. IB has accredited two Polution Control Officers for WMCin 2014 valid unt December 2017: Shella Mae Borja-COA No. 2014. ‘Rxll-104; and Edionell sdor -COA No, 2014-403. Edimar Desamparado, who has been designated as Pollution Control Officer in 2014, completed EM prescribed three-day Basicand Advance Training Course on Environmental Laws for Pollution Control Officers and Managing Heads in 2015. AlNasser Adaptar, a holder of bachelor’s degree In Mining [Engineering was designated in January 2017 3g Environment, Prepared forthe subject: [DENR ORDER on 08-Feb-2017 re MPSA-031-58- | a [eens CONTROLLED Page No. Lois Date: [37 February 2007,INFORMATION SHEET RE DENR CANCELLATION ORDER FOR MPSA-031-94-X VISTA BUENA MINING CORP. / WELLEX MINING CORP. Health, and Safety (EHS) Officer for WMC to assist in overseeing environmental protection program, He Is registered with the MGB R13 2s Safety Inspector. (2) WMC transmitted reply to ENB (on 23-Decemiber-2016 to ask for extension of grace period. (@) Further, on 30anuary-2017 a second letter was transmitted to ent gee nd oot ot revius compton GME ‘WELLECE | Violation of the terms and conditions ofthe issuance of ECC under Section 8 of P.D. 1586 Issuance of Notice of Violation for non-compliance ‘of ECC Conditions No. 4,6, 8, 16(d), 17 8 19. “allure to ensure that no creeks, streams, rivers and/or sorings and/or portions of twill be ‘excavated, rerouted, diverted ‘andor be part of the mining, ‘operation area as what happened to ‘the excavation actty a the ‘downstream of Madanlog creek; {tis reflected on Compliance “Monitoring and Validation Report {CMVR) of Multi-partite Monitoring “Team {MMT inspection on 11-13 September 2014), to wit: “0b%en< No creeks excavated, re routed, diverted and/or be part of the mining operation area..200" “Failure to conform withthe provisions of R.A No. 6969 (Toxic substances and hazardous and nuclear wastes control act of 1990) ‘and RAANo. 9275 (Philippine Clean ‘Water Act of 2008) as required under Condition no, 6 ofthe ECC; WMC Area-2 was sued with a Hazardous Waste Generator ID no. 16-67-0093 on 8-Jan-2013 by EMB 213. ERG UAA hired the services of Wave Industral Sales, the latter with approved Transport Permit for haz waste (waste oll ony: Code 1103) with No, PT-XI-2014-128 to transport 15,000 of waste olin sis- mont peed. Te pays or teres hve ERE Inventory of used oil / waste oi reflected on CMR and SMR submitted to EMB R13 periodically {annually and quartery). ~~ | Failure to secure ECC for the ‘There was no excavation done but ‘excavation and instalation of ‘only installation of check dam to settling pond along the downstream | trap sit from upstream and it was ‘of Matianlog creck as required under ECC condition no 8, ‘not part of mining production area. ‘repared forthe subject: ‘DENK ORDER on 08-Feb-2017 re MPSA-O31-54-x ‘Originator: ‘Version No. ESNonogit; G2Negrame 2 CONTROLLED Pogenos [Bole T Date: | 47 February 2007INFORMATION SHEET RE DENR CANCELLATION ORDER FOR MPSA-031-94-X VISTA BUENA MINING CORP. / WELLEX MINING CORP, -Filure to designate qualified [MEPEO and fallure ofthe MEPEO conducted ‘monitoring onthe actual Project impact vis-ivis the predicted impacts and ‘management measures Identified in the EIS as required under ECC condition no 16(¢) EMB has accredited two Pollution Control Officers for WMC in 2014 valid until December 2017: ‘Shella Mie Borja -COA No. 2014- XII-104; and Edionellsidor -COA No, 2014-RI-403, Edimar Desamparad, who has been designated as Pollution Control Officer in 2014, completed MBS prescribed three-day Basic and ‘Advance Training Course on Environmental Laws for Pollution Control officers and Managing Heads in 2015. ‘AlNasser Adaptar, 2 holder of bachelor’s degree in Mining Engineering was designated in January 201? as Environment, Health, and Safety (EHS) Officer for WMC to assist in overseeing {environmental protection program. He isreistered with the MGS R13 sae rece ‘Other proofs of compliance were transmitted to EMB on 30-Jan-2017 ‘through WMC fetter WMC-EC-1701- 01, Le, submission of CMR to EMB, water laboratory testing result Issued by MGB R13, EPEP annual and quarterly accomplishment report, and Environmental Performance Report and ‘Management Plan showing, benchmark date, WMC4C-1701-01, ‘WELLEX2 | Issuance of Notice of Violation for ‘non-compliance of ECC Conditions No. 4,2, 4,6, 16(¢), 17 & 19. (1) for insuiciont implementation ‘of appropriate vegetative practices, sound soll management, and proper ‘waste management throughout the Project implementation - (2) For falure to established a reforestation and carbon sink program (1) Periodical accomplishment reports on EPEP, i, annul and (quartet reports for 2014, 2015, and 2016 were submitted to MGB 3, ERG (2) As reflected on the Comeliance Monitoring and Validation Report for the Special MMT inspection led bby EMB-13 Glynis rene S. Buct on 128-31 October 2014, to wit: -an-This program was Incorporated inthe application of Environmental Performance Report ‘and Management Plan (EPRMP) for (Prepared the subjece [DER Ge on 0 eb 30L7 re MPSAST-ARX ee a CONTROLLED PageNos | 30f8 I Date: | 17 February 2017INFORMATION SHEET RE DENR CANCELLATION ORDER FOR MPSA-031-94-X VISTA BUENA MINING CORP. / WELLEX MINING CORP, ‘the application of amended ECCIn the expansion of ts volume capacity, Amended ECCissued on 30-une-2014. Reforestation 2,500 pes. of Acacia rmangium specie were conducted ‘along landslide area and mine pit 2 ‘with spacing of 2m X2m utilizing ‘the summer job students from Loreto and Tubsjon municipality fast April 34, 2014.00" (2) (4) Periodical accomplishment reports on €PEP, Le, annual and quarterly reports for 2014, 2015, and 2016 were submitted to MGB 13 and presented before the MMT 1d MREC in quarterly bass. (4) Fallure to ensure that thatthe | (8) “There's no mining activity at supply f surface water will not be | the water soures area. We have ‘diminished 2s what happened to the | identified the area to be our water source of potable water for source, we are not mining that area. Barangay Malinao, ‘We coordinated with OVMPC to help Bey. Malinao develop a water _systen coming from a bigger source because our source wil dwindle during summertime. But we stil ‘maintained that water source for ‘ur personal consumption ané for others residing near the Malinao River to use it” ~ Alo P. Demerey, ve, WMC on SMS | + (6)Fallure to conform with the | (6) WMC Area-2 wes Isued with 2 provisions of RANo. 6968 {Toxic | Hazardous Waste Generator ID no. | substances and hazardous ané 16-67-0093 on 8-Jan-2013 by EMB nuclear wastes control act of 1990) LAA hired the services of Wave Industral Sales, the latter with ‘approved Transport Permit for haz~ waste (waste oll only: Code 1101) ‘with No. PTM-2014-128 to transport 18,000 of waste olin sis- ‘month period. The permit was not renewed though. Inventory of used ol / waste oll, reflected on CMR and SMR submitted to EMB R13 periodically (annually and quarterly sew and RAANO, 9275 (Philippine Clean Water Act of 2004) ‘as required under Condition ne. 6 of the ECC; Violation afcerain prowiions 7942 Phi MiningActof3695 | Violation of exiting ows, ples, and rules and eguations under DAO No, 2020-21 ‘Prepared forthe subject: ‘DENK ORDER on 08-Feb-2017 re MPSA-031.94-X ves Ne eee CONTROLLED Page tio: [aoe ate [37 Febraary 2007