BENGUET CORPORATION

ACUPAN CONTRACT MINING PROJECT (ACMP)

DESIGN LAB

SUBMITTED BY:
MAMANTEO, STEPHEN ADAMS D.
DAYAWEN, ARTEMIO

SUBMITTED TO:
ENGR. EDWIN N. TACIO
COMPANY BACKGROUND
Company Name : BENGUET CORPORATION –
ACUPAN CONTRACT MINING PROJECT (ACMP)
Company Address : 7/F Universal - Re Building
No. 106 Paseo de Roxas
Makati City
Contact Person/Designation
Corporate Head Quarter : MA. MIGNON D. DE LEON
Vice President for Compliance

Benguet District Office : ANTONIO L. BUENAVISTA

OIC-Resident Manager
Benguet Gold Operations

Contact Number : 0998-547-7205

(Office of the Resident Manager’s Office)

VISION
 To become the leading total natural resource development conglomerate in the country,
actively engaged in mining and mineral exploration, water resource and land
development, engineering, construction and allied services, and imbued with corporate
values that have been hallmark of the company’s 100 years of heritage.
MISION
 BENGUET CORP aims to be responsible, profitable and growth oriented conglomerate
engaged in natural resource development.
In furtherance of this mission, management is committed to:
 Maximize share prices and profitability through growth in earnings and tangible asset
value.
 Be a socially responsible and environment-conscious corporate citizen adhering to
highest business standards.
 Create high value added and portfolio-stabilizing business opportunities preferably in
natural resource based endeavors through strong exploration, research and
development programs.
 Achieve competitiveness and excellence as a natural resource company through the
enhanced productivity of its people, the improvement in the quality of life of its
employees and their families, and host communities.

LOCATION
 The project is located within Barangay Virac, Municipality of Itogon, Province of Benguet
which is approximately 15 kilometers Southeast of Baguio City (Map 01) or about 250
 kilometers north of Manila. Geographically, the mine site area is within the intersection
of the following coordinates:
 Northing : 16o 20’ 00” to 16o 22’ 10” N. Latitude
 Easting : 120o 38’ 30” to 120o 39’ 40” E. Longitude

ACCESS/TRANSPORTAION
 Road
 Access to the project site is an all-weather concrete road via the Baguio-Virac-Itogon
Road. Travel time by car is about 30 minutes from Baguio City.
 Air Access
 A helipad is maintained at the Antamok and BGO mill areas in Itogon from where land
transportation will take about 30 minutes from the Antamok helipad or 5 minutes ride
from the BGO Mill to project site.
 The Loakan Airport at Baguio City may also be considered as an alternate access for air
landing and from there approximately 20 minutes travel time by car to the mine site.

UTILITIES
 Power Supply Requirements
 Power supply requirement for ACMP operation is availed from the ABOITIZ POWER
(THERMA LUZON INC) / National Grid Corporation of the Philippines (NGCP). Based from
previous year’s power consumption rate, an annual power requirement of 6.786 million
kilowatt hour will be required to mine and process the projected 52,200 tonnes for the
year. This is approximately 565,500 KWH per month of power consumption to be
purchased from the main service provider.
 Power Supply Alternative
 A plan to acquire two (2) units of 750 KVA generators is under consideration because the
project is currently not equipped with any backup alternative power supply system the
present mining operation thus is fully dependent on the power service providers.
 Water Supply
 Industrial water requirement is obtained from water pumped out from Mine
underground. Water sumps are strategically constructed and installed with pump to
bring the water to tanks located in the vicinity and from which the operation is supplied
with the required water by gravity through pipelines.
 Potable water is delivered to each of the offices by water delivery provider.

COMMODITY
 Gold is the primary commodity being extracted for the project; with
 Silver as a secondary metal product.
HISTORY
 1903: Benguet Gold Mines is founded to exploit gold claims in the Philippines. (August
12, 1903 )
: First American mining company in the Philippines
: Founder >Metcalfe Clarke, Nelson Peterson and Henry C. Clyde. (American citizen)
 1906: The Company begins mining and milling operations in Antamok, Itogon, and
changes its name to Benguet Consolidated Mining Company.
:the company had established its first mining site, setting up an accompanying mill using
the modern technique of leaching ore with CYANIDE to filter out the gold.
: The company's first mill was capable of processing up to 60 tons of ore in order to
produce up to 350 grams of gold per day.
 1927: Two more gold mines are acquired. (Balatoc and Acupan)
 1934: Benguet launches chromite mining operation in Masinloc Zambales.
(Open-pit and underground mines)
 1949: Benguet is listed on the New York Stock Exchange.
 1950: the site had developed into the largest refractory chromite deposit in the world.
 1956: The Company changes its name to Benguet Consolidated Inc.
 1971: Copper mining operations begin.
: The arrival of FERDINAND MARCOS to power and the imposition of martial law,
however, had far-reaching effects on Benguet's ownership structure. Marcos abolished parity
rights and instead imposed legislation restricting foreign ownership of the country's mining
companies to just 40 percent. As a result, Benguet came under control of the Romualdez family,
led by Benjamin Romualdez, brother of Imelda Marcos. The Romualdez family's stake in the
company reached as high as 80 percent.
 1980: The company changes its name to Benguet Corporation and forms
Benguet Management Corporation as a holding company for its diversification
Into non-mining businesses.
: Benguet stepped up its mining operations, adding in 1980 a new copper-gold
mine at Dizon, in San Marcelino, Zambales
 1900: The Philippine mining industry went through a difficult period, the Company
likewise suffered a decline. Its operations were gravely affected by natural calamities
such as earthquake in 1990. This led to the suspension of operations of Benguet
Corporation in 1992.
 1991: Control of Kingking copper-gold concession is acquired after a lengthy court battle.
( in Pantukan, in the Compostela Valley)
 1993: Benguet sells off its headquarters as part of an assets disposal to pay off debts.
 1994: The Company forms a Trade division, which becomes Bengue trade subsidiary in
1997.
  1996: the company sold off another mine, a gold mine in Paracale, to Australia's Base
Metals for P 142 million.
 1997: Benguet launches a bottled mineral water operation, Agua de Oro, and enters the
eco-tourism segment with Benguet Mines Tourism Village.
 2000: Benguet sold its Itogon gold mill to TAV Construction Corporation.
: The company is delisted from the New York Stock Exchange and transfers its
shares to the over-the-counter market.
 2003: Benguet celebrates its 100th anniversary.
 Reopened Benguet Corporation on a limited scale through the Acupan Contract Mining
Project.

PRESENT STATUS
 The project is an actively producing mine operated and managed by the Benguet
Corporation employing a community based mining operation under the Acupan Contract
Mining Project (ACMP). Where sixteen contractors composed of residents within the
mining claims and neighboring barangays having organized themselves into livelihood
groups entered into contracts with the company to undertake mining activities for the
mine operation. Thus, actual extraction of ore is being conducted by the contractors
under the direction of the Mine Operations Department through the guidance of
Geology and Mine Engineering departments.

BRIEF GEOLOGY AND MINERALIZATION

 Acupan is underlain by thick pre-Miocene andesite volcanic flows that belong to the
Lower Keratophyre formation. These were intruded by the Late Miocene Itogon diorite
and the Pliocene Virac granodiorite. Dacite plugs and diatremes followed in Late
Pliocene time, one of which was the ovoid-shaped “Balatoc Plug” measuring 1,000
meters by 600 meters. A Quaternary dacite plug was emplaced near the center of the
Balatoc Plug which could have triggered intense diatreme activity, intense re-brecciation
in and around its walls, and argillic alteration within, thus forming the present diatreme
complex as we see it today. The diatreme must have breached surface as evidenced by
charred tree trunks and branches in the deeper mine levels. Modern-day waning
geothermal activity can still be felt in the lowest mine levels.
 Where gold-quartz veins crossed the brecciated rim of the diatreme, similar
mineralization was deposited in intra-breccia spaces and voids within many meters of
the veins, thus forming GW breccias. In one particular vein system, the 99, which
formed the GW-3 on the west rim, also developed a wide quartz-stockworks deposit
inside the diatreme just before it passed out of the east rim, thus forming the Malouf
deposit.
 Gold occurs principally as tellurides, electrum and as free gold in the veins, consisting
principally of quartz and calcite and containing ubiquitous pyrite with minor rhodonite,
 rhodocrosite, chalcopyrite, galena and sphalerite. The veins average 1-1.5 meters and
trend generally N-E with moderate to steep dip to the south.
 The porphyry copper-gold deposit (called the Ampucao Porphyry Copper Prospect),
found in the southern part of the mine must have formed during the hydrothermal stage
of the Virac granodiorite intrusion. Later epithermal activity in Quaternary time formed
the numerous gold-quartz veins above and around the porphyry copper deposit, along
northeast and east-west faults and fractures that affected all rocks including the young
diatreme.

ACUPAN MINE
RESOURCE POTENTIAL
 Acupan has a total potential of 29,179,000 metric tons at an average grade of 2.69
grams gold, consisting of 23,052,000 Mt of breccia mineralization (Breccia) grading 2.50
grams gpt Au, 3,794,000 Mt at 2.26 gpt Au from Malouf and 2,333,000 Mt at 5.27 gpt
Au of vein resource.
 The total potential is equivalent to 2,524,053 oz of contained in-situ gold.

ACUPAN MINE
Details of the Resource Potential

MINING METHOD
  The mining operation of the Acupan Contract Mining Project (ACMP) applies the
traditional “camote”, resuing and/or pillar robbing underground cut and fill mining
methods in the extraction of ores. Underground mining operation is conducted within
the five (5) active mining levels namely L-2000, L-1875, L-1700, L-1500 and L-1300 with
corresponding sub-levels whenever feasible.
 To ensure order and safety in contracting numerous groups to undertake mining of ore
underground, Mine Operations Department together with the Mine Engineering and
Geology Departments provide the necessary technical guidance to the different
contracting groups in their mining operations. Relatively, each contractors are assigned
specific working areas within corresponding mining area so as to ensure order in mining
excavation.
 Mining is generally guided by the structure of the intercepted ores. Following the
general trend of the ore, excavation is done using the minimal drill and blast mining
scheme. Broken muck is usually placed in sacks for hauling. From the mining elevation,
these sacked ores are lowered to main haulage levels and brought to mill through the
Balatoc Drain Tunnel Shop with a series of manual and mechanized hauling using diesel
powered tractors and/or a train of mine cars pulled by battery operated locomotives.
 Underground operation used natural ventilations with intakes coming from existing
portals and with mechanized (with blower) .exhaust at the 1300 level portal. Secondary
blowers are strategically installed to manage the flow of the air inside the tunnel and to
address insufficient ventilation where required.
 Mine waste are backfilled underground in abandoned areas, open stopes along drifts,
raises and any openings available which do not impede or obstruct ventilation, haulage
ways and other safety and efficiency considerations.
 For control purposes, explosives and the accessories used by the Contractors for blasting
requirements are all company issued.
 As for other equipment like portable blowers, electric drills, compressors and others,
contractors can either bring in or rent from the Company if available.
 Timbers used underground are bought from lumber trading. Contractors tapped their
water supplies from the Company-s water source.

ESTIMATE PRODUCTION
 The estimated daily production projected for the year is 143 Dry Metric Tons per day
which is approximately 52,200 tonnes total for the year.

DESCRIPTION OF PROCESS PLANT (MILL)

 The company operates a batch type Carbon in Leach (CIL) processing plant to
process/mill the run-off-mine ore. At present the plant is capable of processing 100-300
tons of ore per day. The plant consist of crushing and grinding facilities to further reduce
the size of ore ideal for the leaching process which takes place per batch in twelve
 leaching tanks with capacities ranging from ten (10) tonnes to one hundred twenty
tonnes to cater for the varying deliveries of each contractor.
 As stipulated in the mining contracts, revenues and costs are shared between the
Company and the Contractors on a 60/40 percentage distribution.
 To provide some controls in processing of contracted and company ores, two processing
setups have been established to separate the flow of materials during processing. The
Acupan Contract Mining Project (ACMP) batch processing plant handles that of the
contracted ore while the Benguet Corporation Continuous (BCC) plant will process
company generated ores.

ACMP Batch Plant (Contractor’s Ore)

 a.1 Crushing and Grinding of Contractors’ Ores
 The plant consists of two parallel lines of crushing and grinding. Each line has a jaw
crusher, a cone crusher and a ball mill. Each 15, 20, 50, 60, and 120-ton batch are
delivered to the plant in 40-kg sacks that are dumped in a hopper situated before the
jaw crusher. Ore is drawn from the hopper to a belt conveyor that discharges the ore to
a jaw crusher. The jaw crusher product is again similarly conveyed to a cone crusher for
further size reduction. Crushed ore from the cone is conveyed to a fine ore hopper then
conveyed as feed to the ball mill with its associated pump and cyclone. The cyclone
underflow goes back to the ball mill while the overflow is directed to a batch tank.
Crushing and grinding is done until the tank is full to the required level. Lime in solid
form is added initially to the mill so that pH 11 is reached on the pulp inside the batch
tank.
 a.2 Leaching

 Leaching is done in an agitated and aerated tank. Sodium Cyanide is added to reach the
optimum CN- concentration then Carbon is also added at 3-5kg per ton of ore. The
sodium cyanide concentration and pH are maintained for the duration of the leach
within 48hours.
 a.3 Carbon Harvesting, Tails Pumping and Cyanide Destruction
 After leaching, the pulp is drained through a gate valve at the base of the tank to a tray
screen to retrieve the loaded carbon. The pulp that passes the screen flows to the tails
sump then pumped to the tailings pond. Sodium Metabisulfite solution is dosed to the
tails sump so that the remaining cyanide in the tails solution is converted into non-toxic
form.
 While stored in the pond, further detoxification is naturally accomplished. The cyanide
detoxification and pumping equipment is a common facility for the ACMP and BCC
plants.
 a.4 Carbon Ashing
 The gold laden carbon chips are set over a 20 mesh screen inside an open cylindrical
tank then ignited with the use of commercial charcoal and kerosene(only for initial
ignition) . Air is supplied from the bottom by a portable blower so that spontaneous
burning proceeds. This process takes 10-15h.
 a.5 Smelting
 The resulting ash is upgraded 7 to 10 times from its loaded carbon grade thus becomes
suitable for smelting. Borax and silver granules are added then mixed with the ash after
which is smelted to form a gold-silver alloy. Re-melting then nitric acid treatment of the
poured metal separates the silver. The undissolved gold is smelted to form a gold button.
Silver is precipitated from the solution, dewatered, dried then smelted to silver. Parts of
the silver granules are recycled to the start of the smelting process. The rest of the silver
is shared at the usual 60% for the Contractor and 40% for the company.

 ACMP Batch Plant (BC’S Ore)

 Crushing and Grinding
 The BC mined ore is delivered from underground in bulk to the ore stockpile at the
surface. A delivery batch consists of a train of 10-12 cars each loaded with 3 tons of
broken ore. The ores are dumped in a pit from which the ore can be transferred to the
Mill Dump Pocket with the use of either a slusher or a front end loader. Ore is withdrawn
from the dump bin by an Apron Feeder then carried up an inclined belt conveyor to a
vibrating grizzly. The grizzly oversize drops to a 24”x36” jaw crusher which reduces the
rocks to 3”-4”, then received by a long conveyor together with the finer fraction that
passed the vibrating grizzly.
 The primarily crushed ore is fed to a 4’x 12 ‘Rotary Scrubber with an internal trommel
screen and lifters. Water is added at the feed end chute. The minus 1/2” pulp back flows
to the feed end through slots then directed to a 24” spiral coarse material classifier while
the larger material discharges at the scrubber end via an inclined chute or launder to a
receiving belt conveyor. Further size reduction to 2.5” is done by a 15” x 24” jaw crusher
before another crushing step in a 3’ standard cone crusher to produce minus 1/2”
material for grinding. The watery pulp from the spiral classifier is directed to the ball mill
discharge sump to join the grinding circuit. The coarse fraction discharges at the upper
end of the inclined tub of the spiral classifier then conveyed to the fine ore bin. Finely
crushed ores are stored in each of two 100-ton fine ore bins from which a
 Small belt feeder with variable speed drives draws the ore to a belt conveyor to the
corresponding 7’x10’ ball mill. The ball mill discharges pulp to a sump then pumped to a
cyclone that classifies the solid particles into a ground finished product as cyclone
overflow and cyclone underflow that is recycled to the ball mill. The fresh feed to the
ball mill comes as finely crushed ore from the bin.
 Leaching and Carbon Adsorption
  The leaching part of the plant consists of a series of four cylindrical open top tanks with
respective agitators and air spargers. Sodium Cyanide solution is added at the first tank
while activated carbon is placed in the 2nd, 3rd and 4th tank. Each of the adsorption tank
has an inter stage screen that retains the carbon while allowing pulp to flow from one
tank to the other continuously. Lime is also added to the ball mill then joining the pulp
to the leach tank. The lime when in the pulp functions to prevent evolution of cyanide
while cyanide at the appropriate dosage and concentration dissolves the gold. The
carbon surfaces adsorb the gold from the solution.
 . Carbon Harvesting
 When the loading or grade of the carbon in g/t is reached, the carbon is pumped out
from the tank with the use of air lift pipes. The air lift raises the pulp with carbon to a
vibrating screen at the top of the second tank to allow carbon to be separated from the
pulp which flows back to the same tank. After washing the carbon from sticking ore and
other materials, it is placed in sacks then delivered to the Ashing Section. This part of the
plant and the refinery are common facilities serving the ACMP and BCC plant. Carbons
are ashed and smelted separately based on the identified batch number and Contractor.
Similarly all carbons from the BCC are processed into bullion for the company.
 CARBON ASHING
 SMELTING

Mining and Milling Equipment

 As a currently operating mine, the project is equipped with available inventory of mining
and milling equipment. It only involved the maintenance and/or rehabilitation of such
equipment to serve the requirement of the mining/milling operation. Table below
shows a summary of some of the major equipment currently being used in the Mining
and/or Milling operation.
SAFETY AND HEALTH PROGRAM
 With an estimated total budget of approximately Three Million and Ninety Seven
Thousand Pesos (Php3,097,000.00), the Safety Department has lined up different
activities related to the different elements of a safety and health program to target a
“Zero Lost Time Accident for the ACMP operation.
 This target is to be achieved by having a sound Safety and Health Program that is
applicable to all phases of surface and underground operation in order to mitigate the
occurrence of undesired incidents of injuries to employees resulting to work stoppage.
Implementation and adherence to all established company policies, safety and health
rules and regulations and environment policies is therefore required to address all issues
that will affect the well-being or health condition of all workers in the ACMP operation.

ENVIRONMENT
 As a mining company who puts environmental management system as an important part
of operation, the following framework with an estimated allocated budget of twenty-
seven million pesos (PhP 27,047,743) has been programmed to help achieve its
environmental goals.

FINAL REHABILITATION
 SURFACE MINE BUILING AND OTHER STRUCTURES
Closure of the mine may leave the area with the mill plant abandoned. The
building facilities may deteriorate and eventually collapse if left with no maintenance. Other
suitable facilities may be used where mining project is active. Otherwise these facilities can be
transformed for other beneficial uses providing economic activity and livelihood, disposed of or
turned over to the land claimant or barangay-LGU or sold to interested parties.
The buildings in the camp site will most likely turn into Guest house, Tourism info
building, Mining mechanical and electrical shops with display of old mining equipment's, Events
center, Dorms for guests, Community facilities.
 TAILINGS STORAGE FACILITY 1, 2, & 3 AND ITS ENVIRONMETS
After mine operation, without proper rehabilitation and remediation, there will
be accumulation of materials that will create temporary ponding and flooding during heavy
rains. The pond will also become barren, unproductive land. The progressive rehabilitating of
tailings storage facilities will strengthen the stability of the dams and surrounding mountain
slope. Restoration of flora and fauna will become possible.
The final land use of the pond will be intensive agro-forest zone that will help in
the food security of the host and neighbouring communities. Ling term use such as grazing land
and ecotourism for parks and water fun will also be explored as a final use of the tailing pond
upon decommissioning.

 Rehablitation for phase 1, 2 and 3 with a surface area of 11.4, 11.20 and 16.8 hectares.
1. Assessment of the area (damn stability, erosion potential, etc)
2. Watershed characterization of TSF 1, 2 and 3.
3. Construction of drainage system/channel
4. Undertake community/ stakeholders farm planning scheduled on the 1st year
of operation.
 DRAINAGE AREAS (DIVERSION TUNNELS)
The progressive rehabilitation of the diversion tunnels will result in the stability if
the structure for long-term use. The area may be turned-over to the government after
stabilizing.