EM 311 Techniques of Mining Analysis

Assessment Paper 1:

Rio Tuba Nickel Mining Corporation

Members:

Pabelonia, Maria Flor M.

Pascua, John Francis O.

Salido, Carlos Rafael C.

Salido, Nover S.

Engr. Elma Jane D. Rapal

September 9, 2021
 Rio Tuba Nickel Mining Corporation

Rio Tuba Nickel Mining Corporation (RTNMC) is an open pit mining

operating in Barangay Rio Tuba, Municipality of Bataraza in the southern tip
of Palawan, Philippines. It's somewhere between 8°33'15" and 8°37'06"
latitude and 117 ° 22'13" and 117 ° 26'09" longitude. The property is located
150 kilometers northeast of Borneo Island on the southern edge of the narrow
Palawan Island. Its operation involves the extraction, sizing and sorting,
crushing, screening and solar drying of nickel ore prior to shipping to
customers overseas.

TNMC produces nickel laterite ore, comprising limonite and rocky

saprolite with grades that are varying between 1.5 to 2.5% nickel. RTNMC
exports saprolite and limonite ore to international buyers and also to local
processing plant. The commodities that are bought from RTNMC are turned
into various products such as for steel production, alloys, batteries, electronics
and other products vital to modern society. RTNMC are supplying about 61
million wet metric tonne (WMT) of lateritic nickel ore to the world market since.

History of Rio Tuba Nickel Mining Corporation

Rio Tuba Mining Corporation was founded in 1969 as a joint venture

between an American firm, UOP Co., and Philippine capital. After that, the Rio
Tuba Corp. began exploring and prospecting for nickel resources.

In 1971, a feasibility study on the potential for extraction of 2 million

DMT/year conducted by a group of Japanese companies was completed and
the report for the same study was finalized in 1972. As a result, application for
285 mine lots for the Rio Tuba Corp. was conducted in addition to the 110
mine lots already settled. And in 1973 the Pacific Metal Corporation acquired
all the stocks held by UOP Co., (40% of total stocks) becoming chief stock
holder in the Rio Tuba Corp. At the same year, basic design feasibility study
for a development plan.
 In 1975, with the capital investment by the Export-Import Bank of
Japan, construction was begun and main mining facilities were completed by
December, 1976. At the same time, capital for the related mine facilities was
provided under the Japan International Corporation Agency (JICA) grant aid
program with hospital, school and gymnasium facilities were established for
the RTMNC employee.

Mine Operation commenced from January 1977 and on that year

22,000 WMT of ore were exported to the Pacific Metals factory in Japan.

The Philippine Government approved the conversion of RTN's former

mining lease contracts into an MPSA with the Government on June 4, 1998,
in accordance with the Philippine Mining Act of 1995. The MPSA authorizes
RTN to explore, develop, and continue nickel ore mining operations within the
Contract Area, which covers 990 hectares in the Municipality of Bataraza.
RTNMC is required by the Philippine NIRC to pay a two percent (2%) excise
tax on gross revenues as the government's part of its output. Both MPSAs are
valid for twenty-five (25) years from the date of issuance and can be renewed
for another twenty-five (25) years at RTN's discretion with Government
permission.

The total amount of ore mined during the year 2020 was 5,186,254

WMT, with 1,618,323 WMT of saprolite ore, 3,567,931 WMT of limonite ore,
and 325,285 WMT of waste. RTN additionally recovered 901,159WMT of
saprolite ore in order to satisfy the annual saprolite shipment target.
 In 2020, RTNMC will ship a total of 1,980,067 WMT of nickel ore.
Pacific Metals Co., Ltd. purchased 250,854 WMT of medium-grade saprolite
ore (1.50 percent nickel grade) at an average price of US$ 38.23 per WMT. In
addition, 1,729,213 WMT of medium-grade saprolite ore was sold to Chinese
consumers at an average price of US$ 32.13 per WMT.

The Coral Bay HPAL facility received 3,027,026 WMT of HPAL-grade

limonite ore (about 1.00 percent nickel grade). For this tonnage, the realized
LME nickel price averaged 6.15 per pound of payable nickel. In addition,
Coral Bay received 247,561 WMT of crushed limestone, while Unichamp
Mineral Philippines Inc received 103,517 WMT (UMPI). RTNMC also handled
260,096 WMT of outsourced limonite ore and offered a number of services for
the Coral Bay plant, including material handling and hauling.

Impact to province and host community

The RTNMC project delivered beneficial advantages to the community

with its option of mineral conversion. Provision of employment for local
inhabitants, further execution of community projects, infrastructure and
livelihood development, increased subsistence and business and an increase
in tax collection and income in barangay and municipality are the positive
benefits received;

The Social Development and Management Plan (SDMP)

The SDMP aims to combine RTNMC's suggested intermediation in

favor of the project's numerous stakeholders. Empowering stakeholders,
particularly affected residents, is a component of the proponent's social duty.
Self-reliance, dignity, and empowerment via financial freedom are all
outcomes of this liberty. These goals can be accomplished by implementing
programs that maximize their productive potential while also supporting the
community in being more productive and progressive. SDMP 1 funds (2004–
2009) were awarded to the following components: (a) education, (b) social
services, (c) livelihood, and (d) infrastructure facilities. Priority for funding is
determined through MOAs signed between the corporations (RTNMC and
CBNC) and the municipality, affected barangay, and tribal council,
respectively. Eleven barangays benefited from SDMP projects. Within the 10-
kilometer impact radius, ten barangays were located. However, despite the
fact that one (1) barangay, Sapa, did not fall within the predetermined
geographical jurisdiction, it was included in the SDMP program due to its
geopolitical conditions. The SDMP program focused on the following
components

 Livelihood – provision of farm tractors, fishing boats, carabaos, pigs,

trainings and seminars, assistance in cooperatives and employment;

 Education – funding, material, or infrastructure support such as

college, high school, and elementary scholarships; construction of new school
buildings and classrooms, and repair of existing classrooms;

 Social services – medical and health programs, provision of

ambulance service, firetruck, multi-cabs, motorcycles with sidecars, electric
generators, petromax, I-Com radios, cellphones, water systems, water tanks,
Jetmatic pumps; and

 Infrastructure – provision of day care centers, health centers, tribal

halls, road repairs, gym and plaza, public library, irrigation system, multi-
purpose pavements, church/mosques repair, and other public buildings.

RTNFI Hospital

The RTNFI Hospital was founded 30 years ago with the mission of
providing high-quality medical care to residents and stakeholders in the
affected barangays. The RTNFI Hospital is a Level 1 facility recognized by
PhilHealth and the Department of Health (DOH). It is located within the RTN
Townsite. It functions as a primary hospital with emergency operations
capacity. In 2018, RTNFI Hospital employed nine (9) medical specialists,
including a dentist, four resident physicians, eight visiting consultants, 33
registered nurses, 63 ancillary service people, and seventeen (17) outsourced
personnel. The hospital is licensed to have 30 beds and five bassinets. Its
services include emergency, outpatient, clinical laboratory, radiology,
pharmacy, dietary, dental, and pastoral. The RTNFI hospital continues to
serve a critical role in assisting in the provision of health services, particularly
in light of the municipality's/insufficient province's government health system.
It is critical to the compliance of both CBNC and RTNMC.

Educational initiative

LEONIDES S. VIRATA MEMORIAL SCHOOL (LSVMS) The

Leonides S. Virata Memorial School (LSVMS) is a private Catholic school in
the Philippines run by RTNFI under the supervision of the University of St. La
Salle. Established in 1986, the school provides educational services to 1,233
pupils on a merit basis in Kindergarten, Elementary, and High School. 42
percent of students are dependents of CBNC, RTNFI, or RTNMC, while 50%
are not. Tuition expenses are heavily subsidized and range between PhP
120-300 for dependents and PhP 400-600 for non-dependents every year.
The top five students get full scholarship and free books.

SDMP scholarships. The scholarship program is a critical component

of the SDMP. The SDMP has increased its support for student’s at all
educational levels, from 300 in SY 2005-2006 to 591 in SY 2008-2009. 78
people graduated from college as a result of the SDMP scholarship program.
For the 2015-2016 school year, the SDMP Scholarship Program awarded
scholarships to 129 elementary, 315 middle school, and 430 high school
students, totaling 874 recipients.

INDIGENOUS LEARNING SYSTEM (ILS). Beyond the formal

educational system, RTNMC with help from CBNC initiated the Indigenous
Learning System (ILS), which is an alternative literacy program designed
specifically for indigenous cultural communities (ICCs) in Bataraza.
Indigenous peoples (IPs) in Bataraza comprise a considerable percentage of
the municipal population but are among the poorest and most vulnerable of
the different population groups in the municipality. The ILS mission goals are
to eradicate illiteracy among IPs; raise the level of functional literacy of the
indigenous people; finish the equivalency of elementary and high school
levels of education; hone employable skills to become more productive and
effective citizens; and, develop proper values and attitudes necessary for
personal, community and national development. The ILS is an innovative and
visionary program of RTNMC and CBNC that has been under highlighted. The
ILS goes beyond literacy training and involves other activities such as birth
certificate registration, nutrition activities, livelihood, and skills training.

Gawad Kalinga Program

RTNMC hopes that the GK community development model would

complement their initiatives, which help IPs become economically and socially
secure in a fast-changing Bataraza/Rio Tuba that is becoming more
integrated into the market economy.  Adopting GK's comprehensive,
participative, transparent, and long-term community development approach
for IPs has one major implication: it defies common knowledge that IPs do not
want middle-class, lowland development. Providing IPs with a middle-class,
lowland community development program raises academic, cultural, and
developmental issues that have an impact on CBNC and RTNMC's emerging
Corporate Social Responsibility (CSR) programs, as embodied in the CBNC-
ComRel and SDMP activities, as well as the rest of the Philippines' mining
sector. The GK sites also serve as a supplement to the SDMP operations and
as a model for an SDMP.

Community Relations Assistance (CAR)

Aside from the SDMP, both CBNC and RTNMC run the Community
Relations Assistance (CRA) program, which provides open-ended assistance
to stakeholders. CRAs often encompass health care, welfare, social services,
sponsorships, contributions, and general aid requested by beneficiaries, all of
which are subject to CBNC/RTNMC discretionary approval. According to the
CBNC's COMREL, the reduction of CRAs demonstrates the improvement of
local people' and communities' capacity, which is one of their aims.
This is RTN Townsite in Rio Tuba, Bataraza, Palawan, home of employees of
RTNMC, CBNC, RTNFI, Unichamp, JGC and other contractors' employees
and their families. Within the confines of the Townsite is the RTNFI Hospital,
a medical facility that renders medical services not only to the employees and
their families. Indigents and members of IP communities get to avail free
hospitalization here. A La Salle-Greenhills-supervised school also stands
here.

Datchena is one of the applicant of SDMP scholarship in RTNMC

Employees of RTNMC received their first shots of vaccines in Barangay Rio
Tuba, Bataraza, Palawan. It was donated by the company of Nickel Asia
Corp. (NAC). It is part of their mission to help achieve comprehensive
community safety

SDMP SCHOLARSHIP of RTN in BARANGAY TARUSAN, BATARAZA

62 fishermen from Barangay Iwahig received a pump-boat and other
necessary material that may help their livelihood and ocean surveillance.
These were from Rio Tuba Nickel Mining Corporation (RTNMC) under their
Social Development and Management Program (SDMP).

Local Government Unit (LGU) of Barangay Bulalacao has improved its Health
center infrastructure through Rio Tuba Nickel Mining Corporation’s (RTNMC)
Social Development and Management Program (SDMP).

Bonsay Agricultural Farm is a training provider site but it also offers farm
tourism vibes. The site is a TESDA accredited farm school and assessment
center
The NAC-Rio Tuba Nickel Mining Corporation (RTNMC) has provided
equipment to Barangay Igang-Igang to facilitate day to day transactions and
services.The funds were sourced out from the mining company’s Social
Development and Management Program (SDMP).

Training on Coffee Production Management and Technology for Bataraza

coffee farmer’s cooperatives under the umbrella of Southern Palawan
Federation of Farmer’s Producers Cooperative (SOPAFFCO). The training
was spearheaded by the Department of Agriculture (DA) Palawan in
partnership with Rio Nickel Mining Corporation (RTNMC), Coral Bay Nickel
Corporation (CBNC) and Western Philippines University (WPU) Rio Tuba
campus.
The National Commission on Indigenous Peoples (NCIP) - Palawan
Provincial Office has seen and experienced the environmental protection,
enhancement, rehabilitation programs, and community development efforts of
Rio Tuba Nickel Mining Corporation (RTNMC) being done in its operation in
Barangay Rio Tuba, Bataraza

Map and Pictures of RTNMC

Conclusion
Rio Tuba Nickel Mining Corporation (RTNMC)’s mining operation in the
area resulted in the economic development of the surrounding communities,
but also contributed to the rising economy of the province of Palawan.
At first people might criticize the mine site for its visual environmental impacts
in the area just as shown in the images above, but as the people learn more
about the company and its programs they’ll eventually trust and admire
RTNMC for the results that it yielded for the past 5 decades.
Activities such as: tree planting, community-based programs for locals
(farmers, fishermen etc.), scholarship programs for students and much more
are being implemented by RTNMC mandated by R.A 7942 or the Philippine
Mining Act of 1995 being watched by the DENR-Mines and Geosciences
Bureau (MGB). Those are one of the reasons why the Rio Tuba Nickel Mining
Corporation faces little to no opposition in the area since they are the reason
why the local communities have quality living compared to 50 years ago.
RTNMC’s Rio Tuba mine site is an example that sustainable development,
and having a friendly relationship with the local communities will lead to a
better understanding and opportunities to both the common folks and workers
in an area where a mine site is operating.
REFERENCES

Project Description, Rio Tuba Nickel Mining Corporation:

http://eia.emb.gov.ph/wp-content/uploads/2019/04/EIS-Report.pdf
Rio Tuba Nickel Mining Corporation (Official FB Page),
https://www.facebook.com/responsibleminingisrealatRTN

Nickel Asia Corporation. (2018). Financial Reports. Nickel Asia Corporation.

https://nickelasia.com/investor-relations/financial-reports

https://openjicareport.jica.go.jp/pdf/10404135_02.pdf

Major Mines & Projects | Rio Tuba Mine. (2017). Miningdataonline.com.

https://miningdataonline.com/property/3443/Rio-Tuba-Mine.aspx#Mining

MGB-MIMAROPA Region. (2019, August 23). Annual Social Development &

Management Program. Region4bmgb. https://region4b.mgb.gov.ph/mine-

safety-environment-social-development/annual-social-development-

management-program

Sustainable Minerals Development: Best Practices in ASEAN. (2017).

https://asean.org/wp-content/uploads/2017/12/Best-Practices-on-Sustainable-

Mineral-Development-in-ASEAN_Final.pdf