Carrascal EIS Executive Summary

TABLE OF CONTENTS
CTP Construction and Mining Corporation Carrascal Nickel Project EIS
1 INTRODUCTION.......................................................................................................................................1
2 DESCRIPTION OF EIA METHODOLOGY AND THE EIA TEAM............................................................1
2.1 EIA METHODOLOGY................................................................................................................................1
2.2 EIA TEAM..............................................................................................................................................5
3 SCOPE AND LIMITATION OF THE EIA STUDY....................................................................................5
4 PROJECT DESCRIPTION..........................................................................................................................6
4.1 PROJECT LOCATION.................................................................................................................................6
4.2 PROJECT BRIEF........................................................................................................................................9
4.3 DESCRIPTION OF PROJECT PHASES...........................................................................................................9
4.3.1 Exploration and Pre-Development Phase.......................................................................9
4.3.2 Development Phase...........................................................................................................10
4.3.3 Operations Phase...............................................................................................................10
4.3.3.1 Ore Mining................................................................................................................................ 10
4.3.3.2 Ore Transport........................................................................................................................... 10
4.3.3.3 Ore Drying and Stockpiling.................................................................................................... 10
4.3.4 Abandonment/Rehabilitation Phase.............................................................................10
4.4 PLANNED MINE CAPACITY....................................................................................................................11
4.5 PROJECT INVESTMENT COSTS.................................................................................................................11
5 BRIEF DESCRIPTION OF BASELINE ENVIRONMENTAL CONDITIONS...........................................11
5.1 PHYSICAL ENVIRONMENT......................................................................................................................11
5.1.1 Geology................................................................................................................................11
5.1.2 Soil and Land Use..............................................................................................................11
5.1.3 Hydrology...........................................................................................................................12
5.1.4 Water Quality.....................................................................................................................12
5.1.4.1 Freshwater Quality.................................................................................................................. 12
5.1.4.2 Marine Water Quality.............................................................................................................. 13
5.1.5 Oceanography....................................................................................................................13
5.1.6 Meteorology and Climate.................................................................................................13
5.1.6.1 Air Quality and Noise............................................................................................................... 13
5.2 BIOLOGICAL ENVIRONMENT..................................................................................................................14
5.2.1 Terrestrial Ecology............................................................................................................14
5.2.1.1 Terrestrial Flora....................................................................................................................... 14
5.2.1.2 Terrestrial Fauna...................................................................................................................... 14
5.2.2 Aquatic Environment.......................................................................................................15
5.2.2.1 Freshwater Ecology................................................................................................................. 15
5.2.2.2 Marine Ecology......................................................................................................................... 15
5.3 SOCIO-ECONOMIC ENVIRONMENT..........................................................................................................17
5.3.1 Socio Cultural, Economic and Political Environment.................................................17
5.3.1.1 Background of Surigao del Sur............................................................................................... 17
5.3.1.2 Barangay Bon-ot, Carrascal, Surigao Del Sur.......................................................................17
5.3.2 Public Participation and Social Acceptability..............................................................17
5.3.2.1 Public Participation................................................................................................................. 17
5.3.2.2 Social Acceptability................................................................................................................. 17
5.3.2.3 Perception Survey.................................................................................................................... 17
5.3.2.4 Results of the Awareness and Perception Survey...............................................................17
5.3.2.5 Issues and Concerns of Stakeholders....................................................................................18
5.3.2.5.1 Positive Issues and Concerns..................................................................................18
5.3.2.5.2 Negative Issues and Concerns................................................................................19
6 IMPACT PREDICTION AND ASSESSMENT.........................................................................................19
6.1 GEOLOGY..............................................................................................................................................19
6.2 PEDOLOGY AND LAND USE....................................................................................................................23
6.3 HYDROLOGY.........................................................................................................................................25
6.4 OCEANOGRAPHY...................................................................................................................................25
6.5 METEOROLOGY.....................................................................................................................................26
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TABLE OF CONTENTS
6.6 TERRESTRIAL ECOLOGY.........................................................................................................................27

6.6.1 Terrestrial Flora.................................................................................................................27
6.6.2 Terrestrial Fauna...............................................................................................................27
6.7 AQUATIC ENVIRONMENT.......................................................................................................................27
6.7.1 Freshwater Ecology...........................................................................................................27
6.7.2 Marine Ecology..................................................................................................................28
6.8 SOCIO-ECONOMIC IMPACTS...................................................................................................................28
6.8.1 Population/Settlement/Migration................................................................................28
6.8.2 Employment/Livelihood..................................................................................................28
6.8.3 Additional Revenues to the Local Government Units.................................................28
6.8.4 Lifestyle and Culture.........................................................................................................28
6.8.5 Resource Use Competition...............................................................................................29
7 MATRIX OF ENVIRONMENTAL MANAGEMENT PLAN AND SOCIAL DEVELOPMENT
MANAGEMENT PLAN...........................................................................................................................30
7.1 MATRIX OF COST ESTIMATES OF ENVIRONMENTAL MANAGEMENT PLAN..............................................48
7.2 Matrix of Environmental Monitoring Plan.................................................................................51
LIST OF TABLES
Table ES- 1: The EIA Team..................................................................................................................................5

Table ES- 2: Technical Description of Project Site...........................................................................................6
Table ES- 3: Impact Matrix (Geology: Impact of the Project on the Environment)................................21
Table ES- 4-Summary of Impacts, Mitigating Measures and Monitoring Activities...............................23
Table ES- 5: Summary of Environmental Impacts.........................................................................................26
Table ES- 6: Summary Matrix of the Environmental Management Plan.................................................30
Table ES- 7: Social Development Management Plan....................................................................................46
Table ES- 8: Cost Estimates for the Environmental Management Plan.....................................................48
Table ES- 9: Summary Matrix of the Environmental Monitoring.............................................................51
LIST OF FIGURES
Figure ES- 1: Primary and Secondary Impact Areas.......................................................................................3

Figure ES- 2: Project Location Map...................................................................................................................4
Figure ES- 3: Project Tenure Map......................................................................................................................8
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EXECUTIVE SUMMARY
1 INTRODUCTION
Approximately two-thirds (2/3) of the known nickel resources in the world are in the form of nickel-
bearing laterites, while the remaining one-third occurs as the better known sulfides. There is a
predominance of laterite ore, but the largest source of nickel production is still from sulfides due to
economic reasons.
The value of an orebody is based on the metals it contain. Potential profitability is determined
primarily by two factors. These are the cost of mining the ore and the extraction cost of the metal.
Laterites are by nature large, low-grade nickel cobalt deposits. Typical grade laterite has a high value
content compared to typical copper and gold ore. Laterite ore can be mined at low cost using surface
mining methods, compared to underground methods to mine nickel sulfide ore. Low mining cost plus
high value content provide a strong incentive to finding economic means of extracting nickel from
laterites.
The operation of the Carrascal Nickel Project (CANP) proposed by CTP Construction and Mining
Corporation (CTPCMC) is in line with the mandate of the Philippine government to promote the
mining industry, augment foreign revenue earnings and at the same time provide significant boost to
local economies by creating local employment. The mining industry is one of the priority areas of the
Philippine Government, as demonstrated by its implementation of Republic Act No. 7942, the
"Philippine Mining Act of 1995'” and its Implementing Rules and Regulations.
The CANP aims to:
 mine and develop the nickel ore and the export of segregated nickel and other metals in
accordance with international standards;
 ensure that the Company uses best practices of the world’s mining and social and
environmental management; and
 develop the host communities and the surroundings in a balance and sustainable manner.
2 DESCRIPTION OF EIA METHODOLOGY AND THE EIA TEAM
2.1 EIA METHODOLOGY
The Environmental Impact Assessment (EIA) for the Project started with the preparation of a Project
Description that was submitted to the Environmental Management Bureau (EMB) and used as the
basis for the conduct of the Scoping Meetings. The Second Level Scoping of the Project was held on
October 14, 2006 at the Project Site. The public consultation afforded the stakeholders the
opportunity to discuss their concerns regarding the potential environmental and social impacts of the
proposed Project. The Technical Scoping was held on November 13, 2006 at the EMB Central
Office.
Aside from the conduct of the Second Level Scoping, meetings and consultations were conducted to
elicit significant issues and concerns from the stakeholders including the Local Government Units
(LGUs) Officials, the Non-Governmental Organizations (NGOs), and the communities. These issues
and concerns were incorporated in the scope of the Environmental Impact Statement (EIS). The
proceedings and results of the first and second level scoping meetings were documented and
presented in the Final Scoping Report submitted to the EMB on December 6, 2006.
Environmental and social studies were focused on the primary and secondary impact areas of the
Project Site (Figure ES-1), situated in Barangays Bon-ot, Panikian, Babuyan, Gamuton, Bacolod, and
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EXECUTIVE SUMMARY
Pantukan, Municipality of Carrascal, Province of Surigao del Sur. Figure ES-2 shows the Project
Location. The primary impact areas include Barangays Bon-ot, Panikian, Babuyan, Gamuton,
Bacolod, Pantukan, the causeway area which is outside the mining tenement boundaries, and the
access road that will lead to the causeway from the minesite. The secondary impact area include the
communities surrounding the MPSA. The secondary data on the Project area were gathered from both
the national and local agencies, and other organizations, including:
 Bureau of Soils and Water Management- Department of Agriculture (BSWM- DA)

 Mines and Geosciences Bureau - Department of Environment and Natural Resources (MGB-
DENR)
 National Mapping Resources and Information Authority - Department of Environment and
Natural Resources (NAMRIA – DENR)
 Philippine Atmospheric, Geophysical and Astronomical Services Administration-
Department of Science and Technology (PAG-ASA - DOST)
 Philippine Institute on Volcanology and Seismology- Department of Science and
Technology (PHIVOLCS - DOST)
 National Water Resources Board – Department of Public Works and Highways (NWRB -
DPWH)
 Barangay Health Centers and Health Offices
 Municipal Planning and Development Offices
Primary data gathered include the conduct of sampling of soil, water and air and socio-economic and
perception surveys, focus group discussions and interviews to characterize the baseline environmental
conditions. The sampling methodologies conducted for each study module are provided in Section 3 –
Baseline Environmental Conditions. Socio-economic and perception surveys were conducted to
determine the sentiments of the affected communities. A participatory and community-based
approach was used in conducting the EIA for this Project. This strategy has become the standard
practice in conducting an EIA.
The study team engaged the help and assistance of local guides during the data gathering for the
baseline environmental conditions. In the conduct of the socioeconomic survey, enumerators were
directly recruited from the community. Key informants among the local residents were selected and
directly interviewed by the Project team. The study team also recruited some residents as field
assistants and conducted informal dialogues with the residents.
The scope of the study includes the assessment of the probable impacts of the Project on the physical,
biological and socio-economic environments. Primary and secondary data were gathered during
surveys conducted from October – November 2006. A Perception Survey in the affected barangay
was undertaken. In the process both positive and negative impacts were identified and dealt with.
The mitigating and enhancement measures were recommended including environmental management
and monitoring plans.
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Figure ES- : Primary and Secondary Impact Areas
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Figure ES- : Project Location Map
Source: LTI, 2006
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2.2 EIA TEAM
The members of the multi-disciplinary team of consultants and researchers that conducted the EIA
study and their fields of expertise are shown in Table ES - 1.
Table ES- : The EIA Team
Consultant Module
Rachel A. Vasquez Peer Reviewer
Jorge Vicente C. de las Alas Project Manager
Anacleto Q. Suelto, Jr. Geology/Co-Project Manager
Dominic M. Tolentino Soil and Land Use
Isabelo Abellon Hydrology
Rachel Vasquez Water Quality (Freshwater)
Paul Rivera Oceanography and Sediment Transport Modelling
Jorge delas Alas Air Quality and Noise
Filiberto Pollisco, Jr. Terrestrial Flora
Phillip Alviola Terrestrial Fauna
Ronald Altamirano
Rolly Uriza
Cristina Cruz Fresh Water Ecology
Rodolfo Pagarigan Fisheries
Ruben Estudillo Marine Ecology
Virgilio Palpal-latoc Soft Bottom Benthos and Water Quality
Eduardo Comese Corals
Jose Isidro Michael Padin Reef Fish and Seagrasses/Seaweeds
Elealyn Baybay Plankton and Water Quality
Pastor Malabrigo Mangrove
Gerardo Mogol Environmental Health Impact Assessment
Rolando Soncuya Socio-Economics
Joselito Sarmiento Research Assistant
Molinda Pilotin Research Assistant
Joseph Benjamin B. De la Torre Research Assistant
3 SCOPE AND LIMITATION OF THE EIA STUDY
The scope of the study is the preparation of an Environmental Impact Statement (EIS) to be submitted
to the Environmental Management Bureau of the Department of Environment and Natural Resources
(EMB- DENR) for the issuance of an Environmental Compliance Certificate for the CANP of the
CTPCMC. The EIA shall address the issues and concerns raised during the consultations conducted.
The Proponent has submitted its application for Mineral Production Sharing Agreement (MPSA).
Primary data through surveys and sampling and secondary data were gathered. Additional and more
detailed study will be done during the regular monitoring activity.
Lichel Technologies, Inc. (LTI) shall also assist the Project Proponent in securing the Environmental
Compliance Certificate (ECC) from the DENR including the submission of additional information
required, and addressing the issues and concerns raised during the EIS review and evaluation.
The Accountability Statement of the Technical Preparers of the Environmental Impact

Statement (EIS) Document and the Proponents have been secured and are provided as
Attachment 1.
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4 PROJECT DESCRIPTION
4.1 PROJECT LOCATION
The CANP is situated in Barangays Bon-ot, Panikian, Babuyan, Gamuton, Bacolod, and Pantukan,
Municipality of Carrascal, Province of Surigao del Sur. It is in the north-easternmost part of Surigao
del Sur.
The Project area is located about 120 kilometers (km) South of Surigao City and is accessed via the
concrete national highway of 50 km, which skirts the eastern shores of Surigao del Norte and Surigao
del Sur, then by gravel road of 70 km in length. Total driving time is three (3) hours to the Project Site
from Surigao City. Surigao City can be reached from Manila through daily commercial flight or from
Cebu City through a three times a week flight or daily scheduled vessel. Another alternative route is a
2 ½ hour drive from Butuan City, which is served by a daily flight from Manila.
The Project site has an area of four thousand five hundred forty seven and 763/1000 (4,547.763)
hectares (ha) with the technical description shown in the Table ES-2. Figure ES-3 shows the Project
Tenure Map. The Project Area is located inside the Surigao Iron Ore Reservation established by
Proclamation No. 63, series of 1914.
Table ES- : Technical Description of Project Site
Corner Latitude Longitude

1 9o20’00” 125o54’30”
2 9o20’30” 125o54’30”
3 9o20’30” 125o54’00”
4 9o21’15” 125o54’00”
5 9o21’15” 125o52’45”
6 9o21’30” 125o52’45”
7 9o21’30” 125o52’30”
8 9o21’45” 125o52’30”
9 9o21’45” 125o51’45”
10 9o22’00” 125o51’45”
11 9o22’00” 125o51’30”
12 9o24’46” 125o51’30”
13 9o24’46” 125o52’30”
14 9o25’00” 125o52’30”
15 9º25’00” 125 o 52’15”
16 9º 26’00” 125 o 52’15”
17 9º 26’00” 125 o 52’30”
18 9º 26’30” 125 o 52’30”
19 9º 26’30” 125 o 53’00”
20 9º 23’30” 125 o 53’00”
21 9º 23’30” 125 o 53’30”
22 9º 24’00” 125 o 53’30”
23 9º 24’00” 125 o 53’45”
24 9º 24’15” 125 o 53’45”
25 9º 24’15” 125 o 54’15”
26 9º 24’00” 125 o 54’15”
27 9° 24’ 00” 125 ° 54’ 40”
28 9º 23’50” 125 o 54’40”
29 9º 23’50” 125 o 54’50”
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Corner Latitude Longitude

30 9º 22’55” 125 o 54’50”
31 9º 22’55” 125 o 55’15”
32 9º 23’15” 125 o 55’15”
33 9º 23’15” 125 o 55’30”
34 9º 20’00” 125 o 55’30”
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Source: CTPCMC
Figure ES- 3: Project Tenure Map
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4.2 PROJECT BRIEF
The main components of the Project are mining and construction of mine facilities including a
causeway.
Initially, the CANP will involve the mining of Sixteen Million Nine Hundred Thirty Nine Thousand
Three Hundred and Forty Four (16,939,344) Wet Metric Tons (WMT) of low grade Nickel (0.8 - 1.10
% Ni) and Cobalt.
The proposed Project will also explore other potential nickel laterite prospects that would increase the
mineral reserves within the Project area. The produced ore will be sun-dried and blended before
shipping to China.
Detailed resource estimates of One Hundred Forty Million Six Hundred Fifty Thousand and Nine
Hundred Twenty Wet Metric Tons (140,650,920 WMT) of ore. For its mining operations, during the
first year, 1,000,000 WMT of nickel ore will be extracted. Succeeding annual production for the
second and third years will be 2,000,000 WMT and 3,000,000 WMT, respectively. In the course of
exploration, if ore reserves will be doubled, the maximum annual production for the succeeding years
will be 5,000,000 WMT. The mine life is estimated at thirty two (32) years, based on the current
resource data and annual production rate.
Shallow open-pit mining shall be used for the Project since the ore is located near the surface and
thickness range from 1 – 27 meters (m). The company shall employ contour mining system that
includes land clearing, overburden removal and storage for rehabilitation purposes, ore mining and
rehabilitation. “Progressive Mining rehabilitation” concept shall be employed with mining to start
from the lowest bench progressing upwards. The mined out bench can be backfilled with wastes from
the upper benches, then rehabilitated.
Mine facilities include mine camp, assay laboratory, and mine utilities. Further, mine yards and starter
waste dumps, pollution control facilities (sediment control /settling ponds, fascines, mini rock dams
and drainage canals) and nursery shall be installed.
4.3 DESCRIPTION OF PROJECT PHASES
The Project will have four phases, namely: exploration and pre-development phase, development
phase, operations and abandonment and rehabilitation phase.
4.3.1 Exploration and Pre-Development Phase
The activities for exploration/pre-development phase are continuing as these activities are not covered
by an ECC.
The pre-development phase shall include securing the necessary permits from the different
government organizations. The permits will include but not limited to the following: special mines
permit for the extraction and exploitation of nickel ore, permit for construction and operation of mine
facilities.
Exploration, survey, design, procurement, construction tendering, and pre-construction works will be
undertaken during this phase.
This application for ECC does not cover the Exploration Phase.
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EXECUTIVE SUMMARY
4.3.2 Development Phase
The Development phase shall include the following:
 construction of access from mine site to main road;

 site preparation for the construction of mine facilities including mine camp, stockpile areas,
mine utilities (water supply, power supply, motor pool, etc.), causeway, pollution control
facilities and nursery;
 installation of a ship loader using a conveyor system.
4.3.3 Operations Phase
4.3.3.1 Ore Mining
The Resource occurs in areas where the topography ranges from flat to steeper than 30 o. The ore
body varies in thickness from about 3 m to 22 m, but averages 9.8 m over the areas with identified
deposit.
Mining through the dry season will minimize the need for sheeting on the mining benches. There may
be instances where ‘wet spots’ are encountered on the mining benches, which may require covering
with some rock sheeting (oversize rejects or river gravel).
4.3.3.2 Ore Transport
The truck specified for both ore and waste handling is a 20-tonner 10- wheeler truck with a maximum
payload of 15t/trip. The haul road connecting the Mine Site to the Stockyard will have a 10 m wide
travel surface, which represents 3.5 times the width of the haul truck.
A communication system (radio/or signal light control) between the excavator operator and the truck
operator will inform the truck operator of the ore type that is being hauled. The truck operator will be
required to deliver the ore to the assigned area in the Stockyard where it will be dumped in
preparation for windrow formation.
Removal of boulders with the use of front-end loader will be used to avoid a potential bottleneck in
the system. This method is working perfectly in all existing nickel mines in the Philippines.
4.3.3.3 Ore Drying and Stockpiling
The Stockyard will serve the following important purposes:
 receive run-of-mine (RoM) ore;

 dry the ore to shipping moisture content; and
 removal of boulders.
4.3.4 Abandonment/Rehabilitation Phase
Rehabilitation will commence after mined-out voids are backfilled and in-pit dumps are established.
The details of the work programme within a given area will depend on the local bench configurations
and ultimate landform design. Some small steep benches will be left exposed, while mined areas will
be backfilled and graded to long-term stable slopes.
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EXECUTIVE SUMMARY
4.4 PLANNED MINE CAPACITY
The planned annual mine capacity is from 1,000,000 - 5,000,000 WMT with effective working days
per year of 156 days.
4.5 PROJECT INVESTMENT COSTS
The estimated investment cost is Four Hundred Eight Million Three Hundred Fifty Seven Thousand
and Nine Hundred Twenty Four Pesos (PHP 408,357,924.00), excluding the cost of equipment.
5 BRIEF DESCRIPTION OF BASELINE ENVIRONMENTAL CONDITIONS
5.1 PHYSICAL ENVIRONMENT
5.1.1 Geology
The Project sites are underlain by ultramafic rocks, serpentinized ultramafic rocks and sheared
serpentinite covered by a thick mantle of laterite. The areas are prone to erosion and slope stability
problems even without mining. The rock materials are prone to rockslides and rockfalls while the soil
material are prone to gully erosion and landslides. A consequence of erosion and slope stability
problems is siltation to the downstream and coastal areas.
5.1.2 Soil and Land Use
Primary and secondary information were reviewed. Fieldwork was done to collate field data and
gather soil samples at varying depths (0-30 cm, 30-60 cm, 60-90 cm) from Barangay Babuyan and
Barangay Bon-ot in the Municipality of Carrascal. Physical and chemical characteristics, including
heavy metal content of the soil samples were measured. The parameters measured include soil pH,
Organic Matter (OM), Nitrogen (N), Phosphorus (P), Potassium (K), Cation Exchange Capacity
(CEC), Iron (Fe), soil texture, lead (Pb), nickel (Ni), cadmium (Cd) and chromium (Cr).
The results of soil analysis show that soil in Station No. 1 is clayey while that in Station No. 2 is
sandy. In terms of chemical characteristics, soil in Station No.1 is slightly acidic, has higher OM and
N content and CEC levels. Soil in Station No. 2 has higher K, P and CEC levels.
In the absence of soil standards in the Philippines, the heavy metal content of the soils were compared
to the Dutch Soil Standards, considered as one of the most stringent standards. The Dutch Standards
include Target Value (TV) and Intervention Values (IV). The TV indicates sustainable soil quality
which are the ideal levels for the soil to function properly while the IV indicates the amount when the
functional properties of the soil for humans, plant and animal life, are seriously impaired or
threatened. The IV are representative of the level of contamination, above which requires soil
remediation. The values in between TVs and IVs should be subject to further soil investigation and
evaluation as they may have adverse effects on the immediate ecosystem.
As expected, the Ni content in the soil in the site was high which varied from 809 – 4,231 mg/kg. The
Dutch standard is 210 mg/kg. Results obtained show that the Pb levels (15.7 – 25 mg/kg) are below
the Dutch TV level (85 mg/kg).The Cd levels (2.1 – 4.2 mg/kg) of the soils for the Project are below
the IV level (12 mg/kg) but above the TV level (0.8 mg/kg) of the Dutch soil standards.
The soil samples from Station No. 1 have high levels of Cr (2,468 – 3,319 mg/kg) exceeding the IV
levels of the Dutch soil standards while the Cr levels of the soil samples from Station No. 2 (188 –
258 mg/kg) are higher than the TV but lower than the IV.
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EXECUTIVE SUMMARY
The total land area of the Municipality of Carrascal is 37,872 ha. The topography of Carrascal is
characterized by extensive mountain range, uneven distribution of lowlands and rolling areas.
Majority of Carrascal’s total land area, 33,197 ha or 87% are classified as forest lands. The forest
lands are further subdivided into Mining (10,704 ha), Protection Forest (700 ha) and Production
Forest (21,973 ha). There are also three (3) Community Based Forest Management Agreement
(CBFMAs) issued by the DENR that are located in Barangays Babuyan, Pantukan, and Adlay.
5.1.3 Hydrology
The Carrascal Mine area is drained by numerous rivers and creeks, namely the Binone River,
Caayungan, Marga and Nasipit Rivers. All these rivers are discharging into Carrascal Bay. The
Binone River referred at Barangay Panikian has a drainage area of about 72 square kilometers (km 2).
Using the float method, the streamflow measured ranged from 35 to 340 liters per second (lps) for the
small rivers and 1,000 to 1,500 lps for Binone River which is the biggest river. These rivers have no
streamflow records that will be used in the analysis for mean monthly flow and peak discharge. The
mean monthly flow, mean annual flood and peak discharge with the desired return period (10-, 25-,
50- and 100 –year) were estimated by correlating it with Boy-an River and Carac-an River located in
Madrid and Cantilan, respectively using the Basin-Factor-Ratio method.
An inventory of the groundwater sources in the Project area and the adjacent Barangays was
conducted on 15 to 16 January 2007. Twenty-nine (29) groundwater sources were inventoried at five
barangays. Of these groundwater sources, only one source located at Barangay Babuyan is within the
Project area.
The groundwater sources include dug wells, hand pump wells, and springs. The wells presumably tap
the alluvial deposits. Springs are located along foothills and upland areas of Barangay Panikian,
Barangay Babuyan, and Barangay Pantukan. The springs lie on basement rocks and are tapped by
several pipes/hose that are directed to a concrete reservoirs. Estimated yield of groundwater sources
is from 0.2 to 1.0 lps. Based on the water supply classification scheme, the wells in the area are
classified as Level I water supply or point sources. Springs which are tapped into reservoirs have
communal faucets and are classified as Level II water supply source.
It must be noted that laterite deposit which will be mined out is not a water-bearing formation
material. No groundwater can be found in this material. The Project site falls within the area classified
as “difficult areas”.
Contamination of groundwater is highly improbable, due to the elevation of the proposed Project site
in comparison to the location of the wells.
5.1.4 Water Quality
5.1.4.1 Freshwater Quality
Baseline information of the water quality of the rivers in the Project Site was undertaken. Physical and
chemical analysis of water samples from selected rivers (Class “C”) in Adlay, Pantukan, Babuyan,
Cabadiangan and Taguan were undertaken.
In terms of pH, four of the stations slightly exceeded the standards, while only one station failed to
comply with the water quality criteria for dissolved oxygen (DO). In terms of heavy metals,
background levels of lead (Pb) and chromium (Cr) were noticeable in several stations.
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EXECUTIVE SUMMARY
5.1.4.2 Marine Water Quality
Marine water quality survey included the examination from eight (8) sampling stations of the general
water quality characteristics such as temperature, salinity, DO, pH, total suspended solids (TSS and
biological oxygen demand (BOD 5 and concentration of oil and grease and heavy metals such as
arsenic (As) , cadmium (Cd), Cr, iron (Fe), Pb, zinc (Zn), copper (Cu), nickel (Ni) and mercury (Hg).
The eight sampling stations were established in Puyu Island, Ludguron Island, Gorda Point, Bon-ot,
Capungan Point, Carrascal Bay and General Island.
The levels obtained for the various parameters showed not much variation among the 8 sampling
stations. The results of physical/chemical analysis for the samples did not exceed the DENR water
quality criteria for Class SC. But, in terms of heavy metals, Pb and Cr levels exceeded the DENR
criteria in some stations.
5.1.5 Oceanography
The sediment transport model shows that the upstream mining activities would affect the coastal
waters in Carrascal Bay. The simulated suspended sediment concentrations during this season shows
increasingly high values particularly near the river mouths that discharge to the bay. The sediment
plume appears to reach farther offshore distances during ebbing. The simulated offshore sediment
concentrations for both tidal regimes however, range from 1-50 mg/L in the affected coastal water of
Carrascal Bay with the maximum concentrations of about 500 mg/L located only near the mouths of
rivers and creeks that drain the eroded sediments from upstream mining activities.
5.1.6 Meteorology and Climate
The regional climate of the Project area was characterized using secondary data obtained from the
archives of PAGASA and recent studies conducted in the vicinity. The Climate Map of the
Philippines based on the Modified Corona’s Classification shows that the Project site belongs to Type
II characterized by the absence of a dry season and a pronounced maximum rain period.
The average annual rainfall in the area has been measured at 3651.3 mm, the wettest period is
between November and February with mean monthly rainfall values exceeding 250 mm. The average
monthly depths for both months have been measured to reach 296 mm and 294 mm, respectively.
From November to May, the northeastern winds prevail over the area. The North Pacific trade winds
prevail in May. The average speed of wind that passes through the area is measured at 2 meters per
second (mps).
The Tropical Cyclone Passage Frequency Map shows that at least one (1) tropical cyclone passes
through the region each year. It has been observed that the cyclones pass through the area between the
months of December and January.
5.1.6.1 Air Quality and Noise
Air quality studies were limited to ambient Total Suspended Particulates (TSP) concentrations
measured at three (3) sites. The proposed Project will have insignificant impacts with respect to NO 2
and SO2 emissions. The sites were selected based on their location relative to the proposed operations
and the dominant wind directions. Result of TSP showed concentrations that are relatively low (32.49
to 44.98 µg/Ncm) as compared with the NAAQG. In summary, the observed ambient air
concentrations of TSP could be classified as “good condition” when compared with the air quality
indices provided by the DENR.
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EXECUTIVE SUMMARY
The results of noise measurements showed that ambient noise in all stations identified were within the
prescribed criteria for residential areas. Ambient noise measurements are typical of rural setting with
noise emanating mostly from residents, animals and vehicles.
A slight increase in ambient concentrations of TSP is expected as a result of the planned mining
activities. These impacts however will be temporary and short-term and can easily be mitigated
through proper design and implementation of benching and the establishment of adequate buffer
areas. Continuous and progressive rehabilitation of mined out areas through reforestation will abate
the impacts and will eventually enhance air quality in the area.
5.2 BIOLOGICAL ENVIRONMENT
5.2.1 Terrestrial Ecology
5.2.1.1 Terrestrial Flora
The area is described to be a watershed with a river system (Cabadiangan River) which drains into the
Pacific Ocean. The vegetative cover is thicker in the western part and thins out as it nears the
coastline. Dominant vegetation in terms of plant form are the trees followed by the grass and vines.
As co-dominants in the Project area, the grass and vines indicate a disturbed ecosystem that is open
canopy and exposed to much environmental elements such as high solar radiation exposure, acidic
soil, high temperatures, and less moisture.
The dominant plant is the Mancono (Xanthostemon verdugonianus), which is endemic to this side of
Mindanao. Aside from its being endemic, Mancono is also classified as vulnerable and is listed under
the International Union for the Conservation of Nature (IUCN) as an endangered species. Other
endangered species are the Duguan (Myristica philippinensis), Narra (Pterocarpus indicus), Sakat
(Terminalia nitens) and the dipterocarps. The complete enumeration of the endangered species is
found in the appendix.
5.2.1.2 Terrestrial Fauna
From the survey duration of six (6) days, a grand total of 74 species of terrestrial vertebrates were
recorded. This total comprise of 43 birds, 20 mammals, four amphibians and seven reptiles. At least
37 species (50%) are considered as endemic or restricted to the Philippines, of which, 15 are restricted
to the Greater Mindanao Faunal Region.
Chance observations and interview with local guides resulted to a total of 11 species of amphibians
and reptiles recorded within the study area .This constitutes four frogs, one gekkonid lizard, one
agamid lizard, two skincid lizard, two snakes and one monitor lizard. At least four species are
Philippine endemics, two of which are also restricted to the Greater Mindanao Faunal Region.
Furthermore, two of these species are listed as either Threatened or Near-Threatened by the IUCN
Red List.
From a documentation regimen of mist-netting and interviews with local guides, a total of 20 species
of mammals were documented. This total constitutes 10 species of bats, two civets, and one
species each of tree shrew, squirrel, warty pig, macaque, deer, flying lemur, tarsier and gymnure. At
least 10 species (50%) are endemic to the Philippines of which six of these are restricted to the
Mindanao Faunal Region. At least six species are currently listed as Threatened by IUCN, under the
threat category Vulnerable.
A total of 43 species of birds were recorded of which 24 are endemic (56%) to the Philippines and
seven (16%) are restricted to the Mindanao Faunal Region. One species, the Philippine Hawk-Eagle
(Spizaetus philippensis) is listed as Threatened by IUCN with the threat category Vulnerable, whereas
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EXECUTIVE SUMMARY
two species O. mirus and S. plateni are listed as Near-Threatened. In addition, three migratory species
(populations that travel at warmer latitudes during winter): the Peregrine Falcon (Falco peregrinnus),
Brown Shrike (Lanius cristatus), and Pechora Pipit (Anthus gustavi).
5.2.2 Aquatic Environment
5.2.2.1 Freshwater Ecology
The freshwater ecology sampling conducted in the proposed CANP resulted in the identification of
ten (10) phytoplankton taxa, seven (7) zooplankton taxa and twelve (12) benthic fauna taxa. Of the
ten (10) phytoplankton taxa belonging to two (2) phyla (Chrysophyta and Pyrrophyta), Rhizosolenia
alata and Fragilaria islandica of the diatomic group predominated. Stationwise, STN F6 was the
most prominent in terms of phytoplankton abundance. The zooplankton assemblage was represented
by two (2) phyla namely the arthropods and the molluscs. Of the seven (7) zooplankton taxa
identified, insect nymphs and larvae were the most conspicuous. The twelve (12) identified benthic
fauna taxa belonged to four (4) groups namely the arthropods, molluscs, chordates and the annelids.
Of the twelve, Macrobrachium sp., freshwater shrimps, and Melanoides sp. and Thiara sp.
predominated. In relation to station distribution, STN F9 was the most prominent in terms of benthic
fauna abundance.
5.2.2.2 Marine Ecology
Eight (8) sampling points were selected along Carrascal Bay and immediate vicinities and assessed
for plankton, soft bottom benthos, coral, reef fish, seagrass, seaweeds, mangroves and fisheries.
Phytoplankton and zooplankton populations appear normal. The general plankton population was
dominated by phytoplankton.
A total number of 414 soft bottom benthic organisms were obtained, represented by 47 animal taxa
belonging to 11 major groups. These were dominated by the polychaetes and the foraminiferans,
followed in decreasing order by the crustaceans, rhynchocoelans and molluscs.The density of benthic
organisms ranged from 511 to 1,844 ind/m 2 (mean 1,150 ind/m2). The biomass ranged from 8.67 to
905 g w wt/m2 (127 g w wt/m2).
Coral reefs within Carrascal Bay and immediate vicinities had poor, fair to good coral cover. The
average percentage cover of live hard corals on three observation points (using spot dive technique)
was estimated at only 13% (classified as poor condition). The low coral cover was partly due to
sedimentation. River runoff contributed to siltation in these areas. Other disturbances, which were
reported by the local fisher folks, were dynamite and cyanide fishing that occurred from the previous
years. Results of the LIT coral survey showed that hard corals have highest cover at General Island.
Exposure to extreme low tides (below zero) may have been responsible for the observed mortalities
and injuries of corals on the shallower reef flat at Gorda Point coral reef. Extreme tides may also
account for the lack of coral growth on tide-exposed reef flats in this reef area.
The reef fish communities in Carrascal Bay were well represented in terms of species composition of
target species, indicator species and major families. Butterflyfishes or Chaetodontidae represented the
indicator species. The indicator species, however, were less varied and abundant in stations situated
within the embayment, which might suggest less cover of live corals. Target species were also well
represented. Estimated mean fish abundance and biomass in Carrascal Bay were fairly high as
compared with other reef sites in Surigao such as in Dinagat Island particularly the Pacific side of
Libjo and Loreto. Analyses of size frequency distribution revealed fewer numbers of fishes with total
body length above 17 to 27 cm, which could be attributed to fishing pressure, or may be due to the
influence by the location of the transect lines. Most of the transects, which are congruent to the LIT
transects, were placed at the upper reef zone where most small sized species can be found. Findings of
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EXECUTIVE SUMMARY
the size frequency distribution may further indicate that the sampling stations are venues for
recruitment. It is also possible that fish communities are in the period of recuperating from previous
perturbation particularly from fishing. On the other hand, the diversity of reef fish communities in
Carrascal Bay was fairly high.
Seagrass beds were observed in a relatively small portion of the reef flats along the coasts of Carrascal
Bay. Most of the seagrass beds were found in subtidal areas. Majority of the beds were rather
narrow, extending seaward at approximately 30-75 m from the shoreline. The widest seagrass beds
were observed in Station 4 with a width of about 110 m. Eight species of seagrasses were identified in
Carrascal Bay, which represents 50% of the total number of species found in the Philippines and
about 13% of the approximately 60 known species in the whole world. Highest species composition
was recorded in Station 2. The seagrass cover at the five sampling stations ranged from 20.2 to 62.6%
with lowest and highest value in Station 3 and Station 4, respectively. Highest seagrass density was
recorded in Station 2 (Gorda Point) with 847.8 shoots m -2, followed by Station 5 (NE Ludguron
Island) with 692.8 shoots m-2. Lowest density was obtained in Station 3 (W Ludguron Island) with
73.6 shoots m-2. Enhalus acoroides dominated the cover (5.6%) while the density was dominated by
Cymodocea serrulata (98.4 shoots m-2) in Station 1 (Adlay). In Station 2 (Gorda Point), Siringodium
isoetifolium had the highest cover and density (15.8%, 476.8 shoots m -2) while Cymodocea serrulata
dominated both cover and density in Station 3 (W Ludguron Island) with 17% and 72.8 shoots m -2.
Cymodocea serrulata also controlled the cover and density in Station 4 (NW Ludguron Island)
(60.2%, 390.4 shoot m-2). In Station 5 (NE Ludguron Island), Cymodocea rotundata was the most
dominant species in terms of cover (47.2%) and density (624 shoot m -2).
A total of 12 species of associated macro-benthic algae (seaweeds) belonging to 7 families were

recorded from all the seagrass sampling stations. Of those species, there were 8 green algae
(Chlorophyceae), 3 brown algae (Phaeophyceae), and 1 red algae (Rhodophyceae). The brown alga
Padina sp. was the most common species among the five stations. Ten of these species occurred in
Station 2 (Gorda Point) while Station 1(Adlay) recorded the least number of associated seaweed with
only 2 species. Algal cover at the five sampling stations was considerably at minimal percentages.
Highest cover, relatively, was obtained in Station 2 (Gorda Point), with 5.6% followed by Station 4
(NW Ludguron Island) with 4.8 % cover. The lowest associated algal cover was recorded in Station 3
(W Ludguron Island), with only 0.57% cover. The brown alga Sargassum sp. dominated the algal
cover in Stations 1 (Adlay) and 4 (NW Ludguron Island). In Station 2 (Gorda Point), the green alga
Halimeda opuntia and the brown alga Sargassum sp. predominate. Padina sp. had the highest
percent cover in Station 3 (W Ludguron Island). Station 5 (NE Ludguron Island) was dominated by
the green alga Avrainvillea erecta.
A big part of the whole stretch of the shore of Carrascal Bay is basically a cove, particularly the
Barangays Adlay, Gango and Consuelo. The 3 barangays inside the cove are very much blessed with
bountiful mangrove resources.
Carrascal Bay and immediate vicinities are traditionally rich fishing grounds shared by the seven
coastal barangays of the Municipality of Carrascal namely, Adlay, Baybay, Bon-ot, Caglayag,
Dahican, Duyos and Embarcadero. Only 55.97% of the total population in Carrascal is dependent on
the marine resources of the bay for their main livelihood, while the rest engaged in other activities
apart from fishing. The total number of fishers in Carrascal is estimated at 737 with Barangay Adlay
as the largest fishing barangay with 27.81% of the total number of fishers.
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EXECUTIVE SUMMARY
5.3 SOCIO-ECONOMIC ENVIRONMENT
5.3.1 Socio Cultural, Economic and Political Environment
5.3.1.1 Background of Surigao del Sur
Surigao del Sur has nineteen (19) municipalities and most of these are located in the coastal areas.
Tandag is the capital and seat of the provincial government. The municipalities are subdivided into
309 barangays and are covered by two congressional districts. As of May 1, 2000, Surigao del Sur had
a population of 501,808 persons. Population increased by 6.48% over 4.67 years or an annual average
growth of 1.39%. The population of Carrascal was 3% of the region’s total population for both years.
Baseline information on the demography, education, health, agriculture, industry and commerce,
housing information and political sector were obtained from the Comprehensive Land Use Plan
(CLUP) of Carrascal (2001 – 2010) and presented in detail in Section 3.
5.3.1.2 Barangay Bon-ot, Carrascal, Surigao Del Sur
Barangay Bon-ot, created on 1920 is approximately 3 km from the Poblacion. It has a total land area
of 2,320 ha and composed of 8 puroks. It is bounded on the north of Baragay Bay-bay, on the south of
Barangay Gamuton, on the east by Barangay Bacolod, and on the west by Barangay Adlay.
5.3.2 Public Participation and Social Acceptability
5.3.2.1 Public Participation
The communities in the host barangay and various stakeholders were provided different venues for
participation in the conduct of this study. These include the conduct of unobtrusive informal
interviews with key informants and second level scoping and focus group discussion.
Residents discussed among themselves the possible environmental and social impacts as a result of
the implementation of the proposed Project. They also took a very active part in the identification of
positive and negative effects of the Project and in the formulation of mitigating measures that would
minimize if not totally eradicate the adverse socio-economic and environmental impacts.
5.3.2.2 Social Acceptability
Social acceptability is “a result of a mutually agreed process wherein the concerns of stakeholders
including affected communities are fully considered and/or resolved in decision making process in
granting or denying the issuance of an environmental compliance certificate.”
5.3.2.3 Perception Survey
The survey was conducted on October 12 - 15, 2006 in the host Barangay of Bon-ot, Carrascal
Surigao Del Sur. The sample size is 123 household respondents out of the total of 195 households. In
computing the number of respondents in the primary impact area, the study used a 95% confidence
level with 5.5% margin of error. It must be noted that the sample size represents 63% of the total
population.
5.3.2.4 Results of the Awareness and Perception Survey
Respondents -- There are 44 (36%) male respondents while there are 79 (64%) female respondents.
Sixty percent (74 respondents) are in the elementary level or graduates. Twenty-three percent (28
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EXECUTIVE SUMMARY
respondents) are either high school graduates or in the high school level. There are 16 respondents in
the college level and six of these are college graduates.
One hundred fifteen respondents representing 93% of total respondents are married. Five respondents
are either widow/widower while three respondents are single. There are 48 housekeepers among the
total of 123 respondents. One fourth of respondents (25%) are in the agriculture and fisheries sector
while there are 20 respondents in the service sector.
There are 612 persons in the 123 households interviewed. The average household size is 4.98 persons
per household. Fifty percent of households are in the 3 to 5 members’ household bracket
One fourth (148 persons) of the total population are students while there are 81 persons who are not of
employment age. There are 101 persons (17%) who are housekeepers. There are 59 persons (10%)
who are laborers and unskilled workers while there are 42 persons who are in the agricultural sector
The primary source of income is fishing accounting for 56% (69 respondents) of respondents.
Ninety-five (77%) households are earning an average of below 3,000 pesos a month while 24 (20%)
households are earning from 3,001 to 6,000 pesos a month.
Community Awareness on the Project -- A great majority of respondents are aware of the proposed
Project. One hundred fifteen (93%) respondents are aware of the Project. The primary source of
information about the Project comes from barangay and municipal officials accounting for 65% of
total responses.
Effects of the Proposed Project -- The respondents were asked if there are positive effects of proposed
Project. The primary positive effect of the Project is the generation of employment and livelihood
activities.
The respondents were also asked if there are any negative effects of the proposed Project. The
primary negative effect of the proposed Project is flooding (71 respondents). This is followed by
water pollution (44 respondents), noise pollution (44 respondents) and as a health hazard (26
respondents).
The respondents were asked if the proposed Project will help or be detrimental to the community.
Sixty respondents (49%) perceived that the Project would help a lot the community and local
residents. Thirty-six respondents (29%) said that the Project will help the community and local
residents but not much. Nine respondents (7%) said that the Project will not help the community at
all while 5 respondents (4%) said the Project will be detrimental to the community. Thirteen
respondents (11%) had no responses.
Aspiration -- The respondents were asked if given the chance to work for the Project, would they take
the opportunity or permit their husband/wife/son/daughter to work in the Project. Almost all of
respondents (90%) answered in the affirmative. Five respondents (4%) are not willing to work in the
Project. Seven respondents had no answers.
Acceptability of the Project -- The respondents were asked if they approve or disapprove the proposed
Project. One hundred seven respondents or 87% approved the Project, 15 respondents (12%)
disapproved the Project while 1 respondent or 1% was not sure whether to approve or disapprove.
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EXECUTIVE SUMMARY
5.3.2.5 Issues and Concerns of Stakeholders
5.3.2.5.1 Positive Issues and Concerns

1. Generation of Employment and Livelihood Opportunities -- The generation of employment
and livelihood opportunities has largely influenced the positive perceptions and opinions of
different stakeholders. Many of the residents are dependent on fishing and farming for their
sources of income. Their aspirations and dreams for a better future are anchored in getting
employment or having livelihood activities that can address their daily needs.
2. Additional Revenues to the National Government and LGUs -- On the national government
and LGUs side, the opportunity to generate additional revenue from the proposed mining
operation is a big factor in their support for the Project. The basic government share
corresponds to all direct taxes and fees paid by the proponent/contractor during the term of
the agreement.
3. Community Development – The proponent/contractor allots a minimum of one-percent (1%)
of the direct mining and milling costs annually, of which ninety-percent (90%) shall be
appropriated to implement the SDMP and ten-percent (10%) for the development of mining
technology and geosciences, as well as the corresponding manpower training and
development.
5.3.2.5.2 Negative Issues and Concerns

1. Erosion and Siltation – The mining operations of the Proponent will entail land clearing,
removal of overburden soil, operations of the open pit and the construction and maintenance
of mine haul roads. Given the long rainy season in Caraga Region, even if mitigating
measures are put in place such as mining by parcels, coffer dams, settling ponds, and
progressive mining rehabilitation, these will not prevent the erosion in the mine areas and the
corresponding siltation of the various water systems including Carrascal Bay, but these
mitigating measures will minimize, if not eliminate erosion.
2. Siltation of Agricultural land – Erosion and siltation will adversely affect the nearby
agricultural land. There are rice lands in the four Barangays where the mining claim is
located which would be very susceptible to the siltation.
3. Destruction of Marine Resources –Erosion and siltation are major causes of fish kills and the
destruction of the spawning grounds of fishes in the area. These have major repercussions in
the Municipality considering that fishing is the major source of income of the residents. In
addition, the other marine resources such as coral reefs, sea grasses are also threatened by the
operations of the mine.
4. Water Pollution – The mining operation will not only result in physical erosion but also
chemical erosion. Minute toxic chemicals present freely in the soil will also be eroded and be
deposited in the nearby bodies of water. Domestic water supply will be threatened by the
Project. These toxic chemicals will slowly build up and increase in concentration that would
have adverse effects on the health of the residents.
In summary, the communities and other stakeholders are aware of the positive and negative impacts
of the proposed Project. Furthermore, the important issues and community concerns that were raised
by the participants themselves have been useful in the focus of the study and the formulation of the
social development plan and other necessary mitigating measures as part of the environmental
management plan.
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EXECUTIVE SUMMARY
6 IMPACT PREDICTION AND ASSESSMENT
6.1 GEOLOGY
The problems of slope stability (landslides, rockfalls, rocksldes), gully erosion and siltation of the
drainage lines and coastal areas may be aggravated by earthmoving activities such as construction of
access roads, excavation of drainage or diversion canals, clearing and cutting of platforms for mine
facilities, stripping for mining, actual mining, building up of stockpiles and construction of silt traps.
A causeway may impact the transport of sediments by longshore currents resulting in coastal erosion
and deposition and shallowing of the waters on the either side of the causeway.
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EXECUTIVE SUMMARY
Table ES- : Impact Matrix (Geology: Impact of the Project on the Environment)
Source of Impact Type Duration Probability Magnitude Reversibility Geographical extent

1.0 Construction
1.1 slope stability (landslides on soil D LT H S I natural slopes, cut slopes,
slopes; rockfall, rockslide on rock fill slopes, embankments
slopes)
1.2 siltation D LT H S I drainage lines, coastal
areas
1.3 interference of causeway, if ever, on D LT L M I adjacent to causeway
longshore transport of sediments
leading to erosion and sedimentation
on either side of causeway
2.0 Operation
slopes)
areas
3.0 Abandonment
slopes)
areas
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EXECUTIVE SUMMARY
Source of Impact Type Duration Probability Magnitude Reversibility Geographical extent

Type: direct (D) / indirect (ID) Reversibility: reversible / irreversible
Duration: short term (ST) / long term (LT)/ Primary (P);
Probability: low (L) / medium (M)/ high (H)
Magnitude: severe (S)/ moderate (M)/ insignificant (I)
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EXECUTIVE SUMMARY
6.2 PEDOLOGY AND LAND USE
Table ES- -Summary of Impacts, Mitigating Measures and Monitoring Activities
# Phase/Impacts Mitigating Measures Cost Monitoring Cost
I Exploration and
Pre-development
Phase
1 Localized erosion Preservation of Part of Safety & Environmental Part of EMF
(wet) endemic vegetation Geological Officer (SOE)/Safety & budget
Temporary seeding Exploration Environment
Mulching Cost Department (SED) and
Sodding Multi-partite Monitoring
Team (MMT); monthly
for the 1st year;
quarterly thereafter; can
be reduced to semestral
depending on
environmental
performance
2 Soil Proper Housekeeping Part of SOE/SED & MMT; Part of EMF
contamination Waste Minimization Geological semi-annually for the 1 budget
st
due to chemicals and Segregation Exploration year; annually thereafter
used (in the Proper machine Cost
laboratory) and maintenance
machinery
leakage
II Development
Phase
1 Expanded soil Preservation of Part of SOE/SED & MMT; Part of EMF
erosion (wet) endemic vegetation Construction monthly for the 1 year; budget
st
Sedimentation of Mulching Cost quarterly thereafter; can
bodies of water Sodding be reduced to semestral
Buffer Zones depending on
Soil Retaining environmental
Measures performance
Stabilized Road
Engineering Measures
2 Soil Proper Housekeeping Part of SOE/SED & MMT; Part of EMF
contamination Waste Minimization Construction semi-annually for the 1st budget
due to and Segregation Cost year; annually thereafter
construction Proper machine SOE/SED & MMT.
waste, chemicals maintenance
used (in the
laboratory) and
machinery
leakage
III Operations Phase
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EXECUTIVE SUMMARY
# Phase/Impacts Mitigating Measures Cost Monitoring Cost
1 Expanded soil Preservation of Part of MOE SOE/SED & MMT; Part of EMF
erosion (wet) endemic vegetation budget monthly for the 1 year; budget
st
slope failure, Mulching quarterly thereafter; can
Sedimentation of Sodding be reduced to semestral
bodies of water Buffer Zones depending on
Stabilized Roads environmental
Soil Retaining performance
Measures
2 Soil Proper Housekeeping Part of MOE SOE/SED & MMT; Part of EMF
contamination Waste Minimization budget monthly for the 1 year; budget
st
due to waste and Segregation quarterly thereafter; can
generation, Proper machine be reduced to semestral
chemicals used maintenance depending on
(in the laboratory) environmental
and machinery performance
leakage
IV Abandonment/
Rehabilitation
Phase
1 Changes in the Return of overburden Part of MRF SOE/SED & MMT; Part of
topography and & EGF monthly for the 1 year; EMF/MRF
st
cover of the mine budgets quarterly thereafter; can budget
site proper be reduced to semestral
depending on
environmental
performance
2 Soil erosion/slope Preservation of Part of MRF SOE/SED & MMT; Part of
failure/ endemic vegetation & EGF monthly for the 1 year; EMF/MRF
st
sedimentation Mulching budgets quarterly thereafter; can budget
Sodding be reduced to semestral
Buffer Zones depending on
Soil Retaining environmental
Measures performance
3 Minewater Mine stabilization Part of MRF SOE/SED & MMT; Part of
contamination Return of Overburden & EGF monthly for the 1st year; EMF/MRF
budgets quarterly thereafter; can budget
be reduced to semestral
depending on
environmental
performance
Table ES-4 shows the expected impacts of the Project to its environment. From the exploration/pre-
development phase up to operations phase, the expected impacts are soil erosion/slope failure/
sedimentation of bodies of water, dust formation, and soil contamination. At the abandonment phase,
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EXECUTIVE SUMMARY
the expected impacts are changes in the topography and cover of the mine site due to surface mining,
soil erosion/slope failure/sedimentation of bodies of water, and minewater contamination.
To control soil erosion/slope failure/sedimentation, several mitigating measures were given that are
generally classified into two categories: vegetative and engineering controls. Vegetative controls
include preservation of endemic vegetation, mulching, sodding and buffer zones. Engineering controls
include soil retaining measures, stabilized roads, earth dikes, drainage swale, filter berm and check
dams.
To control dust formation, vegetative controls and several engineering controls meant to control for
soil erosion/slope failure/sedimentation can also control dust formation. Stabilized roads can
minimize erosion and dust formation. Periodic watering of the roads during the day is the most
effective way to control dust formation.
To control soil contamination, proper housekeeping, waste minimization and segregation, and proper
machine maintenance are the suggested mitigating measures. Proper records/logistic management can
also minimize, if not eliminate, soil contamination. Each worker should also be given instructions on
the proper use and disposal of supplies used.
To control mine water contamination, determine inert materials that become toxic upon exposure to
the elements and provide the appropriate treatment. Returning the overburden material to the mine site
not only eliminate potential erosion/slope failure/ sedimentation but also eliminate minewater
contamination.
Monitoring activities shall commence at the pre-construction phase. Initially, a Safety and
Environment Officer (SEO) should be present to do the compliance monitoring but formation of the
Safety and Environment Department (SED) should also be done. This is to keep up with increasing
levels of monitoring activities. A multi-partite monitoring team (MMT) shall be formed to include
SEO or assigned member of SED of the Proponent, members of the community and DENR that will
conduct the third party monitoring. They will monitor implementation of suggested mitigating
measures and measurement of relevant soil properties, particularly the soil pH, CEC, EC and heavy
metals. Funding will be from Environmental Monitoring Fund until Operation Phase. By
Abandonment Phase, in addition to EMF, the Mine Rehabilitation Fund can be used to fund the
monitoring activities. Monitoring activities can be initially done monthly for the first year and
quarterly thereafter. It can further be reduced to semestral (twice a year) if environmental performance
is good.
6.3 HYDROLOGY
The predicted environmental impact as the result of mining activities starting from site preparation
such as increased runoff, increased siltation, to hauling and loading of raw materials could occur in
the mine site. Effective counter or mitigating measures were devised to minimize these effects. This
is discussed in details in the succeeding sections.
6.4 OCEANOGRAPHY
The identified impacts will mostly occur during the pre-development and operational phases of the
Project. Table ES-5 shows a summary of the environmental impacts of the Project including the
environmental components that will be affected. A more detailed description is given in the
succeeding sub-sections.
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EXECUTIVE SUMMARY
Table ES- : Summary of Environmental Impacts

ENVIRONMENTAL ASSESSED
ACTIVITIES IMPACTS
COMPONENT IMPACTS
Exploration/Pre-  Water Quality  Increase in suspended ST, P, A, Si
Construction/Pre- sediment concentration (TSS
Development level)
Phase
 Water Quality  Increase in TSS Levels and ST, P, A, Si
Operational turbidity
Phase  Bed Morphology  Accumulation of Sediments ST, P, A, I
Abandonment Navigational  Inconvenience to ST, P, A, I
boat
Phase Hazard due to operators
‘Shallowing’
LT = Long-term; ST = Short-term; P = Primary; S = Secondary; B = Beneficial; A = Adverse; Si =
Significant; I = Insignificant
The most likely impact from the Exploration/Pre-development phase up to the operational phase is the
increase in the concentrations of suspended sediments (e.g. TSS levels) in the adjacent coastal waters.
This increase in TSS levels could be significant and pose adverse impacts to the adjacent marine
environment. During the pre-development and development phase, the impacts may only be short-
term particularly during strong rain episodes. However, during the operational phase, this could pose
short-term but significant impact on the marine biota if not mitigated. Also, a potential change in
sediment bed morphology near discharge areas that may decrease the existing water depths in the
affected coastal areas may occur. This could pose adverse impacts to the marine benthic communities
as well. However, this could be insignificant since redistribution of the accumulated sediments
normally occur during strong winds and waves in the area.
During the abandonment phase, the sedimentation areas may become shallower than normal and may
therefore pose a navigational hazard. This is however insignificant, short-term, adverse impact to
boat operators. Possible erosion of the accumulated sediment by strong waves and currents during
rough sea conditions will reduce the ‘shallowing’ problem.
6.5 METEOROLOGY
Dust levels in the immediate vicinity (few hundred meters) of the Project site may increase as the
clearing of trees and other vegetation is done to prepare the area for the mining activities and
facilities. The establishment of buffer zones will involve minimal use of heavy equipment. No
significant noise or air quality impacts are expected at this stage.
During dry and windy days, the dust can reach several meters. On calm days, the concentration of
TSP at the mine site can increase dramatically and exceed the DENR standards. The vulnerable areas
are the immediate vicinity of the stockyard area and the barge loader. The operation of mining
equipment, earth moving machines and other equipment during construction will cause the release of
some gaseous fumes such as NO2 and SO2 into the air. However, the mining activities would require
only a small fleet of major equipment that would emit an insignificant amount of gaseous pollutants.
This concentration is not expected to adversely affect the quality of air in the area.
Along unpaved access roads, exceedance in TSP concentrations from DENR standards may be
expected during dry days if frequency of water sprinkling is inadequate. These impacts are, however,
short-term and last only during the development period.
26
EXECUTIVE SUMMARY
During the operation phase, the increase in traffic due to the movement of dump trucks shall raise the
dust and noise levels especially along unpaved roads. Transport of ore materials may likewise
increase ambient dust concentrations.
6.6 TERRESTRIAL ECOLOGY
6.6.1 Terrestrial Flora
Mining activities may result to disturbance to an ecosystem including the removal of vegetative cover.
However, mining activities are done in stages and each stage would have an impact that would differ
only in magnitude at the site of operation.
Activities are contour mining that includes land clearing, overburden removal, transport and
stockpiling, and the actual ore mining. Since the activities would require clearing and scraping off the
top soil, the flora will be affected once the vegetative cover is removed, the earth is thus exposed to
the elements. Mindanao having a Type IV climate wherein rain is distributed quite evenly throughout
the year would increase the problem of soil erosion. Sedimentation of the river would increase and
thus would affect downstream communities including fishery resources in the bay. Since
rehabilitation of these areas will be undertaken, progress shall be maintained.
Transporting the overburden and ore, stockpiling of the same have a major impact since construction
of access roads and stockpiling would require the removal of plants.
6.6.2 Terrestrial Fauna
The primary consequence of surface mining, particularly open-pit mining, will be the removal of
vegetation. As such, any wildlife associated with these forested areas where open-pit mining will
commence will be affected. Thus, wildlife present will be affected.
Another inherent consequence of vegetation clearing is the exposure of nearby forested habitats to
edge effects. In forest edges and in interior reaching to at least 50 m, environmental conditions are
different. This will come in the form of reduced moisture, reduced soil fertility and heightened
ambient temperature. As such, faunal assemblages within theses edges will be affected as well, due to
modified environmental conditions. Rehabilitation measures will be implemented including the
establishment of a Nursery.
Furthermore, other direct impacts such as noise and pollution from blasting, excavation and presence
of heavy equipment may affect wildlife. In addition, direct access due to increase human activities
poses some disturbances. Further, water pollution is also likely to occur due to the different mining
activities like petroleum waste, acid wastewater discharge and erosion.
6.7 AQUATIC ENVIRONMENT
6.7.1 Freshwater Ecology
Some impacts include pollution from silt, drilling additives and fluids, oil products and human waste.
Silt will affect the habitats of benthic fauna and may coat the stones during slow water flow, thus,
rendering ineffective the hold-fast mechanisms of stone fauna. This may lead to the decrease of the
typical fauna and increase in the population of burrowing or tube-building creatures such as worms
and midge larvae which are moderately polluted water indicator organisms. Further, silt, oil, drilling
additives and fluids will increase water turbidity and affect the biological productivity of the creeks.
Without controls, the increase in turbidity of the creeks that may reduce light penetration that may
retard production of nutrient needed by aquatic life will result. This may also make the creeks not
usable for bathing and for other domestic uses by residents living nearby.
27
EXECUTIVE SUMMARY
6.7.2 Marine Ecology
Construction of mitigating structures would expect the impacts of siltation/sedimentation and

increased freshwater run-off on coastal habitats and associated communities to be reduced to tolerable
level. Likewise, properly implemented mitigation measures shall address the impacts (significant and
of long duration on mangroves, seagrass and corals (and their biota), and fisheries that are expected
to result from operations.
Considering the current uses of Carrascal Bay as rich fishing grounds shared by seven coastal
barangays, efforts should be taken to protect the bay to arrest its deterioration, mitigate negative
impacts and sustain its productivity.
6.8 SOCIO-ECONOMIC IMPACTS
6.8.1 Population/Settlement/Migration
There will be no significant impact on the social demography of the area if the employees to be hired
would come from the local communities. However, increased economic activities in the area will
attract migrants who are seeking better employment and livelihood opportunities.
Informal settlements may develop along riverbanks, sidewalks and vacant areas because of the
increase in livelihood opportunities in the area. The demand for basic services will increase and the
financial resources of the Municipality will be strained to meet these additional demands. These areas
may have unsanitary conditions because of the lack of adequate sanitation facilities.
6.8.2 Employment/Livelihood
The primary positive effect of the Project as pointed out in the survey is the generation of employment
and livelihood opportunities. Residents are expecting that members of their families and other
relatives will be able to work in the mining operations.
There is apprehension that women will not have a fair chance of getting a decent employment
considering the traditional biases against women. Flesh trade and other vices may proliferate and may
be detrimental to the women sector because of the increase of disposable income of male workers.
6.8.3 Additional Revenues to the Local Government Units
The host Barangay, Municipality and the Province will directly benefit from the Project through
additional financial resources provided by the Mining Act of 1995 and the Local Government Code.
It is expected that the LGUs will share in the excise taxes, occupation fees, royalties, mine waste and
tailing fees. These are in addition to the normal taxes being levied by the LGUs on corporations
doing business in their jurisdictions including income tax for corporations or partnerships.
6.8.4 Lifestyle and Culture
The Project will change the lives of the employees and their families because of bigger disposable
income. It is expected that the standard of living will improve and spending on education, health,
appliance good food, clothes are expected to increase.
Money may also bring vices such as gambling, drinking, and womanizing. Consequently, the peace
and stability of the family are threatened. Social conditions may deteriorate at the detriment of the
family if no positive interventions are mounted to mitigate the negative effects of larger disposable
income.
28
EXECUTIVE SUMMARY
6.8.5 Resource Use Competition
The development of the mine in the area will enhance the value of the land because of the high
mineral deposits present in the area that will be extracted by the mining operations. Land which was
previously of little economic value will become productive and may sustain agricultural crops for the
residents.
29
EXECUTIVE SUMMARY
7 MATRIX OF ENVIRONMENTAL MANAGEMENT PLAN AND SOCIAL DEVELOPMENT MANAGEMENT PLAN
Table ES- : Summary Matrix of the Environmental Management Plan

Estimated Cost of
Mitigation & Responsible Guarantees
Environment Potential Impact Mitigation or Schedule
Enhancement Party and Contracts
Enhancement, PhP
Exploration/ Pre-development Phase
Physical Environment
 Localized erosion
(wet)  Preservation of
Soil and Land endemic
vegetation,
Temporary
seeding, Mulching
and Sodding
Proponent Pre- construction
 Soil contamination
10,200,000.00 and developme of waste
due to fuel or used Contractor nt phase dump is a
oil; used and  Proper requirement of
machinery leakage Housekeeping the Mining
Waste Act and its
Minimization and IRR
 Foundation works
Segregation
for drainage and
toe dam for waste  Proper machine
dump of North, maintenance
West and South
pits
Water  Increased turbidity  designation of 500,000
from erosion of disposal sites near
Proponent Pre- Included in the
soils the mine site
30
EXECUTIVE SUMMARY
Estimated Cost of
Enhancement, PhP
 construction of and developme scope of work
drainage facilities Contractor nt phase of contractor
 Reduced and siltation pond/
infiltration s
capacity of soils
 plan site
 Reduced channel preparation for
capacity minimum cutting
of trees / removal
of vegetation.
 Increase in TSS
 Replanting of
uprooted
trees/plants
Air  Dust generated  Regular sprinkling 10,800,000.00
of water on
exposed grounds
 Noise generated  Imposition of
may disrupt speed limit
wildlife Proponent During EMP and
 Vehicles covered
and pre- included in the
 Proper
Contractor developme scope of work
maintenance of nt phase of contractor
heavy construction
equipment and
provision of
31
EXECUTIVE SUMMARY
Estimated Cost of
Enhancement, PhP
silencers/mufflers
 Construction
activities limited
during daytime
Development Phase
 Localized erosion
Soil and Land (wet)  Preservation of  Part of Pre- Proponent/ Developm EMP
endemic Developmen Contractor ent phase
vegetation, t phase Cost
Temporary
seeding, Mulching
and Sodding
Proponent Developm
 Soil contamination  Part of pre- and ent phase EMP and
due to used oil and  Proper development Contractor included in
fuel and machinery Housekeeping phase cost scope of work
leakage Waste of contractor
Minimization and
Segregation
 Proper machine
maintenance
 Landslides,  geological, 1,600,000.00 Proponent Developm EMP and

rockfalls, geotechnical and and ent Phase included in
hydrological Contractor scope of work
rockslide, gully
investigation of contractor
erosion, debris  siltation study
32
EXECUTIVE SUMMARY
Estimated Cost of
Enhancement, PhP
flows, siltation  slope stability
analysis if necessary
 Disruption of  reshaping of
slopes
sediment transport
 retaining
by longshore structures
current by  surface &
causeway leading subsurface drainage
to erosion & (subsurface drains
beneath stockpiles on
sedimentation on
slopes if seepages are
either side of present)
causeway  silt traps Included in the
 sediment transport Proponent/ scope of work
modeling if necessary contractor Developm of contractor
ent phase
 Ground incorporate into design of

acceleration hoppers and conveyor
 Landslides, belts, geological,
rockfalls, geotechnical investigation
rockslide, gully hydrological investigation
erosion, debris  siltation study
flows, siltation  slope stability
 Foundation analysis, if necessary
conditions of  reshaping of
causeway & slopes
conveyor belt  retaining
33
EXECUTIVE SUMMARY
Estimated Cost of
Enhancement, PhP
structures
 bioremediation
 surface &
subsurface drainage
(subsurface drains beneath
stockpiles on slopes if
seepages are present
 silt traps
Water  Increased turbidity  designation of

from erosion of disposal sites near
soils the mine site
 construction of
drainage facilities
 Reduced and siltation pond/ part of the pre-
infiltration s development costs
capacity of soils
Proponent Developm Scope of

 plan site and ent phase works (mining
 Reduced channel preparation for Contractor firm)
capacity minimum cutting
of trees / removal
of vegetation.
 Increase in TSS  Replanting of
 Potential uprooted
trees/plants
34
EXECUTIVE SUMMARY
Estimated Cost of
Enhancement, PhP
contamination of  Maintain buffer
the water bodies zone along
by oil and grease existing natural
and other drainage (creeks,
petroleum streams)
hydrocarbons from  Proper handling
small oil/fuel spills and storage of
 Domestic used oil and other
wastewater petroleum
discharge and solid hydrocarbons in
wastes accordance to the
 Increased IRR of RA 6969
freshwater runoff  Provision of septic
tanks
 Proper
construction of
parking areas and
hard stands
 Proper
implementation of
RA 9003

Air  Dust generated  Regular sprinkling  Part of pre- Proponent/ During EMP
of water on development Contractor developme
nt phase
exposed grounds costs
35
EXECUTIVE SUMMARY
Estimated Cost of
Enhancement, PhP
 Noise generated  Imposition of
may disrupt speed limit
wildlife  Vehicles covered
 Proper
maintenance of
heavy construction
equipment and
provision of
silencers/mufflers
 Construction
activities limited
during daytime
Biological Environment
Terrestrial Ecology  Vegetation is cleared

during mining  Leave bands (15-20 m
 Soil erodes into the wide) of vegetation
river system between mining area
and the river to
prevent soil erosion Proponent/ Constructi Included in the
and sedimentation of Contractor on phase Scope of
rivers. Work of
 Construction of 500,000.00 Contractor
nursery
Aquatic Ecology  Soil erosion,  Foundation works,

sedimentation of under drainage and
36
EXECUTIVE SUMMARY
Estimated Cost of
Enhancement, PhP
water bodies toe dam for the
waste dumps
 Construction of
Proponent
Sumps, settling and Constructi Construction
 Increased
ponds, and site Contractor on and of a waste
siltation/sedimenta
drainage operation dump is a
tion Stage requirement of
 Provision of
the Mining
drainage canals
Act and its
with silt traps implementing
 Provision of rules and
sediment basin or regulations
ditch
Included in the
 Oil and grease  Scheduling of scope of work
spillage earthmoving of
activities during contractor
dry season
 Provision of
containment canal,
oil water separator
and collection of
Employment opportunities used oil
Socio - Economic Increase in respiratory
Environment ailments (positive impact)
37
EXECUTIVE SUMMARY
Estimated Cost of
Enhancement, PhP
Health Sector Use of personnel
protective equipment (i.e.
masks, helmets)
Operation Phase
Soil and Land  Increased dust  Water spraying Part of Proponent
formation (dry) operations Cost and Operations To be funded
Contractor phase by Mine
 Preservation of Rehabilitation
 Expanded soil
endemic vegetation, Fund (MRF)
erosion (wet), mulching, sodding, Proponent/  op
slope failure,  Establishment of buffer Contractor era Included in the
sedimentation of zone, stabilized roads, scope of work
tio
water bodies soil retaining and other of Contractor
ns
engineering measures
ph
 Soil contamination
 Proper housekeeping ase
 Landslides, measures
rockfalls,  Proper machine
rockslide, gully maintenance
erosion, debris  geological,
flows, siltation geotechnical and
hydrological
 Disruption of investigation
sediment transport  siltation study
 slope stability
by longshore
analysis if necessary
current by  reshaping of Proponent/
causeway leading slopes contractor
38
EXECUTIVE SUMMARY
Estimated Cost of
Enhancement, PhP
to erosion &  retaining
sedimentation on structures
either side of  surface and
subsurface
causeway
drainage
(subsurface drains
beneath stockpiles
on slopes if
seepages are
present)
 silt traps
 sediment transport
modeling if
necessary
 incorporate into
design of hoppers
and conveyor
belts, geological,
geotechnical
investigation
hydrological
investigation
 siltation study
 slope stability
analysis, if
necessary
 reshaping of
39
EXECUTIVE SUMMARY
Estimated Cost of
Enhancement, PhP
slopes
 retaining
structures
 bioremediation
 surface and
subsurface
drainage
(subsurface drains
beneath stockpiles
on slopes if
seepages are
present
 silt traps
Water  Increased turbidity  Designation/ Project Operation Included in

 Reduced construction of Proponent Phase scope of work
of contractor
infiltration capacity disposal sites near
and
of soils the mine area for requirement of
 Increase in TSS spoils and the Mining
and “shallowing excavated Act and its
problem” materials. Implementing
Rules and
 Increased  Construction of
Regulations
freshwater runoff drainage facilities (IRR)
 Decrease of the and siltation
bay’s rich marine pond/s 27,600,000.00
40
EXECUTIVE SUMMARY
Estimated Cost of
Enhancement, PhP
resources  Use of silt ponds
and siltation dams
for sediment
discharges to
prevent
‘shallowing’ and
offshore 1,000,000.00
dispersion of
sediments
 Proper
construction of
parking areas and
hard stands
 Maintain buffer
zone along
existing natural
drainage system
(creeks, stream)
 Integrated Coastal
Management Plan
Air  Increased dust  Regular sprinkling  Part of Proponent During Included in
generation of water on operation and its constructio scope of work
individual n and of contractor
 Noise and exposed ground cost
contractors operations and
vibration  Establishment of  phase requirement of
generated by vegetation buffers the Mining
41
EXECUTIVE SUMMARY
Estimated Cost of
Enhancement, PhP
heavy equipment along roads Act and its
 Minimal acid throughout the Implementing
mining complex Rules and
fumes/emission
Regulations
from the laboratory  Continuous and (IRR)
progressive
rehabilitation of
mined-out areas
 Phasing of mining
activities to
minimize exposed
areas
 Speed or
movement of
hauling equipment
shall be regulated
and preferably,
the vehicles shall
be covered by Proponent
tarpaulin and Mining
 Covering with Contractor operations
galvanized iron Included in
(GI) sheets of scope of work
of contractor
conveyor belts and
 Stockpile shall be requirement of
covered by the Mining
Act and its
42
EXECUTIVE SUMMARY
Estimated Cost of
Enhancement, PhP
tarpaulin Implementing
 Proper Rules and
Regulations
maintenance of
(IRR)
heavy equipment
and provision of
silencers or
mufflers
 Application of
benching
techniques
 Mining activities 80,200,000.00
shall be scheduled
during daytime
 Establishment of
vegetation buffers
along the roads
throughout the
mining complex
 Installation of
fumehoods in the
laboratory
Biological Environment  Vegetation is  Leave bands (15- Project Operation Included in the
Terrestrial Ecology cleared during 20 m wide) of Part of Operation proponent stage scope of work
mining Cost and of
vegetation
contractor contractor for
between mining bidding
 Soil erodes into
43
EXECUTIVE SUMMARY
Estimated Cost of
Enhancement, PhP
the river system area and the river
to prevent
excessive soil
erosion and
sedimentation of
rivers
Aquatic Ecology  Soil erosion,  Sumps, settling Project Operation Included in the
sedimentation of ponds, and site proponent stage scope of work
and of
water bodies, and drainage
contractor contractor for
smothering of  Progressive bidding
freshwater rehabilitation
organisms
Socio-Economic  Change of  Increased delivery 2,500,000.00 Proponent Operations EMP

Environment livelihood of Health Services phase
Including health sector
 Health and safety  Establishment of
risks waste disposal
 In-migration facilities/impleme
 Increased ntation of the
generation of solid Solid Waste
wastes Management Act
 Increased demand and its IRR
of sanitation  Installation of
/waste disposal sanitation devices 800,000.00
 Provision of PPEs
44
EXECUTIVE SUMMARY
Estimated Cost of
Enhancement, PhP
facilities  Trainings on
 Increase incidents safety
2,030,000.00
of work- related management
accidents  Implementation of
IEC plan
Rehabilitation and Abandonment Phase
Physical Environment  Change in  Return of  Proponent Rehabilitati EMP and mine
topography and overburden and on and rehabilitation
Soil and Land contractor Abandonm fund
land covering  Preservation of
ent Phase
endemic
 Soil erosion/slope vegetation
failure/  Mine stabilization
sedimentation  Return of
 Minewater Overburden
contamination
Biological Environment  Reforestation of the  use indigenous Proponent Rehabilitati EMP Mine
Aquatic Ecology mined out areas are species that were and on and rehabilitation
7,820,000.00 contractor Abandonm fund
done once thriving in
Terrestrial Ecology ent Phase
the area
Socio- Economic  Loss of  Implementation of Part of SDP Proponent Rehabilitati SDP

Environment employment Livelihood and/or on and
cooperatives Abandonm
Projects
ent Phase
45
EXECUTIVE SUMMARY
Table ES- : Social Development Management Plan

Mitigating/Enhancement
Potential Impact Costs, PhP Responsible Institution Guarantee
Measures
Pre-Development/
Development Phase
Change in land use Implementation of the 76,670,000.00 Proponent Mining Act of 1995
progressive mining SDMP
rehabilitation ECC conditions
Reforestation of fruits tree
species
Population/In-migration Priority in employment of Proponent ECC conditions
qualified residents of the host MOA with stakeholders
barangay
Delineation of boundaries and
inventory of structures
Generation of employment Priority in employment of 2,600,000.00 Proponent ECC conditions
and livelihood opportunities qualified residents of the host Contractor’s
barangay environmental program
Labor standards of proponent
adopted by its contractors
Purchase of locally available
products and services
Increase in commercial Priority of local suppliers Proponent ECC conditions
activities in the area provided prices are competitive
Additional income and Prompt payment of taxes, fee, Proponent National Internal Revenue
benefits to host LGUs permits and licenses Code,
Mining Act of 1995
Local Government Code
Health and sanitation risks Safety training of workers Part of EMP costs Proponent ECC conditions
46
EXECUTIVE SUMMARY
Measures
Water sprinkling system and Clean Air Act
conditioning of equipment Clean Water Act
Water and sanitation facilities Ecological solid waste
included in the contractor’s management act
environmental program
Implementation of an
ecological solid waste
management program
Change in lifestyle and Information and education Part of EMP costs Proponent ECC conditions
culture campaign SDMP
OPERATION PHASE
Population/migration Priority in employment of Proponent ECC conditions
qualified residents of the host LGU MOA with stakeholders
barangay
Implementation of the land use
plan
Generation of employment Priority in employment of 30,963,000.00 Proponent ECC conditions
and livelihood opportunities qualified residents of the host MOA with stakeholders
barangay SDMP
Labor standards of proponent
adopted by its contractors
Purchase of locally available
products and services
Implementation of a livelihood
program
Establishment of a training unit
Skills training and orientation
for the women sector
Additional revenues for Prompt payment of taxes, fees, Proponent National Internal Revenue
LGUs permits and licenses Code,
Mining Act of 1995
Local Government Code
47
EXECUTIVE SUMMARY
Measures
Health and sanitation risks Implementation of the Proponent Mining Act of 1995
progressive mine rehabilitation ECC conditions
concept
Monitoring of health conditions
Periodic medical missions
Lifestyle and culture Value formation seminars Proponent SDMP
Resource use competition Implementation of the SDMP Proponent Mining Act of 1995
ECC conditions
7.1 MATRIX OF COST ESTIMATES OF ENVIRONMENTAL MANAGEMENT PLAN
Table ES- : Cost Estimates for the Environmental Management Plan

Impacts Mitigation/Enhancement Measures Cost, PHP Duration Implementor Guarantee
construction of
waste dump is a
Foundation works for drainage and toe requirement of
dam for waste dump of North, West and Proponent and Mining Act and its
Soil and Land Use South pits 10,200,000.00 pre-development contractor IRR
included in the
pre-development Proponent and scope of work of
Aquatic Ecology Sumps, settling ponds and site drainage 500,000.00 and development contractor contractor
included in the
Proponent and scope of work of
27,600,000.00 life of mine contractor contractor
Proponent and to be funded by
Progressive Rehabilitation 76,670,000.00 life of mine contractor MRF
abandonment and Proponent and to be funded by
7,820,000.00 rehabilitation contractor MRF
Sub-total 122,790,000.00
48
EXECUTIVE SUMMARY

Terrestrial Proponent and to be funded by
Ecology Construction of nursery 500,000.00 development contractor MRF
pre-development Proponent and to be funded by
slope stabilization works 1,600,000.00 and development contractor MRF
Proponent and to be funded by
assisted natural regeneration 12,000,000.00 operations contractor MRF
abandonment and Proponent and to be funded by
establishment of buffer zone 1,000,000.00 rehabilitation contractor MRF
sub-total 15,100,000.00
included in the
Air road watering 10,800,000.00 operations contractor contractor
Sub total 10,800,000.00

regular replacement of mining development and Proponent and to be funded by
noise equipment mufflers operational costs operations contractor MRF
requirement of
Proponent and Mining Act and its
health meetings, trainings 3,500,000.00 operations contractor IRR
requirement of
medical missions 2,500,000.00 operations contractor IRR
requirement of
provision of PPEs 800,000.00 operations contractor IRR
included in the
provision of PCDs 51,100,000.00 life of mine contractor contractor
included in the
maintenance of PCDs 29,100,000.00 contractor contractor
49
EXECUTIVE SUMMARY

construction of
waste dump is a
requirement of
waste dump 10,200,000.00 contractor IRR
sub-total 97,200,000.00
activation of CLRF and Mining Proponent and payment of mine
SDMP Investigation and assessment team contractor waste fee
requirement of
non-sustainability of the project and Proponent and Mining Act and its
non-ability to hire all 2,600,000.00 operations contractor IRR
requirement of
concerns,misgivings, or misinformation Proponent and Mining Act and its
(IEC campaign) 2,030,000.00 operations contractor IRR
requirement of
Livelihood, infrastructure and social Proponent and Mining Act and its
services 30,963,000.00 contractor IRR
sub-total 35,593,000.00
Others
requirement of
environmental Proponent and Mining Act and its
monitoring 3,500,000.00 operations contractor IRR
requirement of
environmental Proponent and Mining Act and its
studies 10,000,000.00 operations contractor IRR
requirement of
Rehabilitation Proponent and Mining Act and its
Cash Fund 5,000,000.00 operations contractor IRR
50
EXECUTIVE SUMMARY

requirement of
Monitoring Trust development and Proponent and Mining Act and its
Fund 1,400,000.00 operations contractor IRR
requirement of
Environmental development and Proponent and Mining Act and its
Trust Fund 150,000.00 operations contractor IRR
sub-total 20,050,000.00
Total 301,533,000.00
Source: Environmental Management Plan CTPCMC, 2006
7.2 MATRIX OF ENVIRONMENTAL MONITORING PLAN
Table ES- : Summary Matrix of the Environmental Monitoring

Estimated
Project Environmental Parameters to be Responsible
Sampling Station Frequency cost/station
Activity Parameters Measured Party
(PhP)
Physical
Pre- proponent,
after periods of
Development Visual inspection contractor, Part of
Slopes Slopes intense rainfall or
and of slopes consultant, Monitoring cost
major earthquake
Development MMT
phase Visual inspection
slopes and
of slopes and
drainage lines proponent,
drainage lines quarterly, after
contractor, Part of
drainage lines, coastal areas periods of intense
capacity of silt consultant, Monitoring cost
Capacity of silt rainfall
traps MMT
traps
TSS
Flora and fauna Selected stations Twice a year until proponent, PHP 300,000.00
 Visual project completion contractor,
51
EXECUTIVE SUMMARY
Estimated
(PhP)
observation of
patches of
colonization in
the mined out
areas consultant,
 Density count MMT
 Importance
values
 Shannon Index
Water quality Temperature, DO, PHP

pH, BOD, TSS, 50,000.00/quarte
Quarterly
8 sampling stations oil and grease and r
proponent,
heavy metals (Pb,
contractor,
Cd, Cr)
consultant,
MMT
Fishery Resources part of
Monthly
construction
costs
Soil quality proponent,
Physical/chemical contractor, Part of
2 stations shown parameters Semi-annually consultant, monitoring costs
MMT
Air quality and TSP and Noise proponent,

Noise contractor, PHP 50,000 per
within the construction area extending some Quarterly during
consultant, quarter
200 meter- radius construction
MMT
Planktons and Selected stations Species Semi-annual (wet proponent, Part of
52
EXECUTIVE SUMMARY
Estimated
(PhP)
soft bottom composition, and dry seasons) contractor, monitoring costs
benthos density, consultant,
abundance and MMT
biomass
Corals % bottom cover,

siltation rates
Species
Reef fishes composition,
richness/diversity,
abundance and
biomass
Composition,
Seagrass- dominance,
seaweeds species richness,
density,
abundance and
biomass
Composition,
Mangroves dominance,
species richness,
density, tree
diameter, height,
number of
saplings, presence
of avifauna,
53
EXECUTIVE SUMMARY
Estimated
(PhP)
epiphytes and
other wildlife
Health indicators Community

Quarterly
Health profile
Part of
Affected barangays Proponent
monitoring costs
Semi-annually
Sanitation profile
Physical
Operations
phase
proponent,
after periods of
Visual inspection contractor, Part of Monitoring
Slopes Slopes intense rainfall or
of slopes consultant, cost
major earthquake
MMT
Visual inspection
Slopes and
of slopes and
drainage lines proponent,
drainage lines quarterly, after
contractor, Part of Monitoring
Drainage lines, coastal areas periods of intense
Capacity of silt consultant, cost
Capacity of silt rainfall
traps MMT
traps
TSS
Flora and fauna Selected stations Twice a year until proponent, PHP 300,000.00
 Visual project completion contractor,
observation of consultant,
patches of MMT
54
EXECUTIVE SUMMARY
Estimated
(PhP)
colonization in
the mined out
areas
 Density count
 Importance
values
 Shannon Index
Water quality Temperature, DO,

pH, BOD, TSS, Quarterly PHP
8 sampling stations
oil and grease and proponent, 50,000.00/quarter
heavy metals (Pb, contractor,
Cd, Cr) consultant,
MMT PHP 50,000 per
Fishery Resources quarterly quarter
Soil quality proponent,

Physical/chemical contractor, Part of monitoring
2 stations shown in Figure 3-16 parameters Semi-annually consultant, costs
MMT
Air quality and TSP and Noise proponent,

Noise contractor, PHP 50,000 per
within the construction area extending some Quarterly during
consultant, quarter
200 meter- radius construction
MMT
Planktons and Selected stations Species Semi-annual (wet proponent, Part of monitoring
soft bottom composition, and dry seasons) contractor, costs
benthos density, consultant,
55
EXECUTIVE SUMMARY
Estimated
(PhP)
abundance and MMT
biomass
Corals % bottom cover,

siltation rates
Species
Reef fishes composition,
richness/diversity,
abundance and
biomass
Composition,
Seagrass- dominance,
seaweeds species richness,
density,
abundance and
biomass
Composition,
mangroves dominance,
species richness,
density, tree
diameter, height,
number of
saplings, presence
of avifauna,
epiphytes and
56
EXECUTIVE SUMMARY
Estimated
(PhP)
other wildlife
Health indicators Community

Quarterly
Health profile
Part of monitoring
Affected barangays Proponent
costs
Semi-annually
Sanitation profile
Terrestrial Number of planted
Ecology seedlings
% survival
Rehabilitation Twice a year until
Proponent,
and % mortality complete pull out of
Selected stations contractor, PHP 1,000,000.00
Abandonment equipment and
MMT
Phase No. of community personnel
members trained
No. of seedlings
produced
57

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Carrascal EIS Executive Summary

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TABLE OF CONTENTS

CTP Construction and Mining Corporation Carrascal Nickel Project EIS

6.6 TERRESTRIAL ECOLOGY.........................................................................................................................27

Table ES- 1: The EIA Team..................................................................................................................................5

Figure ES- 1: Primary and Secondary Impact Areas.......................................................................................3

The CANP aims to:

2 DESCRIPTION OF EIA METHODOLOGY AND THE EIA TEAM

2.1 EIA METHODOLOGY

 Bureau of Soils and Water Management- Department of Agriculture (BSWM- DA)

Figure ES- : Primary and Secondary Impact Areas

Figure ES- : Project Location Map

Source: LTI, 2006

2.2 EIA TEAM

Table ES- : The EIA Team

3 SCOPE AND LIMITATION OF THE EIA STUDY

The Accountability Statement of the Technical Preparers of the Environmental Impact

Table ES- : Technical Description of Project Site

Corner Latitude Longitude

Corner Latitude Longitude

Figure ES- 3: Project Tenure Map

4.2 PROJECT BRIEF

4.3 DESCRIPTION OF PROJECT PHASES

4.3.1 Exploration and Pre-Development Phase

4.3.2 Development Phase

The Development phase shall include the following:

 construction of access from mine site to main road;

4.3.3 Operations Phase

4.3.3.1 Ore Mining

4.3.3.2 Ore Transport

4.3.3.3 Ore Drying and Stockpiling

The Stockyard will serve the following important purposes:

 receive run-of-mine (RoM) ore;

4.3.4 Abandonment/Rehabilitation Phase

4.4 PLANNED MINE CAPACITY

4.5 PROJECT INVESTMENT COSTS

5 BRIEF DESCRIPTION OF BASELINE ENVIRONMENTAL CONDITIONS

5.1 PHYSICAL ENVIRONMENT

5.1.2 Soil and Land Use

5.1.4 Water Quality

5.1.4.1 Freshwater Quality

5.1.4.2 Marine Water Quality

5.1.6 Meteorology and Climate

5.1.6.1 Air Quality and Noise

5.2 BIOLOGICAL ENVIRONMENT

5.2.1 Terrestrial Ecology

5.2.1.1 Terrestrial Flora

5.2.1.2 Terrestrial Fauna

5.2.2 Aquatic Environment

5.2.2.1 Freshwater Ecology

5.2.2.2 Marine Ecology

A total of 12 species of associated macro-benthic algae (seaweeds) belonging to 7 families were

5.3 SOCIO-ECONOMIC ENVIRONMENT

5.3.1 Socio Cultural, Economic and Political Environment

5.3.1.1 Background of Surigao del Sur

5.3.1.2 Barangay Bon-ot, Carrascal, Surigao Del Sur

5.3.2 Public Participation and Social Acceptability

5.3.2.1 Public Participation

5.3.2.2 Social Acceptability

5.3.2.3 Perception Survey

5.3.2.4 Results of the Awareness and Perception Survey

5.3.2.5 Issues and Concerns of Stakeholders

5.3.2.5.1 Positive Issues and Concerns

5.3.2.5.2 Negative Issues and Concerns