The Canatuan mine was a gold/silver, copper/zinc open-pit mine located in the province of Zamboanga del Norte on the southern island of Mindanao, Philippines. The mine was operated from 2004 to January 2014 by TVI Resource Development (Phils) Inc., a former subsidiary of Canadian-based TVI Pacific Inc. The mine was operated within Mount Canatuan, a sacred mountain of the Subanen people, who protested against the mining company and its operations.
The mine' s ore was depleted in 2014.
Mining history Gold panning activity in the Canatuan Creek area was first recorded in the mid 1980s. The substantial quantities of gold being recovered prompted prospecting efforts to find the bedrock source of the gold. In 1990 prospectors discovered an extensive field of gold-bearing boulders and the first test pit was sunk that year.
Reports of the discovery drew experienced artisanal and small scale miners (SSM's) from elsewhere in the Philippines, as well as local people to form several small co-operatives. By 1994, the area was being worked by nearly 1,500 small scale miners.43-101 Technical Report for the Sulphide Resources at the Canatuan Project of TVI Pacific Inc., April 2008, Written by Pierre-Jean Lafleur, P. Eng.
In 1994 TVI Pacific reached an option agreement with the initial prospectors and continued extensive exploration. The agreement allowed TVI to explore the area and to purchase the Mineral Production Sharing Agreement (MPSA) that had been applied for in 1992, and which was still making its way through the government approval process (and subsequently approved in 1996).
In 1995 a pre-feasibility study was carried out, and in 1996 a two feasibility studies were completed (each examining a different approach to the potential mining operation). These studies did not proceed to any project implementation.
In 2003 a new feasibility assessment was carried out, which recommended further infill drilling to better define the deposit, and this drilling was carried out in 2004. Two more feasibility studies were carried out in 2004 and 2006 – the first examined mining only the gold and silver bearing oxidized portion of the deposit, the second examined mining of the sulphides (copper, zinc, gold and silver) underlying the oxide portion of the deposit. In 2004 TVI began operations to mine the oxide layer.
In April 2006 TVI requested Geostat Systems International Inc (Geostat) to produce a 43-101 Technical Report (publicly available on www.sedar.com). Another 43-101 Technical Report was completed in April 2008 by Pierre Jean Lafleur Géoconseil Inc (PJLGCI). These reports pertained to potential investments to start mining and processing the sulphide deposit.
In April 2008 operations to mine and recover gold and silver from the oxide layer were concluded,TVI News Release on Marketwire – May 14, 2008 and the related ore processing facilities were being converted to process the sulphide deposit. Also in April, manpower was reduced by 168 personnel as part of the transition to the sulphide operation. The sulphide deposit mining and processing achieved commercial operations on March 1, 2009, producing copper concentrate, with the zinc recovery circuit expected to be fully operational by late April 2010.TVI Web-site operations/producing/Canatuan-mine
In January 2010 TVI announced a joint venture with the Philippine-based company DACON (part of the DMCI Group of Companies) to carry out further mineral exploration in the Greater Canatuan Tenement.TVI News Release on Marketwire – January 11, 2010
Operations and economic impact
Mining concession The property comprises two Exploration Permit Application (EPA) areas totaling 32,400 hectares and three claim blocks totaling approximately 4,755 hectares. The main claim block within which the reserves have been delineated covers an area of approximately 508 hectares. The basis of the 508 hectare mining concession is the Mineral Production Sharing Agreement (MPSA No. 054-96-IX) under the authority of the Philippine Government, registered in the name of TVIRD. The MPSA has a term of 25 years (starting from 1996), renewable for another period, and grants the contractor the "exclusive right to explore, develop, and utilize for commercial purposes gold, silver, copper, zinc and other minerals existing within the contract area.
Gossan phase gold and silver operation (now closed) From 2004 to 2008 TVIRD operated an open pit mine, milling and processing operation producing gold and silver doré from the Gossan ore deposit. Over that period the operation produced in the order of 100,000 oz of gold (Au) and 1,700 oz of silver (Ag). The mill process consisted of crushing, milling and processing of mined ore. A hybrid process consisting of a Merrill-Crowe and Carbon in Leach circuit was used for the recovery of gold and silver.
Sulphide phase copper and zinc operation In 2008, as the mining operation moved into an ore zone with different composition, the gold/silver doré operation was decommissioned and the operation converted to copper and zinc concentrates. The Sulphide Phase operation will use the same front end crushing and grinding process from the Gossan operation and will use a Flotation Circuit for the recovery of copper and zinc concentrates. The first shipment of copper concentrate was in March 2009 and completion of the zinc circuit is expected in April 2010.
Mining of the Sulphide ore deposit will be the same as surface mining method used during the Gossan Phase. The overall surface mine area will encompass approximately 26 ha. This includes portions of the Gossan Surface Mine which is outside the boundaries of the Sulphide ore reserve and the Sulphide ore reserve underlying the Gossan surface mine. Mining of the Sulphide ore will require excavation depths ranging from less than 1 m to approximately 60 m. Production capacity is 1,850 tonnes per day of ore, with a request to increase this to 2,500 tonnes per day. Total material moved has averaged 3,800 tonnes per day and will peak at 6,700 tonnes per day in 2012 (based on the current mining plan to 2013). The operating fleet of the mine (including both TVIRD and contractor owned) includes 54 haul trucks, 9 excavators, six bulldozers, and four loaders.
Economic impact The company's operations have had a huge economic impact both for the Subanons and for the Philippine economy at large: As of January 2010, TVIRD has nearly 900 employees in operations and exploration activities, some 31 percent of whom are Subanons. The salaries and benefits these employees receive are the highest in the Zamboanga Peninsula. At Canatuan, they acquire skills that support lifelong employability. This number includes of the Special CAFGU (Citizens Armed Forces Geographical Unit) Active Auxiliary or SCAA, which are under the direct control of the Armed Forces of the Philippines. Most members of the SCAA are Subanon. TVIRD has been a continuing taxpayer to the national government. With the exception of 2008, when TVIRD decommissioned its Gossan Phase gold and silver operations, the company's tax payments have been increasing each year. TVIRD has consistently been Siocon's top taxpayer and employer.
Also a direct beneficiary are TVIRD's Subanon hosts, who have been receiving royalty payments from the company equivalent to one percent of gross sales.
Environmental management
Water
The principal control activities related to the current operation are those of water management (runoff and process water), and water monitoring tailings management (permanent containment of the non-mineral material that is physically separated from the ore in the process plant). In 2009, five sediment ponds were maintained within the MPSA. These ponds serve as control strategies to mitigate the impacts of soil erosion and sediment conveyed by surface water runoff to Canatuan Creek and Lumot Creek. This does not include the Sulphide Tailings Impoundment which serves as a large sediment pond to control sediment materials within the Canatuan Creek watershed that are not captured by the smaller sediment ponds. A neutralization pond was also constructed in series with a sediment pond currently maintained downstream of the Nursery Area, which serves as a treatment pond during instances when acid mine drainage is observed. These series of ponds drain run off water from the Phase II Mine Area where acid mine drainage is anticipated to occur. Water quality data is collected at 14 locations on streams and rivers in and around the project area.2010 Annual Environmental Protection and Enhancement Program , page 4-28
Rehabilitation
As with most mining operations, rehabilitation activities are carried out progressively – with activities carried out each year to rehabilitate areas no longer active. These rehabilitation activities include rehabilitation of the small-scale mining areas operated by others prior to the opening of the TVIRD mine.
As of the end of the Year 2009, approximately 39,300 trees were planted within and outside the MPSA. This is 11,000 tree seedlings short of the 55,00 targeted for 2009. In addition to the trees planted, various grasses and shrubs were also planted. Some of the species of trees planted include income-generating species such as rubber trees and mahogany.
The Gossan Dam and Impoundment plus the Upper and Lower Tailings Dam Impoundments are no longer used for tailings disposal. Progressive Rehabilitation activities were initiated during the second half of Year 2008 include addition of soil cover material on top of the tailings at the Lower Tailings Dam while waiting for further tailings consolidation. In Year 2010, topsoil cover will be placed on the tailings surface in preparation for planting. Current progressive rehabilitation also includes closure of an overburden stockpile by establishing erosion control, coverage with non-acid drainage (NAG) material, and revegetation; and rehabilitation of parts of the Phase 1 mining area through erosion control, soil conditioning and revegetation.
TVIRD's annual activities include progressive rehabilitation with the primary focus on slope stabilization and erosion control, revegetation and reforestation activities including soil conditioning and sediment control.
Total spending by TVIRD in 2009 on the environmental program was 71,599,512 Php ( approximately US$1.5 million).2010 Annual Environmental Protection and Enhancement Program , page 6-4
In 2013, TVIRD signed an agreement with the US company Mars to turn 1,600 hectares of mined land into cacao plantations within three years.
Local environmental concerns
One of the principal concerns raised regarding impacts of the mining activities has been complaints from local fishermen about increased sediment in local rivers affecting fish spawning. However, there have been other activities in the area that could also contribute to sediment, and there has not been a clear link established between sediment levels and fish stocks in the area. Both forestry operations and the earlier artisanal mining both removed ground cover and likely increased sediment content in rivers.
Some areas of the land were used as dump sites filled with toxic waste from the mining activity.
Relationship with local communities
Subanon
The principal community is the local indigenous people, known as the Subanon, who consider Mount Canatuan a sacred mountain: "Mount Canatuan is sacred to us. All of us married Subanens hold rituals here as a sign that we live here and we belong to the tribe of Apo Manglang." The Apu Manglang sub-tribe inhabits the area around the Canatuan mine, and are represented in the ancestral domain claim.