EIS - Cagdianao Mining PDF

Cagdianao Mining Corporation Valencia Nickel Project
Environmental Performance Report and Management Plan Page ii

Project Fact Sheet
Project Name Valencia Nickel Project

Project Location Barangay Valencia, Municipality of Cagdianao
Province of Dinagat Islands
Proponent Cagdianao Mining Corporation
Head Office 03825 Narciso St.
Surigao City
(086)-8265077, (086)-2324281
Liaison Office 3rd Floor BMMC
143 De la Rosa-Adelantado Sts.
Legaspi Village, Makati City
(02)-8140029, Fax (02)-8140026
Contact Person Engr. Joselito C. Raguini
Resident Mine Manager
0917-5613601
MPSA No. 078-97-XII-SMR issued November 19, 1997
ECC Reference No. 9805-008-105 issued April 14, 1999
EPEP Reference No. 038-2001-05 approved June 08, 2001
SDMP 003-2002-03 approved December 05, 2002
Brief Description of Large-scale mining of nickel ore within an MPSA area of 697.0481 has.
Current Project located in Barangay Valencia, Municipality of Cagdianao, Province of
Dinagat Islands at a rate of 500,000 metric tons per year, with 5-year
SDMP and 10-y EPEP approved, respectively, by MGB 13 and CLRFC;
FMRDP for issuance of Certificate of Approval by CLRFC.
ECC Amendments 1. Increase in Nickel Ore Production Capacity from 500,000 MT to
Applied for 5,000,000 MT per annum;
2. Expansion ECC Area coverage from 229 hectares to 697 hectares;
3. Expansion of the Claudia Causeway from 200 m2 to 7 hectares more
or less, and modified to include large settling ponds;
4. Establishment of an Outloading Facility that includes a Conveyor
System and Wharf;
5. Construction and operation of an alternative causeway in Is-isan;
6. Construction and operation of additional mine structures and support
facilities vital to mining operation such as but not limited to stockyards,
dumpsites, haul roads, breakwater, seawall, settling ponds, and
others.
Key Impacts and Current: Dust generation, erosion, siltation, and vegetation removal
Mitigating Measures mitigated by frequent watering using water trucks, slope
stabilization measures, erosion/stormwater runoff control
system, and revegetation programs, respectively, within and
outside the MPSA area.
New: Incremental impacts associated with the proposed increase in

annual production are further addressed by improving and
expanding environmental mitigating structures mentioned
above to suppress or minimize further dust-generation,
erosion, and siltation. Revegetation programs are in place to
vegetate areas directly affected by mining operations,
including non-mineable areas.
Environmental Performance Report and Management Plan Page ii

Table of Contents
Project Fact Sheet---------------------------------------------------------------------------------------------------------------------------- i

Table of Contents -------------------------------------------------------------------------------------------------------------------------- iii
List of Plates --------------------------------------------------------------------------------------------------------------------------- vii
List of Figures -------------------------------------------------------------------------------------------------------------------------- viii
List of Photos --------------------------------------------------------------------------------------------------------------------------- ix
List of Tables --------------------------------------------------------------------------------------------------------------------------- ix
Executive Summary ----------------------------------------------------------------------------------------------------------------------- xi
Brief Project Description ----------------------------------------------------------------------------------------------------------------- xi
Brief Summary of the EIA Process ---------------------------------------------------------------------------------------------------- xi
Brief Description of the Existing Project and the Proposed Modification------------------------------------------------- xi
EIA Findings on Key Significant Impacts and Corresponding EMP Highlights -------------------------------------------- xi
Environmental Monitoring Plan on Key Impacts and Measures ------------------------------------------------------------- xi
1. BASIC PROJECT INFORMATION -----------------------------------------------------------------1

2. DESCRIPTION OF THE EIA PROCESS ----------------------------------------------------------3
2.1 Terms of Reference ------------------------------------------------------------------------------------------------- 3
2.2 EIA Team --------------------------------------------------------------------------------------------------------------- 3
2.3 Study Schedule------------------------------------------------------------------------------------------------------- 3
2.4 Study Area------------------------------------------------------------------------------------------------------------- 3
2.5 Methodology --------------------------------------------------------------------------------------------------------- 3
2.6 Public Participation ------------------------------------------------------------------------------------------------- 4
2.6.1 Information Education Campaign (IEC) ----------------------------------------------------------------------- 4
2.6.2 Documentation of IEC and Social Preparation ------------------------------------------------------------- 5
3. PROJECT DESCRIPTION ----------------------------------------------------------------------------6
3.1 Basic Project Background and Information------------------------------------------------------------------ 6
3.2 Project Rationale ---------------------------------------------------------------------------------------------------- 6
3.3 Complete Project Location --------------------------------------------------------------------------------------- 9
3.4 Description of Mining Method -------------------------------------------------------------------------------- 11
3.4.1 Exploratory Drilling ----------------------------------------------------------------------------------------------- 11
3.4.2 Stripping of Laterite Overburden ----------------------------------------------------------------------------- 11
3.4.3 Ore Mining and Pre-piling -------------------------------------------------------------------------------------- 11
3.4.4 Transferring/Beneficiation ------------------------------------------------------------------------------------- 11
3.4.5 Hauling of Beneficiated Ores to the Pier Stockyard ---------------------------------------------------- 12
3.4.6 Shiploading/Marketing ------------------------------------------------------------------------------------------ 13
3.5 Resource and Utility Requirements, Manpower, and Cost ------------------------------------------- 13
3.5.1 Mining Facilities and Cost -------------------------------------------------------------------------------------- 13
3.5.2 Power Supply Requirements ---------------------------------------------------------------------------------- 15
3.5.3 Water Supply ------------------------------------------------------------------------------------------------------- 15
3.5.4 Manpower Requirements -------------------------------------------------------------------------------------- 15
3.5.5 Waste Generation and Built-in Management Measures ---------------------------------------------- 15
3.5.5.1 Waste Classification ---------------------------------------------------------------------------------------------- 16
3.5.5.2 Procedure ----------------------------------------------------------------------------------------------------------- 16
3.5.5.3 Display of Placards ------------------------------------------------------------------------------------------------ 16
3.5.5.4 Color Coding Scheme -------------------------------------------------------------------------------------------- 16
3.5.5.5 Collection Scheme ------------------------------------------------------------------------------------------------ 17
3.6 ECC Amendments Applied For -------------------------------------------------------------------------------- 17
3.6.1 Increase in Annual Production Rate and Expansion ECC-Coverage Area ------------------------- 17
3.6.2 Establishment of a Ship Outloading Facility Near the Claudia Causeway ------------------------ 17
3.6.3 Expansion of the Existing Claudia Causeway and Establishment of an Alternate Is-
isan Causeway ----------------------------------------------------------------------------------------------------- 18
3.6.4 Construction of other Mine Structures, Facilities and Others --------------------------------------- 21
4. BASELINE ENVIRONMENTAL CONDITIONS, IMPACT ASSESSMENT AND
MITIGATION ------------------------------------------------------------------------------------------- 22
4.1 Land ------------------------------------------------------------------------------------------------------------------- 22
4.1.1 Land Use and Classification ------------------------------------------------------------------------------------ 22
Environmental Performance Report and Management Plan Page iii

4.1.1.1 Built-Up Areas ------------------------------------------------------------------------------------------------------ 22

4.1.1.2 Agricultural Areas ------------------------------------------------------------------------------------------------- 22
4.1.1.3 Open Grassland Area -------------------------------------------------------------------------------------------- 22
4.1.1.4 Mining Areas ------------------------------------------------------------------------------------------------------- 22
4.1.1.5 Existing Urban Land Use ---------------------------------------------------------------------------------------- 23
4.1.1.5.1 Commercial Areas------------------------------------------------------------------------------------------------- 23
4.1.1.5.2 Institutional Area ------------------------------------------------------------------------------------------------- 23
4.1.1.5.3 Settlement Pattern ----------------------------------------------------------------------------------------------- 23
4.1.1.5.4 Slope and Elevation ---------------------------------------------------------------------------------------------- 26
4.1.2 Geohazards --------------------------------------------------------------------------------------------------------- 27
4.1.2.1 Tectonic Setting --------------------------------------------------------------------------------------------------- 27
4.1.2.2 Seismic Hazards ---------------------------------------------------------------------------------------------------- 29
4.1.1.2.2.1 Ground Movement ----------------------------------------------------------------------------------------------- 29
4.1.2.2.2 Landslides ----------------------------------------------------------------------------------------------------------- 29
4.1.2.2.3 Rupturing ------------------------------------------------------------------------------------------------------------ 29
4.1.2.2.4 Tsunamis ------------------------------------------------------------------------------------------------------------- 29
4.1.2.3 Volcanic Hazards -------------------------------------------------------------------------------------------------- 32
4.1.2.4 Mass Movements ------------------------------------------------------------------------------------------------- 34
4.1.3 Terrestrial Biology ------------------------------------------------------------------------------------------------ 35
4.1.3.1 Dendrological Survey -------------------------------------------------------------------------------------------- 35
4.1.3.2 Avifaunal Survey -------------------------------------------------------------------------------------------------- 38
4.1.3.3 Frogs------------------------------------------------------------------------------------------------------------------ 39
4.1.3.4 Other Wildlife ------------------------------------------------------------------------------------------------------ 40
4.1.3.5 Ecological and Conservation Values ------------------------------------------------------------------------- 41
4.1.3.6 Impact Assessment and Mitigation -------------------------------------------------------------------------- 41
4.2 The Water ----------------------------------------------------------------------------------------------------------- 42
4.2.1 Hydrology/Hydrogeology --------------------------------------------------------------------------------------- 42
4.2.2 Flow Rate and Quality of Flow Measurement ------------------------------------------------------------ 43
4.2.2 Oceanography------------------------------------------------------------------------------------------------------ 45
4.2.2.1 Oceanographic Characteristics of the Study Area ------------------------------------------------------- 45
4.2.2.1.1 Bathymetry of the Study Area -------------------------------------------------------------------------------- 45
4.2.2.1.2 Tides ------------------------------------------------------------------------------------------------------------------ 46
4.2.2.1.3 Surface Currents --------------------------------------------------------------------------------------------------- 46
4.2.2.2 Physical Oceanography ------------------------------------------------------------------------------------------ 47
4.2.2.2.1 Coastal Oceanographic Model -------------------------------------------------------------------------------- 47
4.2.2.2.2 Simulated Coastal Currents ------------------------------------------------------------------------------------ 49
4.2.2.2.2.1 NE Monsoon Season --------------------------------------------------------------------------------------------- 49
4.2.2.2.2.2 SW Monsoon Season --------------------------------------------------------------------------------------------- 52
4.2.2.3 Sediment Transport Study-------------------------------------------------------------------------------------- 53
4.2.2.3.1 Observed Sedimentation Flux --------------------------------------------------------------------------------- 53
4.2.2.3.2 Description of the Sediment Transport Model------------------------------------------------------------ 55
4.2.2.3.3 Simulated Sediment Dispersion ------------------------------------------------------------------------------ 56
4.2.2.3.3.1 NE Monsoon Season --------------------------------------------------------------------------------------------- 56
4.2.2.3.3.2 SW Monsoon Season--------------------------------------------------------------------------------------------- 58
4.2.3 Water Quality ------------------------------------------------------------------------------------------------------ 61
4.2.3.1 Bacteriological Quality ------------------------------------------------------------------------------------------ 63
4.2.3.2 TSS of Surface Waters, Class D -------------------------------------------------------------------------------- 63
4.2.3.2 TSS of Marine Waters, Class SB ------------------------------------------------------------------------------- 63
4.2.3.3 TSS of Marine Waters, Class SC ------------------------------------------------------------------------------- 63
4.2.4 Freshwater Ecology ----------------------------------------------------------------------------------------------- 65
4.2.5 Marine Ecology ---------------------------------------------------------------------------------------------------- 67
4.2.5.1 Marine Sampling -------------------------------------------------------------------------------------------------- 67
4.2.5.2 Marine Communities--------------------------------------------------------------------------------------------- 68
4.2.5.2.1 Coral Reefs and Macrobenthos in the Shallow Isobath at the Causeway ------------------------ 68
4.2.5.2.2 Coral Reefs and Macrobenthos in the Fish Sanctuary Area. ----------------------------------------- 69
Environmental Performance Report and Management Plan Page iv

4.2.5.2.3 Reef fishes in the causeway area. ---------------------------------------------------------------------------- 71

4.2.5.2.4 Reef fishes in the Fish Sanctuary Area. --------------------------------------------------------------------- 72
4.2.5.2.5 Seagrass Communities in the causeway area ------------------------------------------------------------- 73
4.2.5.2.6 Associated Macroalgae ------------------------------------------------------------------------------------------ 74
4.2.5.2.7 Seagrass Communities in the Fish Sanctuary Area ------------------------------------------------------ 75
4.2.5.3 Assessment of Coral Reef Status ----------------------------------------------------------------------------- 76
4.3 The Air ---------------------------------------------------------------------------------------------------------------- 82
4.3.1 Climate --------------------------------------------------------------------------------------------------------------- 82
4.3.2 Cyclone Frequency ------------------------------------------------------------------------------------------------ 85
4.3.3 Local Wind Pattern ----------------------------------------------------------------------------------------------- 87
4.3.3.1 Land-Sea Breeze --------------------------------------------------------------------------------------------------- 87
4.3.2 Air and Noise Quality -------------------------------------------------------------------------------------------- 88
4.3.2.1 TSP --------------------------------------------------------------------------------------------------------------------- 88
4.3.2.2 Noise Level ---------------------------------------------------------------------------------------------------------- 88
4.4 People ---------------------------------------------------------------------------------------------------------------- 91
4.4.1 Socio-Economic and Political Environment---------------------------------------------------------------- 91
4.4.1.1 Commerce and Trade -------------------------------------------------------------------------------------------- 91
4.4.1.2 Industry -------------------------------------------------------------------------------------------------------------- 91
4.4.2 Demography -------------------------------------------------------------------------------------------------------- 92
4.4.2.1 Demography of Cagdianao Municipality ------------------------------------------------------------------- 92
4.4.2.2 Population Density ----------------------------------------------------------------------------------------------- 92
4.4.2.3 Age Distribution --------------------------------------------------------------------------------------------------- 94
4.4.2.4 Mother Tongue ---------------------------------------------------------------------------------------------------- 94
4.4.2.5 Religious Affiliations in Cagdianao --------------------------------------------------------------------------- 94
4.4.3 Health ---------------------------------------------------------------------------------------------------------------- 95
4.4.3.1 Sanitary Toilet Facilities ----------------------------------------------------------------------------------------- 95
4.4.3.2 Health Indicators -------------------------------------------------------------------------------------------------- 95
4.4.3.3 Nutrition ------------------------------------------------------------------------------------------------------------- 95
4.4.3.4 Health Personnel -------------------------------------------------------------------------------------------------- 95
4.4.3.5 Waste Management---------------------------------------------------------------------------------------------- 96
4.4.4 Water Supply and Demand ------------------------------------------------------------------------------------ 96
4.4.5 Lighting Facilities -------------------------------------------------------------------------------------------------- 96
4.4.6 Transportation ----------------------------------------------------------------------------------------------------- 96
4.4.7 Road Access --------------------------------------------------------------------------------------------------------- 97
4.4.6 Education Facilities ----------------------------------------------------------------------------------------------- 97
4.4.7 Employment Profile ---------------------------------------------------------------------------------------------- 98
4.4.8 Socio-Economic Impacts of the Mining Project ---------------------------------------------------------- 99
4.4.8.1 Public Participation and Social Acceptability ------------------------------------------------------------- 99
4.4.8.2 Impact Assessment ----------------------------------------------------------------------------------------------- 99
4.4.8.2.1 Resource Competition ------------------------------------------------------------------------------------------- 99
4.4.8.2.2 Increased Safety and Health Risks --------------------------------------------------------------------------- 99
4.4.8.2.3 Non-assimilation of diverse culture ------------------------------------------------------------------------- 99
4.4.8.2.4 Proliferation of vices --------------------------------------------------------------------------------------------- 99
4.4.8.2.5 Generation of substantial employment -------------------------------------------------------------------- 99
4.4.8.2.6 Creation of livelihood ------------------------------------------------------------------------------------------- 100
4.4.8.2.7 Additional revenues for the local governments -------------------------------------------------------- 100
4.4.8.3 Mitigating Measures -------------------------------------------------------------------------------------------- 100
4.4.8.3.1 Resource Competition ------------------------------------------------------------------------------------------ 100
4.4.8.3.2 Increased Safety and Health Risks -------------------------------------------------------------------------- 100
4.4.8.3.3 Non-assimilation of diverse culture ------------------------------------------------------------------------ 100
4.4.8.3.4 Proliferation of vices -------------------------------------------------------------------------------------------- 100
4.4.8.3.5 Generation of substantial employment ------------------------------------------------------------------- 100
4.4.8.3.6 Creation of livelihood ------------------------------------------------------------------------------------------- 101
4.4.8.3.7 Additional revenues for the local governments -------------------------------------------------------- 101
5. ENVIRONMENTAL PERFORMANCE --------------------------------------------------------- 102
5.1 Impact Mitigation Plan ----------------------------------------------------------------------------------------- 102
Environmental Performance Report and Management Plan Page v

5.1.1 Progressive Revegetation -------------------------------------------------------------------------------------- 102

5.1.2 Separate Stockpiling of Topsoil ------------------------------------------------------------------------------ 103
5.1.3 Road revegetation ----------------------------------------------------------------------------------------------- 104
5.1.5 Pollution Control Strategies----------------------------------------------------------------------------------- 104
5.1.5.1 Sediment control dam ------------------------------------------------------------------------------------------ 104
5.1.5.2 Diversion banks/canal ------------------------------------------------------------------------------------------ 105
5.1.5.3 Sewerage System ------------------------------------------------------------------------------------------------ 105
5.1.5.4 Zero Waste Production ----------------------------------------------------------------------------------------- 106
5.1.5.5 Fuel Storage Area ------------------------------------------------------------------------------------------------ 106
5.1.5.6 Domestic Waste Management ------------------------------------------------------------------------------- 107
5.1.5.7 Measures to Reduce Dust Generation --------------------------------------------------------------------- 108
5.1.5.8 Regular Vehicular Emission Check up ---------------------------------------------------------------------- 109
5.1.5.9 Noise Abatement ------------------------------------------------------------------------------------------------ 109
5.1.6 Adopt-A-Forest, Adopt-A-Mountain Program ----------------------------------------------------------- 110
5.1.7 Coastal Resource Management Program ----------------------------------------------------------------- 111
5.1.7.1 Gaas Bay Marine Protected Area ---------------------------------------------------------------------------- 111
5.1.7.2 Leadership Training For Bantay Dagat Members ------------------------------------------------------- 112
5.1.8 CMC Vermi Cast Center ---------------------------------------------------------------------------------------- 113
5.1.9 Agro-Forest-Nursery -------------------------------------------------------------------------------------------- 114
5.1.10 Agro-Forest-Plantation ----------------------------------------------------------------------------------------- 114
5.2 Environmental Monitoring ------------------------------------------------------------------------------------ 115
5.2.1 Water Quality ----------------------------------------------------------------------------------------------------- 115
5.2.2 Air and Noise Quality ------------------------------------------------------------------------------------------- 116
5.2.3 MMT Monitoring ------------------------------------------------------------------------------------------------- 116
5.3 IEC and Social Development Program --------------------------------------------------------------------- 117
5.3.1 Skills Training ------------------------------------------------------------------------------------------------------ 117
5.3.2 Livelihood Training ---------------------------------------------------------------------------------------------- 118
5.3.3 Medical Assistance ---------------------------------------------------------------------------------------------- 119
5.3.4 Educational Assistance ----------------------------------------------------------------------------------------- 119
5.3.5 Socio-cultural activities ----------------------------------------------------------------------------------------- 120
5.3.6 Vital Community Infrastructures and Other Projects. ------------------------------------------------ 121
5.3.7 Meetings and Consultations ---------------------------------------------------------------------------------- 121
5.3.8 IEC Activities ------------------------------------------------------------------------------------------------------- 122
5.3.9 Mine Tours --------------------------------------------------------------------------------------------------------- 123
5.4 Environmental Risk Management and Emergency Response Programs (ERP) ----------------- 125
5.5 Abandonment/Rehabilitation Program ------------------------------------------------------------------- 130
5.6 Institutional Set-up ---------------------------------------------------------------------------------------------- 130
5.7 Achievements, Awards, and Environmental Accomplishments ------------------------------------ 130
6. Environmental Management Plan --------------------------------------------------------------- 132
6.1 Impact Management Plan ------------------------------------------------------------------------------------- 132
6.1.1 Soil Erosion Control---------------------------------------------------------------------------------------------- 132
6.1.2 Coastal Erosion Control ---------------------------------------------------------------------------------------- 132
6.1.3 Dust Generation -------------------------------------------------------------------------------------------------- 133
6.1.4 Stormwater Runoff Control Plan ---------------------------------------------------------------------------- 133
6.2 Environmental Monitoring Plan ----------------------------------------------------------------------------- 134
6.3 Social Development and Management Plan Program (SDMP) ------------------------------------- 138
6.3.1 Objectives of SDMP --------------------------------------------------------------------------------------------- 138
6.3.2 Social Strategies -------------------------------------------------------------------------------------------------- 138
6.3.2.1 Dental and Medical Outreach -------------------------------------------------------------------------------- 138
6.3.2.2 Skills Training on Sewing and Dressmaking -------------------------------------------------------------- 138
6.3.3 SDMP Implementation ----------------------------------------------------------------------------------------- 138
6.3.3.1 Background -------------------------------------------------------------------------------------------------------- 138
6.3.3.2 Implementation -------------------------------------------------------------------------------------------------- 139
6.3.3.2.1 Environmental Protection ------------------------------------------------------------------------------------- 145
6.3.3.2.2 Livelihood and Enterprise Development ------------------------------------------------------------------ 145
6.3.3.2.3 Community Strengthening and Organizational Development -------------------------------------- 145
6.3.3.2.4 Education ----------------------------------------------------------------------------------------------------------- 145
Environmental Performance Report and Management Plan Page vi

6.3.3.2.5 Health and Safety Works -------------------------------------------------------------------------------------- 145

6.3.3.2.6 Infrastructure Development ---------------------------------------------------------------------------------- 146
6.3.3.2.7 Financing Strategy ----------------------------------------------------------------------------------------------- 146
6.3.3.2.8 Monitoring and Evaluation ------------------------------------------------------------------------------------ 146
6.3.3 Structural Organization ---------------------------------------------------------------------------------------- 146
6.3.4 Information, Education, and Communication (IEC) ---------------------------------------------------- 147
6.4 Environmental Risk Management and Emergency Response --------------------------------------- 150
6.5 Abandonment and Rehabilitation Plan -------------------------------------------------------------------- 150
6.6. Institutional Set-up ---------------------------------------------------------------------------------------------- 150
7. REFERENCES -------------------------------------------------------------------------------------- 151
List of Plates
Plate 3.1 Layout of the proposed Outloading Facility showing the alignment of the
conveyor system and the orientation of the wharf (upper), location of the
facility relative to the mining claim (lower left), and its perspective (lower right) ........18
Plate 3.2 Layout of the proposed expansion showing the causeway and the integrated
siltation pond (uppermost), section of the proposed expanded causeway
(middle) , location of the causeway (lower left), and a photograph of the site
(lower right) .................................................................................................................19
Plate 3.3 Layout of the proposed alternate causeway in Is-isan (above), the location of
the causeway (lower left), and a photograph of the site (lower right) .........................20
Plate 4.1 Distribution of earthquake generators in the Philippines, Distribution of
epicenters of strong and major earthquakes (Ms>6.0) in the Philippines for the
period 1960-1986. Earthquake intensity zonation in the Philippines (Phivolcs) .........31
Plate 4.2 Possible mass movements that may occur in the mining area if appropriate
control measures are not introduced ..........................................................................34
Plate 4.3 Terrestrial sampling map and photos of the open pit mining area (upper right)
and the rehabilitated portion .......................................................................................35
Plate 4.4 Representative species of plants from the Project Site ..............................................38
Plate 4.5 Representative species of frogs from the Project Site ................................................40
Plate 4.6 Representative species of corals from the Project Site-I ............................................79
Plate 4.7 Representative species of corals from the Project Site-II ...........................................80
Plate 5.1 Waste dump rehabilitation ........................................................................................102
Plate 5.2 Revegetation of bare slopes with agoho ...................................................................103
Plate 5.3 Separation of top soil for future rehabilitation of mined-out areas ............................103
Plate 5.4 Planting of agoho trees along access roads and proper maintenance of
working environment .................................................................................................104
Plate 5.5 Desilting of canals and ponds ...................................................................................105
Plate 5.6 Sewerage tank and sanitary landfill of the company ................................................106
Plate 5.7 Fuel depot at the causeway lined canal to collect oil wastes straight into oil
collectors ...................................................................................................................107
Plate 5.8 Garbage bins installed in strategic areas of the mine site ........................................107
Plate 5.9 Strategies to reduce dust generation ........................................................................108
Plate 5.10 Top – Buffer zone shielding community from noise pollution; regular
maintenance of heavy equipment; Bottom – regular monitoring of noise quality .....109
Plate 5.11 Reforestation program of the company. To date, a total of 63.26 have been
planted with 50,777 local, exotic, and fruit-bearing trees in denuded areas............110
Plate 5.12 Top - A herbal garden and agoho seedlings in the Nursery; Bottom –
Vermicast facility .......................................................................................................111
Plate 5.13 Top- Gaas BayMarine Protected area; Bottom – quarterly monitoring of the
MPA ..........................................................................................................................112
Plate 5.14 Training of bantay dagat members ...........................................................................113
Plate 5.15 Training on Fishery Law Enformecement .................................................................113
Plate 5.16 Vermicast facility .......................................................................................................114
Plate 5.17 Agro-forestry nursery ................................................................................................114
Plate 5.18 Agro-forestry plantation .............................................................................................115
Plate 5.19 Tree planting at the guest tree park ..........................................................................115
Plate 5.20 Quarterly MMT monitoring of CMC ECC compliance ...............................................117
Environmental Performance Report and Management Plan Page vii

Plate 5.21 Top – Actual hand-on training on heavy equipment operation; Bottom - Heavy
Equipment Mechanic and Electricity Training (TESDA Sanction) ...........................118
Plate 5.22 In house Spotter and Sampler Training for Valencia Residents ...............................118
Plate 5.23 Massage training .......................................................................................................119
Plate 5.24 Dental and medical services to the community ........................................................119
Plate 5.25 CMC donates classrooms and 1 faculty room, 4 brand new computer sets,
and a Home Economics Building to the community .................................................120
Plate 5.26 Participation in local socio-cultural affairs – Left: Nutrition Month Celebration;
Right: Cagdianao Fiesta ...........................................................................................120
Plate 5.27 Construction of vital social infrastructures in the host barangay ..............................121
Plate 5.28 Left – repair of barangay health center; Right– construction of mini-dam ................121
Plate 5.29 Regular consultation with the CTWG and LGU ........................................................122
Plate 5.30 IEC tools of the CRDO-ICE .......................................................................................123
Plate 5.31 Mine tours from various interest groups....................................................................124
Plate 5.32 Pre-employment orientation on company safety policy ............................................127
Plate 5.33 Training on fire safety................................................................................................128
Plate 5.34 Top and Middle – rescue and first aid training; Bottom – oil spill emergency
training attended by safety inspectors of the company .............................................128
Plate 5.35 Provision of traffic/safety sign boards along roads and in the workplace .................129
Plate 5.36 Provision of protective personnel equipment (PPE) .................................................129
Plate 6.1 Watering of major roads to suppress dust generation ..............................................133
Plate 6.2 The mine pit and the many silt ponds installed along strategic drainage areas .......134
List of Figures
Figure 1.1 Satellite image of the Province of Dinagat Islands ....................................................... 2

Figure 2.1 Mining area of Cagdianao Mining Corporation ............................................................. 4
Figure 3.1 National taxes/fees paid by CMC since 2001 ............................................................... 7
Figure 3.2 Local taxes, withheld taxes, and total taxes paid as of 2001 ........................................ 8
Figure 3.3 The MPSA Contract Area ............................................................................................. 9
Figure 3.4 Left – brand new heavy equipment; Right – Grizzly for ore segregation ....................14
Figure 4.1 The Mineral Reservations in Surigao showing the location of the mining claim
in Parcel III ..................................................................................................................24
Figure 4.2 General Land Use Map of the province ......................................................................25
Figure 4.3 Slope and Elevation Map ............................................................................................26
Figure 4.4 Some tectonic elements of the Philippines .................................................................28
Figure 4.5 Tsunami occurrences in the Philippines including the Eastern Seaboard
where the project site is located ..................................................................................32
Figure 4.6 Distribution of active and inactive volcanoes in the Philippines (Phivolcs,
undated) ......................................................................................................................33
Figure 4.7 Bathymetric map of the study area with the sedimentation monitoring stations
(in red circles). .............................................................................................................45
Figure 4.8 Tidal variation (heights in m) within the study area. ....................................................46
Figure 4.9 Flood Currents during NE Monsoon. ..........................................................................50
Figure 4.10 Ebb Currents during NE Monsoon Season .................................................................51
Figure 4.11 Flood Currents during SW Monsoon...........................................................................52
Figure 4.12 Ebb Currents during SW Monsoon Season ................................................................53
Figure 4.13 Observed TSS concentration and sedimentation flux in the study area. ....................55
Figure 4.14 Simulated TSS concentration during the NE Monsoon Season (flood tide). ..............57
Figure 4.15 Simulated TSS concentration during the NE Monsoon Season (ebb tide). ................58
Figure 4.16 Simulated TSS concentrations during the SW Monsoon (flood tide). .........................59
Figure 4.17 Simulated TSS concentrations during the SW Monsoon (ebb tide). ..........................60
Figure 4.18 Water Quality Sampling Stations (pink ovals) .............................................................62
Figure 4.19 Bacteriological quality of public water supplies ...........................................................63
Figure 4.20 TSS levels of surface waters ......................................................................................64
Figure 4.21. TSS values of Marine Waters, Class SB ....................................................................64
Figure 4.22 TSS values of Marine Waters, Class SB ....................................................................65
Figure 4.23 Sampling location map for marine survey ...................................................................68
Figure 4.24 Relative abundance of dominant fish families in the reef of the causeway
area .............................................................................................................................72
Environmental Performance Report and Management Plan Page viii

Figure 4.25 Relative abundance of dominant fish families in the reef of the Fish
Sanctuary Area. ..........................................................................................................73
Figure 4.26 Relative abundance of seagrasses in the Causeway Area. .......................................73
Figure 4.27 Relative abundance of seagrasses in the Fish Sanctuary Area. ................................76
Figure 4.28 Climate Map of the Philippines ...................................................................................83
Figure 4.29 Cyclone Map of the Philippines ...................................................................................86
Figure 4.30 Land-sea breeze phenomenon ...................................................................................87
Figure 4.31 Sampling Stations for Ambient Air Quality ..................................................................88
Figure 4.32 TSP levels within the mine site and its vicinity ............................................................89
Figure 4.33 Noise levels as measured in 2008 ..............................................................................90
Figure 4.34 Settlement plan in the host barangay .........................................................................93
Figure 5.1 Year-to-year comparison of accident rate .................................................................127
Figure 5.2 Organizational chart of CMC for social and environmental commitments ................130
Figure 6.1 Organizational Chart of Social Development and Management Program ................147
Figure 6.2 Organizational Framework of the CRDO and MEPEO .............................................150
List of Photos
Photo 4.1 Barangay Valencia ...................................................................................................... 25

Photo 4.2 Mabuya sp. documented from the forest buffer zone ................................................. 40
Photo 4.3 Drogue used in surface current monitoring at the project site. ................................... 47
Photo 4.4 Deployment of sediment traps around the project site. .............................................. 54
Photo 4.5 Freshwater crab collected from the study site ............................................................ 66
Photo 5.1 Monthly monitoring of water quality .......................................................................... 116
Photo 5.2 Monthly TSP and Noise monitoring .......................................................................... 116
Photo 6.1 Existing CMC Causeway .......................................................................................... 132
List of Tables
Table 3.1 Technical description of the MPSA area ......................................................................10

Table 3.2 Additional investment for the expansion program ........................................................13
Table 3.3 List of Equipment ..........................................................................................................14
Table 3.4 Manpower requirements ...............................................................................................15
Table 3.5 Estimated ore reserves .................................................................................................17
Table 4.1 Existing General Land Use ...........................................................................................23
Table 4.2 Existing Urban land Use ...............................................................................................23
Table 4.3 Importance values of trees surveyed along Kanduwag ................................................36
Table 4.4 Importance values of trees surveyed along mine pit ....................................................37
Table 4.5 List of common birds found in the Project Site and their relative abundance ..............38
Table 4.6 Species of frogs documented in the area .....................................................................39
Table 4.7 Water well data summary for Dinagat ..........................................................................43
Table 4.8 Well capacity for Dinagat (Potential & Required) .........................................................43
Table 4.9 Population, area and demand statistics for dinagat (2000) ..........................................43
Table 4.10 Observed sedimentation flux and TSS concentration. .................................................54
Table 4.11 Description of water quality sampling stations .............................................................62
Table 4.12 Percent cover of benthic lifeforms at the Causeway. ...................................................69
Table 4.13 Percent cover of benthic lifeform in the sanctuary area in two depths. ........................70
Table 4.14 List of finfish species found in the reefs of Brgy. Valencia. ..........................................71
Table 4.15 Estimate of fish abundance (count) on reef fish in causeway area of
Cagdianao Mining, Barangay Valencia, Dinagat Island. ..............................................71
Table 4.16 Estimate of fish abundance (count) of reef fish in the fish sanctuary ...........................72
Table 4.17 Average seagrass cover and frequency of occurrence in the Causeway Area ...........73
Table 4.18 Classification of seagrass meadows after Fortes (1990). ............................................74
Table 4.19 List of seaweed species in Cagdianao, Dinagat Island. ...............................................75
Table 4.20 List of Seagrasses and its common name. ..................................................................75
Table 4.21 Average seagrass cover and frequency of occurrence in the Fish Sanctuary
Area. .............................................................................................................................75
Environmental Performance Report and Management Plan Page ix

Table 4.22 Coral Category (Uychiaoco et. al. 2001) ......................................................................77

Table 4.23 Average percent cover distribution of corals in the Fish Sanctuary of
Barangay Valencia, Dinagat Island. .............................................................................78
Table 4.24 Climatological normals recorded at the Surigao City Synoptic Station for the
period 1971-2000 (PAGASA 2000) ..............................................................................84
Table 4.25 Climatological extremes recorded at the Surigao City Synoptic Station as of
2003 (PAGASA, 2003) .................................................................................................84
Table 4.26 Cagdianao Population as of May 1, 2000 ....................................................................92
Table 4.27 Population, Household, Density ...................................................................................93
Table 4.28 Population By Age Bracket ...........................................................................................94
Table 4.29 Religious Affiliation of Barangay Valencia ....................................................................94
Table 4.30 Health Services .............................................................................................................95
Table 4.31 Community Water System ............................................................................................96
Table 4.32 Lighting Facilities ..........................................................................................................96
Table 4.33 Transportation Facilities ...............................................................................................97
Table 4.34 Road Network ...............................................................................................................97
Table 4.35 Bridges/Footbridges......................................................................................................97
Table 4.36 Educational Facilities ....................................................................................................97
Table 4.37 Occupations by Industry Sector Per Household ...........................................................98
Table 4.38 Local Professionals.......................................................................................................98
Table 4.39 CMC Employed Per Household ....................................................................................98
Table 5.1 Accident statistics of CMC from July 2007-June 2008 ...............................................125
Table 6.1 Location, Elevation, and Capacity of Dikes ................................................................133
Table 6.2 Simplified Impact Mitigation Plan ................................................................................135
Table 6.3 Environmental Monitoring Plan ...................................................................................137
Table 6.4 MGB-approved SDMP as of Year 2001-2005 ............................................................140
Table 6.5 3rd Qtr 2006 SDMP Financial Monitoring and Evaluation Report (1% DMMC
CY 2005 Php:817,584.58) .........................................................................................141
Table 6.6 Social Development Plan for Barangay Valencia .......................................................143
Table 6.7 Regular Information Education Campaign Framework for Brgy. Valencia,
Cagdianao, Dinagat Province. ....................................................................................148
Environmental Performance Report and Management Plan Page x

Executive Summary
Brief Project Description
The Valencia Nickel Project in Barangay Valencia, Municipality of Cagdianao, Province of Dinagat
islands has contributed a total of P 1.25 B in tax payments and other fees as of 2007. Besides
employment for the host and surrounding barangays of about 1,032 employees in 2008, the host
barangay stands to benefit from livelihood programs and direct community assistance through the
community-based Social Development and Management Program currently implemented. The mining
project is governed by the provisions of MPSA No. 078-97-XII-SMR issued on November 19, 1997
with an area of ~697.0481 has. and covered by ECC No. 9805-008-105 issued April 14, 1999. The
Company is a perennial winner in the annual PMIEA and PMSEA for its exceptional social and
environmental activities.
Brief Summary of the EIA Process
Social preparation and additional biological studies for the proposed expansion was conducted on
February 25-28, 2008. A public hearing was conducted in June 2008 followed by additional marine
assessment in August 2008. Monitoring data for air and water quality are regularly gathered by the
Mine Environmental Protection and Enhancement Office (MEPEO) of the company and are presented
in this report. All sites and biological samples investigated were documented using a digital camera
while series of focused group discussion and community meetings were documented with
photographs, recordings, and attendance sheets complete with the participants’ signatures. Relevant
primary and secondary literature consisting of maps and technical reports from the Mines and
Geosciences Bureau (MGB), Philippine Atmospheric and Geophysical Administration (PAGASA),
National Statistics Office (NSO), Bureau of Soil and Water Management, and host LGUs were
reviewed prior to field studies.
Brief Description of the Existing Project and the Proposed Modification
Current production rate is 500,000 tons per year to be expanded to 5,000,000 tons per year, using the
same mining method (surface mining), within the same MPSA claim. The ECC area coverage will be
expanded from 229 hectares to the full area of the MPSA which is 697.0481 hectares. The causeway
will also be expanded from an area of 0.2 ha. to 7 has. and modified to include large settling ponds,
more or less. A new ship outloading facility will also be established which includes a wharf and a
conveyor system. Likewise, an alternative causeway will be constructed and operated in a relatively
calm water of Is-isan. Additional mine structures and support facilities vital to the mining operation will
also be constructed such as but not limited to stockyards, dumpsites, haul roads, settling ponds,
drainage systems, breakwaters, seawall, and others.
EIA Findings on Key Significant Impacts and Corresponding EMP Highlights
Key impacts of the mining project within and outside the MPSA area are generally dust generation,
erosion, siltation, and vegetation removal mitigated by frequent watering using water lorries and
regular road maintenance procedures, slope stabilization measures, erosion/stormwater runoff control
system, and revegetation programs, respectively. Incremental impacts associated with increase in
annual production are further addressed by improving and expanding environmental mitigating
structures mentioned above to suppress or minimize further dust-generation, erosion, and siltation.
Revegetation programs are in place to vegetate areas directly affected by mining operations, including
non-mineable areas. Impact Management Plan is summarized in the succeeding pages.
Environmental Monitoring Plan on Key Impacts and Measures
As indicated in the Environmental Monitoring Plan, environmental quality will be monitored on a

regular basis. To date, funds representing the Rehabilitation Cash Fund (P 5,415,558.56),
Environmental Trust Fund (P 61,334.48), and Monitoring Trust Fund (P 168,238.30) have been
deposited in a designated depository bank in Surigao City.
Environmental Performance Report and Management Plan Page xi

Impact Management Plan and Corresponding EMP Highlights
Environmental
Project Phase /
Component Potential Responsible
Environmental Options for Prevention or Mitigation* or Enhancement Guarantee
Likely to be Impact Entity
Aspect
Affected
Operation Phase A. The Land
1. Geology Erosion  Proper benching
EIS, EPRMP,
Dust Generation  Maintenance of road berms CMC -MEPEO
ECC
 Revegetation with creepers
2. Flora Vegetation Removal Enhanced Reforestation in some areas FMRDP, EIS
CMC -MEPEO
EPRMP,ECC,
3. Fauna Wildlife Disturbance Noise minimization
CMC -MEPEO EIS, EPRMP
Other vegetation patches provide wildlife refuge
B. The Water
1. Marine Biology Siltation  Construction of additional siltation ponds including
those at the causeway, collector sumps, and other
drainage structures
 Desilting of creeks using a suction pump
 When necessary, install a turbidity curtain/containment
boom that will prevent the dispersion of silts and
localize silts within the causeways
 When necessary, periodic desilting of causeways using
CMC –MEPEO EPEP,EIS,
a high volume marine submersible pump that pumps
LGU EPRMP, ECC
turbid waters on shore and filter the silts in the process
Solid Waste/Oil-and-  Causeway should have the required oil spill emergency
Grease Pollution of kit, i.e., oil containment boom to contain oil slicks in
Coastal Waters case of accidental spills
Destruction of Coral  Enhanced Coastal Resource Management Program for

Reefs the Gaas Bay Marine Protected Area
2. Freshwater  Emplaced drainage plan that effectively traps silted
Ecology stormwater runoff from the mine site
 Construction of additional siltation ponds, collector CMC –MEPEO EIS, EPRMP,
sumps, sabo dams or check dikes, and other drainage and Eng’g Dept. ECC
structures
 Desilting of silted creeks using a suction pump
C. The Air
Air Quality Generation of Dust  Water spraying of working areas and hauling roads
CMC –MEPEO
 Periodic grading and matting of hauling roads EIS, EPRMP,
and Mining Dept.
 Create green dust barriers on roadsides ECC
Environmental Performance Report and Management Plan Page xii

Environmental
Project Phase /
Aspect
Affected
Noise Generation  Use of efficient well-maintained mufflers
 Periodic maintenance of equipment
 Speed reduction on dusty roads
 Establish green sound along roadsides
D. The People Non-assimilation of  Initiate social interaction
Cultural diverse cultures  Participate in local festivities
Social Resource  Provide CMC workers with in-house basic services to

Competition prevent competition with the community
CMC –MEPEO
EIS, EPRMP,
and Community
Proliferation of vices  Introduce prayer meetings, sports, skills development, ECC
Relations
etc.
Economics
Generation of work  Prioritize local hiring
and livelihood  Provide trainings for unskilled workforce
 Assist in livelihood creation
Abandonment Phase A. The Land

1. Geology  Physically rehabilitated mined-out areas CMC –MEPEO FMRDP,EIS,
and Mining Dept. EPRMP, ECC
2. Flora Vegetation Removal  Fully grown revegetated areas offsetting vegetation EIS, EPRMP,
CMC –MEPEO
removal ECC
3. Fauna Wildlife Disturbance  Restored habitats/reforested areas allow repopulation EIS, EPRMP,
CMC –MEPEO
of wildlife ECC
B. The Water
1. Marine Biology Siltation  Silt-generating processes are further minimized FMRDP, EPEP,
CMC –MEPEO
ECC
Destruction of Coral  CRMP well sustained and economic opportunities via
CMC –MEPEO FMRDP
Reefs ecotourism are viable and thriving
2. Freshwater Siltation  Silt-generating processes are further minimized
CMC –MEPEO FMRDP
Ecology
Environmental Performance Report and Management Plan Page xiii

Environmental Monitoring Plan on Key Impacts and Measures

Impact Areas Parameters Frequency of Applicable Method of Analysis Budget (P)1
Implementation Standard
1. Mining Area and associated o Solid waste production Biweekly Ecological Solid 100,000.00/y
structures o Cleanliness and orderliness Daily Waste Act
o Stability of the slope, access road, Weekly
stockpiles, and overburden stockyards Weekly Mining Act
o Effectiveness of environmental structures
(anti-erosion systems, settling ponds)
o Rehabilitation areas and reforestation Monthly
program
o Coastal Clean up/Causeway Monthly
2. Ambient Air and Noise Quality

TSP Monthly Clean Air Act High Volumetric Sampler
Noise Monthly Noise Meter 100,000.00/y
NO2 Quarterly
SO2 Quarterly
3. Water Quality
pH Monthly DAO 34/35 Multiparametric Probe 200,000.00/y
 Surface/Marine TSS Monthly Water Quality Act Gravimetric Method
Bacteriological (Total Coliform) Semi-annual Alpha9221E
Oil and Grease Semi Annual Gravimetry- Petroleum
Ether
 Drinking Bacteriological (Total Coliform) Annual National Drinking Alpha9221E 100,000.00/y
Water Standards
4. Biological Environment
 Gaas Bay Marine Protected Species diversity, density, abundance, other Quarterly Brower, 1989 Ecological Survey 300,000.00/y
Area quantitative ecological measures Annual English, 2001 Methods 100,000.00/y
 Terrestrial and freshwater Bibby, 1992
biodiversity
5. Socio-economic conditions of host Development Programs Quarterly DAO Social Assessment 1% DMMC/y
communities2 Implemented Semi-Annual 2000-99 Methodologies
Annual
1
Included in EPEP Budget, 2Included in SDMP
Environmental Performance Report and Management Plan Page xiv

1. BASIC PROJECT INFORMATION
Project Name Valencia Nickel Project
Project Location Barangay Valencia, Municipality of Cagdianao

Province of Dinagat Islands
(Please see Figure 1.1 in the next page for the location map.)
Proponent Cagdianao Mining Corporation
Nature of Project Resource Extraction – Nickel Laterite Mining
ECC Amendments 1. Increase in Nickel Ore Production Capacity from 500,000 MT to

Applied for 5,000,000 MT per annum;
2. Expansion ECC Area coverage from 229 hectares to 697 hectares
3. Expansion of the Claudia Causeway from 200 m 2 to 7 hectares more
or less
4. Establishment of an Outloading Facility that includes a Conveyor
System and Wharf;
5. Construction and operation of an alternative causeway in Is-isan
6. Construction and operation of additional mine structures and support
facilities vital to mining operation such as but not limited to
stockyards, dumpsites, haul roads, breakwater, and settling ponds
6th Flr, NAC Bldg., 143 dela Rosa cor. Adelantado Sts
Manila Office
Legaspi Village, Makati City
8140029; 812-8022; 8140026
Mr. Joselito C. Raguini
Contact Person
Resident Manager
0917-5613601
Geo Environmental Consultancy, Inc.
Name and Address of
1046 Carola St., Sampaloc Manila
Preparer
Environmental Performance Report and Management Plan Page 1

Figure 1.1 Satellite image of the Province of Dinagat Islands

2. DESCRIPTION OF THE EIA PROCESS
2.1 Terms of Reference
Highlights of the Technical Scoping conducted June 13, 2008 are shown in Annex A.
2.2 EIA Team
Research Team Area of Expertise Module

Edgardo S. David, M.S. Geology/Hydrology/Hydrogeology Team Leader
Jaime A. Namocatcat, Ph.D. Environmental Science Terrestrial and Marine Ecology
Paul M. Rivera, Ph.D. Environmental Science Oceanography
Joseph M. Lalo, M.A. Sociology Social Impact Assessment/SDMP
2.3 Study Schedule
Social preparation and additional biological, physical, and chemical studies for the expansion program
were conducted on February 25-28, 2008. Pursuant to ECC Compliance Requirements, the company is
mandated to conduct regular IEC programs on their social and environmental activities. Marine
biodiversity assessment was conducted on August 2008 due to unfavorable weather condition in
February 2008. Environmental monitoring covered in this report was up to the 3rd quarter of 2008.
2.4 Study Area
The study area, indicating the mining claim, administrative compound, the mine pit, and the causeway
relative to the Valencia Community is shown in Figure 2.1. Mine offices are situated near the coast and
are adjacent to the community.
2.5 Methodology
Module Methodology Source

1. Water Quality
Total Coliform count:
EIA Baseline Data
 Bacteriological Analysis Multiple tube fermentation
Monitoring Data
technique
Gravimetric method dried @ 103- EIA Baseline Data
 TSS
105oC Monitoring Data
 pH, Conductivity, Turbidity,
Temperature, Salinity, Dissolved pH meter, thermometer, conductivity EIA Baseline Data
Oxygen, Total Dissolved Solids and meter, salinity meter, etc Monitoring Data
Oil and Grease
2. Oceanography Modeling/Numerical analysis
3. Air and Noise Quality
EIA Baseline Data
 TSP High volumetric sampler (1-h, 24-h)
Monitoring Data
EIA Baseline Data
 Noise Noise level meter
Monitoring Data
Transect/quadrat method for flora EIA baseline data
4. Biodiversity
Cruising/transect surveys for fauna EPRMP Data
Mapping of water resources EIA Baseline Data
5. Hydrogeology Discharge measurements using EPRMP Data
flotation method
Focused Group Discussion,
CLUP, Barangay Profile,
6. Social Impact Assessment Interviews
BIP, MIP
Perception surveys

CMC Admi Compound
Valencia Community
The Open Pit Mine

Causeway
Mining Claim
Figure 2.1 Mining area of Cagdianao Mining Corporation
2.6 Public Participation
In the conduct of the socio-economic study and analyzing the social acceptability of the existing Nickel
Ore Mining Project of the CMC, multiple venues for public participation were continually being carried
out with the different stakeholders in Barangay Valencia that would be affected by the proposed project
expansion.
Informal key informant interviews (KII), focus group discussions (FGD) and IEC were conducted to
discuss the possible social and environmental impacts, and to identify the possible positive and negative
effects of the existing project in the last 10 years. The various issues and concerns that surfaced and
discussed will be utilized as important component in the formulation of mitigating measures that would
minimize the unfavorable socio-economic and environmental impacts of the project.
2.6.1 Information Education Campaign (IEC)
On February 25-28, 2008, an invitation was sent to Purok presidents and barangay council members to
hold a meeting in Barangay Valencia, Municipality of Cagdianao, Dinagat Province, in order to facilitate
IEC among its immediate stakeholders of CMC operations. The objective of conducting IEC was not
limited only to information dissemination but also to assess its social development activities. The
conduct of IEC as part of EPRMP application provided feedbacks to the preparer and the proponent
about the stakeholders’ understanding of the EPRMP process as a result of expansion, the issues and
concerns about the present project, as well as their suggestions and other inputs regarding its future
operations. For the past ten (10) years of operation, CMC’s IEC methods included the following:

 Individual methods, e.g. home visits, personal letters, one-on-one interviews

 Group methods, e.g., meetings, study tours, group workshops, group discussions
 Mass media, e.g., newspaper publication, brochures, radio broadcast, web posting
 The information drive inculcated value formation by making the members of the community be
aware of their responsibilities as stakeholders in Brgy. Valencia.
2.6.2 Documentation of IEC and Social Preparation
On Feb. 27, 2008, a focused group discussion was held on EPRMP matters through the assistance of
Mr. Felix Piala, CMC Environmental Manager; Engr. Elmer Acedo, Mining Engineer; Danilo Luciano,
Administrator, and Jean Litang, Company Secretary. Documentation was done to substantiate the social
preparation process of the EPRMP; i.e. proper documentation of the stakeholders’ perceptions and
insights are verified or validated and their suggested resolutions are incorporated to the proposed
expansion project. This was also done thru community discussions, KII, and visits to the impacted
barangay and affected Puroks.

3. PROJECT DESCRIPTION
3.1 Basic Project Background and Information
Cagdianao Mining Corporation (CMC) is a mining company (Annex B) operating in Brgy. Valencia,
Municipality of Cagdianao, Province of Dinagat Islands and is presently engaged in mining and
beneficiating of nickel ores. It has an operating agreement with East Coast Mineral Resources
Corporation, Incorporated (ECMRCI), the MPSA holder, to undertake exploration, development and
utilization of nickel deposits in the area. CMC is a subsidiary of Nickel Asia Corporation.
On November 19, 1997, ECMRCI and the Department of Environment and Natural Resources (DENR)
entered into a 25-year mineral production sharing agreement (MPSA) 078-97-XIII-SMR (Annex C)
covering the project area. The MPSA’s scope covers the exploration, development, and utilization of
nickel and other mineral deposits within approximately 697.0481 has. The Environmental Compliance
Certificate (ECC) with certificate number 9805-0080105 on the other hand, was approved last April of
1999 (Annex D). The MOA with ECMRCI allows CMC to get an ECC for the project (Annex E).
CMC wishes to obtain an ECC amendment for some modifications the company would like to introduce
in its operations. These modifications include the following:
(1) the increase in its current production capacity from 500,000 to 5,000,000 tons per year
using the same mining method (surface mining) within the same MPSA claim,
(2) ECC area coverage to be expanded from 229 hectares to the full area of the MPSA
which is 697.0481 has.,
(3) the existing causeway will also be expanded from an area of 0.2 has. to 7 has., more or
less, and modified to include large settling ponds
(4) a new ship outloading facility will be established and this includes a wharf and a conveyor
system,
(5) an alternative causeway will be established in a relatively calm waters of Is-isan, and
(6) construction and operation of additional mine structures and support facilities vital to the
mining operation such as but not limited to stockyards, dumpsites, haul roads, settling
ponds, drainage systems, breakwater, seawall, and others.
The Contingent Liability and Rehabilitation Fund Steering Committee issued a Certificate of Approval for
the Environmental Protection and Enhancement Program of CMC on June 08, 2001 under EPEP No.
038-2001-05. As of June 30, 2008, the company has completed with the various financial commitments
mandated by law as follows:
Rehabilitation Cash Fund (RCF) - P 5,415,558.56

Environmental Trust Fund (ETF) - P 61,334.48
Monitoring Trust Fund (MTF) - P 168,238.30
Total P 5,645,131.34
These accounts are maintained at the Development Bank of the Philippines, Surigao City Branch.
3.2 Project Rationale
The Municipality of Cagdianao used to be a 6th Class Municipality before the start of mining operation in
Barangay Valencia by CMC. To date, CMC has paid a total of P 977.73 M, P 129.3 M, and P 13.7 M
representing income tax, excise, tax, and other national tax payments/fees, respectively (Figure 3.1).
CMC has also paid a total of P 4.55 M in local taxes/fees and P 126.8 M in withheld taxes (Figure 3.2).
As of 2007, CMC paid a total of P 1.25 B in national and local tax payments/fees. With this tax

representation, CMC is the single biggest industrial investment in Cagdianao, and one of the biggest in
Surigao del Norte. As such, the Company has a very strong socio-economic role in the area.
On top of the tax revenues and alongside the mandatory Rehabilitation Cash Fund, Decommissioning
Cost, Environmental Monitoring Fund, and Environmental Trust Fund, the company has allotted more
than 1% of its Direct Mining and Milling Cost for social development projects in the area.
Excise Tax
150,000,000.00 129.264 M
100,000,000.00
63.098 M
50,000,000.00 25.4 M
3.98 M 7.520 M
0.00
2001 2002 2003 2004 2005 2006 2007 Total
Other National Taxes/Fees

15,000,000.00 13.7 M
10,000,000.00
5,000,000.00 3.35 M
1.67 M
0.00
2001 2002 2003 2004 2005 2006 2007 Total
Income Tax
1,200,000,000.00
977.73 M
1,000,000,000.00
800,000,000.00 714.35 M
600,000,000.00
400,000,000.00
163.945 M
200,000,000.00 99.43 M
0.00
2005 2006 2007 Total
Figure 3.1 National taxes/fees paid by CMC since 2001

Local Taxes
5,000,000.00 4.55 M
4,000,000.00
3,000,000.00
2,000,000.00 1.72 M
0.87 M
1,000,000.00
0.14 M
0.00
2001 2002 2003 2004 2005 2006 2007 Total
Witheld Taxes
140,000,000.00 126.84 M
120,000,000.00
100,000,000.00
80,000,000.00
59.6 M
60,000,000.00
40,000,000.00 33 M
20,000,000.00 13.8 M
2.5 M 5.7 M
0.00
2001 2002 2003 2004 2005 2006 2007 Total
Total Taxes/Fees Paid

1,400,000,000.00 1.25 B
1,200,000,000.00
1,000,000,000.00 842.6 M
800,000,000.00
600,000,000.00
400,000,000.00 226.6 M
200,000,000.00 128. 3 M
6.8 M 14.6 M
0.00
2001 2002 2003 2004 2005 2006 2007 Grand
Total
Figure 3.2 Local taxes, withheld taxes, and total taxes

paid as of 2001

3.3 Complete Project Location
The project area covers approximately 697.0481 hectares in Brgy. Valencia, Municipality of Cagdianao,
Province of Dinagat Islands, within the Surigao Mineral Reservation by virtue of Proclamation No. 391,
Series of 1939 (Figure 3.3). The technical description of the project site is shown in Table 3.1 with
Corner 1 centered at the following geographical coordinates, 10o08’00” and 125 o 39’00”:
From Manila, the CMC mine site may be reached via a 1-hour regular Philippine Airline flights from
Cebu and Butuan City. Butuan City is two-hour ride by bus from Surigao City. Surigao City can also be
accessed via several sea faring vessels from Manila and Cebu; the trip may take three (3) days and four
(4)- six (6) hours, respectively. From Surigao City, the pier of Brgy Valencia is reached through a 3-
hour motorboat ride.
Figure 3.3 The MPSA Contract Area

Table 3.1 Technical description of the MPSA area
COURSE/LINE BEARING DISTANCE (m)

01 to 02 N00-07W 3,802.00
02 to 03 S44-51E 324.37
03 to 04 S82-27E 230.37
04 to 05 N74-49E 236.43
05 to 06 N35-49E 388.96
06 to 07 N00-07W 230.42
07 to 08 N6616E 249.20
08 to 09 N60-07E 263.00
09 to 10 N89-53E 228.29
10 to 11 N76-38E 234.56
11 to 12 N74-49E 236.42
12 to 13 S63-20E 255.72
13 to 14 S44-51E 324.39
14 to 15 S44-51E 324.36
15 to 16 S00-07E 230.42
16 to 17 S00-07E 230.43
17 to 18 S26-14W 257.15
18 to 19 S26-28E 257.16
19 to 20 S14-41W 238.33
20 to 21 S19-51W 245.16
21 to 22 S36-38W 139.94
22 to 23 N81-19W 321.04
23 to 24 S89-53W 228.31
24 to 25 S67-54W 246.21
25 to 26 S74-49W 236.44
26 to 27 S89-53W 228.31
27 to 28 S89-53W 228.31
28 to 29 S89-53W 324.39
29 to 30 S44-37W 324.39
30 to 31 S07-39E 232.42
31 to 32 S40-46E 303.72
32 to 33 S43-55E 329.89
33 to 34 S87-57E 228.44
34 to 35 S00-07E 115.21
35 to 36 S52-46W 190.90
36 to 37 S18-10W 242.67
37 to 38 S26-14W 257.06
38 to 39 S12-54W 236.50
39 to 40 S07-25W 232.37
40 to 01 S89-53W 943.75

3.4 Description of Mining Method
The nickel silicate ore is mined by an open pit mining method. The phases of mining operations are as
follows:
3.4.1 Exploratory Drilling
Initial drilling is carried out at 100 meter drilling interval then reduced to 50 meter and consequently to 25
meter for detailed drilling and blocking of the ore (Annex H). With detailed drilling, the assay, and
overburden of the deposit are determined. This information serves as guide in the preparation of
appropriate mining and stripping plans/designs.
3.4.2 Stripping of Laterite Overburden
In accordance with mining/stripping plans and designs, benches of 3-6 meters height are formed either
by bulldozing or directly loading the laterite to dump trucks with the use of tract loaders or hydraulic
excavators. The upper portion with organic matters is dumped in separate stockyards and will later be
used in providing topsoil for the restoration/rehabilitation of mined-out areas. Floors of benches have a
width of 10 to 15 meters to provide wider roads for the hauling trucks and heavy equipment to pass
through.
3.4.3 Ore Mining and Pre-piling
Once the deposit is exposed on the benches, it is sampled at a horizontal interval of 3 meters. A fresh
channel is cut across the vertical face of the bench than chip samples are taken and analyzed for their
nickel contents. Upon receipts of the analysis, grade control Engineers classify the exposed ores
according to their nickel grades. Colored ribbons are pegged on the benches to mark limits/boundaries
of the high, marginal and low grade ores. With this scheme, the hydraulic excavator could be guided in
the segregation process. Usually, the horizontal limits of the high grade ores are marked with red
ribbons, yellow for the marginal and green for the low grades. Crude ores classifications according to
grade are as follows:
Classification Ni
Class A greater than 2.50%

Class B 2.30 - 2.49%
Class C 2.00 - 2.29%
Class D 1.80 - 1.99%
Class E (Limonite Ore) Ni >1.20%, Fe >30.00%, Co > 0.10%
Crude ore “A” and “B” whose nickel grade are over 2.20% are considered Ordinary, Class “C” as
marginal ore, Class “D” as low grade ores and Class “E” as limonite ores. The ordinary and marginal
will be marketed to PAMCO while limonite and low grade saprolite ores for QNI.
During mining and hauling, crude ores are re-sampled at every truckload, then pre-piled according to
initial grade classifications obtained from the assay results of the face samples. One pile consists of 10
truckloads or approximately 100 cbm or 120 wmt. The scoop samples are then analyzed for their nickel
contents so as to determine the final assay of the stockpiles.
3.4.4 Transferring/Beneficiation
The beneficiation area of an embarkment 10-15 meters high, 150 meters long with a back of almost one
hectare. In level with the toe of the embarkment, is the ore breaking ground approximately two (2)
hectares in surface area.
Based on the actual analysis of each pile, the individual piles of “A” and “B” ores are hauled to their
respective piling areas at the back of the embarkment where they are slowly pushed down the slope by
bulldozer. By gravity, the boulders roll down the slope and accumulate at the toe. Boulders that got
stocked on the slopes will be manually dislodged by four (4) laborers.

From time to time, the oversized boulders will be harvested by a wheel loader then spread at the
breaking area for subsequent manual breaking. To provide employment the poor residents, mechanical
crusher will be replaced by manual crushing using six (6) sledgehammers.
Class “C” and “D” crude ores will also be beneficiated for it is now considered as marketable.
The crushed ores will be classified as hard ores while the undersized that remain in the slope of the
embarkment will be classified as soft ores. After the beneficiation process, four (4) products will be
produced, classified as follows:
Ordinary ore:
SSO-A (Beneficiated soft ore A)
CRO-A (Crushed Ore A)
SSO-B (Beneficiated soft ore B)
CRO-B (Crushed Ore B)
Marginal Ore:
SSO-C (Beneficiated soft ore C)

CRO-C (Crushed Ore C)
LGO/Limonite Ore:
SSO-LGO (Beneficiated Soft Ore (low grade saprolite ore))

SSO-LLO (Beneficiated Soft Ore (Limonite))
3.4.5 Hauling of Beneficiated Ores to the Pier Stockyard
Using loaders and dumptrucks, beneficiated ores will be hauled to the pier and piled at their respective
piles. Soft and hard ores will be stockpiled separately. During the process of hauling, ore materials will
again be sampled at every truckload interval. Obtained assay shall serve as basis in the preparation of
the mixing ratio or blending for ordinary, marginal and limonite whose grade specifications will be as
follows:
Ordinary Ore:
Ni - 2.3%
Fe - less than 15%
Moisture - less than 30%
Marginal Ore:
Ni - 2.10%
Fe - less than 15%
Limonite/LGO:
Ni - 1.50%
Fe - 20.0%
Co - 0.09%
Usually, the volume of the materials hauled to the pier will be good for one (1) shipment plus an
allowance of 20%. After stockpiling, the piles will be provided with canvass sheet covers to protect them
from rains.

3.4.6 Shiploading/Marketing
Due to moisture content restrictions, shiploading will be scheduled during the summer months, April to
October. Foreign ore carriers will be 42,000 or 60 metric ton capacities and equipped with clamshells to
grab the ore materials from the holds of shipsided barges (LCTs).
Prior to every shipment, mixing ratio or blending scheme based on the number of truckloads to be
loaded from each ore class will be computed and prepared, as the loading progresses, the mixing ratio
will be adjusted when necessary to come up with the desired shipment specification.
Beneficiated ores will be loaded on dumptrucks by means of wheel loaders and truck loaders then
trucks go inside the beached LCT’s and unload their cargo. The cargo will be progressively trimmed by
the loader stationed inside the LCT. When the LCT is filled up to its optimum capacity, it pulls out from
the beaching area then travels to the ore vessel. Then with the vessel’s clamshells, the cargo of one (1)
1200 toner LCT will be 3-4 hours.
Shiploading operation will be done twenty-four (24) hours a day. Duration is 7-8 days for 42,000 wmt
shipment and 10-12 days for 60,000 tonner. Two (2) to three (3) units of 1,200 DWT LCTs will be
required to service the shiploading operations.
3.5 Resource and Utility Requirements, Manpower, and Cost
3.5.1 Mining Facilities and Cost
Additional investment for the expansion program is estimated at P 118, 501,106.00 (Table 3.2). The
company is also equipped with brand new mining equipment and service vehicles (Table 3.3). Recently,
the company acquired several brand new heavy equipments to improve the production efficiency such
as:
Dump Trucks (DT) – 12 units

Bulldozer (KT) – 2 units
Road Grader (RG) – 1 units
Hydraulic Excavator (TX) – 4 units
Grizzly is now operational to meet the good quality demand of our buyers. The grizzly is designed to
segregate the boulders from nickel ores, which will also classify the allowable diameter of ores.
Table 3.2 Additional investment for the expansion program
Department Particular Quantity Unit Price Total Amount
Mining Isuzu Dump Trucks 12 4,712,000.00 P 56,544,000.00

Hydraulic Excavators 4 5,418,000.00 21,672,000.00
Dozer 2 10,238,720.00 20,477,440.00
Road grader 1 7,253,440.00 7,253,440.00
Isuzu Elf 1 2,200,000.00 2,200,000.00
Grizzly 1 1,796,263.00 1,796,263.00
Maintenance of Mine Drainage 1 484,784.00 484,784.00
Sub-Total 110,427,927.00
Mechanical Pump Boat (Wooden hall) 1 5,000,000.00 5,000,000.00

Extension of mechanical shop 1 1,199,385.00 1,199,385.00
Wash rack for heavy equipment 1 237,216.00 237,216.00

Department Particular Quantity Unit Price Total Amount
Maintenance of sea crafts Lot 741,269.00 741,269.00

Sub-Total 5,177,870.00
Admin Renovation of admin building Lot 1,197,617.00 1,197,617.00

Maintenance of camp site Lot 1,697,692.00 1,697,692.00
2,895,309.00
Grand Total P 118,501,106.00
Figure 3.4 Left – brand new heavy equipment; Right – Grizzly for ore segregation
Table 3.3 List of Equipment
Equipment No. of Units

1. Production (Heavy) Equipment:
Backhoe Excavators (TX) 27
Track loader (TL) 1
Bulldozer (KT) 8
Wheel loader (WL) 7
Road grader (RG) 3
2. Environmental
Backhoe Excavators (TX) Long Arm 1
Water truck 4
Kubota Tractor 2
2. Auxiliary Equipment:
Dump trucks, 10 toner 73
Fuel truck 2
Lube Truck 2
Service truck 7
Genset 5
Welding Machines 7
3. Service Vehicles:
Samurai, 4WD 3
Ford Everest 1
Mitsubishi Delica (S.G.) 1
Nissan Frontier 1
Mitsubishi Adventure 1

Equipment No. of Units

Mazda 1
Mitsubishi Estrada 1
ISUZU D-MAX 2
4. Drilling Equipment:
YBM Boring Machine 3
5. Pump boat:
PB, Mit 6DI5 1
Pump boat, ISUZU 4BC2 1
Pump boat, ISUZU 10PBI 1
Fast Craft, twin engine 1
6. Fixed Equipment for Assay Lab:
Air compressor 2
Mine Jaw Crusher 1
Laboratory Crusher 1
3.5.2 Power Supply Requirements
The company generates its electric power supply through its one (1) unit 35 KVA Isuzu DA 220 and one
(1) unit 187 KVA Komatsu generator sets powered by diesel engines. The power supplies lighting needs
of camp houses and offices, day and night. It also supplies electric power for office equipment such as
Xerox, blue printing, computers, aircons, etc. Aside there is also one (1) unit portable type, komatsu for
mobile works. The company has granted a Permit to Operate to these electric power equipments from
DENR’s Environmental Management Bureau Caraga Region renewable every October of each year.
3.5.3 Water Supply
The existing communal water supply from spring sources at the site will be rehabilitated and maintained.
Potential for underground water resources will be explored by drilling or digging deep wells.
3.5.4 Manpower Requirements
During the initial stage of commercial production, the total manpower strength required at mine site is
248 (regular and non-regular employees). At the normal rated capacity of 1,250,000 WMT, the
manpower increases to 621, additional of which are mostly rank and file (regular and non-regular)
employees. During the expansion, manpower requirement is expected to increase proportionate to the
target tonnage per year. Distribution of Manpower per Department at Initial and Normal Stage are as
follows:
Table 3.4 Manpower requirements
Non-Operational Period Operational Period

Department
(1st & 4th Quarter) (2nd & 3rd Quarter)
Mining 73 550
Mine Engg/Explo 20 87
Mechanical 62 158
Administration 29 53
ORMM 50 184
Total 234 1,032
3.5.5 Waste Generation and Built-in Management Measures
Solid wastes become a perennial problem if not properly addressed. There’s a need to actively
participate in promoting good waste management practice. The community itself is the heavy generator
of solid waste. Cagdianao Mining Corporation, through its Mine Environmental Protection and

Enhancement Office (MEPEO) is spearheading the true implementation of Solid Waste Management
Program not only for the company but for the host barangay as well. In so doing, the company expects a
better and safe environment wherein solid waste will no longer be a perennial problem. The company
basically encourages the segregation of solid waste at the source level.
3.5.5.1 Waste Classification
Wastes are classified in accordance to the modes of disposal, namely:
Biodegradable
Non-biodegradable
Hazardous
Small Metal
3.5.5.2 Procedure
Recording of Garbage:
The company will record all possible solid waste the company is generating. This is to ensure that
segregation will be effective and proper disposal bins can be provided for each general category.
Collection:
All wastes shall be collected through a permanent garbage container placed in every strategic place of
the company. All garbage containers are marked/labeled with biodegradable and Non-biodegradable
and sometimes hazardous and small metal an area where it is applicable. This is to ensure that proper
segregation is in place.
Re-use/Recycling:
Every department should adhere to the company’s program of reusing or recycling materials that can
still find use within the office generating it or these should be segregated and turned over collectors who
can deliver to proper recycling entities. This will substantially reduce the amount of solid waste that will
be disposed the company’s sanitary landfill.
Storing:
All hazardous wastes shall be stored at the Assay’s septic tank. While small metals shall be stored at
the company’s scrap yard.
Disposal of Waste:
All wastes shall be disposed at the company’s sanitary landfill area. The area is located away from the
campsite and community. Regular land filling is scheduled to ensure proper sanitation.
3.5.5.3 Display of Placards
Placards shall be posted in every section/department, to ensure that everyone is aware of good waste
management practice that the company observes.
3.5.5.4 Color Coding Scheme
All permanent garbage containers shall be labeled with biodegradable, non-biodegradable, hazardous,
and small metal. But mostly, only biodegradable and non-biodegradable containers are kept with green
and blue colors, respectively. This is to ensure that all waste shall be segregated accordingly.

3.5.5.5 Collection Scheme
The company shall dispose all the solid wastes in a designated sanitary landfill in accordance to its
schedule. However, if found too heavy already, disposal shall likely be scheduled anytime.
The following are the scheduled days for garbage collection:
Monday
Wednesday
Saturday
3.6 ECC Amendments Applied For
3.6.1 Increase in Annual Production Rate and Expansion ECC-Coverage Area
Ore reserves are estimated at 23.5 million tons (Table 3.5). Ongoing exploration studies will reveal
additional blocks, which will correspondingly increase the ore reserves of the area. Based on this
estimate, annual production is projected to increase at a maximum of 5 million tons per year. The area
applied for ECC will also increase from 229 to 697.0481 hectares covering the entire mining property.
Table 3.5 Estimated ore reserves
Ore Class Tonnage (WMT) % Ni % Fe % Co

Limonite Ore
LO-A 4,751,163 1.16 43.90 0.13
LO-B 3,347,650 1.49 40.46 0.15
LFO-LGO 2,281,115 1.90 11.41 0.10
HFO-LGO 635,672 1.88 30.84 0.11
VLGO 7,6362,77 1.56 11.29 0.09
Total 18,651,878 1.50 25.51 0.11
Saprolite Ores
LFO-A 873,896 2.71 12.34 0.09
LFO-B 798,620 2.39 12.34 0.09
LFO-C 2,250,835 2.13 11.84 0.09
HFO-A 139,515 2.69 24.80 0.08
HFO-B 147,451 2.38 26.18 0.10
HFO-C 447,392 2.12 28.20 0.10
Total 4,657,710 2.31 14.43 0.09
Grand Total 23,309,588 1.66 23.30 0.11
3.6.2 Establishment of a Ship Outloading Facility Near the Claudia Causeway
The outloading facility is composed of a conveyor system and a wharf where ships can directly dock
(Plate 3.1). Through the conveyor system, ores can be loaded to a ship even during unfavorable
weather conditions that otherwise hamper the current LCT loading operations. The wharf will be built
approximately 200 meters from the shoreline. At that distance, the depth of water should already allow
foreign vessels to dock in the facility where the nickel ores are directly loaded into their hatches.
Conveyor will have a length of about 300 meters.

The Site
Plate 3.1 Layout of the proposed Outloading Facility showing the alignment of the conveyor
system and the orientation of the wharf (upper), location of the facility relative to the
mining claim (lower left), and its perspective (lower right)
3.6.3 Expansion of the Existing Claudia Causeway and Establishment of an Alternate

Is-isan Causeway
The existing Claudia Causeway which is located at the southern portion of the mining claim will be
expanded from 0.2 to 7 hectares more or less to accommodate at least five (5) LCTs at any one time.
The expanded causeway will be modified to include large siltation or settling ponds. An alternate
causeway in the relatively calm coastal waters of Is-isan, will also be built to make sure that during
unfavorable sea conditions, loading will continue – an option not available in the Claudia Causeway
because of its exposure to the open sea. Plates 3.2 and 3.3 and Annex F show the layout, section,
location and photo of the site of the two causeways.

The Site
Plate 3.2 Layout of the proposed expansion showing the causeway and the integrated siltation
pond (uppermost), section of the proposed expanded causeway (middle) , location of
the causeway (lower left), and a photograph of the site (lower right)

The Site
Plate 3.3 Layout of the proposed alternate causeway in Is-isan (above), the location of the
causeway (lower left), and a photograph of the site (lower right)

3.6.4 Construction of other Mine Structures, Facilities and Others
Siltation ponds at the causeway and other drainage systems will be constructed to effectively trap silts
from stormwater runoff during heavy downpour. Access roads and other facilities vital to mining
operation will also be constructed. Stockyards and dumpsites in different areas will likewise be
established.
Other structures include sea walls that can protect the community and the company’s administrative
area from storm surges and breakwaters where these are needed to safeguard the integrity of coastal
structures.

4. BASELINE ENVIRONMENTAL CONDITIONS, IMPACT ASSESSMENT AND

MITIGATION
4.1 Land
4.1.1 Land Use and Classification
More than 80% of the total municipal land is considered as mineral land. Currently, there are mining
activities in the area operated by PHILNICO and CMC. Most mineral land has more than 18% slopes.
Hence, most areas are considered as forest reserve for protection and rehabilitation. A general land use
map of the province is presented in Figure 4.1.
Within the total municipal land area which is now considered as part of the Strategic Agriculture and
Fisheries Development Zones, only 106.694 has remain as NPAAAD and the rest (~71 %) is considered
agro-forestry and watershed development areas. Existing general Land Use of the entire 22,704
hectares of municipal land is sub-divided into the following land use according to the existing activities in
the area;
4.1.1.1 Built-Up Areas
Built-up areas in Cagdianao are sparse despite its vast tract of municipal lands. Built-ups include the
Poblacion and all barangay sites where most of the settlement areas are concentrated, estimated
around 80.83 has. Valencia is one of them (Figure 4.2 and Photo 4.1). Proposed activities include
commercial, industrial, institutional, open spaces, parks, and others. Alienable and Disposal lands
constitute as much as 38 % located at Barangay Del Pilar, Manoligao, Laguna, Cabungaan, Poblacion,
San Jose, R. Ecleo, Nueva Estrella and Sta. Rita. The rest of the barangays are located in the forest
areas.
4.1.1.2 Agricultural Areas
Areas devoted to agricultural production are around 5,486 has planted with rice, corn, banana and other
high value crops that thrived in the area located mainly in Barangays Del Pilar, Nueva Estrella, Sta. Rita,
Laguna, Maatas, Cabungaan, Tigbao, R. Ecleo and the Poblacion area. Major agricultural support
facilities are located in these areas such as irrigation facilities and farm-to-market roads being near to
the point of entry and exit of the town and the nearby municipalities of Dinagat and San Jose. Most of
these areas are considered as alienable and disposal lands as released by the Department of the
Environment and Natural Resources.
4.1.1.3 Open Grassland Area
Open grassland areas constitute some 2,480 has occasionally used for planting of cassava for
economic subsistence. These areas are mostly in the southern barangays where secondary forest
growth can be found. However, settlers in the area have gradually cleared some portions due to the
charcoal industry. Although not suited for rice and corn production because of its soil type and slope, the
area is ideal for pineapple and cassava plantation as recommended by the Bureau of Soils.
4.1.1.4 Mining Areas
Mining or extraction of mineral resources such as nickel and chromite is the major economic activity in
the area. Two active mining companies operate in the area ~ 5,069.0481 hectares, located mainly at the
northern and southern part of the town. Mineral ores are not processed locally but are exported to other
countries.

Table 4.1 Existing General Land Use
Land Use Category Area (hectare)

Built-up Area 81
Agricultural Area 5486
Forest Area 2480
Mining Area 9533
Open Grassland 56
Infrastructure Area 5069
4.1.1.5 Existing Urban Land Use
The existing urban area is around 1,017.0361 has. The residential or settlement areas have a total land
area of 1.0786 has. A residential area is mixed with other uses due to limited area for expansion as the
urban center is surrounded by agricultural lands. The town is sparsely populated, with each household
averaging 200-300 m2, including backyard gardens. Majority of the residential houses are made of light
materials or either mixed type of construction.
4.1.1.5.1 Commercial Areas
Commercial areas are situated near the existing public market where convenient stores are also
located. The total area devoted for commercial purposes is ~ 0.2 ha. The type of commercial trading in
the area is mostly of retail type. Majority of the commercial areas are also utilized for residential uses.
Proper infrastructure to enhance better exchange of goods and services is still lacking in the area.
4.1.1.5.2 Institutional Area
Institutional area of the Poblacion has a total area of 0.53 ha utilized as government center and for
social services such as Day Care Center, school sites and protective services.
Table 4.2 Existing Urban land Use
Land Use Category Area(hectare)

Residential 1.0786
Commercial 0.1991
Institutional 0.5288
Agricultural 1,011.0361
Parks and Open Spaces 0.8296
4.1.1.5.3 Settlement Pattern
The Poblacion area is the most settled barangay of the town, constituting 18 % of the total settlement
area. The presence of infra-support facilities and availability of necessary goods and services attract
settlement in the area. On the other hand, barangays like R. Ecleo, Cabungaan, Laguna and Tigbao
are the most populated barangays in the rural areas, due to their relatively flat terrain. The rest of the
barangays on the extreme north and south portion are less settled due to their rugged topography.
Coastal areas are also occupied, where fishing is the dominant livelihood activity.

Project Site
Figure 4.1 The Mineral Reservations in Surigao showing the location of the
mining claim in Parcel III

Project Site
Figure 4.2 General Land Use Map of the province
Photo 4.1 Barangay Valencia

4.1.1.5.4 Slope and Elevation
The area and vicinities is of major relief with steep sided slopes of ultrabasic/ultramafic mountains
(Figure 4.3). The estimated proportion is about 20% consists of crest ridges and 70% is made up of
steep side slopes. The remaining 10% is characterized by flat to gently sloping topography. The slope
ranges from 15% to 40% and in some areas from 25% to 40%. The crest ridges possess elevations
ranging from a maximum of 1000 meters above sea level (masl) to a minimum of 500 masl. The crest
ridges of the area are dominated by elevations from 520 masl to 980 masl. Steep sided slopes are
distinguished by elevations ranging from a maximum 500 masl to a minimum of 10 masl. The steep
sided slopes of the area are predominated by elevation 30 masl to 50 masl.
The Peninsula Point possesses a peak of 163 masl with slopes of 10% to 25%. Located west of the
proposed area is Mt. Tristan which dominates the landscape towering at a height of 625 masl. About
5.0 km north of the proposed site is Mt. Pelhi, standing at 770 masl.
Legend
Crest Ridges
Steep Side Slopes
Flat/Gently Sloping
Figure 4.3 Slope and Elevation Map

4.1.2 Geohazards
4.1.2.1 Tectonic Setting
The tectonic evolution of the Philippines is linked to a long history of convergent and strike-slip
interaction between three principal tectonic plates over the past 50 Ma. These are the Eurasian Plate,
the Philippine Sea Plate and the Indian-Australian Plate (Figure 4.4). Within the Philippines, this
interaction has produced a complexly evolving terrain exhibiting multiple episodes of subduction,
subduction polarity reversal, island arc generation, rifting, marginal back-arc basin opening and closure,
terrane accretion, ophiolite obduction, plus terrane dissection and juxtaposition by strike slip tectonics.
The archipelago is the site of recent small-scale collisions between the Philippine Sea Plate, which
contained an assemblage of older, extinct early Cenozoic arc systems, and the southeast Eurasian
Plate margin that comprised several continental crustal fragments rifted away from the Eurasian Plate
and separated by marginal basins.
The principal tectonic element of the Philippine archipelago is the elongated Philippine Mobile Belt
(PMB) which is bounded to the east and west by two major subduction systems, and is bisected along
its north-south axis by the medial, 2000-km long, sinistral Philippine Fault (Figure 4.4). The entire
western seaboard of the Philippines, extending from Taiwan through Zambales, Mindoro, Palawan,
western Panay, southern Mindanao (Zamboanga plus Sarangani Peninsulas and the Daguma Range)
and the Molucca Sea, represents collision zones of variable intensity, induced by convergent interaction
between the Eurasian Plate and the Philippine Sea Plate along the complex, multi-strand boundary zone
comprising the PMB (Pubellier et al. 1991). Rifted continental fragments of the Eurasian margin in the
western half of the PMB (i.e., Palawan Block - Taylor and Hayes, 1980; Mindoro, western Panay,
Zamboanga Peninsula and Daguma Range of southern Mindanao - Rangin, 1991; Hall, 1996) are
sutured to the basement of the eastern half of the PMB via sutured collisional terranes. The eastern
basement comprises volcanic arcs of Oligocene age (Rangin et al. 1996). The fragments of rifted
continental crust that are derived from the Eurasian Plate are separated by marginal basins that are
floored by oceanic crust of the South China Sea, Sulu Sea and Celebes Sea. The continental fragments
on the subducting Eurasian/Sundaland Plate indent the western trenches, defining segments
distinguished as the Manila, Negros and Cotabato trenches. Thick oceanic crust of the Benham plateau
plays the same indentor role east of northern Luzon. The Philippine Sea Plate is subducting
northwestward as a coherent and continuous slab. Quaternary volcanic arcs that are associated with
presently active trenches extensively overprint Miocene, Oligocene and Cretaceous volcanic arcs.
At the Miocene-Pliocene transition (6-4 Ma), the Philippine arc systems on the Philippine Sea Plate
began to collide with the Eurasian continental margin in Taiwan. This collision subsequently migrated
southward and affected the central and southern Philippines, including Mindanao. In south-east
Mindanao, the Sangihe and Halmahera arcs collided during the Miocene-to-Pliocene transition. As the
arcs collided following complete consumption of the Molucca Sea Plate at the Sangihe and Halmahera
trenches, convergence between the Philippine Sea Plate (PSP) and the PMB was partitioned into
compressive structures (thrust faults and folds) that deformed the Pacific Cordillera at the southern end
of the East Mindanao Ridge. During the mid-to-late Pliocene, crustal stress was gradually relieved again
as plate convergence became increasingly accommodated by outer thrusts that evolved into the young
Philippine and Cotabato subduction systems via a process known as subduction polarity reversal.
The Philippine Fault is a 2,000 km long sinistral strike-slip wrench fault which traverses the entire
Philippine Mobile Belt from Luzon to Mindanao. Its sinistral displacement reflects clockwise rotation of
the PSP in the east relative to the PMB along which the fault follows. The Philippine Fault behaves as a
zone of decoupling whereby oblique convergence between the PSP and the PMB is partly
accommodated by horizontal drag along the Philippine Fault (Fitch, 1972; Rangin, 1991 & Aurelio et al.,
1991). The perpendicular component of oblique convergence is accommodated at the Philippine
Trench. This model of Fitch (1972) implies that both the Philippine Trench and the Philippine Fault
function in unison and were initiated at approximately the same time. Aurelio et al. (1991) and Barrier et
al. (1991) both imply a < 5 Ma age for the Philippine Fault and the Philippine Trench, placing their timing
soon after widespread intra-arc compression in the eastern part of Mindanao.

Philippines
Project Site
Legend
LT East Luzon
Trench
PT Philippine Trench
MT Manila Trench
NT Negros Trench
CT Cotabato Trench
EST Sangihe Trench
HT Halmahea Trench
Figure 4.4 Some tectonic elements of the Philippines

Source: Aurelio, et.al., 1998

4.1.2.2 Seismic Hazards
The Philippines is a tectonically active island arc system with many earthquake generators such as
subduction zones, active faults, and active volcanoes. Around the project site or within a 200-km
radius, the earthquake generators are the Philippine Trench and the Philippine Fault (Plate 4.5, upper).
Both of these generators are capable of delivering earthquakes with magnitude greater than 6 and
therefore are potential sources of disaster (Plate 4.5, middle). This has been zoned by Phivolcs to be
prone to earthquakes with Intensity VI or greater (Plate 4.5, lower).
Hazards that may be brought about by earthquakes in the project site are ground movements and
landslides along unstable slopes. Other hazards such as liquefaction, fissuring, subsidence and others
are not expected in the area. Tsunami may swamp the coastal areas when earthquakes are generated
by the Philippine Trench which is a few kilometers only offshore of the project site. This will destroy the
communities including the causeway but will not affect the mining areas in general.
4.1.1.2.2.1 Ground Movement
Although it was difficult to acquire details of historical earthquakes that occurred close to the project site,
Plate 4.5 (middle) illustrates the clustering of earthquakes in this part of the Philippine Trench and the
Philippine Fault. There were 6 earthquakes with magnitudes greater than 6 recorded here spanning a
period of 26 years from 1960 to 1986 (encircled portion of Plate 4.5, middle). This will tell us how active
the segments of the Philippine Fault and the Philippine Trench are in this part of Mindanao.
In other parts of Mindanao, several major earthquakes had already occurred including the 7.4
magnitude that hit Zamboanga City in September 21, 1897. The tremor has its epicenter located inland
and close to the city proper. Many government buildings were damage then but no reported casualties.
Other occurrences are the 7.9 magnitude earthquake that produced a 20-foot tsunami killing more than
5,000 people in Cotabato. It is now known as the Moro Gulf Earthquake. There is also this tremor that
struck on the evening of August 15, 1918. It measured 7.9 in the Richter scale and caused widespread
ground ruptures and massive landslide in Western Mindanao.
The closest earthquake generator in the area is the Philippine Fault which is 50 kms west of the project
site (Plate 4.5, upper). In an unconsolidated alluvium or soft soil, the peak ground acceleration could
reach to as much as 0.26 g from a 7.5 intensity earthquake generated by this fault. For medium soil,
PGA is 0.19 g and for rocks, it is0.11 g. The values are not really high but when the earthquake occurs
during a wet period, it can induce landslide in unstable slopes.
4.1.2.2.2 Landslides
As cited above, landslides can be generated by ground movements particularly when unstable slopes
are already saturated during the occurrence of a strong earthquake. Such events may occur along steep
slopes at the borders of or even within the open pit where soil may have been disturbed by the operation
of the mine. To reduce the possibility of occurrence of land slide, unbenched slope should be avoided
and denuded steep slopes must be re-vegetated. A detailed geohazards mapping should also be
considered to identify areas that may fail during an earthquake.
4.1.2.2.3 Rupturing
Although no major fault was observed in the area, tension cracks may be created by mass movements
caused by strong earthquakes. Such ruptures may result from creep, slump and slide. When
subsequently exposed to excessive rainfall that can oversaturate the affected areas, debris slide may
occur.
4.1.2.2.4 Tsunamis
Along the Eastern Seaboard, several tsunamis had already been recorded. The tsunamis occurred
every year from 1921 to 1925 along the coastline of the two Surigaos and one in Samar (Figure 4.5). It

is possible that these tsunamis may have affected the project site but since not much people were in the
island during this period, no oral accounts could be solicited.
The coastal areas of the barangay are prone to tsunamis produced by submarine earthquakes
generated along the Philippine Trench. Even the Administrative Compound of the company can be hit
by a tsunami and so does the barangay proper whose elevation is less than 5 meters. A tsunami with a
crest of 7 meters can swamped everything along the flat areas of the coast. The epicenter of the
earthquake should however be in front of the mouth of Gaas Bay to effect such destruction, otherwise
the peninsulas will protect these communities from harm.

Project Site
Project Site
Project Site
Plate 4.1 Distribution of earthquake generators in the Philippines, Distribution

of epicenters of strong and major earthquakes (Ms>6.0) in the
Philippines for the period 1960-1986. Earthquake intensity zonation in
the Philippines (Phivolcs)

Project Site
Figure 4.5 Tsunami occurrences in the Philippines including the Eastern Seaboard
where the project site is located
4.1.2.3 Volcanic Hazards
Mindanao has more than 50 individual volcanic centers 20 of these were identified as quaternary in age.
However, only 8 are active, i.e., they erupted within the last 10,000 years as classified by Phivolcs.
Among these are Hibok-Hibok in Camiguin Island, Kalatungan in Bukidnon, Musuan in Bukidnon,
Makaturing in Lanao del Norte, Ragang in Lanao del Sur, Matutum in South Cotabato, Parker in South
Cotabato-Sarangani, and Buddajo in Sulu (Figure 4.6).
The most active among these volcanoes is Hibok-hibok. Its last eruption was in 1953 but the most
violent eruption recorded was in 1951 when 500 people died.
Mt. Kalatungan Volcano is located in Pangatucan, Bukidnon. Also known as Catatungan, it is the
second highest in the Philippines. The volcano forms an east-west trending volcanic ridge from central
Mindanao to east of the Lanao-Bukidnon volcanic highlands. The 2,824-m-high andesitic stratovolcano
was listed as "potentially active" (with possible Holocene activity) by the Philippine Institute of
Volcanology and Seismology (2004). The date of the last eruption of Kalatungan is not known.
Mt. Musuan or Mt. Calayo volcano in Valencia, Bukidnon is an isolated tuff cone amidst a relatively flat,
agriculturally rich terrain. It is vegetated from foot to summit with cogon grasses. Some trees thrive
sparingly in its northeastern side. Its peak is flat and nearly circular with a diameter of 10-15 m. Jesuit
Father, Eusebio Barado who traveled across the island of Mindanao from Misamis to Cotabato in 1891,
reported Calayo's eruption sometime in 1887 and its emission of sulfurous vapors which burned
everything around it. Smithsonian Institution's Global Volcanism Program recorded only that eruption.
However, the Philippine Institute of Volcanology and Seismology reported that Musuan erupted in 1866
and 1867. Rock types within the cone are andesite and dacite.
Mt. Ragang last erupted in 1915 but it has recorded eruption in 1856-1873, 1840, and 1834. In the
1840 huge eruption, ashfall reached as far as 480 kms towards the northwest Mindanao. This volcano
therefore has the potential to erupt explosively and ashfall can also affect the project site.
OraI stories from Tiboli and Bilaan natives tell of a “lanao lifis” or “lanao ofi’ or “lake of fire” which once
burned trees all around the slopes of Mt. Parker volcano. This story had been transferred from one
generation to the next, but cannot be traced to place the approximate year of eruption.

Matutum was reported to have a steaming activity in 1911. Gauging on the thick pyroclastic deposits
around this edifice and several hundred kilometers away, a very violent eruption similar to Mt. Pinatubo
is expected.
The Buddajo volcano erupted in 1641 as reported by a certain Magisa. It spewed ash so high it sent
some to as far as Zamboanga City.
Among the above active volcanoes, the nearest to the project site is Hibok-Hibok at an estimated
distance of 120 kms. At this distance, only ashfall is expected to affect the area, i.e., if eruption is
extremely explosive and wind direction so favors.
Project Site
Figure 4.6 Distribution of active and inactive volcanoes in the Philippines

(Phivolcs, undated)

4.1.2.4 Mass Movements
Four (4) types of mass movements may occur in the mining areas and around it assuming that the
development will be extensive for slope stabilization measures to be implemented prior to the wet
season. These are debris or landslides, slump, creep and possibly mud or debris flow (Plate 4.2). The
triggering mechanism for all the three is heavy rainfall although the third may continue after a rainfall
event. But for the movements to occur, the following factors must be present:
1. Slopes must be covered by loose materials

2. Gravity forces them to move downslopes
3. That force should be greater than the friction holding them together
4. Friction is reduced through external intervention especially water
5. Angle of repose is overcome.
Creep is a slow movement of mass normally made up of soil over a more rigid underlay. Slump is a
form of slide that allows a block of materials to move downslope in a rotational manner as differentiated
from debris or landslides. Debris slide refers to a movement in which a mass of earth materials moves
downslope in a rapid fashion. Debris of mud flow is a rapid movement of earth materials with the aid of
water. It will need a sustained extremely heavy rainfall to initiate such rapid movement.
At present however, there are no signs of any impending movements that could significantly impact the
nearby communities but creep, slump, and debris or landslides can occur at the open pit area or along
its borders. Such movements were already observed by MGB 13 as contained in its geohazards report
dated April 30, 2004 after the barangay officials requested for an investigation of landslide occurrences
after heavy rains were experienced for a week in the locality on December 2003. Indeed, an extensive
geohazards survey should be conducted in the area to identify areas where slope failures may happen.
Creeping in a low-angled slope Slumping in step-wise fashion
Slumping in step-wise fashion An aftermath of a mudflow
Plate 4.2 Possible mass movements that may occur in the mining area if appropriate control
measures are not introduced

4.1.3 Terrestrial Biology
4.1.3.1 Dendrological Survey
A total of 46 species of trees, representing approximately 18 families were identified within the forest
buffer zone on the eastern side of the project site along Kanduwag, dominated by sagimsiman
(Syzigium brevistylum, Myrtaceae) with an importance value of 37.9, followed by tagibokbok (Saurauia
latibractea, Actiniadeceae) with 36.1, and red nato (Palaqium luzoniense, Sapotaceae) (Table 4.3).
Towards the mine pit, the survey was again dominated by sagimsiman with an importance value of 68.4
followed by magkono (Xanthostemon verdugonianus, Myrtaceae) with 38.3 and manga-manga
(Mangifera monandra, Anacardiaceae) with 20.4 (Table 4.4). Calculated species diversity is high at
0.91.
In both transects, premium hardwood trees and other notable species were encountered which include
bitanghol (Calophyllum blancoi), red Lawaan (Shorea negrosensis), yakal (Shorea astylosa), magkono
(Xanthostemon verdugonianus), katmon (Dillenia philippinensis), ituman (Garcinia ituman), kamagong
(Diospyrus mindanensis), and kalingag (Cinnamomum celebicum), that are considered threatened or
endangered. After ten years of operation in the area and through the establishment of a buffer zone,
these species of trees are protected and conserved.
Plate 4.3 shows the sampling location for terrestrial surveys. Plate 4.4 presents some photographs of
the tree species encountered at the mining area.
The Camp
The Open Pit
Plate 4.3 Terrestrial sampling map and photos of the open pit mining area (upper right) and the
rehabilitated portion

Table 4.3 Importance values of trees surveyed along Kanduwag

Total Coverage Relative
Common Name Density Frequency RC RF IV
(m2) Density
Sagimsiman 14 1.36 0.41 10.8 16.4 10.8 37.9
Tagibokbok 12 1.46 0.35 9.2 17.6 9.2 36.1
Red nato 6 0.88 0.18 4.6 10.6 4.6 19.8
Duguan 7 0.64 0.21 5.4 7.8 5.4 18.5
Manga-manga 7 0.47 0.21 5.4 5.6 5.4 16.4
Nangkanangka 6 0.59 0.18 4.6 7.2 4.6 16.4
Bitanghol 7 0.35 0.21 5.4 4.2 5.4 15.0
Ansohan 5 0.44 0.15 3.8 5.4 3.8 13.0
Duka 4 0.49 0.12 3.1 5.9 3.1 12.0
Red Lawaan 4 0.26 0.12 3.1 3.2 3.1 9.3
Tagilomboy 4 0.22 0.12 3.1 2.7 3.1 8.9
Bongoran 4 0.10 0.12 3.1 1.2 3.1 7.4
Yakal 3 0.12 0.09 2.3 1.4 2.3 6.0
Magkono 3 0.10 0.09 2.3 1.2 2.3 5.8
Katmon 3 0.09 0.09 2.3 1.1 2.3 5.7
Tiga 2 0.04 0.06 1.5 0.5 1.5 3.6
Putian 2 0.04 0.06 1.5 0.4 1.5 3.5
Ituman 2 0.03 0.06 1.5 0.4 1.5 3.5
Balit 2 0.02 0.06 1.5 0.3 1.5 3.4
Kulipapa 2 0.01 0.06 1.5 0.1 1.5 3.2
Salong 2 0.01 0.06 1.5 0.1 1.5 3.2
Himbalod 2 0.00 0.06 1.5 0.0 1.5 3.1
Bagosantol 1 0.05 0.03 0.8 0.6 0.8 2.2
Paho 1 0.03 0.03 0.8 0.4 0.8 1.9
Kansilay 1 0.02 0.03 0.8 0.3 0.8 1.8
Dayok 2 0.02 0.03 0.8 0.3 0.8 1.8
Gatasgatas 1 0.02 0.03 0.8 0.2 0.8 1.7
Puwangi 1 0.02 0.03 0.8 0.2 0.8 1.7
Ulayan 1 0.02 0.03 0.8 0.2 0.8 1.7
Nato 1 0.02 0.03 0.8 0.2 0.8 1.7
Suhasuha 1 0.01 0.03 0.8 0.1 0.8 1.7
Baras-baras 1 0.01 0.03 0.8 0.1 0.8 1.6
Hindang 1 0.01 0.03 0.8 0.1 0.8 1.6
Duwangi 1 0.01 0.03 0.8 0.1 0.8 1.6
Antipolo 1 0.00 0.03 0.8 0.1 0.8 1.6
Kamagong 1 0.00 0.03 0.8 0.1 0.8 1.6
Pandan 1 0.00 0.03 0.8 0.0 0.8 1.6
Banaybanay 1 0.00 0.03 0.8 0.0 0.8 1.6
Bonotan 1 0.00 0.03 0.8 0.0 0.8 1.6
Tipuno 1 0.00 0.03 0.8 0.0 0.8 1.6
Kalingag 1 0.00 0.03 0.8 0.0 0.8 1.5
Tagkan 1 0.00 0.03 0.8 0.0 0.8 1.5
Total 130 8.28 3.82 100.0 100.0 100.0 300.0

Table 4.4 Importance values of trees surveyed along mine pit
Total Relative
Common Name Density Frequency RC RF IV
Coverage (m2) Density
Sagimsiman 13 3.64 0.65 15.7 37.1 15.7 68.4
Magkono 5 2.58 0.25 6.0 26.3 6.0 38.3
Mangamanga 5 0.82 0.25 6.0 8.3 6.0 20.4
Duguan 5 0.28 0.25 6.0 2.9 6.0 15.0
Nangkanangka 4 0.40 0.20 4.8 4.0 4.8 13.7
Kitikiti 4 0.17 0.20 4.8 1.8 4.8 11.4
Tagibokbok 4 0.15 0.20 4.8 1.5 4.8 11.1
Duka 2 0.24 0.10 2.4 2.5 2.4 7.3
Balit 2 0.17 0.10 2.4 1.7 2.4 6.6
Red Nato 2 0.16 0.10 2.4 1.6 2.4 6.4
Lawaan 2 0.11 0.10 2.4 1.2 2.4 6.0
Salongsalong 2 0.11 0.10 2.4 1.1 2.4 6.0
Kalingag 2 0.11 0.10 2.4 1.1 2.4 5.9
Maribuhok 2 0.08 0.10 2.4 0.8 2.4 5.6
Himbalod 2 0.06 0.10 2.4 0.6 2.4 5.4
Antipolo 2 0.05 0.10 2.4 0.5 2.4 5.4
Salong 2 0.03 0.10 2.4 0.3 2.4 5.1
Uwayan 2 0.03 0.10 2.4 0.3 2.4 5.1
Yakal 1 0.17 0.05 1.2 1.8 1.2 4.2
Bongoran 1 0.08 0.05 1.2 0.8 1.2 3.2
Pulangi 1 0.08 0.05 1.2 0.8 1.2 3.2
Kamagong 1 0.04 0.05 1.2 0.4 1.2 2.8
Bitanghol 1 0.03 0.05 1.2 0.3 1.2 2.7
Gisok 1 0.03 0.05 1.2 0.3 1.2 2.7
Molato 1 0.03 0.05 1.2 0.3 1.2 2.7
Tulikaw 1 0.03 0.05 1.2 0.3 1.2 2.7
White Lawaan 1 0.02 0.05 1.2 0.2 1.2 2.6
Wakatan 1 0.02 0.05 1.2 0.2 1.2 2.6
Mala-abokado 1 0.02 0.05 1.2 0.2 1.2 2.6
Kandiis 1 0.01 0.05 1.2 0.2 1.2 2.6
Batuan 1 0.01 0.05 1.2 0.1 1.2 2.6
Tagilumboy 1 0.01 0.05 1.2 0.1 1.2 2.5
Uwayan pula 1 0.01 0.05 1.2 0.1 1.2 2.5
Ituman 1 0.01 0.05 1.2 0.1 1.2 2.5
Putian 1 0.01 0.05 1.2 0.1 1.2 2.5
Ipil gubat 1 0.01 0.05 1.2 0.1 1.2 2.5
Katmon 1 0.01 0.05 1.2 0.1 1.2 2.5
Kulipapa 1 0.00 0.05 1.2 0.0 1.2 2.5
Bansilay 1 0.00 0.05 1.2 0.0 1.2 2.4
Total 83 9.80 4.15 100.0 100.0 100.0 300.0

Magkono Uway (Rattan)
Maribuhok Palm (Pinanga sp.)

Plate 4.4 Representative species of plants from the Project Site
4.1.3.2 Avifaunal Survey
A total of 359 birds distributed in 53 species were documented in the Project Site during the study period
(Table 4.5). Bird surveys were dominated by uwak (Corvus enca) with a relative abundance of 12.81%
followed by galansiyang (Aplonis minor), and gitgit both with a relative abundance 5.57%. Calculated
species diversity is high at 0.89.
Table 4.5 List of common birds found in the Project Site and their relative abundance
Common Total Relative

Transect 1 Transect 2 Transect 3
Name Abundance Abundance (%)
Uwak 21 22 3 46 12.81
Galansiyang 5 10 5 20 5.57
Gitgit 15 5 20 5.57
Tamsi 3 14 3 17 4.74
Manatad 14 2 16 4.46
Perot 2 10 5 15 4.18
Parago 13 13 3.62
Butabuta 12 12 3.34
Punay 7 5 12 3.34
Tilik 12 12 3.34
Antulihao 6 5 11 3.06
Perot 1 11 11 3.06
Tukmo 2 9 11 3.06
Kokok 2 3 5 8 2.23
Siwit 1 4 4 8 2.23
Tamsi 2 8 8 2.23
Alimukon 7 7 1.95

Common Total Relative

Transect 1 Transect 2 Transect 3
Name Abundance Abundance (%)
Eling 7 7 1.95
Lagasi 6 1 7 1.95
Tikling 2 3 2 7 1.95
Gaas 1 5 1 6 1.67
It-it 6 6 1.67
Kijorit 6 6 1.67
Managhoy 1 6 6 1.67
Tinog 1 5 6 1.67
Maya 2 5 5 1.39
Pirokpirok 5 5 1.39
Tangkaro 5 5 1.39
Maya 1 2 2 4 1.11
Miit 2 4 4 1.11
Kuruwakwak 3 3 0.84
Magkugi 1 3 3 0.84
Magkugi 2 3 3 0.84
Miit 1 3 3 0.84
Sakop 1 3 3 0.84
Tukturyok 3 3 0.84
Agak-ak 2 2 0.56
Balisaksak 2 2 0.56
Kuracha 2 2 0.56
Salak 2 2 0.56
Siwit 1 2 2 0.56
Awid 1 1 0.28
Banog 1 1 0.28
Gaas 2 1 1 0.28
Kokok 1 1 1 0.28
Kusi 1 1 0.28
Malana 1 1 0.28
Sakop 2 1 1 0.28
Tarongan 1 1 0.28
Toktokbatok 1 1 0.28
Ullok ullok 1 1 0.28
Tamsi 1 0 0.00
Tikarol 0 0.00
Total 103 205 51 359 100.00
4.1.3.3 Frogs
Frog surveys collected a total of 22 individuals, representing 4 species and 1 family (Ranidae), largely
dominated by Rana woodworthi magna with a relative abundance of 50 %, followed by Occidozyga
laevis or puddle frog. Rana wooowrthi is an endemic frog, usually abundant in clean streams along
forest edges and is one indicator of water quality. Table 4.6 presents the list of frogs observed in the
project site and Plate 4.5, the photographs of the these frogs.
Table 4.6 Species of frogs documented in the area
Station Relative
Species Name Total
1 2 Abundance (%)
1. Rana woodworthi 3 8 11 50.0
2. Occidozyga laevis. 3 0 3 13.6
3. Kaloula sp. 1 0 1 4.5
4. Rana sp. 1 2 5 7 31.9
Total 9 13 22 100.00

Rana woodworthi Occidozyga laevis
Kaloula sp. Rana sp.
Plate 4.5 Representative species of frogs from the Project Site
4.1.3.4 Other Wildlife
Anecdotal reports suggest that wild pigs are still present in the area including tarsiers of which one
individual was caught and eventually released. None of these animals were encountered during the
sampling period. A lizard in Photo 4.2 below was encountered though.
Photo 4.2 Mabuya sp. documented from the

forest buffer zone

4.1.3.5 Ecological and Conservation Values
Except for some flora, fauna noted in the Project Site are not categorized as threatened nor endangered
according to DENR Administrative Order (DAO) No. 1991-48 and IUCN/CITES criteria. Flora that are
considered as premium and of high conservation value are the dipterocarp species, notably, lawaan and
apitong, which were dominant in the remnant forest areas during the study period. Kamagong, another
premium species was also documented and is considered threatened/endangered.
4.1.3.6 Impact Assessment and Mitigation
During expansion, additional areas may be cleared for the construction of additional mining facilities.
The major impacts during operation will be removal of either the forest or grassland vegetation in areas
where mine structures will be built and where nickel ores will be extracted. Revegetation of open areas
has been a continuing activity of the company, buffering in effect the vegetation that will be lost during
expansion.
Increase in noise levels during operation is the main source of wildlife disturbance in the area. Noise
levels will be minimized to reduce sensory disturbance on wildlife and household communities. From the
noise monitoring data, it appears that mining activities are not a major source of noise pollution in the
area. Surrounding habitats not affected by the mining operation provide buffer zones to wildlife
displaced by sensory disturbance.

4.2 The Water
4.2.1 Hydrology/Hydrogeology
According to Viessmann and Lewis (1996), quantifying the volume and the rate of flow of groundwater in
various regions is a difficult task since volumes and flow rates are determined with the consideration of
geology and soils of the areas. Lithology, rock and soil characteristics are important factors since these
may be either units for water storage or water confinement.
Groundwater flow characteristics require the knowledge of time and space dependencies of the flow, the
nature of the porous medium and fluid, and the boundaries of the flow system. Groundwater flows are
usually three dimensional which involves a very complex analytical solution. Fluid problems such as
velocity, pressure, temperature, density and viscosity often vary in time and space. Boundaries of
groundwater maybe fixed by geologic structures or free water surfaces that are dependent for their
position on the state of flow.
Groundwater distribution may be categorized into zone of aeration and saturation. The saturated zone is
one in which all voids are filled with water under hydrostatic pressure. In the zone of aeration, the
interstices are filled partly with air partly with water. The saturated zone is called the groundwater zone.
The zone of aeration may be ideally subdivided into four subzones by a hydrologist Todd, namely: the
soil water zone; the intermediate zone; the capillary zone; and the saturated zone.
The soil water zone begins at the ground surface extends downward into the major root band. Its total
depth is variable and is dependent on soil type and vegetation. The zone is unsaturated except when
there is a heavy infiltration. Three categories of water classification may be encountered in this zone:
the hygroscopic water which is absorbed from the air; the capillary water which is held by surface
tension; and gravitational water which is excess soil water draining through the soil.
The intermediate zone extends from the bottom of the soil-water zone to the top of the capillary fringe
and may change from nonexistence to several tens of meters in thickness. The zone is essentially a
connecting link between a near-ground surface region and the near-water table zone through which
infiltrating fluids must pass.
The capillary zone extends from the water table to a height determined by the capillarity rise that can be
generated in the soil. The capillary band thickness is a function of soil texture and may fluctuate not only
from region but also with a local area.
The saturated zone is the area where the pore spaces are completely filled with groundwater, and
porosity is therefore a direct measure of storage volume. Part of this water cannot be removed by
pumping or drainage because of molecular and surface tension forces. Specific retention is the ratio of
the volume of water retained against to gross volume of soil.
The geology of the area defines Upper Cretaceous ultramafites (ultramafic rocks), harzburgite and
diabase-basalt formations as the predominant lithology. At least two (2) thrust faults, located northwest
and southwest of the area can be observed. As there are no aquifers in the area, the presence of these
faults possibly serves as channel ways for rainwater to penetrate the ground. Water supply in these
areas is rain-dependent.
Singh (1994) stated that rock permeability can be determined by carrying out pumping out tests in
boreholes in which certain length is left uncased so that the water can migrate only through the known
area of its perimeter. A borehole pump is installed at the bottom of a pumping-out borehole fully
penetrating a (confined) aquifer. Water enters the borehole radially through the entire thickness of the
aquifer. As a consequence of pumping water, the water head (or pressure) in the pumping-out borehole
and that in the observation boreholes lowers. This lowering of the water head is termed as a
“drawdown”. In the case of the Brgy. Valencia area, pumping-out test may not be applicable as there are
no aquifers at hand.

Secondary information on groundwater situation in Dinagat Island is wanting but some data from NWRB
were obtained and presented in 3 tables below.
Table 4.7 Water well data summary for Dinagat
STATISTIC OF SWL (m) NO. OF SPECIFIC CAPACITY (lps/m.) WELL DEPTH (m) S.W.L. (mbgs)
3.1 to 6 6.1 above WELLS
1 to 3 mbgs CONS’D* Average Range Average Range Average Range
mbgs mbgs
0.49 5.18 0.91
4 - - 4 0.84 8.23 1.52
1.38 11.28 2.44
mbgs – meter below ground surface
lps – liters per second
SWL - static water level
CONS’D – considered
m - meter
Table 4.8 Well capacity for Dinagat (Potential & Required)
AVERAGE CAPACITY per well INFLOW POTENTIAL MAX. No. of NO. OF WELLS
(x 103 LPD) ( x 10 LPD) Wells1 REQUIRED2
38.0 155.5 9130 72946 240 470 20 10
* - No Shallow Well Areas
1/
Inflow + Average Capacity per well
Figures rounded off to 10
2/
Demand+Average Capacity per well
Table 4.9 Population, area and demand statistics for dinagat (2000)
AREA2/ DEMAND
POPULATION
( x 103sq. km) ( x 103 LPD)
18.5 35.5 3515
4.2.2 Flow Rate and Quality of Flow Measurement
Sampling Station No. 1 is in the Valencia Creek (#1) which is located about 50.0 meters south from the
present exploration office of the proponent. Its headwater may be traced to the area near the proposed
quarry. From this sampling point, the creek drains to the Gaas Bay with a distance of about 45 m.
Valencia Creek (#2) is located 1 bout 150.0 meters north of the exploration office of the proponent.
Locating at the straight stretch of the creek, the depth of the creek was measured through several points
along its cross section. The depths of the creek were measured on three points: depth at point 1 was
0.01 m; depth at point 2 was 0.05 m; and depth at point 3 was 0.01 m. The average depth of the creek
was calculated at 0.02 m. At three locations along a 2-m distance of the creek, measurement of the
width of the creek was made. At location 1, the measured width was 0.85 m; at location 2 the measured
width was 0.81 m; and at location 3 the measured creek width was 0.78 m. The average width of the
creek was taken at 0.81 m.
Flow rate measurement was done on the same creek. A float and a stop watch were utilized to time the
flow of the creek water over a 2-m (almost straight) distance. Three trials were made, and the following
time of travel was recorded: for trial #1, 18 sec over a 2-m distance; for trial #2, 17 sec was timed over a
2-m distance; and for trial #3, 18 sec was logged over a 2-m distance of 2.0 m by the recorded time. For
trial #1 and trial #3, the velocities of flow were calculated at 0.11 m/sec while for trial of flow were
calculated at 0.11 m/sec while for trial #3, the velocity was at 0.12 m/sec. The average velocity was
computed to be 0.115 m/sec.
The quantity of flow was determined by multiplying the average velocity of flow, the average depth and
width of the creek. With an average creek depth at 0.02 m, an average creek width of 0.81m, and a
stream water velocity of 0.115 m/sec, the quantity of low was calculated using the following formula:

Q = AV
Where Q is the quantity of low in m 3/sec

A is the cross-sectional area in m2
V is the velocity of flow in m/sec
The Valencia Creek (#2) is located about 150.0 meters north of the exploration office of the proponent.
The sampling station is about 30.0 m west of the covered wooden bridge of the barangay. The depth of
the water in the creek was measured through several points along cross section. The depths of the
canal were measured on three points, and the following were the results: depth at point 1 was 0.20m;
depth at point 2 was 0.09 m; and depth at point 3 was 0.10m. The average depth of the creek was
calculated at 0.13 m. At three locations along a 2-m distance of the creek width was 2.95 m; a location 2
the measured width was 2.83 m; and location 3 the measured creek width was 2.75 m. The average
width of the creek taken at 2.84 m.
Flow rate measurement was done on this creek. A float and a stop watch was to time the flow of the
canal water over 2-m distance. Three trials were made, and the following time of travel was recorded.
For trial #1, 2.05 sec over a 2-m distance. The velocity of the creek water was determined by dividing
the distance of 2m by the recorded time. For trial #1, the velocity that was calculated is 0.98, for trial #2
it was 0.67 m/sec. The average velocity was computed to be 0.77 m/sec.
Using the above equation the quantity of flow is at 1,023.42 m3/day (already converted from m3/sec).

4.2.2 Oceanography
4.2.2.1 Oceanographic Characteristics of the Study Area
4.2.2.1.1 Bathymetry of the Study Area
The bathymetry and coastal configuration of the study area has been analyzed from observations
compiled by the Coast and Geodetic Survey Department of the National Mapping and Resources
Information Authority (NAMRIA) and from the C-MAP Nautical Chart. The mining site, the location of the
causeway and the adjacent creek of Baliwan are shown in Figure 4.12 below. The eastern portion of
the coastal area shows an abrupt change in the water depth. To the northwest portion of the mining site
is the Gaas Tidal Inlet. Depths in the study area vary from 0.25 – 67 m at mean sea level. The mouth
of the Gaas Inlet has a depth of about 35 m. The deepest portion of the coastal waters is located
northeast of the mining site.
90.0
Gaas
Inlet
80.0
70.0
Pier
60.0
N-S Distance (x 100 m)
Cagdianao
Mining Corp. (CMC)
50.0
40.0
Causeway
30.0
Baliwan C.
20.0
10.0
10.0 20.0 30.0 40.0 50.0 60.0

E-W Distance (x 100 m)
Figure 4.7 Bathymetric map of the study area with the

sedimentation monitoring stations (in red circles).

4.2.2.1.2 Tides
There is no permanent tide station in the study area. The nearest tide station is located at Surigao Port
in Surigao City. The observed tide in the area is generally a mixed diurnal-semi-diurnal type with a
dominant diurnal character. The semi-diurnal constituents involved are the M 2 and S2 tides with periods
of 12.4 h and 12.0 h respectively, and the diurnal components are the O 1 and K1 tides with periods of
25.8 and 23.9 h respectively. Based from available tidal information provided by NAMRIA, the ratio of
the diurnal to the semi-diurnal tides (K1 + O1)/(M2 + S2) is about 3.64, which further confirms the
observation that the existing tide in the area is a mixed type with a predominantly diurnal character. The
tidal amplitude in the area has an average value of about 0.59 m. Figure 4.13 shows the tidal variation
within the study area. The numerical data for that period is published by the National Mapping and
Resource Information Authority (NAMRIA).
1.6
1.4
1.2
1.0
0.8
Tide (m)
0.6
0.4
0.2
0.0
7/1
7/2
7/3
7/5
7/6
7/7
7/9
7/10
7/12
7/13
7/14
7/16
7/17
7/18
7/20
7/21
7/23
7/24
7/25
7/27
7/28
7/29
7/31
-0.2
-0.4
Date
Figure 4.8 Tidal variation (heights in m) within the study area.
4.2.2.1.3 Surface Currents
To determine the strength of the circulation in the study area, currents were recorded during the period
of February 27, 2008 using semi-conventional methods. This was done by deployment of drogues
(Photo 4.3) which were tracked with the aid of a Geographic Positioning System (Garmin GPS).
Circulation is a general term which denotes water transport by virtue of coastal currents. Currents in the
marine environment are a complex result of the non-linear interaction of the wind, tide and surface
waves. The drogues were fabricated using accepted standards. It has dimensions enough to avoid the
distortion effect of the wind and surface waves. Drogue tracking gives approximate values of surface
currents in the study area by recording the positions of the GPS and the elapsed time during the
deployments made. Analysis of the drogue records shows weak to moderate currents during the period
of observation. The observed currents around the study area during ordinary wind conditions (e.g. no
storm) in February ranged from 3-10 cm/s.

Photo 4.3 Drogue used in surface current monitoring at the project site.
4.2.2.2 Physical Oceanography
4.2.2.2.1 Coastal Oceanographic Model
The current patterns in the area were studied using the PEERS 1 Coastal Ocean Model (PCOM) which is
a quasi-three dimensional (Q3D) non-linear numerical model of coastal seas and lakes. This model is a
simple yet powerful oceanographic tool for the prediction of horizontal and vertical profiles of currents
and sea surface elevation. The modified circulation model of Koutitas (1988) was extended in PCOM to
include horizontal momentum diffusion and a modification in the bottom friction formulation. In addition,
PCOM allows for the simulation of partial transmission and reflection of tides and currents near
obstacles such as islands and headlands. The present formulation includes non-linear interaction
between the wind and the tide. The governing equations of the present coastal circulation model are
written in the Cartesian coordinate system as:
u u u  a  u  a  u
p u  v   0.2 u  x    0.2 v  y   pfv
t  x  y  40   x  40   y
(1)
   u 2     u  2u 
2
 p2 g  p sx   k u  v 2  0.5 sx   pEh   
 x h  h h  x
2
 y2 
v v v  a  v  a  v
p  u  v   0.2 u  x    0.2 v  y    pfu
t  x  y  40   x  40   y
(2)
   v 2  sy    2v  2v 
p g  p sy 
2
 k u  v 2
 0.5   pEh  
 y h  h h  x
2
 y2 
   u ho     vho   
p   0 (3)
t x y
where u and v represent the depth-averaged current components (m s-1) in the x and y-axes
respectively, p is the PEERS coefficient (non-dimensional coefficient ranging from 0.1-1.0),  is the sea
surface elevation (m), f is the Coriolis parameter (s-1), g is the gravitational acceleration (m s -2), s is the
wind stress acting over the sea surface (N m -2),  is the seawater density (kg m -3), ho is the still water
1
Hymetocean Peers Co. – Antipolo City (peerscom@yahoo.com)

depth (m), k is a bottom friction coefficient, and Eh is the horizontal eddy viscosity coefficient (m2 s-1).
The variable a (m s-1) is related to the wind stress as (Koutitas 1988):
 sh 
a  16.6 s (4)
 
in which the fluid viscosity  at the surface is assumed as a function of the surface stress and the depth
of the water column.
The surface stress term is assumed as a quadratic function of the wind W with components in the x and
y -axes given by
 sx   a cd Wx W ,  sx   a cd Wy W (5)
where a is the air density, cd is a drag coefficient and Wx,y are the wind components in the x and y-
axes, respectively.
Equations (1) and (2) define the current accelerations in the x and y-axes respectively. The first terms
on the left of both equations represent the local change of the flow velocities. The following terms on
the left represent changes in the fluid acceleration due to advection of momentum. The additional
advective terms involving the stress variable a are corrections imposed on advection to include non-
uniformity in the vertical current profile. On the right hand side of both equations (in the order written),
effects due to earth's rotation (Coriolis acceleration), sea surface elevation gradient, surface stress and
bottom frictional effects, and horizontal momentum diffusion provide the necessary physical factors
affecting coastal circulation. Basically, these equations represent conservation of momentum in the
coastal sea. Current velocities are predicted using these equations. On the other hand, Equation (3),
which is simply the equation of mass continuity, represents conservation of water mass. It predicts the
evolution of the water level or sea surface elevation from known current velocities due to the wind and
the tide. While written in two-dimensional forms, Equations (1-3) can be used to assess the three-
dimensional structure of the horizontal flow velocities. In its derivation, it was assumed that the current
profile in the vertical is a quadratic function of the water depth, i.e. u(z) = az2 + bz + c, in which z is the
vertical coordinate. With boundary conditions adopted from Koutitas (1988), it can be shown that the
flow velocity components vary in the vertical according to:
3   z  
2
3 z 
u ( z )   ax  u     1  ax   1
4 2   h   h 
(6)
3   z  
2
3 z 
v ( z )   a y  u     1  a y   1
4 2   h   h 
The present circulation model is thus quasi-three dimensional (Q3D) in the sense that currents at any
depth can be estimated from model calculations using Equation (6). Based on this, the use of the
estimated (modeled) depth-averaged currents and the surface wind stress contribution (from Equation
5) give a more realistic approximation of the horizontal current profile in the vertical. Furthermore, the
inclusion of the PEERS coefficient (e.g. analogous to a porosity constant) allows for the partial
transmission and reflection of the currents and tides in the vicinity of obstacles such as islands and
headlands. This is an important effect that has been included in PCOM.
The effect of the tide in the coastal circulation is included by the propagation of a long-gravity wave at
the open boundaries of the computational domain. The surface elevation field, varying in time, is
prescribed at the boundaries with an appropriate tidal forcing function derived from tidal observations in
the area. A truncated Fourier series of the form;
 (t )  1
2 a0  a1 cos(1t  p1 )a 2 cos( 2 t  p 2 )a3 cos( 3 t  p3 )a 4 cos( 4 t  p 4 ) (7)

is used for this purpose, where (t) is the sea surface elevation due to the tide at the open boundary as
a function of time t, a's represent the amplitudes with ao as the mean value, 's are the frequencies, and
p's are the phases of each of the four tidal constituents (O 1, K1, M2, and S2 respectively).
The current patterns in the area of study were predicted with the simultaneous solution of the coupled
partial differential equations (1-3). An explicit finite difference method was used in the numerical
calculations with a grid interval (equal in the x and y-axes) of 1250 m. The time interval used was
limited to 10 seconds due to a numerical stability constraint according to the Courant-Friedrich-Lewy
stability criterion. The different meteorological scenarios (e.g. based on climatology) affecting the study
areas are included in the modeling works.
4.2.2.2.2 Simulated Coastal Currents
4.2.2.2.2.1 NE Monsoon Season
The average current patterns around the study area were mapped using average wind conditions. For
the northeast monsoon season, winds of about 3 m/s and the tidal variation shown in Figure 4.8 were to
force the northern and eastern open boundaries of the model domain shown in Figure 4.7. Due to the
changes during tidal flooding and ebbing, 2 different current patterns representing these tidal phases
were computed and are shown in Figures 4.9 - 4.10.
The model predicts that during tidal flooding (e.g. rising water level), currents from the Pacific side,
separates near the northeastern tip of Valencia coast. The simulated mean-depth current speed has an
average magnitude of about 0.05 cm/s, the surface current magnitudes can be amplified to about 0.1
cm/s especially in the shallow coastal areas. As shown by the length of the arrows, current
amplification may also occur east of the causeway area where currents change in the overall direction to
follow the curvature of the coast. This amplification, though relatively weak, is generally caused by the
effect of tide level change or sea level gradient due to changes in the water depths and coastal
configuration.
During ebbing, the currents around the study area form a complex flow pattern. Towards the southeast
of Valencia coast, currents move offshore. Off the pier and the Gaas Inlet, the modeled currents tend to
move northward and eastward respectively. The simulated magnitudes of the ebb currents were slightly
stronger during ebbing.

90.0
Gaas
Inlet
80.0
70.0
Pier
60.0
Cagdianao
Mining Corp.
50.0
40.0
Causeway
30.0
Baliwan C.
20.0
10.0
10.0 20.0 30.0 40.0 50.0 60.0

Figure 4.9 Flood Currents during NE Monsoon.

90.0
Gaas
Inlet
80.0
70.0
Pier
60.0
Cagdianao
Mining Corp.
50.0
40.0
Causeway
30.0
Baliwan C.
20.0
10.0
10.0 20.0 30.0 40.0 50.0 60.0

Figure 4.10 Ebb Currents during NE Monsoon Season

4.2.2.2.2.2 SW Monsoon Season
During the SW monsoon season, the coastal circulation model was run using average wind conditions of
3 m/s from the southwest. In addition, the mixed tidal condition shown in Figure 4.8 was also used. The
results of the model run are shown in Figures 4.11 - 4.12 below.
During tidal flooding, a reversed flow during the SW Monsoon season occurs. Evident during the
Southwest Monsoon season is the northward flow past the coast of the causeway and the mining site.
The simulated mid-depth currents ranged from 2-4 cm/s during this condition. The surface currents are
expected to be much stronger (e.g. 5-10 cm/s) and generally goes with the direction of the wind.
During ebbing, the currents were simulated to be slightly stronger. Current magnitudes at mid-depth
range from 2 - 5 cm/s with surface currents exceeding 10 cm/s. In addition, the ebb currents are
directed in a generally northeasterly direction which is also consistent with field observations and from
NAMRIA.
90.0
Gaas
Inlet
80.0
70.0
Pier
60.0
Cagdianao
Mining Corp.
50.0
40.0
Causeway
30.0
Baliwan C.
20.0
10.0
10.0 20.0 30.0 40.0 50.0 60.0

Figure 4.11 Flood Currents during SW Monsoon.

90.0
Gaas
Inlet
80.0
70.0
Pier
60.0
Cagdianao
Mining Corp.
50.0
40.0
Causeway
30.0
Baliwan C.
20.0
10.0
10.0 20.0 30.0 40.0 50.0 60.0

Figure 4.12 Ebb Currents during SW Monsoon Season
4.2.2.3 Sediment Transport Study
4.2.2.3.1 Observed Sedimentation Flux
Monitoring of sedimentation flux was done by installing sediment traps in designated sites in the study
area. Installation of traps in shallow areas was done by fixing the traps to wooden sticks which were
then hammered into the sediment bed. The locations of the monitoring stations are marked in red circles
in Figure 4.7. The traps used were fabricated out of PVC pipes and bamboos with a diameter of 5 cm
and length of about 30 cm. This corresponds to a diameter/length ratio of about 1/6 which is generally
acceptable to avoid resuspension of collected sediments in turbulent areas. A picture showing the
installation of sediment traps in the study area is shown in Photo 4.4 below.
The traps were deployed in the designated sites and the suspension samples were collected in 4
separate plastic containers after more than 4 hours. The total dry weight of the collected sediments

were determined and the sedimentation flux was obtained by dividing the total dry weight (in grams) by
the surface area (in m2) of the opening of the traps and the period (hours) of installation. This gave units
of sedimentation flux in g/m2/hour.
Photo 4.4 Deployment of sediment traps around the project site.
The numerical values of the observed sedimentation fluxes in the area are shown in Table 4.10 below.
The sedimentation fluxes in the study area range from 0.75 – 4.34 g/m2/hr as shown in the graph of
Figure 4.13. The highest sedimentation flux was observed near the causeway. The two stations near the
pier yielded almost the same flux of over 3.5 g/m2/hr. The lowest sedimentation flux was obtained at
the mouth of the Baliwan Creek. The relatively high values of the sedimentation flux could be due to the
strong rain episode during the period of measurement that eroded and transported sediments
downstream from the upland areas towards the coastal waters.
Table 4.10 Observed sedimentation flux

and TSS concentration.
Station TSS Sed Flux

(mg/L) (g/m2/hr)
Pier 1 7.2 3.68
Pier 2 4.0 3.92
Causeway 11.8 4.34
Baliwan Creek 2.0 0.75

14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
Pier 1 Pier 2 Causeway Baliwan C.
Sed Flux (g/m2/hr) TSS (mg/L)

Figure 4.13 Observed TSS concentration and sedimentation flux in
the study area.
4.2.2.3.2 Description of the Sediment Transport Model
Dispersion of suspended sediments in coastal regions is generally accomplished by the combined

action of wind and tide-driven currents. It is facilitated by two major physical processes which include
advection and diffusion. Advection is basically mechanical transportation of pollutants by water
currents. Currents tend to redistribute pollutants within an ecosystem through advection. In this regard,
the non-linear interaction of wind and tide-driven currents is of primary importance as they are
responsible in the long-distance and long-term movement of the suspended sediments.
The general equation describing the dispersion of sediments in a two-dimensional coastal environment
of limited extent is generally represented by a partial differential equation of the form
c c c  2c  2c wc
  u  v K x 2 K y S s (8)
t x y x y 2
h
where c is the depth-averaged sediment concentration in mg/L, u and v are the depth-averaged
components of the currents obtained from the coastal circulation model, Kx and Ky are dispersion
coefficients along the x and y-axes respectively, S is the source term and ws is the settling velocity of the
suspended sediments which can be assumed constant. This was solved using a fourth-order accurate
finite difference method. The sediment transport model has several open boundaries where sediment
concentrations need to be determined or specified. These are located in all seaward boundaries of the
bay. The sediment concentrations in the open sea boundaries can be determined using a uniform flux
assumption. In a number of applications, the pseudo-implicit form of the Orlanski Radiation Condition
as described in Rivera (1997) is superior to the uniform flux assumption. It describes the propagation of
the sediment plume towards the open boundary without back reflection inside the computational
domain. The present model uses both boundary conditions for sediment dispersion towards the open
sea.
A primary input to the sediment transport model was the depth distribution throughout the study area.
The most recent bathymetric map was digitized for this purpose. Every 1250 m x 1250 m, a depth value
is obtained at the middle of the computational grid. This was smoothed and the model bathymetry is
shown in Figure 4.7. The computed currents using the oceanographic model are then used in the
sediment transport program. Here, the current output of the ocean model every 2 min were used in the
sediment transport computations.

The source term normally varies from location to location. The sediment transport model assumes a
constant sediment source during computation. The coupled sediment and circulation models were run
until a steady-state is reached.
4.2.2.3.3 Simulated Sediment Dispersion
4.2.2.3.3.1 NE Monsoon Season
The simulated sediment concentrations and distribution patterns are shown during the northeast
monsoon season and during tidal flooding and ebbing below. The results of the sediment transport
model are shown in terms of the simulated total suspended sediment concentration.
During the northeast monsoon season, the sediment transport model predicts that sediment
redistribution by the coastal currents is weak. This has been noted for the pier and causeway locations.
In general, sediment dispersion tends to be limited in extent except in the Baliwan Creek. The areas
south of the mining site may be vulnerable to increased sediment loadings due to the discharges from
the Baliwan Creek.
The causeway location is also simulated to have increased sediment concentrations due to eroded
sediments from the reclaimed seawall. The analysis shows that these areas can have sediment
concentrations that may exceed 25 mg/L especially during heavy rains. Relatively high TSS
concentrations are modeled right at the culvert near the pier and the Baliwan Creek. However, the
increase in TSS concentration is temporary and dispersion by coastal currents and the associated
settling of suspended sediments will result to decrease in concentrations after a rainy episode. In
addition, the tidal flooding dilutes the suspended sediments and results to a relatively lower TSS
concentration as shown in Figure 4.14.
During ebbing, there is a slight difference in the sediment distribution pattern as shown in Figure 4.15.
As the currents move offshore, the suspended sediments move a little farther away from the sources in
the coastal areas. Abrupt decrease in the sediment concentrations generally occurs away from the
sources with a larger spatial extent of affected area. The simulated sediment concentration at an
offshore distance of about 500 m is just about 1 mg/L. This very low concentration offshore is due to
settling near the coast of the higher sediment fractions which dominate the sediment loadings from the
mining areas.

90.0
Gaas
Inlet
80.0
70.0
Pier
60.0
Cagdianao
Mining Corp. (CMC)
50.0
40.0
Causeway
30.0
Baliwan C.
20.0
10.0
10.0 20.0 30.0 40.0 50.0 60.0

Figure 4.14 Simulated TSS concentration during the NE Monsoon Season (flood
tide).

90.0
Gaas
Inlet
80.0
70.0
Pier
60.0
Cagdianao
Mining Corp. (CMC)
50.0
40.0
Causeway
30.0
Baliwan C.
20.0
10.0
10.0 20.0 30.0 40.0 50.0 60.0

Figure 4.15 Simulated TSS concentration during the NE Monsoon Season

(ebb tide).
4.2.2.3.3.2 SW Monsoon Season
The sediment plume during the SW Monsoon season is shown by the model to be dispersed in a slightly
larger area particularly in Baliwan Creek and in the causeway. Again, there is a slight difference in the
sediment distribution pattern during tidal flooding and ebbing (Figures 4.16 and 4.17, respectively). The
area of impact during ebbing is simulated by the model to be limited in extent. In particular, farther
distances are covered during ebbing due to the offshore directed currents. The distinctive pattern is
also shown by the model and is usually associated with the relatively stronger ebb currents.

During the NE monsoon season, the simulated sediment concentrations may range from 1 to 30 mg/L.
Near the Baliwan creek and the causeway, merging of the sediment plumes is evident during both tidal
phases as shown in the figures.
90.0
Gaas
Inlet
80.0
70.0
Pier
60.0
Cagdianao
Mining Corp. (CMC)
50.0
40.0
Causeway
30.0
Baliwan C.
20.0
10.0
10.0 20.0 30.0 40.0 50.0 60.0

Figure 4.16 Simulated TSS concentrations during the SW Monsoon (flood tide).

90.0
Gaas
Inlet
80.0
70.0
Pier
60.0
Cagdianao
Mining Corp. (CMC)
50.0
40.0
Causeway
30.0
Baliwan C.
20.0
10.0
10.0 20.0 30.0 40.0 50.0 60.0

Figure 4.17 Simulated TSS concentrations during the SW Monsoon (ebb tide).

The discharge of eroded sediments in coastal areas poses a potential threat to marine organisms
including corals, seagrass, seaweeds, and fishes. To mitigate the impact of sediments on water
turbidity and underwater light extinction that may hamper photosynthesis and growth of organisms,
upstream control measure through construction of silt dams and downstream prevention through
establishment of siltation ponds may be put in place. Silt dams prevent the discharge of large amount of
sediments while they are still far from the coast. At the coast, siltation ponds such as the one already
developed near the causeway can be valuable when sediments and rainwater are diverted.
Without the project, the water quality of the surrounding coastal waters would remain in its present
condition with low Total Suspended Solids (TSS) concentration due to minimal sediment discharges
from the nearby creeks. During heavy rains, however, TSS concentrations will temporarily increase due
to erosion of exposed upland areas. The sediments draining into adjacent coastal areas, however,
would settle immediately and no significant water quality problems may arise except when considerable
sediment materials are discharged.
Gradual but temporary increase in the TSS concentration of surrounding coastal waters may result with
the mining project in place. This may occur during heavy rains and stormy conditions. Sediment
concentrations are normally high in river mouths during rain episodes. The water quality standard may
be exceeded in small localized areas near the creek but only temporarily during strong rains. However,
it should be noted that abrupt decrease of sediment concentrations occurs due to settling of coarse
sediment particles right at the mouth of the creek. This has been observed in the Baliwan creek where
strong deposition has caused sediment build-up at the river bed. Only the fine particles, whose
concentration is normally very small compared to coarse sediments, may cover larger areas and longer
distances due to slow settling.
In mining projects such as the one proposed here, monitoring of the sediment concentrations and
sedimentation flux around the mining site is necessary. This should be done in the mouth of the
Baliwan creek and near the culvert at the pier station. The sediment grain size also needs to be
monitored as well to determine the dominant sediment fraction that needs to be analyzed and controlled.
Several stations namely, 1 station near the pier, 1 station at the Baliwan creek, and 1 station at the
causeway location should be closely monitored. Quarterly monitoring of TSS concentration and
sedimentation flux in these stations can be done.
Monitoring of the TSS concentrations near river mouths where sediments drain is needed to determine
any excedance beyond the DENR standards. Stations are selected on the basis of proximity to the
proposed mining areas and where known creeks are expected to drain from the mining areas. The
frequency of monitoring should be at least on a quarterly basis. If monthly monitoring can be done, then
monitoring after rain episodes should be carried out.
To reduce, the potential impact of TSS increases in the affected coastal areas near the project site, silt
ponds should be constructed. This is to prevent the direct discharge of highly turbid waters in sensitive
coastal areas that are rich in marine resources. Reduction of sediment discharge can also be attained
by the construction of siltation dams in rivers or creeks between the mining areas and coastal waters.
The use of these control measures proved valuable especially during a heavy and prolonged rain
episode.
4.2.3 Water Quality
A total of 14 sampling stations were established in the Project Site (Figure 4.18). Stations 1-3 are
surface waters classified as Class D, Stations 4-6 are marine waters classified as Class ,and Stations 6-
14 are marine waters classified as Class SC (Table 4.11).

4
Valencia Nickel Beach
10 100% Inventory of Trees Dike 6A

1
7 Dike 7A & 7B 5
9
CMC Mine Camp 2007
8 Dike 1B Dike 1C
1 1
Valencia Proper Advance Stripping
2 3 3 and Dike 1A
3 Parking Diesel
Area Fuel MY-6 Dike
Filling Dike 2A
2 2 Station Active Mining Area 2B/C
Series
Old laterite
Stockyard # 1 6
MY-1
Dike 4E
Nursery Area MY-5 2 MY-2
MY-3
1 MY-4
Dike 3A
Dike 4C
Dike 4D 3
Dike 3B
4 2002
Dike 3C
Dike 4B
Old Campsite
Dike 4A Pier Stockyard Diesel Fuel Depot

CMC Watershed Area Area
Dike 5B Dike 5A 4
1
11
Sitio Baliwan 12 4 Not drawn to Scale
Water Source 1
13 Causeway
14
Figure 4.18 Water Quality Sampling Stations (pink ovals)
Table 4.11 Description of water quality sampling stations
TSS
Sampling
Description Classification Standard
Station
(mg/L)
1 NE of CMC Camp (Puroy Storm)
2 20 m upstream of Valencia Bridge Fresh "D": 150
3 Santilmo Creek (Foot bridge)
4 100 m from Shoreline of Valencia Nickel Beach
Marine "SB" 100

5 100 m from shoreline East of Kambado Area
6 100 m from shoreline East of Canduag

7 100 m from Shoreline Pinagbahan
8 50 m from Delta of Santilmo Creek
9 50 m NW from wooden pier
10 300 m NW from wooden pier (Gaas Bay)
Marine "SC" 150
11 20 m from shoreline (20 m E of causeway)
12 20 m from shoreline (50 m W of causeway)
13 20 m from delta of Baliwan creek
14 200 m South of causeway (Dinagat Sound)

4.2.3.1 Bacteriological Quality
Based from Philippine National Standards for Drinking Water, all public drinking water sources in the
Barangay were contaminated with total coliforms (Figure 4.19). Clean drinking water should show no
fecal coliform contamination.
Waterworks, Purok 4
410
Spring
(Undeveloped, Watershed
440
Area) Purok 3
MPN
16 Colony Count
Waterworks (Tank), Purok 3
455
Waterworks, Purok 2
395
0 100 200 300 400 500
Figure 4.19 Bacteriological quality of public water supplies
4.2.3.2 TSS of Surface Waters, Class D
Except for a spike in March 2008 associated with a heavy downpour, TSS values of surface waters have
not changed markedly (Figure 4.20).
4.2.3.2 TSS of Marine Waters, Class SB
Coastal waters close to the Barangay also exhibit TSS values way below the standards (Figure 4.21).
4.2.3.3 TSS of Marine Waters, Class SC
TSS value along the causeway and near the Dinagat Sound, has TSS values well within standards
except for a spike in Station 12 in May 2008 (Figure 4.22).

300
250
241.1
200
Station
TSS 1
150
(mg/L) 150 2
3
100
Standard
50
0
Jan Feb Mar Apr May June July Aug
2008
160.0
150
140.0
120.0
Station
100.0
1
TSS
80.0 2
(mg/L)
60.0 3
49.0 Standard
40.0
20.0
0.0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Figure 4.20 TSS levels of surface waters
120.00
100.00 100
80.00
Station
TSS 4
60.00
(mg/L)
5
6
40.00
Standard
20.00
0.00
2008
120.0
100.0 100
Station
80.0
4
TSS
60.0 5
(mg/L) 54.1
6
40.0
Standard
20.0
0.0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Figure 4.21. TSS values of Marine Waters, Class SB

180.00
160.00 157.8
150.0
140.00 Station
7
120.00 8
100.00 9
TSS
(mg/L) 10
80.00
11
60.00 12
40.00 13
14
20.00
Standard
0.00
2008
160.0
150 Station
140.0 7
120.0 8
100.0 9
TSS 10
80.0
(mg/L) 11
60.0 60.1
12
40.0 13
20.0 14
0.0 Standard
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Figure 4.22 TSS values of Marine Waters, Class SB
4.2.4 Freshwater Ecology
Experimental fishing in creeks using scoops and nets revealed low density of fishes, usually tilapia and
mosquito fish (Gambusia sp.) in creeks close to the community. Freshwater crabs, however, are still
present (Photo 4.5).
Freshwater crabs and eels are of high conservation value, although they are not reported as threatened
and endangered (DAO 1991-48).

Photo 4.5 Freshwater crab collected from the study site
Additional earthworks during expansion will generate loose materials that will be mobilized during a
heavy downpour to low-lying creeks and streams. Heavy traffic will also erode road areas and generate
more loose earth materials.
Additional silt ponds when necessary should be constructed along strategic areas to minimize siltation
during a heavy downpour. Silts that accumulate should be removed regularly and disposed of properly
or buried and overlain with vegetation to minimize further mobilization.
During operation, heavy traffic will further intensify mobilization of loose materials. If additional drainage
system has been constructed, loose materials mobilized during a heavy downpour will be trapped in
sumps and siltation ponds.

4.2.5 Marine Ecology
4.2.5.1 Marine Sampling
Coral reefs of the Fish Sanctuary of Barangay Valencia and shallow isobath of the causeway area
adopted the point intercept survey and description of benthic lifeforms described in Uychiaoco et al
2001.
Manta tow survey in the shallow isobaths of the causeway area was not conducted since the visibility
was observed to be turbid throughout the survey period due to the construction of silt pond. Two
sampling sites were established specifically in the causeway and in the fish sanctuary area as shown in
Figure 4.23. Point intercept survey, after Uychiaoco et al (2001), was used to assess coral communities
and its associated macrobenthos. Four 50-m transect tapes were laid in the shallow isobaths of the
causeway area of CMC. Only the shallow isobath was considered in this area because at a depth of 6
m and below, the area is devoid of life forms and is characterized by sandy-muddy substrates.
In the fish sanctuary area four 50-meter transect tapes were laid randomly in 2 depths, 3m and 10m in
each site. Corals were identified (Veron, 1988) and were further classified as to growth forms. The
results of the survey are presented in terms of the relative abundance (i.e., percent cover) of each
lifeform. Macrobenthic floral and faunal associates were also identified up to species level whenever
possible.
The reef fish assessment adopted the underwater fish visual census method described in Uychiaoco et
al (2001) with some modifications. The assessment was conducted using SCUBA on the same site
where benthic lifeform assessment was done. The fish visual census encountered within the 10-meter
imaginary horizontal distance from the 50-meter length transect tape was done by two divers/observers.
Fish identification using the fish identification guide developed by Myers (1991) was limited to the family
level only. Fish abundance was estimated from the actual count of fish encountered within the 50-
meter transect (10-m width) with an equivalent area of 500 m 2.
The fish biomass was estimated from the length-weight relationship using the formula; W=a • Lb, where
W is the computed weight (gram) of fish per family derived from L, the estimated length (cm) of fish
recorded during the survey, a the multiplicative factor, and b the exponent (b>1). The specific constants
a and b in this study were obtained from Kulbicki et al. (1993). The constant for each family was
calculated using the average of known constants from member species of the family. The condition of
reef fish communities was determined in terms of biomass (t/km2: 1-3=very low; 3.1-10=low; 10.1-
20=moderate; 20.1-50=high; > 50=very high) and abundance (No. of fish/1000m2: < 201=very poor;
202-676=poor; 677-2267=moderate; 2268-7592=high; > 7592=very high) based on the categories
developed by Aliño (1996) and Hilomen et al. (in press), respectively.
The assessment of seagrass resources was conducted using a transect-quadrat method (English et al.,
1994). Sampling stations were selected based on the occurrence of seagrasses and based on actual
observations. A total of 3 stations were established in the causeway area and 5 stations in the fish
sanctuary area.
In every sampling station, a 100 m PVC was stretched from the shoreline to the reef edge running
perpendicular to the shoreline. Stainless steel quadrats, measuring 0.5 x 0.5 meters, were set at 10 m
interval along the transect line. For the causeway and the fish sanctuary area, 3 and 5 stations were
laid at 10 m apart, respectively. In every quadrat, the following parameters were recorded: species list
of seagrass and seaweeds, and estimated percent cover per species. The determination of seagrass
cover was done using the methods in English et al. And the species identification of seagrasses used
the guide discussed by Meñes et al. (1983).
Local fishermen were interviewed to determine the extent of utilization of the reef area. Photographs
were also taken for documentation purposes.

The Open Pit

The Camp
Figure 4.23 Sampling location map for marine survey
4.2.5.2 Marine Communities
Surveys were conducted in the fringing reef of the causeway area (Table 4.12) of Cagdianao Mining,
Dinagat Island. Fish Sanctuary in the Gaas Bay was also included. Manta tow survey in the shallow
isobaths of the causeway area was not conducted since the visibility was observed to be turbid
throughout the survey period due to the construction of silting pond.
4.2.5.2.1 Coral Reefs and Macrobenthos in the Shallow Isobath at the Causeway
At the causeway area, average live coral cover was 60.82% wherein the highest coral cover was
recorded in Station 4. Lowest coral cover was recorded at station 3 which is approaching the pier
portion.
The dominant growth form at the causeway area was the submassive type accounting for 23.73%
among the live standing corals. Submassive type corals largely represented by Galaxea sp which was
high abundance in Station 1 and Station 3. Following next in abundance was Non Acropora Coral
Branching type 12.47%. Pocillopora sp.dominated the branching types. This site also gave the abiotic
category of 9.93%.
Dead coral also has an average percent cover of 15.83%. Among the dead corals, an average of 4.82%
were classified as recently dead corals and the remaining 11.01% were previously dead corals coated
with turf algae, crustose algae and some blue green algae.
Macrobenthic algae was also observed in the area with an average of 3.51%. Halimeda was found to
be present in most of the sites with an average percent cover of 2.64%.

Table 4.12 Percent cover of benthic lifeforms at the Causeway.
Percentage Cover
BENTHIC LIFEFORMS Total Average
T1 T2 T3 T4
ACROPORA
ACT – tabulate 632 318 950
ACB 327 140 350 817
SUB-TOTAL 959 318 140 350 1767 8.84
NON-ACROPORA
CB - branching 590 792 428 683 2493
CF – foliose 110 110
CM – massive 336 648 346 807 2137
CHL heliopora 166 291 457
CME – Millepora 235 372 306 913
CMR – mushroom 233 301 231 765
CS – submassive 449 1731 1475 1091 4746
SUB-TOTAL 2119 3171 2922 3409 11621 58.11
OTHER FAUNA
OT – other animals; anemones 98 136 234 1.17
ALGAE & SEAGRASS
MA - macro algae 98 245 359 702 3.51
HA – Halimeda 91 152 137 147 527 2.64
ABIOTIC
S – sand 442 442 2.21
R – rocks 172 172 0.86
SI – silt 702 373 285 1360 6.8
WA – water 11 11 0.06
SUB-TOTAL 713 373 614 285 1985 9.93
DC - dead coral 297 277 260 129 963 4.82
DCA - dead coral w/ algae 625 464 568 544 2201 11.01
Total 5,000 5,000 5,000 5,000 20,000 100.00
4.2.5.2.2 Coral Reefs and Macrobenthos in the Fish Sanctuary Area.
In the fish sanctuary area, the average live coral cover of the shallow (3m isobath) and deep stations
(10m isobath) was 56.00% and 57.75% respectively. Highest cover in both depths (61.50% and
67.00%) was recorded at station 1. Lowest cover was recorded at station 2 in both depths (50.50% and
48.50%). Table 4.13 shows the distribution.

Table 4.13 Percent cover of benthic lifeform in the sanctuary area in two depths.
Percent Cover
Benthic Lifeform
Shallow Deep
ACROPORA
ACT – tabulate 7.75 3.5
ACB 1 0.25
SUB-TOTAL 8.75 3.75
NON-ACROPORA
CB - branching 0.5 2.25
CE - encrusting 19.5 12.75
CF – foliose 9.5 18.5
CM – massive 16 20
CME - Millepora 0.75
CMR - mushroom 0.25
CS - submassive 0.75 0.5
SUB-TOTAL 47.25 54
OTHER FAUNA
OT - other animals; anemones 0.5 0.5
SC - soft coral 0.75 0.75
SUB-TOTAL 1.25 1.25
ALGAE & SEAGRASS
CA - coralline algae 2.5 2.75
TA - turf algae 1
MA - macro algae 4.5 9
HA – Halimeda 23 21
SUB-TOTAL 31 32.75
ABIOTIC
BLK – block 1
S – sand 4 1
SI – silt 4 4.25
R - rubble 0.5
WA – water 0.25 0.25
DC - dead coral 0.5
DCA - dead coral w/ algae 2 2.25
SUB-TOTAL 11.75 8.25
Total 100.00 100.00

4.2.5.2.3 Reef fishes in the causeway area.
A total of 8 families were recorded within the causeway area (Table 4.14) of Cagdianao, Mining
Company. Abundance of reef fish (Table 4.15 and Figure 4.24) in the area is categorized as very poor
or low (149 fish per 500m 2). The result is comparable with some reefs of Murcielagos Bay that have
been exposed to sedimentation. The pomacentrids, labrids and chaetodontids are the most abundant
species in the reef. These groups, however, naturally occur in the reefs of the country.
Table 4.14 List of finfish species found in the reefs of Brgy. Valencia.
Family Common name Local name

Acanthuridae surgeonfishes Munity, sunghan, bicabica
Caesionidae fusiliers Solid-solid
Carangidae jacks and trevallies Talakitok, mamsa
Haemulidae sweetlips Labian
Lethrinidae emperors Rugso, palangitan
Lutjanidae snappers Maya-maya
Mullidae goatfish Kanding-kanding
Nemipteridae spinecheeks Silay,sulong-sulong,slinggukod
Scaridae parrotfish Mol-mol
Siganidae rabbitfish Danggit
Chaetodontidae butterflyfishes Alibangbang
Pomacentridae damselfishes Palata
Zanclidae moorish idol Kanding-kanding
Monacanthidae filefish and leatherjackets Pugot
Engraulidae anchovy Bolinaw
Dasyatidae sting rays Pagi
Apogonidae cardinalfish Moong
Labridae wrasses labayan, ipus-ipus, mamug
Table 4.15 Estimate of fish abundance (count) on reef fish in causeway area of Cagdianao Mining,
Barangay Valencia, Dinagat Island.
Family T1 T2 T3 T4 Total Abundance

Chaetodontidae 3 13 4 4 24 16
Pomacentridae 20 15 21 17 73 49
Zanclidae 1 1 1
Labridae 12 15 5 4 36 24
Haemulidae 8 4 12 8
Apogonidae 1 1 1
Acanthuridae 1 1 2 1
TOTAL 45 43 31 30 149 100

Cagdianao Mining Corporation
Fish Distribution in the Causeway Valencia
Area Nickel Project
Chaetodontidae
others, 11% , 16%
Labridae, 24%
Pomacentridae,
49%
Figure 4.24 Relative abundance of dominant fish families in the
reef of the causeway area
4.2.5.2.4 Reef fishes in the Fish Sanctuary Area.
A total of seventeen (17) families were recorded in the fish sanctuary area (Table 4.16 and Figure 4.25).
Abundance in the reef fish area is categorized as moderate (1038 fish per 500m 2) and is relatively low
with other protected reefs in Gingoog Bay (Balingoan = 2280 fish per 1000 m 2, but lower in value in the
reef of Medina = 2660 fish per 1000 m 2, Bonifacio, Magsaysay = 4020 fish per 1000 m 2) and Butuan
Bay (Vinapor = 5320 fish per 1000 m 2 and Gusoon = 4800 fish per 1000 m 2) in Abrea et al (2002).
Engraulids, pomacentrids and Labrids are the most abundant fish in the reef.
Table 4.16 Estimate of fish abundance (count) of reef fish in the fish sanctuary
FAMILY T1 T2 T3 T4 TOTAL ABUNDANCE(%)

Acanthuridae 21 8 7 8 44 4
Carangidae 5 0 0 7 12 1
Chaetodontidae 19 17 31 0 67 6
Engraulidae 100 150 200 0 450 43
Haemulidae 1 0 0 1 2 0
Kyphosidae 11 0 0 0 11 1
Labridae 35 13 26 10 84 8
Lethrinidae 10 2 1 0 13 1
Lutjanidae 3 2 0 0 5 0
Monacanthidae 2 6 5 1 14 1
Mullidae 2 6 2 0 10 1
Nemipteridae 2 3 3 1 9 1
Pomacanthidae 10 5 16 5 36 3
Pomacentridae 55 27 46 46 174 17
Scaridae 23 19 0 6 48 5
Siganidae 19 7 16 8 50 5
Zanclidae 2 5 0 2 9 1
TOTAL 320 270 353 95 1038 100

Cagdianao MiningFish Distribution
Corporation in the Fish Sanctuary Area
Valencia Nickel Project
others, 32%
Engraulidae,
43%
Labridae, 8%
Pomacentridae,
17%
Figure 4.25 Relative abundance of dominant fish families

in the reef of the Fish Sanctuary Area.
4.2.5.2.5 Seagrass Communities in the causeway area
There were only 3 species of seagrasses identified in the causeway area (Table 4.17 and Figure 4.26).
The round-tip seagrass, Cymodocea rotundata, dominated the area. The fiber-strand seagrass,
Halodule uninervis, followed next in dominance. Species composition is generally low compared to
sanctuary area.
This area is classified as disturbed seagrass meadow due to its location inside a cove, based on the
classification of seagrass meadows by Fortes (1990) as shown in Table 4.18. The substrate is
characterized as sandy-muddy substrate. Because of the very unstable substrates in this area, only fast
growing, shallow-rooted could thrive. This is represented by the two pioneering species Cymodocea
rotundata and Halodule finifolia.
Table 4.17 Average seagrass cover and frequency of occurrence in the Causeway Area
Relative Relative
Percent Relative Percent
Species Frequency Abundance
Cover Cover Frequency
(%) (RC+RF) / 2
Halodule uninervis 8.33 30.34 33.34 29.42 29.88
Cymodocea rotundata 18.80 68.46 73.33 64.70 66.58
Halophila ovalis 0.33 1.20 6.67 5.58 3.54
TOTAL 27.46 100.00 113.34 100.00 100.00
Seagrass Distribution in the Causeway area
Halophila Halodule
ovalis, 3.54% uninervis,
29.88%
Cymodocaea
rotundata,
66.58%
Figure 4.26 Relative abundance of seagrasses in the
Causeway Area.

Table 4.18 Classification of seagrass meadows after Fortes (1990).
Classification Description
Pristine seagrass meadows. Those with high or low diversity of species,
bordering land masses far removed from human
habitations, disturbed only by the normal
intensity of natural elements. These meadows
form thick assemblages in shallow waters,
usually dominated by tropical eelgrass, dugong
grass and round-tipped seagrass. This type of
habitat should be preserved and protected from
any form of alteration, to be available only for
scientific and educational purposes.
Disturbed seagrass meadows Those of high or low diversity beds occupying

bays and coves, near human habitation. These
meadows are the constant victim of mans
activities, suffering the destructive effects of
domestic and industrial effluents. Under more
favorable conditions, these areas may yield the
highest biomass, protein levels and production
rates. They should therefore be the subject of
effective control measures.
Altered seagrass meadows Those areas of low species diversity,

permanently and completely changed or
converted to other coastal uses like salinas and
fish or shrimp ponds. They have the potential to
be converted back into seagrass areas through
hydrographic engineering, massive
transplantation and rehabilitation. This type of
seagrass habitat should be the subject of proper
multiple use programs
Emergent seagrass meadows Those of low species diversity, largely controlled

by extreme physico-chemical conditions. Ruppia
maritima and estuarine spoon-grass, which form
extensive growths in almost freshwater or in
brackish-water habitats, belong to this category.
In some parts, freshwater and terrestrial
acrophytes and herbs may coexist with the
seagrasses.
4.2.5.2.6 Associated Macroalgae
A total of 13 species of macroalgae within the seagrass meadows of the causeway area (Table 4.19)
were recorded during the survey. The green algae Boergesenia forbesii found to be the most abundant
species in the seagrass meadow of the causeway area. These are

Table 4.19 List of seaweed species in

Cagdianao, Dinagat Island.
Species
Bornetella sp.
Boergesenia forbesii
Enteromorpha clathrata
Padina minor
Enteromorpha intestinales
Halimeda macroloba
Halimeda opuntia
Neomeris sp.
Gracilaria salicornia
Hypnea sp.
Sargassum
Valonia ventricosa
Chlodismis hilderbenetii
4.2.5.2.7 Seagrass Communities in the Fish Sanctuary Area
A total of six species of seagrasses were identified in the intertidal zone of the Fish Sanctuary area
(Table 4.20). Abundance of seagrasses in the Fish Sanctuary Area in shown in Table 4.21 and Figure
4.26). A deep-rooted dugong grass dominated the area. The shallow rooted fiber-strand seagrass,
Halodule uninervis, followed next in dominance. In most tropical regions, a mixed seagrass bed has
normally five to eight species co-occurring in a certain area. In temperate regions like the Europe, only
one or two species are normally reported (Fortes 1989, Hemminga and Duarte 2000).
Table 4.20 List of Seagrasses and its common name.
Species Common Name

1. Thalassia hemprichii Dugong grass
2. Halodule uninervis Fiber-strand seagrass
3. Halodule pinifolia Fiber-strand seagrass
4. Cymodocaea rotundata Round-tip seagrass
5. Halophila ovalis Spoon grass
6. Syringudium isoetofolium Syringe grass
Average seagrass cover was 53.53%. The deep-rooted and long-lived species, Thalassia hemprichii,
were dominant that makes the area stable. Fruiting of Thalassia hemprichii was observed suggesting
availability of seeds for possible recolonization efforts in denuded areas. During very low tide, Fish
Sanctuary stations can be seen to have extensive seagrass beds stating near the shoreline until the reef
edge. Quite extensive seagrass beds were also noted beyond the reef edge, but due to limited time, no
quantitative data could be presented in this report.
Table 4.21 Average seagrass cover and frequency of occurrence in the Fish Sanctuary Area.
Relative Relative
Percent Relative Percent
Species Frequency Abundance
Cover Cover Frequency
(%) (RC+RF) / 2
Thalassia hemprichii 37.80 70.60 96.00 48.98 59.80
Halodule uninervis 6.60 12.33 44.00 22.45 17.39
Halodule pinifolia 0.80 1.49 4.00 2.04 1.77
Cymodocea rotundata 5.20 9.72 36.00 18.37 14.04
Halophila ovalis 0.12 0.22 4.00 2.04 1.13
Syringudium isoetifolium 3.00 5.61 12.00 6.12 5.86
TOTAL 53.53 100.00 196.00 100.00 100.00

The general description of this area is pristine seagrass meadow based on the classification of seagrass
meadows by Fortes (1990) (Table 4.18). One important evidence is the dominance of dugong grass, T.
hemprichii. This species is also classified as long-lived, deep-rooted and climax species thus indicating
a relatively stable condition (Vermaat, et.al 1995).
Seagrass Distribution
Syri isoe, 5.86%
Halo ova, 1.13%
Cymo rotun,
14.04%
Halo pini, 1.77%
Thal hemp,
Halo uni, 17.39% 59.80%
Figure 4.27 Relative abundance of seagrasses in the Fish

Sanctuary Area.
4.2.5.3 Assessment of Coral Reef Status
Coral reefs of Cagdianao, Dinagat Island were surveyed on August 18-23, 2008. Corals and other
macrobenthos were determined using the point intercept described in Uychiaoco et al 2001. Table 4.22
shows the coral category used in describing the coral status in the area.
Average live coral cover of the shallow (3m isobath) in the causeway area was 66.95% and 56.88% in
the fish sanctuary area. In the causeway area, highest coral cover was recorded in station 4 which is
located in the left side of the causeway area. Lowest coral cover was recorded at station 3 which is on
the left portion approaching the pier. Table 4.23 present the coral cover in the Fish Sanctuary Area
while Plates 4.6 and 4.7, the photo documentary of the coral species.
Submassive type growth forms dominated most of the hard corals, accounting for 23.73% among the
live standing corals followed by branching type (12.47%). The submassive types are represented by
Galaxea sp, Oulophyllia sp., Lobophyllia sp and Symphyllia sp. The branching forms were represented
largely by Pocillopora sp.
Among the reef fishes, 7 families were recorded in the causeway area while 16 families in the fish
sanctuary area. Pomacentrids or damsel fish dominated in the causeway area accounting for 49% of
the total fish population. Labrids or wrasses (24%) follow next in abundance. In the fish sanctuary, on
the other hand, the Engraulids (43%) or anchovies dominates the area followed by pomacentrids (17%)
or damsel fishes.
Several ideas may be offered to explain the characteristic of species abundance in a particular site. The
complex architecture of coral reefs would offer shelter to an extremely diverse fauna (Connel, 1978).
The characteristic distribution of live coral cover and the physical architecture of coral reefs (e.g.,
variations in the lifeform attributes) may contribute to the positive correlation between the diversity and
abundance of fish communities (Connel, 1978; Carpenter et al., 1981). However, other authors find no
correlation between diversity and abundance (Luckhurst and Luckhurst, 1978; Roberts and Ormond,
1987).
Mining significantly impact the marine environment because mine tailings carries contaminants to the
marine environment; since sediments are known to accumulate contaminants e.g. copper and other

heavy metals, aquatic or marine biodiversity maybe affected if toxicity levels of metals confined in the
waters are reached.
It is also important to note that the run-off from the nearby rivers transports sediments to the reef areas
and threatens the survival of corals. Some areas adjacent to the causeway are actually covered with
silt. These silted areas are no longer favorable for coral growth. Siltation is detrimental to the survival of
coral reef species as it easily covers the coral polyps and ultimately kills the animal. Proper
management of the reef resources should be done to prevent further degradation and to increase corals
in the area.
Table 4.22 Coral Category (Uychiaoco et. al. 2001)
Categories Code Remarks

Hard Corals
Dead Corals DC recently dead, white to dirty white
Dead Corals w/ algae DCA this coral is standing, skeletal structure can be seen
Acropora
at least 2 degrees branching, eq. Acropora palmata, A.
Branching ACB Formosa
usually the base plate of immature acropora forms, eq. A.
Encrusting ACE palifera
Submassive ACS robust with knob or wedge-like form, eq. A. palifera
Digitate ACD no 2 degrees branching, typically includes A. digitifern
Tabular ACT Horizontal flattened plates
Non-Acropora
Branching CB at least 2 degrees branching, eq. Seriatopora hystrix
Encrusting CE major portion attached to substratum as a laminar plate
coral attached at one or more points leaf-like, or plate-like
Foliose CF appearance
Massive CM solid boulder or mound
Submassive CS tends to form small column, knobs, or wedges
Mushroom CMR solitary, free living coral
Heliopora CHL blue coral
Millepora CME fire coral
Tubipora CTU organ-pipe coral, Tubipora musica
Other Fauna
Soft Corals SC
Sponges SP
Zoanthids ZO examples are platythoa
Others OT oscidians, anemones, gorgonians, giant clams, etc.
Algae
Assemblage Alge AA consists of more than 1 species
Coralline Algae CA
Halimeda HA
Macroalgae MA
Turf Algae TA
Abiotic
Sand S
Rubble R
Silt SI
Water WA
Rock RCK
Other DDD Missing data

Table 4.23 Average percent cover distribution of corals in the Fish Sanctuary of Barangay
Valencia, Dinagat Island.
Shallow Deep Grand

Benthic Lifeform Total Total Average
G1 G2 G3 G4 Total
ACROPORA
ACT - tabulate 775 25 325
ACB 100 25
SUB-TOTAL 875 875 50 325 375 1250 6.25
NON-ACROPORA
CB - branching 50 50 175
CE – encrusting 950 1000 825 450
CF – foliose 150 800 1450 400
CM – massive 975 625 925 1075
CME – Millepora 75
CMR – mushroom 25
CS – submassive 75 50
SUB-TOTAL 2,200 2525 4725 3300 2100 5400 10125 50.63
OTHER FAUNA
OT - other animals; anemones 25 25 50 50 50 100 0.5

SC - soft coral 25 50 75 75 75 150 0.75
ALGAE & SEAGRASS
CA - coralline algae 50 200 250 100 175 275 525 2.63
TA - turf algae 100 100 100 0.5
MA - macro algae 450 450 75 825 900 1350 6.75
HA – Halimeda 1,175 1125 2300 750 1350 2100 4400 22
ABIOTIC
BLK – block 100 100 100 0.5
S – sand 400 400 100 100 500 2.5
SI – silt 100 300 400 350 75 425 825 4.13
R - rubble 50 50 50 0.25
WA – water 25 25 25 25 50 0.25
DC - dead coral 50 50 50 0.25
DCA - dead coral w/ algae 100 100 200 125 100 225 425 2.13
Total 5,000 5,000 10,000 5,000 5,000 10,000 20,000 100.00

Acropora sp. Mushroom coral (center); diploastrea sp. (upper center)
Favids (center) Pocillopora sp.bottom)

bottom)
Favids; Galaxea
Pocillopora sp. left); Porites lobata (center)
sp (center
(upper)bottom) right)bottom)
Lobophyllia sp Porites lobata
Plate 4.6 Representative species of corals from the Project Site-I

Acropora hyacinthus; Porites lobata (bottom center) Favids
Symphyllia sp. Seriatopora hystrix
Favids (center left); mushroom coral (center right) Mushroom coral
Tridacna (center); Diploastrea (upper right) Plerogyra sp.
Plate 4.7 Representative species of corals from the Project Site-II

To avoid siltation of the coastal waters during the expansion phase, an adequate drainage system
should be constructed at the causeway to avoid or minimize siltation during a heavy downpour. The
Causeway should also be designed in a way that high wave action does not erode the Causeway and
that stormwater runoff is diverted towards sumps and ponds to prevent mixing with coastal waters.
When necessary, a silt curtain will be installed at the Causeway to trap and localize the silts. The
accumulated silts are then pumped regularly. This way, the remaining coral cover within the project site
and the adjacent fish sanctuary is protected from siltation.
During operation of the Causeway, heavy traffic may further intensify mobilization of loose materials. If
the drainage system has been constructed, loose materials mobilized during a heavy downpour will be
trapped in sumps and siltation ponds. If some runoff escape, the silt/turbidity curtain will further trap and
localize the silts.
During ore loading from conveyor to the vessel, fugitive ores may escape and find their way into coastal
waters. The installed silt curtain will also trap and localize the fugitive ore materials.

4.3 The Air
4.3.1 Climate
The Province Dinagat Islands is considered by PAGASA to be under the Type II of the Modified
Coronas Classification of Philippine Climate (Figure 4.28), which is based on a very pronounced
maximum rain period generally occurring in December to January, although there is not a single dry
month which is typical of areas along or very near the eastern coast of the country. The province is open
to the northeast monsoon.
For the climatologic normals, the factor of relative humidity averages annually at 84% (Table 4.24). The
highest relative humidity recorded is 88% during the month of January. The lowest recorded relative
humidity of 80% is felt during the month of August (Table 4.25).
The area experiences prevailing winds with velocities annually averaging 3 meters per second. The
general wind direction for the months of December to February is northeast, while for the months of
March to May it is easterly. For June to August, the area experiences southwesterly winds gradually
shifting to west-southwest during September and to the west in October. For the month of November
the average wind direction is easterly. The annual wind direction is taken as easterly. Wind normals
are presented in Table 4.24 and the extremes are in Table 4.25.
The vapor pressure in the area averages at 30.03 millibars on a year. The highest vapor pressure is
recorded during May with monthly average of 31.40 millibars, while the lowest is during February with
28.50 millibars.
Cloud cover averages at 6 ockta per annum with the cloudiest days for the months of June to March.
The least clouds are experienced during the months of April and May with an average of 5 ockta.
Thunderstorms are frequent during June to November ranging from 6 to 8 days of thunderstorm per
month. The least thunderstorms occur during the months of December to April with ranges of 1 to 4
days of thunderstorms per month. The annual total days of thunderstorms is taken at 59. The months
with the most number of lightning days are August and October with an average of 17 days. On the
other hand, the lightning days are not found during February.
A review of the PAGASA data at the Surigao Synoptic Station, tells us that the annual rainfall in the area
is 3,556.4 mm. The relatively dry months are from May to September with monthly rainfall ranging from
127.2 mm to 165.9 mm. The driest month is May with rainfall totaling only 127.2 mm. The wet months
are October to April with monthly rainfall range of 236.3 mm to 600.8 mm. The wettest month is
January with rainfall registering at 600.8 mm over a duration of 24 days. Rainfall extreme is 403.1 mm
which occurred on September 1, 1970.

Legend
Type 1 - Dry from December to May
and wet for the rest of the
year.
Type 2 - No dry season but with
very pronounced
maximum rain period in
Dec. to Jan.
Type 3 - No pronounced maximum
rain period with short dry
season lasting for 1 to 3
months.
Type 4 - Rainfall is more or less
distributed evenly
throughout the year.
Project Site
Figure 4.28 Climate Map of the Philippines

Table 4.24 Climatological normals recorded at the Surigao City Synoptic Station
for the period 1971-2000 (PAGASA 2000)
Rainfall, mm Temperature, 0C Percent Wind

Month
Amt. Rdngs Max Min Mean Humidity Dir Spd
Jan 600.8 24 29.3 22.7 26.0 88 NE 3
Feb 443.2 21 29.6 22.7 26.2 87 E 3
Mar 334.6 21 30.4 23.1 26.8 86 E 3
Apr 236.3 17 31.6 23.7 27.7 84 E 2
May 127.2 13 32.7 24.2 28.4 82 E 2
Jun 140.3 14 32.5 24.1 28.3 82 SW 2
Jul 165.9 13 32.2 24.1 28.1 81 SW 2
Aug 131.4 12 32.6 24.2 28.4 80 WSW 2
Sep 149.0 14 32.6 24.1 28.4 80 WSW 2
Oct 255.6 20 31.9 23.8 27.8 84 W 2
Nov 447.2 22 30.6 23.5 27.1 86 E 2
Dec 524.9 25 29.8 23.3 26.6 88 NE 2
Annual 3556.4 216 31.3 23.6 27.5 84 E 2
Table 4.25 Climatological extremes recorded at the Surigao City Synoptic Station as of
2003 (PAGASA, 2003)
Greatest Dly RF,
Temperature, 0C Highest Wind Speed (m/s)
Month mm
High Date Low Date Amount Date Speed Direction Date
Jan 36.5 01-30-84 14.5 01-11-14 37.8 01-08-55 18 E 01-15-87
Feb 35.6 02-25-06 15.6 02-18-20 46.4 02-20386 25 SE 02-26-62
Mar 36.8 03-23-66 16.2 03-10-11 42.0 03-01-64 27 SSE 03-16-62
Apr 38.0 04-30-15 17.2 04-02-23 143.0 04-29-05 24 WSW 04-18-62
May 38.6 05-17-15 20.0 05-01-21 371.4 05-19-76 35 E 05-17-89
Jun 37.6 06-04-12 20.1 06-04-73 252.8 06-27-85 47 SW 06-29-64
Jul 36.5 07-02-73 19.4 07-14-70 293.6 07-29-19 31 WSW 07-24-68
Aug 35.6 08-09-64 18.0 08-14-74 323.9 08-10-47 34 S 08-04-89
Sep 35.3 09-18-03 20.2 09-02-70 403.1 09-01-70 34 SW 09-13-61
Oct 35.8 10-01-68 19.5 10-26-13 194.3 10-15-18 41 W 10-26-78
Nov 35.6 11-04-66 16.8 11-03-11 278.4 11-18-23 56 WNW 11-19-70
Dec 34.6 12-14-47 15.7 12-03-92 128.3 12-18-39 41 W 12-14-64
Annual 38.6 05-17-15 14.5 01-1-14 403.1 09-01-70 56 WNW 11-19-70

4.3.2 Cyclone Frequency
According to PAGASA, tropical cyclone is a general term to describe weather disturbances in the
tropics, which are characterized by low atmospheric pressures at the center and strong winds relative to
its environment. The strength of the wind increases towards the center, the lower the center pressure,
the more intense is the tropical cyclone. In the Philippines, the term “Bagyo” can mean depression,
storm or typhoon.
Tropical cyclones are classified according to the maximum winds near the center. They are
characterized as follows:
1) Tropical Depression (TD) - maximum winds from 40-63 kph near the center.
2) Tropical Storm (TS) - maximum winds from 63-117 kph near the center.
3) Typhoon (TY) - maximum winds of 118 kph or more near the center.
The physical size or dimension of a tropical cyclone may be expressed in terms of the following:
1) Strength of the maximum winds

2) Radius of the wind circulation
3) Radius of the rain area
Typhoons or tropical cyclones are frequent in the Philippines, the same falling within the typhoon belt.
The Philippines experience at least 75% of the tropical cyclones passing through the Northwest Pacific
Basin. Yearly, the Philippines receives around 20 tropical cyclones/disturbances.
Most of the tropical cyclones that affect the country, especially the northern part of Luzon, are those that
originate or develop east of the Philippines, particularly over the Caroline Islands.
The project site is classified under geographical zone number 7 in which the frequency of typhoon
passage is 5 cyclones per 3 years (Figure 4.29).

Project Site
Project Site
Figure 4.29 Cyclone Map of the Philippines

4.3.3 Local Wind Pattern
At the minesite, a local wind pattern diurnally prevails in the area namely This is the land sea-breeze
breeze.
4.3.3.1 Land-Sea Breeze
In coastal areas such as the project site, a normal wind phenomenon is usually experienced during the
dry season. This is the almost daily occurrences of land and sea breezes (Figure 4.30). This
phenomenon occurs when there is a pressure gradient between the adjacent land and sea. Such
pressure gradient results from changes in temperature. An equilibrium occurs when both land and sea
surfaces have similar temperatures (Figure 4.30A).
During the day particularly in the afternoon however, the lower air over the land experiences rapid
heating than that over the sea. In response to this pressure gradient, wind moves landward. This is the
sea breeze (Figure 4.30B). As it moves farther inland it rises to the upper air layer and goes back to the
sea in a complete cycle. By the way, atmospheric pressure decreases as temperature increases. In
the evening particularly at dawn, there is a rapid cooling of the land that is transmitted to the lower air
layer. Since pressure becomes high with a cooler temperature, wind tends to blow towards the sea.
This now constitutes as the land breeze (Figure 4.30C). Again, a complete opposite cycle takes place.
Thus, winds may become stronger even with just the normal sea and land breezes. This is also true in
Bgy. Valencia and specifically the mine site.
The implication of this phenomenon is that it can disperse suspended particulates towards the coastal
community at nighttime and spare the same during the day. This must be considered in the mitigating
the impact on air particularly TSP which can affect people at nighttime and may not be aware of it.
Figure 4.30 Land-sea breeze phenomenon

4.3.2 Air and Noise Quality
Location of air quality monitoring stations is shown in Figure 4.31.
CMC Admi Compound
Valencia Community
The Open Pit Mine

Causeway
Mining Claim
Sampling Station
Figure 4.31 Sampling Stations for Ambient Air Quality
4.3.2.1 TSP
TSP levels within the mine site and at the Valencia High School suggest that air quality of the area has
not significantly changed since July 2003 (Figure 4.32). Highest TSP values recorded in April 2006
(198.55 mg/Nm3, Causeway) and in April 2008 (180.14 mg/Nm 3, Mine Pit) were still below the industrial
standard of 300 mg/Nm3. At Valencia High School representing residential areas, TSP value was also
below the residential standard of 230 mg/Nm 3. The mitigating strategies employed by the Company that
are strictly implemented are effective in controlling dust generation.
4.3.2.2 Noise Level
Noise monitoring was conducted in (3) stations at 24-hour sampling period at the CMC Camp, Mine Pit,
and Barangay Proper (Figure 4.33). The observed average noise level recorded at the CMC Camp and
Mine Pit throughout the 24-h sampling period were within the allowable limit relative to the DENR
Ambient Noise Quality Standards Section 78 Chapter IV, Article 1 of 1978 NPCC Rules and Regulations
standard limits for “D” categories. Noise levels were slightly higher in Barangay Proper due to increase
in motor vehicles in the area and when karaoke was starting to be in vogue. Natural noise propagators
that occasionally elevate noise levels during sampling include shrill insect and rooster calls at dawn and
dusks.
Continuous air quality monitoring is being done by the company since 2004.

350
300 300
Station
250
230
Valencia National HS
200
TSP CMC Admin Compound
180.14
(mg/Nm3) CMC Causeway
150
Minepit Parking Area
100 Residential Standard
Industrial Standard
50
0
Jan Feb Mar Apr May Jun Jul Aug Sep
2008
350
300
300
250 Station
230
Valencia National HS
200
CMC Compound
TSP (mg/Nm 3 )
150 Causeway
Minepit
100 Residential Standard
Industrial Standard
50
0
Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2007
350
300 300
250
Station
230 Valencia National HS
200 198.55 CMC Compound
TSP (mg/Nm 3 ) Causeway
150 Minepit
Residential Standard
100
Industrial Standard
50
0
Jul-03 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06
Figure 4.32 TSP levels within the mine site and its vicinity

Noise Level in 2nd Quarter, 2008 (db)

80
75 70
65
60
55
50 45
40
Daytime Evening Night Daytime Evening Night Daytime Evening Night
20
CMC Camp Mine Pit Brgy. Valencia Proper Industrial Standard Residential Standard
0
Min Max Min Max Min Max Min Max Min Max Min Max Min Max Min Max Min Max
Apr May
2008 Jun
Noise Level in 3rd Quarter, 2008 (db)

80
75 70
65
60
55
50 45
40
Daytime Evening Night Daytime Evening Night Daytime Evening Night
20
CMC Camp Mine Pit Brgy. Valencia Proper Industrial Standard Residential Standard
0
Min Max Min Max Min Max Min Max Min Max Min Max Min Max Min Max Min Max
July Aug
2008 Sep
Figure 4.33 Noise levels as measured in 2008

4.4 People
4.4.1 Socio-Economic and Political Environment
Though Cagdianao is mountainous, the early settlers lived a life of comfort because of the abundant
resources of the place. The forest used to be abundant in lumber, rattan, daingan (wood resin) and
orchids which found its way to Cebu, Bohol, Surigao and even Manila. Wild animals such as wild hogs
and deer roamed in droves. The ocean boasted a phlethora of marine life like prawns, lobster, squid,
octopus, crustaceans and edible shells. The people are naturally gregarious, hospitable, industrious
and peace loving.
Generally, the main sources of livelihood are fishing and agriculture. They cultivated the valleys into rice
fields and planted the coastal flat lands and hillsides with coconut and other crops which yielded a
bountiful harvest. Fishing was chiefly for consumption, especially that the method of preservation then
was only salting under the heat of the sun. The month of October is a season when fishing becomes
commercial. Logging, previously was the occupation in the northern barangay, but was marginalized
due to total log ban.
Though Cagdianao can be considered a fledgling municipality, it can measure up against any other
municipality within Surigao del Norte in terms of progress and development. Cagdianao was inhabited in
the latter part of the 19th century by families of Matias Longos, Domingo Litang, Marianito Lerog,
Fortunato Menil and Leon Petallo. The previous settlement was the Daan Lungsod, but due to
inadequate water sources, they moved southward to the present location of Barangay Poblacion. The
settlements grow into a barangay of the Municipality of Dinagat. The first Teniente Encargado was
Matias Longos the grandfather of former Mayor Jose J. Longos. He was succeeded by Domingo Litang,
Fruto Menil, Narciso Menil and Leon Petallo. The following years saw the steady growth of Cagdianao,
Adjacent coast were occupied by the pioneers, descendants and new migrants which were lured by its
.natural abundance. The community leaders believed that Cagdianao is ready to separate from its
mother town and gradually become a municipality itself.
4.4.1.1 Commerce and Trade
The exchange and mobility of goods and services in the area relies much on the agricultural sector
particularly fisheries where marine resources abound the area traded to Surigao City. Fishing of marine
resources becomes promising activity in the area due to its bountiful municipal waters stretching the
Dinagat Sound where most of the rare species of marine resources are gathered. Trading also
happened within the town catering the needs of local people. The activity of exchange of goods and
services continue in small scaled businesses found in Cagdianao. Though business is not so big
compared to other leading municipalities, trading however has become a regular activity to local folks to
sustain its immediate products for consumption, though, the prices are much higher by 10 percent
compared to Surigao City.
Currently, there are 140 sari-sari stores across the area; this is higher by 27 establishments compared
to 1998. Barangay Poblacion has much business establishment in a small-scale basis compared to the
rural barangays due to its urbanization and massive settlement concentration. Market day in Cagdianao
is open any time from early morning till late afternoon, although quite it is efficient enough to cater the
needs of the Poblacion folks.
4.4.1.2 Industry
Cagdianao is a mining town in Dinagat Province. Generally, Mining industry in the area is expanding.
Currently, there are two (2) mining industries operating in the municipality; PHILNICO and Cagdianao
Mining Corporation. Mining industries in the industry delivered high scale of capitalization whose market
is for export. Aside from mining industries, there are other industries, agricultural production such as
rice, corn millings, fish drying and other processing or aqua-resources. Most industries at present are
located in Poblacion and part of barangays in rural areas. In the past, milling activities have been
affected in the area due to insufficient power supply especially during peak season of harvest.

4.4.2 Demography
4.4.2.1 Demography of Cagdianao Municipality
The town had an initial inhabitants of 4,342 in the 1960 census and this grew into 4,827 in the 1970.
Population rose to 5.7 percent growth rate in 1980 to account to 8,436 inhabitants. Population continues
to increase in 1990 to 11,555 people. Population growth resulted to the migration of people coming from
other parts of Mindanao settling in Cagdianao who are members of the Philippine Benevolent
Missionaries Association (PBMA). More than 82 percent of the total population is residing in the rural
areas with much concentration of settlement in barangays Del Pilar, Nueva Estrella, Laguna and Tigbao.
Urban population accounted to 18 percent of the total population is sparsely distributed among the 13
rural barangays. Table 4.26 below shows the population of Cagdianao in year 2000.
Table 4.26 Cagdianao Population as of May 1, 2000
Municipality and Total Household Number of

Barangay Population Population Households
CAGDIANAO 12,886 12,878 2,554
Boa 626 626 133
Cabunga-an 1,003 1,002 203
Del Pilar 1,718 1,718 329
Laguna 683 683 132
Legaspi 354 352 77
Ma-atas 660 660 133
Nueva Estrella 945 945 185
Poblacion 2,507 2,505 510
San Jose 320 320 60
Santa Rita 456 456 95
Tigbao 811 811 170
Valencia 661 661 130
Mabini (Borja) 681 681 128
R. Ecleo, Sr 1,461 1,458 269
4.4.2.2 Population Density
The town is sparsely populated with an estimated land area of 22,704 hectares and possibly one of the
biggest towns in terms of municipal land areas where settlement and population growth are slow.
Barangay Ecleo is slightly had a higher density considering its total barangay area, while the rest of the
barangays have a very sparse settlement.
Barangay Valencia has 6 Puroks. Puroks 1, 2, 3, 4, and 5 are generally called Valencia Proper while
Purok 6 is called Sitio Baliwan. Sitio Baliwan is isolated from Valencia Proper, approximately 1.9 kms.
away. Based on the 1990 NSO survey, Valencia had about 97 households, 67 households are in the
barangay proper (purok 1, 2, 3, 4 & 5) while 30 households are in Sitio Baliwan (Purok 4).
The BHW 2000 survey registered the lowest number of population in Valencia after the log ban imposed
by the government in the 1990’s; people were left without any means of livelihood. Residents left
Valencia to find jobs elsewhere.
However, based on 2005 CMC CRDO Survey, the number of households overwhelmingly increased to
180% from 1990 NSO Census. This is mainly attributed because of the existing mining operation in the
area. Consequently, most of the family members who migrated to other places returned to Valencia in
order to avail the employment opportunity.

At present, Barangay Valencia has become the third highest population density in the municipality of
Cagdianao. Children from the age of 1 to 16 comprise 37.09 % compared to the over-all population
surveyed last 2005 (Table 4.27). The settlement of barangay proper is shown in Figure 4.38.
Table 4.27 Population, Household, Density

NUMBER NO. OF POPULA-
NUMBER OF
BARANGAY OF PERSONS PER TION
HOUSEHOLD
VALENCIA POPULATION HOUSEHOLD DENSITY
1990* 2000* 2005* 1990* 2000* 2005* 1990* 1990*
Purok 1 53 225
Purok 2 67 52 219
Purok 3 45 202
Purok 4 _ 36 169
Purok 5 _ 43 199
Purok 6 30 43 167
Total 97 87 272 485 526 1,181 5 4.3
CHILDREN Based on 2005* % to the Total
(Age) Survey Population (1,181)
1 to 6 174 14.73 %
7 to 12 160 13.55 %
13 to 16 104 8.81 %
Total 418 37.09 %
Sources: 1990* – National Statistics Office (NSO) Survey
2000* - Barangay Health Worker of Valencia (BHW) Survey
2005* – Community Relation and Development Office (CRDO) Survey
Figure 4.34 Settlement plan in the host barangay

4.4.2.3 Age Distribution
There are 6,261 people belonging to the age bracket of 0 to 14 years old that comprises to more than 42
percent of the total estimated population (Table 4.28). There are 7,845 people who are considered as
productive population or working age group belonging to the age bracket of 15 to 64 years old. The
remaining 468 people are considered as the older population ages more than 65 years old. The current
dependency ratio of the town reaches to 46 percent. Young dependency ratio reaches to as high as 42
percent.
Table 4.28 Population By Age Bracket

Age-Group Population
Under 1 458
1–4 1,767
5–9 2,047
10 – 14 1,989
15 – 19 1,515
20 – 24 1,183
25 – 29 1,094
30 - 34 951
35 – 39 733
40 – 44 638
45 – 49 579
50 – 54 486
55 – 59 375
60 – 64 291
65 – 69 199
70 – 74 139
75 – 79 85
80 & Over 47
4.4.2.4 Mother Tongue
The Surigaonons are peace-loving and gentle. Its favorable climate makes them non-temperamental.
They have the humor of the Visayan, the frugality of the Ilocano and other traits which were inherited
from their forebears who ventured into this part of the archipelago. The major dialect is Surigaonon
which has some semblance to the Visayan language. Influences of the Cebuano and Boholano dialects
with a Tausug accent can be traced. A few speak Waray and Tagalog. Majority are able to speak
English.
4.4.2.5 Religious Affiliations in Cagdianao
More than 74 percent of the total household populations are Roman Catholic and the rest belong to
Aglipay and other protestant groups (Table 4.29). Religion has affected much about the structure of
socio-economic of the town evidencing the orderliness and good will of the people of Cagdianao for
which a town is proud of and form as a factor for development and not just constraint.
Brgy. Valencia hosts two chapels, one for the Roman Catholic Church and one for the Seventh Day
Adventist (SDA).
Table 4.29 Religious Affiliation of Barangay Valencia

Religious Group Population
Roman Catholic 10,831
Aglipay 3,378
Others 366

4.4.3 Health
Barangay Valencia has an existing barangay health center with Volunteer Barangay Health workers and
a midwife. Table 4.30 shows the relevant information of the health facilities and staff of the barangay.
Table 4.30 Health Services

Particulars Status
Midwife One (1) a local resident
Barangay Health Workers Volunteers per Purok - organized by DSWD
Medicines Insufficient
Health Center Newly renovated
Health Center Facilities Lacking, especially for First Aid Treatment
Source: CRDO 2005 Survey
4.4.3.1 Sanitary Toilet Facilities
Based on BHW survey last 2000, only 15% of Barangay Valencia households have toilet facilities. There
are two existing barangay toilets with two rooms each. The barangay health workers find it insufficient
with the increasing numbers of residents and non-residents in Valencia. CRDO survey of 2005 shows
85% of Valencia households has toilets facilities and due to another increase number of residents the
company continued its program in providing facilities.
4.4.3.2 Health Indicators
According to recent data gathered in the Local Health Office that the Municipality of Cagdianao has a
total of 245 births while Barangay Legaspi has the least. With the total number 3,004 female population
ages between 15 to 44 years old, the total fertility rate of the town reaches more than 81 per 1000
population while the total crude birth rate reaches more than 16 per 1000 population.
The town has registered a total of 38 deaths of all ages and causes making the total crude death rate of
more than 2 per 1000 population. The proportional mortality ratio of the town revealed that there are
more deaths among persons aged more than 50 years old. There are at least 2 maternal deaths that
have been registered.
More than 3,185 people availed of the general medical consultation in the Local Health Center making
218 consultations been assisted per 1000 populations. It constituted of more than 21 percent which
indicates slow participation of the local folks in terms of health services. There have been 196 cases of
hospitalization in the area making 13 incidences per 1000 population in consultation.
Among the ten leading causes of mortality in the area are pneumonia, PTB, hypertension, diarrhea,
coronary artery diseases, cancer, liver chiroses, kidney infection and accident. Mortality causes in the
area are water related diseases and other dietary form of the people because of the absence of efficient
water system. Malaria is one of the epidemics that hit the area in 1996 because of the environmental
features of the town where most of the land features are hilly and mossy forest abounds in the area.
Apparently, no deaths have been reported caused by any mining accident.
4.4.3.3 Nutrition
Malnutrition is one of the leading problems in the area since most of the households are in the poverty
level with no employment opportunities except for fishing and farming. Of the 2,029 pre-schoolers in the
area weighed in 1998, 36 incidence for severe malnutrition been recorded while 165 are moderate and
645 are in mild condition of malnutrition. For 2,971 school children in Cagdianao ages 7 – 14 years old,
83 percent are severely underweight and the rest are in moderate and mild condition.
4.4.3.4 Health Personnel
The health services in Cagdianao are being catered in the main health center supported by 3 rural
health centers located in very strategic places in Cagdianao. A municipal health officer, 1 public health
nurse, 1 sanitary inspector, 1 rural health midwife and an ambulance driver manned the main health

center. Each rural health center is manned by a rural health midwives. In the case of barangay
Valencia, a midwife also functions as barangay nurse.
4.4.3.5 Waste Management
Cagdianao has existing waste management system especially in the Poblacion proper. For a total of
2,653 households in the area, more than 42 percent of the total number of household population in the
area adopted a composting manner of garbage disposal especially those in the rural areas. More than
28 percent dumped their garbage in an open pit, while 17 percent households especially in Poblacion
area have access to garbage collection or pick-up manner of disposal. Landfill area or dumpsite in
Cagdianao has not been properly identified which posed a mild problem to the town since waste
generation of the local folks is not that significant compared to those living in the highly urbanized area.
Sewerage disposal in the area in not yet centralized and every household have their own sewer
disposals. More than 51 percent households in Cagdianao have access to sanitary toilets while others
do not have proper toilets. Drainage system is available only in the Poblacion area in the most main
thoroughfare of the town and rural areas do not have proper drainage system because of dense
settlement patterns.
4.4.4 Water Supply and Demand
There are two (2) community water PVC pipelines (in Valencia proper and Sitio Baliwan) with two (2)
different water sources (Table 4.31). The pipelines are tapped to a stream located up on the slope of the
barangay to distribute water to the barangay. However, renovation works would be done (i.e.
construction of reservoir) to supply the increasing demand of the community.
Table 4.31 Community Water System

Location Status
Valencia Proper A reservoir will be constructed
Sitio Baliwan Needs repair. Water source to be relocated
Source: CRDO 2005 Survey.
4.4.5 Lighting Facilities
Brgy. Valencia is serviced by electrical power of the barangay electric cooperative. A 99.6-hp, 90-kVA
Kamatzu generator set is used by the barangay to provide electricity from 4am-6am & 5pm-11pm only.
Street lighting is also catered by the barangay. However, for sitio Baliwan a 10 kva genset was provided
by CMC. Status of power supply of the barangay is summarized in Table 4.32 below.
Table 4.32 Lighting Facilities

LOCATION FACILITIES STATUS
1. Household Electric system
- One Unit Generator Set 99.6-hp/90-kVA Kamatzu, New
- Time Serviced 4a.m –6am , 5pm – 11pm
Valencia Proper Can supply the power requirement of entire
- Uses
(Purok 1, 2, 3, 4 & 5) barangay
- Cost per Household A meter is installed.
- Fuel/Oil Consumption Charged to 1% DMMC.
2. Street lighting Provided by the Barangay.
Sitio Baliwan (Purok 6) Genset and its maintenance are provided by CMC.
4.4.6 Transportation
There two types of transportation mode used to reached the Barangay of Valencia in Cagdianao from
Surigao City (Table 4.33). One is by sea transport using motorboats and motorcycles or habal-habal
from pier to any poing in the barangay. Form the barangay, access to other municipalities is difficult but
lately roads are already being constructed and habal-habals are now slowly getting through these
difficult roads more easily.

Table 4.33 Transportation Facilities

MODE STATUS
Land Transportation Available means of transportation the so –called “Habal – Habal “.
Sea Transportation Public Utility Motorboat to Surigao City, every Monday and back on Tuesday.
4.4.7 Road Access
Brgy. Valencia can now be reached through land transportation either via Albor or San Jose. By using a
motorcycle or a four-wheeled vehicle one can reach its neighboring barangays. It is good to note the
increase of number of motorcycle owners from Barangay Valencia, is a positive economic indicator.
Conditions of connecting roads in the barangay are presented in Table 4.34.
Table 4.34 Road Network
ROAD NETWORK DISTANCE (km.) STATUS

Valencia – Baliwan Road 1.90 Existing. Earth-filled road
Sitio Baliwan – Brgy. Boa Road 5.12
Road is already existing. Earth Filled.
Valencia – Brgy. Legaspi Road 6.87
Source: CRDO 2005 Survey and ’98 CMC EIS
The barangay has an existing concrete bridge linking Purok 1 and 2; it was constructed over the
Intermittent Creek No. 1. An additional wooden bridge that would link Sitio Baliwan and Valencia proper
was constructed over the Maraging Creek. The Barangay has three (3) existing footbridges but badly in
need of repair and to meet the safety standards for the residents. Status of the these bridges is
summarized below.
Table 4.35 Bridges/Footbridges

LOCATION WOODEN BRIDGE FOOTBRIDGE
Located at Intermittent
Between Purok 1 & 2 Concreted.
Creek # 1
Two (2) Existing, but needs an immediate rehabilitation to
Sitio Baliwan (Purok 6) Existing
meet safety standards
One (1) Existing at creek #2, but need additional work to
Between Purok 3 & 4 N/A
meet safety standard
4.4.6 Education Facilities
Status of the educational facilities in the host barangay is shown in Table 4.36.
Table 4.36 Educational Facilities

PARTICULARS STATUS
5 teachers for grade one (1) to six (6) & 6 teachers for
Teachers
High School.
Classrooms 7 rooms for High School & Elementary
Waiting Shed Made of light materials (Coconut Shingles, Wooden Sticks
Desk/Chairs Sufficient chairs & Desk
School Fence Made of wooden stick, however the gate is concreted.
Faculty Room 1
Library Temporary room.
Stage Concreted
Comfort Rooms 2
Potable Water Supply 1
Nursery None
Day Care Center (Former
One (1) School Board Teacher
Barangay Hall)

4.4.7 Employment Profile
At present, at least one household member is working at CMDC especially during peak season when
operation is at full force and the weather is conducive for extraction (Please see also attachment of its
current employment profile of CMC).
Based on CRDO 2005 Survey in Barangay Valencia Fisherfolks accounted 23.90%, Farmers is
11.76%, Food and Snacks Vendors is 2.94%, Fish Retailers is 1.47%, Sari-sari Store owners is 12.13%
and other odd jobs is 5.51% of the total household surveyed.
It is to be noted that most or all of Barangay Valencia professionals have been already hired by CMC.
There is an increase of employment in the barangay due to mining operations resulting to increased
family/household income of the host community; this is also including the neighboring communities. The
average monthly gross earnings of an employee (rank-and-file) and contractual employees is estimated
to reach more than PhP5, 200. This is fairly comparable to the province gross average and is above the
regional minimum wage reckoned from a daily wage of PhP200.00 per day. CMC employs change and
adjustment as per DOLE’s standard.
Table 4.37 Occupations by Industry Sector Per Household
SARI- OTHER
BRGY. SNACKS FISH
FISHING FARMING SARI ODD
VALENCIA VENDORS Retailer
STORES JOBS
Purok 1 13 4 2 2 8 4
Purok 2 7 8 3 1 7 6
Purok 3 20 2 1 1 4 1
Purok 4 15 8 2 6 1
Purok 5 5 5 5 2
Purok 6 10 5 3 1
Total 65 32 8 4 33 15
Table 4.38 Local Professionals
Total
BRGY. VALENCIA STATUS
no.
Midwifery 1 Working as Barangay Midwife
Registered Nurses 2 One was hired by CMC, the other left for Manila
Accountancy Graduate 2 1 Employed by CMC , the other left for Manila.
Two were employed in Valencia Integrated
Education Graduate 3
School, one as day care teacher.
Elem. School Teacher 1 DECS Valencia
Radio Operator 1 Employed by CMC
Nautical Graduate 1 Employed by CMC
Total 11 Professionals
Table 4.39 CMC Employed Per Household
Per
Brgy. Valencia STATUS
household
Regular 68
Mostly composed of unskilled laborers. They are
Casual 204 being prioritized for employment on a contractual
basis or need
Source: CRDO 2005 Survey

4.4.8 Socio-Economic Impacts of the Mining Project
4.4.8.1 Public Participation and Social Acceptability
Mining is not new among the impact residents. People of Valencia have already experienced
responsible mining in their area. Hence, generally, a culture of mining has been a way of life especially
among male society and created an opportunity to the common aspirations of the people.
Infrastructures such as roads, market, barangay hall, public market, dam, fish sanctuary, are also some
of the benefits benefited by the residents. A dream of breaking away from poverty, employment and
illiteracy seemingly motivates them to forego the environmental consequences of mining. Being a rice
farming barangay, the biophysical and socio-cultural changes should be continually studied to minimize
its impact to the environment. Though they believe that there is a negative effect as a result of the
activity, the positive consequence is rather higher than the negative impact to human development.
4.4.8.2 Impact Assessment
4.4.8.2.1 Resource Competition
Where skills are not available in the locality, the company of its contractors has been forced to bring in
skilled personnel from neighboring barangays. A substantial number may be required and these people
are what this document refers to as transients. Although their residency is temporary, they nevertheless
have needs similar to the permanent residents in the area. They are currently therefore compete for
food, shelter, power, water and other resources that are available to the local community. Such
additional needs will therefore exert pressure to the resources of the community.
4.4.8.2.2 Increased Safety and Health Risks
Mitigation has reduced the adverse effects of mining to the community to avoid discomfort to the
residents. And this is the in the form of safety and health hazards. The community is constantly
monitored to be away from danger by mad flows, flooding and possibly slides particularly in the farms if
mitigating measures are not put in place.
4.4.8.2.3 Non-assimilation of diverse culture
The in-migrants have been coming from different regions, such as Visayas and Mindanao whose culture
may be different from those of the local communities. Through interaction and socialization, cultural
adjustments may be a consequence into norms. For the past 10 years of operation, people have
learned to adjust and managed behavior that breeds animosity and violence.
4.4.8.2.4 Proliferation of vices
With available money at hand, proliferation of vices that tends to undermine the morality of the people in
the barangay is expected. Deviant behavior however is managed thru the barangay force, such as the
Bantay Dagat that patrols illegal fishing and enforces conservation of their marine sanctuary. Videoke
bars, clubs, gambling places, prostitution and others brought by the influx of workers in the mine site
was able to be controlled that avoided destruction family values. Drinking of alcohol within Barangay
Valencia has been moderated to deter the commission of crimes or other untoward incidents. Though, it
is anticipated that social problems may arise as an aftermath of a fluid local economy, value formation is
shared among within the barangay and Puroks.
4.4.8.2.5 Generation of substantial employment
Residents from within or from the surrounding barangays have had the opportunity to enjoy temporary
as well as regular employment. It may not be a lifetime opportunity but it will significantly help the
families of those who will benefit and will continue to enjoy from it during its expansion of its operation.

The operations have employed at least 2,000 workers more or less, at anyone time. This is over and
above the number of HH in the barangay of which is 130 HH (NSO 2000 census), therefore it has
assured the populace that one qualified member of the house has been accommodated by the company
since an average of 5 members constitute one household. Hence, this is a positive impact.
Employments during the development and operations of the mine have created and improved economic
conditions were money circulation is loose and business opportunities are available.
4.4.8.2.6 Creation of livelihood
One of the offshoots of the mining operation is downstream commerce. The project has created various
opportunities for retailing, services, buy and sell, planting, TESDA training, secondary schools,
scholarship and others. The basic needs of the community constantly grow and these needs are met.
This is where the law of supply and demand comes in. Enterprising residents of the barangay therefore
look at the actual needs of the workers and their dependents and prepare appropriate investment
response they adopt to earn.
4.4.8.2.7 Additional revenues for the local governments
The company’s operation is benefited its excise tax wherein a portion of the gross income is allotted to
the LGUs and divided into percentages for the Provincial Government, the municipal government, and
the barangay government. The community continues to gain additional benefits that are covered by 1%
of the mining cost. This can be observed in their SDMP implementation as provided in the Annexes.
4.4.8.3 Mitigating Measures
4.4.8.3.1 Resource Competition
The company provides some of the basic needs of the workers to make sure that they would not
compete with the locals. Barracks and services like medical, social, etc. have been provided by the
company to the workers and local residents too. On food, the workers buy their own which is available
thru workers’ cooperative and from other “mobile” local providers. Power is provided by the company
thru generators but the local electric cooperative has already assumed the needs of company’s power
supply so that it will not interfere with that of the community’s.
4.4.8.3.2 Increased Safety and Health Risks
The mitigating measurements presented in the preceding Land Module would be enough to ensure the
safety of residents in the community and also the miners.
4.4.8.3.3 Non-assimilation of diverse culture
To help in-migrant workers assimilate with the culture with the local community, company initiated social
gathering where interaction with the local folks are enhanced. The community relations officer of the
company implemented with ideal social functions, sports competition, etc. promoting adaptation to the
local folks’ way of life.
4.4.8.3.4 Proliferation of vices
This has been quite manageable to control through the active assistance of barangay council members,
MMT, technical working group, and this nature are also regulated by the local government. The
company however encouraged prayer meetings, team and capacity building, training, and other
activities to prevent the workers from going to places of vices instead go to places of worship.
Arrangement is done with local religious to work up a strategy in order to keep their values from
degenerating. Sports development and competition are also part of the social program of the company.
4.4.8.3.5 Generation of substantial employment

Currently, 1 to 2 household members of barangay Valencia are employed at CMC during its peak of
operation. In fact, due to short of labor, CMC has to tap workers from other nearby barangays of
Cagdianao.
4.4.8.3.6 Creation of livelihood
This has created a positive impact that benefited the community in terms of business oriented-residents
of the barangay as demonstrated in their social development programs.
4.4.8.3.7 Additional revenues for the local governments
This is likewise a positive impact which is legislated.

5. ENVIRONMENTAL PERFORMANCE
The project had already been issued a Environmental Compliance Certificate number 9805-088-105 to
East Coast Mineral Resources Co., Inc., the claimowner, on April 14, 1999. The implementation of
conditions had been handed down to the Cagdianao Mining Corporation through a Memorandum of
Agreement East Coast. All the conditions of the ECC have been complied with such as those involving
the area coverage, production rate, setting up of pollution control devices, and submission of required
programs. The company has not been issued a Cease-and-Decease Order nor a Notice of Violation.
The Contingent Liability and Rehabilitation Fund Steering Committee has approved the Environmental
Protection and Enhancement Program of East Coast Mineral Resources Co., Inc. (Cagdianao Mining
Corporation) on June 08, 2001 and with EPEP number 038-2001-05. The Company has also lodged
the Contingent Liability and Rehabilitation Fund of P 5,645,131.34.
The company has not caused any significant damage to lives and properties as a result of its operation.
So far, the company has not received any report from MRFC that will jeopardize its operation because
of some protest. Please refer to latest MRFC report and Volume IV.
5.1 Impact Mitigation Plan
5.1.1 Progressive Revegetation
Re-vegetation work has started since 2000. As of June 2008, CMC has planted a total of 50,777
assorted trees with a total area of approximately 63.26 hectares. CMC strives to make diverse, as
much as possible, its reforestation work, considering the poor soil condition of the area. Most trees,
especially fruit trees found growing in other parts of Dinagat Island, are difficult to cultivate in Valencia.
The company per EPEP of 2000 to 2008 is mandated to plant 40 hectares or five hectares per year.
CMC, as of June 2008, exceeded the minimum target or has an advance planting of 23.26 hectares.
The re-vegetation activity has an average of 88.20% surviving rate as of June 2008. The growing trees
are subjected yearly thereafter for a periodic maintenance and protection program. Plates 5.1 and 5.2
shows the stages of rehabilitation with revegetation.
Before Final land form After revegetation
Plate 5.1 Waste dump rehabilitation

2004
2008
Plate 5.2 Revegetation of bare slopes with agoho
5.1.2 Separate Stockpiling of Topsoil
Separation of topsoil and sub-soil were being maintained by the company basically for rehabilitation
purposes in the future. Plate 5.3 shows how soil is conserved and later on used for rehabilitation.
Plate 5.3 Separation of top soil for future rehabilitation of mined-out areas

5.1.3 Road revegetation
Access road leading to the mine which will not be affected by quarrying/ mining operation were planted
with fast growing trees at least to enhance visual aesthetics of the affected area and in such a way it
serves as vegetation screen to the ill effects of the mining activities (Plate 5.4).
Good housekeeping is also implemented at all times. In addition, the company is also undertaking carp-
wide landscaping of its surroundings.
Plate 5.4 Planting of agoho trees along access roads and proper maintenance of
working environment
5.1.5 Pollution Control Strategies
5.1.5.1 Sediment control dam
Sediment or silt traps are constructed along the water discharge points coming from the mine pit, laterite
dumps, ore stockyard, and beneficiation area to prevent them from silting the marine environment.
The company has constructed Seventeen (17) settling ponds – SP1-A, SP2-A, SP2-B & C, SP3-A, SP3-
B, SP3-C, SP4-A, SP4-B, SP4-C, SP4-D, SP4-E, SP5-A, SP5-B, SP6-A, SP7-A & SP7-B, the excluding
mini-ponds along mine access roads. Lately, the company has constructed SP-8, to further contain the
runoff particularly at the causeway.
The existing settling ponds were already partially de-silted and repaired and it will be completed on the
next dry season or if the weather permits during the 1st and 2nd quarter of the year. The company will
also maintain small/satellite ponds, especially along mine-roads, in order to arrest surface water run-off
carrying silts. The company has a schedule for all de-silting activities of settling ponds and mini ponds,
and also collects water samples on monthly basis.

Mine-road networks will also be maintained through the establishment of canal, box culverts that will
direct water run-off into settling ponds constructed in strategic location of mine complex.
Water for domestic and industrial uses was sourced in small and shallow spring located near the mine
camp. The spring was enclosed and installed with electric water pump in order to pump water into the
water tank. The water tank then, distributes water to the company’s domestic and industrial uses.
For oil and grease, the used oil and grease generated from our equipment and machineries are placed
temporarily in drum readied for sale to recycling agents. The drainage system and the oil and grease
separator of the oil depot located at causeway area and generator sets will be periodically maintained.
5.1.5.2 Diversion banks/canal
If the need arises, diversion canals will be constructed to accommodate rainwater and storm water.
These will act as preventive by-pass for the settling pond to prevent overloading and failures. The size
of the culverts and canals could accommodate the maximum run-off rates during the rainy season. To
prevent erosion along these diversion banks, endemic species of trees, plant and grasses will be
planted along the banks and rip-rap will be installed where loose soil may be eroded. Canal and ponds
are regularly desilted as evidence by the documented activities in Plate 5.5.
Plate 5.5 Desilting of canals and ponds
5.1.5.3 Sewerage System
The company has no processing plant so no toxic chemicals are used. Possibility of contaminating
ground water is very nil. It only uses chemicals as reagents only for laboratory analysis. Chemical
wastes are stored in a designated storage tank.

Sewerage tanks for domestic wastes and garbage pits were constructed in accordance with sanitary
requirements and designs of the municipality; purpose of which is to prevent them from polluting the
environment (Plate 5.6).
Plate 5.6 Sewerage tank and sanitary landfill of the company
5.1.5.4 Zero Waste Production
The company is also promoting zero waste production or recycling of waste materials through selling of
used oil to a registered transporter, reuse of used bond papers by the commissary for vale material
purposes, and others.
However, laterite wastes are being disposed to the laterite dumping area or waste dump site at the Mine
Yard 10 for further rehabilitation use in the future.
5.1.5.5 Fuel Storage Area
All fuel storage areas are being provided with containment to enable to collect oil spillage that might
contaminate our soil. Likewise a drainage canal and an oil-water separator is also installed to protect
further the gate away of any oil sediments.
An oil–water separator was also constructed so that used oil spillage will be collected and contained in
this facility, thus, will separate used oil from water.
Plate 5.7 presents the environmental controls against oil contamination.

Plate 5.7 Fuel depot at the causeway lined canal to collect oil wastes straight
into oil collectors
5.1.5.6 Domestic Waste Management
Every area or facility is equipped with permanent garbage container (Plate 5.8) so that all solid waste
will be collected and properly segregated. Proper collection, storing, and disposal of waste materials
were also implemented. This refers to RA 9003 (Ecological Solid Waste Management Act of 2000).
Plate 5.8 Garbage bins installed in strategic areas of the mine site

5.1.5.7 Measures to Reduce Dust Generation
Generally, the wind direction during the northeasterly “Amihan” and Southwesterly “Habagat” winds
does not affect directly the two host communities (Sitio Baliwan and Valencia proper), and so with dusts
carried by these winds. The airborne dust as being observed is generally directed into the sea (Pacific
Ocean) and not into the populated areas of the barangay.
However, in order to minimize the generation of dust, the company employs the following activities to
suppress airborne dust, mainly due to mining operation.
1. Regular water spraying of all haulage areas, including barangay roads, especially during dry
season on the months of May to September. This year, the company employs three (3)
water Lorries.
2. Periodic grading of haulage areas.
3. Periodic road matting of haulage areas.
4. Create dust barriers through planting of trees at roadsides of barangay roads and mine
access roads.
So far, CMC doesn’t have any violation or major problem or issues from the local residents pertaining to
airborne dust since there are intermittent rain even in noted dry months.
Last June 2004, CMC procured a High Volume Sampler for Ambient Air. CMC could now make a self-
monitoring of ambient air in the area. This refers to RA 8749 (Philippine Clean Air Act of 1995).
Aside from regular spraying on roads especially during dry season (Plate 5.9), loaded trucks are also
being covered with canvass/plastic to prevent dust from escaping. Furthermore, planting activities in the
environment are being hastened to by the proponent in order to reduce wind velocity and minimize dust
mobilization.
Plate 5.9 Strategies to reduce dust generation

5.1.5.8 Regular Vehicular Emission Check up
The company purchased several brand new units of light and heavy vehicles to minimize emission
problems.
5.1.5.9 Noise Abatement
Generally, the residents will not be affected by noise generated from mining operation. Since, the mining
area is relatively far from the two (2) communities: a) Valencia Proper - two (2) linear kilometers away;
and b) Sitio Baliwan - one (1) linear kilometer away. In addition, the mining operation is located above
100 meters amsl. While the two communities are located 1 to 5 meters amsl. The above-mentioned
distance because a buffer sound barrier between the mining operation and the community.
Despite the above mentioned differences in distance and elevation of the active mining area with the
community, the company will undertake the following measures to limit the noise generated from road
vehicles and off-highway trucks:
1. Regular check-up and periodic replacement of mufflers.

2. Periodic maintenance of equipment.
3. Drivers are advised to slow down when traversing mine camp area and barangay roads or
near residential houses.
4. To create sound barriers by planting of trees along roadsides of barangay roads and mine
access roads.
5. The public road network system is 2 k.m. away from the mine operation.
On the other hand, noise produced from explosion of explosives in mining will not be undertaken in the
operation. Instead, rock breaker will be utilized in breaking hard ore materials.
All year round, the company conducts noise monitoring on monthly basis. Please see attached 2008
2nd Quarter Result. All results taken were in accordance with the standard set by the DENR . Thus, its
levels do not exceed the standard.
Plate 5.10 shows the measures to abate noise generation.
Plate 5.10 Top – Buffer zone shielding community from noise pollution; regular maintenance
of heavy equipment; Bottom – regular monitoring of noise quality

5.1.6 Adopt-A-Forest, Adopt-A-Mountain Program
The company becomes an accredited bonafide member of the “Adopt a Tree, Adopt a Mining Forest
Movement” pursuant to the provision of DAO No. 22, Series of 1989. It was approved by Benjamin T.
Tumaliuan, CESO IV, Regional Executive Director of DENR, Caraga Administrative Region last
November 25, 2002. Since then, the company promptly submitted semi-annual reports to MGB-XIII.
The company through an internal memorandum dated December 8, 2007, designated nine (9)
Deputized Forest Guards to its 697.0481 ha. MPSA. The designation on top of their present positions is
very essential in the protection of our forest products. These Forest Protection crew have also
undergone training on Forest Protection, to ensure their capability to handle the job legally.
Plate 5.11 shows the results of the reforestation programs. Plate 5.12 on the other hand presents other
approaches to ecological enhancement.
August 2006 June 2008
Before 2007 2008
Plate 5.11 Reforestation program of the company. To date, a total of 63.26 have been
planted with 50,777 local, exotic, and fruit-bearing trees in denuded areas

Plate 5.12 Top - A herbal garden and agoho seedlings in the Nursery; Bottom –
Vermicast facility
5.1.7 Coastal Resource Management Program
5.1.7.1 Gaas Bay Marine Protected Area
The company is collaborating with the Local Government Units of Cagdianao and Valencia in
establishing the 80 has. Marine Protected Area of Gaas Bay. Hence, a Memorandum of Agreement
between the aforementioned entities was prepared for the benefit and interest of the people of Valencia
and its neighboring coastal communities. The project aims to protect 80 has. marine resources of Gaas
Bay, thus, ensuring a sustainable livelihood of fishing in the future. Please refer to attached document in
item VIII.4.
CMC established a 80 has. marine sanctuary at Gaas Bay of Barangay Valencia, which was launched
last August 3, 2005, with an aim to protect, conserve and manage its coastal and marine resources for
its sustainable use in the future, for the benefit of the community. The company not only provides
financial assistance in its implementation and management but also conducts regular monitoring for its
development and caters all matters for its maintenance such as the installation of billboards, buoys,
repair of “bantay dagat” guardhouse pump boat, and etc.
Plate 5.13 show the marine protection activities of the company with attendant monitoring.

Plate 5.13 Top- Gaas BayMarine Protected area; Bottom – quarterly monitoring
of the MPA
5.1.7.2 Leadership Training For Bantay Dagat Members
The Monitoring and Evaluation Section of DENR CMMD-Caraga conducted Leadership Training for the
MPA Management Committee/Bantay Dagat members last October 22-23, 2007 at CMC Training
Center (Plate 5.14). Another training was held last March 11-13, 2008 on Fishery Law Enforcement
System and at the same time deputation for the newly recruit bantay dagat members (Plate 5.15).

Plate 5.14 Training of bantay dagat members
Plate 5.15 Training on Fishery Law Enformecement
5.1.8 CMC Vermi Cast Center
The company thinks that the continuous use of chemical fertilizers to our plantations could only deplete
the valuable nutrients present in the soil but rather than becomes poisonous to the plants later on.
On August 21, 2007, the Vermi Cast Center of Cagdianao Mining Corporation has formally opened its
door on natural plantation method (Plate 5.16). At least 3 kilograms of vermi taken from Xavier
University’s Manresa farm were re-cultured for mass production. Vermi or earthworms in common word
are the best source of organic fertilizers.
Initially, the company has reproduced at least 250-300 kgs. of soil medium as food materials for vermi.
At 2-3 months time 75% of it will be harvested and becomes an organic fertilizer and ready to be utilized
by the plants. Organic fertilizer contributes at least 50% of its usage to the plants. Although at first or

second time chemical fertilizers are still to be considered but later on the plantation by the use of organic
fertilizers are among the priority concept of CMC towards the success of its rehabilitation in the future.
The project shall also serve as a technology transfer to the community particularly their Bio-intensive
Gardening’s Food Always In The Home Project (FAITH).
Plate 5.16 Vermicast facility
5.1.9 Agro-Forest-Nursery
With an area of 200 sq.m., the plant nursery can hold a total capacity of 20,000 seedlings and among
the nursed seedlings are namely; jackfruit, mango, durian, marang ,cacao, agoho, Acacia mangium
(Plate 5.17). Nine male tree planters and other three female planters carry out all nursery activities until
the final planting in the field.
Plate 5.17 Agro-forestry nursery
5.1.10 Agro-Forest-Plantation
A total area of 63.26 hectares has been planted to date for the agro-forest-plantation. Different fruit
bearing trees were introduced in these areas such as jackfruit, marang, mango, durian, cacao, santol
and macopa while forest trees include agoho, Acacia mangium and some other local species (Plate
5.18)..
Guest’s Green Park Promotion – Guests were enjoined to plant trees at CMC Guests’ Green Park as
part of education on tree planting campaign by which seedlings were being distributed to individuals and
groups (Plate 5.19).

Plate 5.18 Agro-forestry plantation
Plate 5.19 Tree planting at the guest tree park
5.2 Environmental Monitoring
5.2.1 Water Quality
The company has monitored water quality from all specified stations/area on monthly basis (Photo 5.1).
This is to ensure that the effluent meets the government (DENR) standard regularly. Run off water
during rainy days were also monitored. The company does not use any chemicals in the mining
operations. All run-off and mine water does not exceed DENR standards.

Photo 5.1 Monthly monitoring of water quality
5.2.2 Air and Noise Quality
The company conducts regular monthly monitoring for air quality during its peak period, the 2nd and 3rd
quarters, wherein mining operations are on its full blast (Photo 5.2). The company has also purchased
an In-house Ambient Air Quality Monitoring Equipment intended for this purpose. This refers to RA 8749
(Philippine Clean Air Act of 1995). Please see attached In-house results-2nd Q. 2008. Based on recent
results, the air quality assurance does not exceed the maximum standard set by the DENR.
Photo 5.2 Monthly TSP and Noise monitoring
5.2.3 MMT Monitoring
The Multipartite Monitoring Team (MMT), a group which is composed of members from the government,
private, community, company, church and others, is tasked to monitor all measures implemented on the
part of environmental management system of the company, to check the effectiveness and to ensure
that everything is complied well (Plate 5.20).

Plate 5.20 Quarterly MMT monitoring of CMC ECC compliance
5.3 IEC and Social Development Program
The SDMP program of the company was conceived and approved by the community, through the
Technical Working Group-Speakers Bureau (TWG-SB) of Barangay Valencia composed of the
following: Brgy. Chairman, all Kagawad members, representatives from the Health Sector, DECS
Valencia, Purok Leaders (Purok 1, 2, 3,4,5, and 6 ), the Youth Sector, and the CMC CRDO. The
membership will expand in the future to include other sectors. The TWG-SB meets regularly on a
quarterly basis and on special /emergency cases that needs prompt attention.
The TWG-SB also conducts consultation meetings with specific sectors of the host community on its
specific concerns and needs, e.g. women, unskilled male laborers, senior citizens, fishermen, and those
engaged in backyard gardening and the planting roots crops.
Aside from the TWG-SB group, the CMC CRDO organized a “Tagbo System” or “Bayanihan System” in
implementing community development projects. Through this system, the community pledges ready
“labor” as counterpart in implementing majority of the community development projects.
For 2006-2010 SDMP implementation, the programs and projects will focus on skills training, identify
livelihood projects, and conduct comprehensive socio-economic survey in preparation for its
implementation.
Initial small-scale livelihood projects that have been implemented include promotion of backyard
gardening, establishment of “payaw” to improve fish catch, planting of root crops (cassava and camote)
and industrial training to ensure that the community will be prioritized in hiring, especially for skilled labor
requirements (equipment operators, mechanical shop trainees).
CMC incurred a 188.91% on top of its 2007 ASDMP (Annual Social Development Management Plan )
and 116.85 % on top of its 1st Semester 2008 ASDMP. It is not to mention those projects that are not
creditable to 1% DMMC- those projects outside the host community. Please find attached. The “2006
Summary Report of ASDMP, 2007 1st semester Report of ASDMP.
5.3.1 Skills Training
Skills training were conducted for the local residents to alleviate their way of life by acquiring new skills
and techniques which are very useful to the company. It is imperative to analyze that such trainings
generates employment amongst the locals (Plates 5.21 and 5.22).
CMC provides 100% employment to all unskilled labor, while at the same time, undertaken Skills
Training Program in close coordination with T.E.S.D.A.

Since its operation in 1999 a total of 84 graduates for Heavy Equipment Operations and for Auto
Mechanic and Electricity and being employed by CMC. Another initiative of the company is the in house
training of Spotter and Sampler for Valencia Residents. All of the participants were employed upon
completion of the training.
Plate 5.21 Top – Actual hand-on training on heavy equipment operation; Bottom -
Heavy Equipment Mechanic and Electricity Training (TESDA Sanction)
Plate 5.22 In house Spotter and Sampler Training for Valencia Residents
5.3.2 Livelihood Training
CMC focuses on identifying the appropriate livelihood projects for the community. It’s continuing
venture, leads to a trainings that suite for the locality, after a series of consultations and Pulong- pulong.
Therapeutic Massage Training Galing Masahista Ako (GMA) was initiated then, last June.5, 2008 to
June 17,2008, in close coordination with T.E.S.D.A. . The training was participated by Men & Women
from local resident. Twenty-two (22) local women graduated from the course.

A liveliood project on Therapeutic Massage Training was launched, last July 22, 2008. Twenty-two
successful graduates made an organization called (MTV Inc.). Massage of Valencia Inc (Plate 5.23).
Plate 5.23 Massage training
5.3.3 Medical Assistance
CMC religiously provides Medical assistance to the community, to include First Aid Medicines and
Routinary Check – Up. Community recipients of the Medical services extended by the company is
attached.
In addition to the total commitment of the Company on Medical assistance, Cagdianao Mining
Corporation in cooperation with Dinagat Area Health Zone, conducted Dental and Medical Outreach
Program (Plate 5.24).
Plate 5.24 Dental and medical services to the community
5.3.4 Educational Assistance
CMC continually implements its Comprehensive Educational Assistance Program to its adopted school
by providing needed School facilities such as construction and repair classrooms and other buildings
and logistics (Plate 5.25). Honorarium of five (5) volunteer teachers were also provided by CMC .So
with the honorarium of the of the Day Care Teacher.

Plate 5.25 CMC donates classrooms and 1 faculty room, 4 brand new computer sets,
and a Home Economics Building to the community
5.3.5 Socio-cultural activities
It has been a traditional practice of the company to participate in every Cultural Events in the locality
(Plate 5.26). Such events extend up to the financial support during Fiesta Celebrations, School Major
Activities such as Graduation Rites, Buwan ng Wika and Nutrition Month. CMC also involves in some
Religious Activities.
Plate 5.26 Participation in local socio-cultural affairs – Left: Nutrition Month Celebration; Right:
Cagdianao Fiesta

5.3.6 Vital Community Infrastructures and Other Projects.
As part of the Social commitment with the host community, Infrastructure projects were implemented
(Plate 5.28). Such Projects includes Construction of Sea Wall, Water System and Bridges to mention
few. A farm to market roads were also constructed and maintained. Electrification of the Barangay is
also provided.
Sea Wall Foot Bridge
Plate 5.27 Construction of vital social infrastructures in the host barangay
Plate 5.28 Left – repair of barangay health center; Right– construction of mini-dam
5.3.7 Meetings and Consultations
CMC’s CRDO Team conducted series of assembly meetings and public consultations with the local
residents, regarding employment opportunities, SDMP projects and Activities of the Company (Plate
4.29).
Transparency of the Company’s activities is well practice in fact some groups/ organizations within the
community were formed to have a direct address to every issues that may arise.

Regular CTWG Meeting
Consultations with LGUs
Plate 5.29 Regular consultation with the CTWG and LGU
5.3.8 IEC Activities
Activities of CMC-ICE are as follows:
1. Katilingban ug Kinaiyahan Newsletter - CMC is a regular contributor to the “Kinaiyahan

ug Katilingban” Newsletter sponsored by the Bureau of Mines XIII and Chamber of Mines Caraga
Region. The News Letter is released quarterly. Attached.
2. “Valencia Waves” Newsletter - CMC has organized a newsletter (Valencia Waves) that
caters to both The Company and the community. More over, it has activated its publication on August
2006 with its target release on the last quarter of the Year.Attached
3. Radio Co-Hosting - CMC is a regular co-host of the Radio Program “ Kinaiyahan ug

Katilingban” The CMC during the said program co-hosting, brings along representatives from the host
communities to give witness to the environmental and community development activities of the
company. Also, the company is presently considering its test broadcast for a local F.M. station. Once
materialized, the company will intensify its ICE programs.
4. Provision of Technical Information - A great urge of the company to be well understood by the
community. Technical information on layman’s language were provided. Such activities are on the
information campaign on Coastal Management, Garbage Segregation and on Safety and Health
awareness Program.
Plate 5.30 shows the proofs of the company’s IEC activites.

Plate 5.30 IEC tools of the CRDO-ICE
5.3.9 Mine Tours
Mine tours are being facilitated for the host/neighboring communities, LGU and NGO’s (Plate 5.31). The
Local Government Unit of Loreto visited Cagdianao Mining Corporation,for they believed on the feed
back that the company is practicing the true “Responsible Mining” concept.

LGUs from Municipality of Loreto,Surigao del norte TESDA Staff from Province of Dinagat Islands
Vice Mayors League of the Philippines, Surigao

del Norte Chapter
Plate 5.31 Mine tours from various interest groups

5.4 Environmental Risk Management and Emergency Response Programs (ERP)
The company has prepared Emergency Response Plan and Disaster Preparedness (ERPDP) Program.
The purpose is to conduct an information and education campaign on the project and its attendant
hazards/risks to the community; to make the community aware of the potential natural risks in the
project area and vicinities; to define and establish functional responses of various groups in the event of
an industrial accident or natural disaster; to conduct training, seminar, and actual drill on emergency
situations; to support the formation and activation of the Municipal Disaster Coordinating Council
(MDCC);to integrate industry emergency plans to the LGUs emergency plan (s); and to consult and
involve the community, the LGUs and the various sectors of local society in the formulation, design and
implementation of an emergency response plan. The Emergency Response Plan and Disaster
Preparedness (ERDP) Program is shown in Annex J.
CMC has also developed its own Safety and health Programs and Mine Safety and Health Rules and
Regulations (MSHRR). Cagdianao Mining Corporation submits a monthly General Accident Report to
the Mines and Geosciences Bureau Caraga Region and the Department of Labor and Employment
Caraga. The monthly report details the following:
 General Accident Report

 Man-hours Computation and Summary
 Safety Performance Update
 Issuance of Personal Protective Equipment
 Report on Accidents or Illnesses
 Medical Report
 Minutes of the Central Safety and Health Committee Meeting
From July 2007 – June 2008, the company has incurred of about two million one thousand one hundred
fifty three and thirty one (2,001,153.31) man-hours worked with only six (6) days lost time accident
(Table 5.1). This is the only period where the company incurred lost-time accident. As such, CMC was
a regular winner in the Surface Mining Category for safety practices. A year-to-year comparison is
presented in Figure 5.2.
The low accident rate of the company’s operation is a result of a combination of pre-employment safety
orientation, continuous safety training, installation of safety signs, and strict wearing of appropriate
safety gears (Plates 5.32 to 5.36)..
Table 5.1 Accident statistics of CMC from July 2007-June 2008
a. Company
LTA Number of
Month NLTA Days Lost Manhours
NF Fatal Employees
July - 07 0 0 0 0 306,251.58 1495
August - 07 0 0 0 0 254,904.03 1323
September - 07 0 0 0 0 212,050.76 1037
October - 07 0 0 0 0 215,613.06 1022
November - 07 0 0 0 0 68,055.56 381
December - 07 0 0 0 0 34,816.98 234
January - 08 0 0 0 0 48,575.21 267
February - 08 0 0 0 0 59,550.59 316
March - 08 0 0 0 0 91,086.44 541
April - 08 0 0 0 0 135,922.38 808
May - 08 1 0 0 0 176,832.72 883
June - 08 0 1 0 6 242,000.00 1031
TOTAL 1 1 0 6 1,845,659.31

b. Service Contractors
LTA Number of
NF Fatal Employees
July - 07 0 0 0 0 7,240.00 32
August - 07 0 0 0 0 12,272.00 51
September - 07 0 0 0 0 9,192.00 45
October - 07 0 0 0 0 7,704.00 39
November - 07 0 0 0 0 7,200.00 30
December - 07 0 0 0 0 7,200.00 30
January - 08 0 0 0 0 7,200.00 30
February - 08 0 0 0 0 7,200.00 30
March - 08 0 0 0 0 7,200.00 30
April - 08 0 0 0 0 12,960.00 42
May - 08 0 0 0 0 10,176.00 42
June - 08 0 0 0 0 59,950.00 107
TOTAL 0 0 0 0 155,494.00
c. Combined Company & Service Contractors

LTA Number of
NF Fatal Employees
July - 07 0 0 0 0 313,491.58 1527
August - 07 0 0 0 0 267,176.03 1374
September - 07 0 0 0 0 221,242.76 1082
October - 07 0 0 0 0 223,317.06 1061
November - 07 0 0 0 0 75,255.56 411
December - 07 0 0 0 0 42,016.98 264
January - 08 0 0 0 0 55,775.21 297
February - 08 0 0 0 0 66,750.59 346
March - 08 0 0 0 0 98,286.44 571
April - 08 0 0 0 0 148,882.38 850
May - 08 1 0 0 0 187,008.72 925
June - 08 0 1 0 6 301,950.00 1138
TOTAL 1 1 0 6 2,001,153.31 821
(NF + Fatal) x
Frequency Rate (FR) 0.50 FR = (1,000,000)
Total
Manhours
Severity Rate (SR) 3.00 Worked
(Days Lost) x
Incident Rate (IR) 1.00 SR = (1,000,000)
Total
Manhours
Combined F-S Rate (CFSR) 0.75 Worked
(NLTA + NF +
Fatal) x
Note: Accidents resulting Property Damage IR = (1,000,000)
without personal injury, and First Aid Total
Cases shall be reported as NLTA.
Manhours
Worked
CFSR = (FR) x (SR)
2

6
5.5
5
4
Frequency Rate (FR)
3 Severity Rate (SR)
2.31 Incident Rate (IR)
2 1.94
Combined F-S rate (CFSR)
1
1 1.01 0.94 0.82
0.75
0.5
0
Jul 01-Jun 02 Jul 02-Jun 03 Jul 03-Jun 04 Jul 04-Jun 05 Jul 05-Jun 06 Jul 06-Jun 07 Jul 07-Jun 08
Figure 5.1 Year-to-year comparison of accident rate
Plate 5.32 Pre-employment orientation on company safety policy

Plate 5.33 Training on fire safety
Plate 5.34 Top and Middle – rescue and first aid training; Bottom – oil spill emergency training
attended by safety inspectors of the company

Plate 5.35 Provision of traffic/safety sign boards along roads and in the workplace
Plate 5.36 Provision of protective personnel equipment (PPE)

5.5 Abandonment/Rehabilitation Program
The company has yet to start its rehabilitation by year 2010, although progressive revegetation within
the buffer zone is maintained. Seedling production is a continuing activity to revegetate open areas and
along road slopes. Abandonment/rehabilitation plans are detailed in the Final Mine Rehabilitation and
Development Plan (Annex K).
5.6 Institutional Set-up
In compliance with the Philippine Mining Act, the CRDO and MEPEO report directly to the Resident
Manager (Figure 5.2). The Community Relations and Development Office and the Mine Environmental
Protection and Enhancement Office (MEPEO) are responsible for the implementation of the Social
Development and Management Program and the Environmental Protection and Enhancement
Program/Final Mine Rehabilitation and Development Plan (FMRDP), respectively. Complaints,
depending on their nature are either handled by CRDO or MEPEO.
Resident Mine
Manager
MEPEO
Environmental
Coastal DEMO Farm/
Environmental Reforestation and Engineering
Management Landscaping and ICE Program
Monitoring Rehabilitation Structures and
Program Research Center
Maintenance
Figure 5.2 Organizational chart of CMC for social and environmental commitments
5.7 Achievements, Awards, and Environmental Accomplishments
CMC has garnered a total of 18 awards summarized as follows and has also won in this year’s
PMIEA/PMSEA competition:
1. THE PHILIPPINE MINE SAFETY & ENVIRONMENT ASSOCIATION
Winner, SAFEST MINING OPERATION AWARD 2007

Winner, SAFEST SURFACE OPERATION AWARD 2007
Winner, SAFEST SURFACE MINING OPERATION AWARD 2004
Runner-up, SAFEST SURFACE MINING OPERATION AWARD 2003
Runner-up, SAFEST SURFACE MINING OPERATION AWARD 2002
Winner, SAFEST SURFACE MINING OPERATION AWARD 2001
2. THE PRESIDENTIAL MINERAL INDUSTRY AND ENVIRONMENT AWARD
TITANIUM ACHIEVEMENT AWARD, Surface Mining Operation, 2007

PLATINUM ACHIEVEMENT AWARD, Surface Mining Operation, 2004
PLATINUM ACHIEVEMENT AWARD, Surface Mining Operation, 2002

3. DEPARTMENT OF LABOR AND EMPLOYMENT (DOLE-CARAGA)
2006 BEST EMPLOYER (CARAGA)

2004 BEST EMPLOYER (CARAGA)
4. BUREAU OF INTERNAL REVENUE (BIR)
One of the Top Corporate Taxpayers of the Philippines for 2006
The company is also a recipient of many citations such as:
1. TECHNICAL EDUCATION & SKILLS TRAINING DEVELOPMENT AUTHORITY (TESDA)

Recognized for: Implementation of Dual Training System (DTS)
Date Received: October 28, 1999
Recognition gained: 2000 KABALIKAT NOMINEE (Institution Category)
Date Received: August 24, 2000
Venue: Taguig, Metro Manila
Recognition gained: 2000 REGIONAL KABALIKAT AWARD (Industry Category)
Venue: Tavern Hotel, Surigao City
4. SURIGAO DEL NORTE TRIPARTITE INDUSTRIAL PEACE COUNCIL (SUDENOR-TIPC)
& THE CITY GOVERNMENT OF SURIGAO
Recognized for: 2005 Nominee for the Search for Outstanding Employer
Venue: Surigao City
Recognized for: Implementation of Dualized Training Program (DTP)
Venue: Butuan City
Recognized for: Implementation of Kasanayan at Kabuhayan Program, 2005
Venue: Butuan City
7. OCEAN CONSERVANCY
Recognized for: Outstanding & Dedicated Service to the 2006 “International
Coastal Clean-up”
8. DEPARTMENT OF ENVIRONMENT & NATURAL RESOURCES - CARAGA REGION
Recognized for: Support to the Launching of Green Philippine Highways
Project & Human Chain of Tree Planters
Venue: Province of Surigao del Norte
Recognized for: Implementation of Dualized Training Program (DTP)
Venue: Butuan City
10. DEPARTMENT OF LABOR AND EMPLOYMENT (DOLE)
Recognized for: Support & Assistance during the “Araw ng mga
Manggagawa 2007”
Date Received: May 01, 2007
Venue: Butuan City
Recognized for: BEST DTP PARTNER
Venue: Butuan City

6. Environmental Management Plan
6.1 Impact Management Plan
The focus of environmental mitigation and enhancement during the expansion phase is to build upon
and improve on existing environmental structures to further minimize siltation of surface and coastal
waters particularly at the causeway, suppress dust generation, bring down noise levels, enhanced
revegetation of open areas, and strengthen the management and monitoring of the Gaas Bay Marine
Protected Area. Impact management plan and environmental monitoring plan are shown in Table 6.2.
6.1.1 Soil Erosion Control
Major erosion sources are mining areas stripped of vegetation, road cuts, and bare slopes arising from
road construction. Proper benching and super elevation of benches are implemented to keep erosion at
minimum. Riprapping of areas prone to erosion and use of slope stabilizers (creepers) are also
implemented to minimize erosion on steep slopes.
6.1.2 Coastal Erosion Control
Rehabilitattion of the causeway (Photo 6.1) complete with a high capacity drainage system will address
future problems on erosion and siltation of coastal waters at the Baliwan side of the mining claim. This is
also in preparation for the construction of a conveyor system to be used for the loading of ores into the
vessel in anchor.
Photo 6.1 Existing CMC Causeway

6.1.3 Dust Generation
Major dust-generating areas are haulage roads (Plate 6.1). When necessary, additional water lorries will
be acquired for peak production during dry months.
Plate 6.1 Watering of major roads to suppress dust generation
6.1.4 Stormwater Runoff Control Plan
The company has installed a series of silt ponds and dikes in strategic locations to contain stormwater
runoff during a heavy downpour (Table 6.1). Plate 6.2 shows the many settling ponds in the mining area.
Table 6.1 Location, Elevation, and Capacity of Dikes
Dike Number Location Top Elev. (m) Capacity (m3)

1 1-A West of Mine Pit Area 116 40,866
2 1-B Below Dike 1-A 110 12,000
3 2-A Below Old Stockyard # 1 114 7,650
4 2-B Below Dike 2-A 45 2,815
5 2-C Below Dike 2-A 45 2,815
6 3-A Below Old Stockyard # 2 75 14,205
7 3-B Below Dike 3-A 60 11,150
8 3-C Below Dike 3-C 46.5 6,600
9 4-A Above Pier Stockyard (Claudia) 24 6,784
10 4-B Above Dike 4-A 38 29,610
11 4-C Above Dike 4-B 65 13,770
12 4-E Above Dike 4-C (Parking Area) 128 52,640
13 5-A Causeway Area 2.5 400
14 6-A Mine Expansion Area 98 20,160
15 7-A Fronting CMC Mine Camp 3 240
16 7-B Fronting Campuroy Area 3 720
17 Mini Dikes Located at Mine Access Roads
TOTAL 222,425

Mine Pit
Silt Ponds
Plate 6.2 The mine pit and the many silt ponds installed
along strategic drainage areas
6.2 Environmental Monitoring Plan
The environmental monitoring plan is summarized in Table 6.3.

Table 6.2 Simplified Impact Mitigation Plan

Environmental
Project Phase /
Aspect
Affected
Operation Phase A. The Land
1. Geology Erosion  Proper benching
EIS, EPRMP,
Dust Generation  Maintenance of road berms CMC -MEPEO
ECC
 Revegetation with creepers
2. Flora Vegetation Removal Enhanced Reforestation in some areas FMRDP, EIS
CMC -MEPEO
EPRMP,ECC,
3. Fauna Wildlife Disturbance Noise minimization
CMC -MEPEO EIS, EPRMP
Other vegetation patches provide wildlife refuge
B. The Water
1. Marine Biology Siltation  Construction of additional siltation ponds including
those at the causeway, collector sumps, and other
drainage structures
 Desilting of creeks using a suction pump
 When necessary, install a turbidity curtain/containment
boom that will prevent the dispersion of silts and
localize silts within the causeways
 When necessary, periodic desilting of causeways using
CMC –MEPEO EPEP,EIS,
a high volume marine submersible pump that pumps
LGU EPRMP, ECC
turbid waters on shore and filter the silts in the process
Solid Waste/Oil-and-  Causeway should have the required oil spill emergency
Grease Pollution of kit, i.e., oil containment boom to contain oil slicks in
Coastal Waters case of accidental spills
Destruction of Coral  Enhanced Coastal Resource Management Program for

Reefs the Gaas Bay Marine Protected Area
2. Freshwater  Emplaced drainage plan that effectively traps silted
Ecology stormwater runoff from the mine site
 Construction of additional siltation ponds, collector CMC –MEPEO EIS, EPRMP,
sumps, sabo dams or check dikes, and other drainage and Eng’g Dept. ECC
structures
 Desilting of silted creeks using a suction pump
C. The Air
Air Quality Generation of Dust  Water spraying of working areas and hauling roads CMC –MEPEO
EIS, EPRMP,
 Periodic grading and matting of hauling roads and Mining Dept.
ECC
 Create green dust barriers on roadsides

Environmental
Project Phase /
Aspect
Affected
Noise Generation  Use of efficient well-maintained mufflers

 Periodic maintenance of equipment
 Speed reduction on dusty roads
 Establish green sound along roadsides
D. The People Non-assimilation of  Initiate social interaction
Cultural diverse cultures  Participate in local festivities
Social Resource  Provide CMC workers with in-house basic services to

Competition prevent competition with the community
CMC –MEPEO
EIS, EPRMP,
and Community
Proliferation of vices  Introduce prayer meetings, sports, skills development, ECC
Relations
etc.
Economics
Generation of work  Prioritize local hiring
and livelihood  Provide trainings for unskilled workforce
 Assist in livelihood creation
Abandonment Phase A. The Land

1. Geology  Physically rehabilitated mined-out areas CMC –MEPEO FMRDP,EIS,
and Mining Dept. EPRMP, ECC
2. Flora Vegetation Removal  Fully grown revegetated areas offsetting vegetation EIS, EPRMP,
CMC –MEPEO
removal ECC
3. Fauna Wildlife Disturbance  Restored habitats/reforested areas allow repopulation EIS, EPRMP,
CMC –MEPEO
of wildlife ECC
B. The Water
1. Marine Biology Siltation  Silt-generating processes are further minimized FMRDP, EPEP,
CMC –MEPEO
ECC
Destruction of Coral  CRMP well sustained and economic opportunities via
CMC –MEPEO FMRDP
Reefs ecotourism are viable and thriving
2. Freshwater Siltation  Silt-generating processes are further minimized
CMC –MEPEO FMRDP
Ecology

Table 6.3 Environmental Monitoring Plan
Frequency of Applicable Budget (P)1

Impact Areas Parameters Method of Analysis
Implementation Standard
Biweekly Ecological Solid 100,000.00/y
o Solid waste production
Daily Waste Act
o Cleanliness and orderliness
Weekly
o Stability of the slope, access road,
Weekly Mining Act
stockpiles, and overburden stockyards
Mining Area and associated structures
o Effectiveness of environmental structures
(anti-erosion systems, settling ponds)
Monthly
o Rehabilitation areas and reforestation
program Monthly
o Coastal Clean up/Causeway
Ambient Air and Noise Quality
TSP Monthly Clean Air Act High Volumetric Sampler
Noise Monthly Noise Meter 100,000.00/y
NO2 Quarterly
SO2 Quarterly
Water Quality
Monthly DAO 34/35 Multiparametric Probe 200,000.00/y
pH
Monthly Water Quality Act Gravimetric Method
 Surface/Marine TSS
Semi-annual Alpha9221E
Bacteriological (Total Coliform)
Semi Annual Gravimetry- Petroleum
Oil and Grease
Ether
Annual National Drinking Alpha9221E 100,000.00/y
 Drinking Bacteriological (Total Coliform)
Water Standards
Biological Environment
 Gaas Bay Marine Protected Quarterly Brower, 1989 Ecological Survey 300,000.00/y
Area Species diversity, density, abundance, other Annual English, 2001 Methods 100,000.00/y
 Terrestrial and freshwater quantitative ecological measures Bibby, 1992
biodiversity
Socio-economic conditions of host Quarterly DAO Social Assessment 1% DMMC/y
Development Programs
communities2 Semi-Annual 2000-99 Methodologies
Implemented
Annual
1
Included in EPEP Budget, 2Included in SDMP

6.3 Social Development and Management Plan Program (SDMP)
6.3.1 Objectives of SDMP
The main objective of SDMP is to uplift the socio-economic situation of the impact area as well as the
entire municipality of Cagdianao. The social development management plan framework will serve as
a basis for the implementation of the SDP to ensure that the probable environmental and socio-
economic impacts of the nickel mining project are addressed. The overall focus of the SDP is to
mitigate major impacts which include health and safety programs, environmental protection and
alternatives to livelihood programs of the affected community. CMC Corporation will take the local
needs in making strategic partnerships with all concerned stakeholders that include the local
government units, non-government organizations, and people’s organizations.
The plan is formulated based on the series of consultations and discussions with the different
stakeholders in the municipality and its current learnings from the on-going operations. It will contain
in detail all the strategies and activities to be carried out by the multi-partite monitoring group and the
proponent in close partnership with the local government, barangay council, local organizations and
other concerned group or agencies.
6.3.2 Social Strategies
The SDMP covered major components namely: environmental protection; livelihood and enterprise
development; community strengthening and organizational development; education; health and safety
works; infrastructure (rehabilitation of existing road, construction of mining road, school building);
financing strategy; and monitoring and evaluation. These components were identified based on the
present situation of the area and the result of social impact assessment, series of consultations with
the different sectors in the affected area where their issues and concerns were raised and discussed.
6.3.2.1 Dental and Medical Outreach
Cagdianao Mining Corporation in cooperation with Dinagat Area Health Zone conducted Dental and
Medical Outreach Program. Coverage activities of the program include circumcision, pop smear, tooth
extractions, IUD insertion and removal; and medical consultations in general. In one occasion, there
were 463 recipients of the program, residents from Valencia and its neighboring Brgys like Boa,
Legaspi and Maytubig. Vitamins and Medicines were also given free during consultations (see
attached photos in annex). This activity has become a regular engagement by CMC.
6.3.2.2 Skills Training on Sewing and Dressmaking
From October 10, 2005 to November 24, 2005, CMC initiated skills Training on Sewing and
Dressmaking in coordination with MSWD and TESDA. The training were participated by women from
local resident. Objective of the training is not only on the technological enhancement on sewing for
women but rather to develop its productive role from doing the traditional reproductive role as partner
of men in development. Fifteen (15) local women graduated from the course and hopefully will engage
in self or open employment. Some however, were able to get job placement offshore. This is a
continuing training in the host barangay.
6.3.3 SDMP Implementation
6.3.3.1 Background
With the advent of the DENR Administrative Order No. 2000–99 amending Sections 134-136 of
DENR Administrative Order No. (96-40, the Revised Implementing Rules and Regulations of Republic
Act No. 7942, otherwise known as the “Philippine Mining Act of 1995); all existing mining companies
are mandated to make a 5-year Social Development and Management Program (SDMP) for mining
community/s or host community. The funds for the project/s shall be credited from the 1% annual

Direct Mining and Milling Cost (DMMC) of the company. The 1% DMMC is sub-divided into two (2):
the big chunk of 90% is apportioned to projects and activities considered to enhance the development
of the host and neighbouring communities. “The remaining 10% is appropriated for the developing of
mining technology and geo-sciences, as well as the corresponding man-power training and
development”.
CMC, being aware of the social responsibility towards its mining host community, as part of the
primary stakeholders, has committed to apply beyond compliance not only with the above-mentioned
laws and regulations but also all other applicable legislative standards, laws and regulations and
internationally recognized standards.
Before the approval of DENR AO No. 2000–99, CMC has been eagerly implementing the
development and social welfare programs for its host community. It has been done in close
coordination with the IEC/CD section that helped in giving right directions to the program along with
other mining companies in the region.
On its 2nd SDMP phase, the company focussed on developing basic infrastructure and welfare
projects for the host community. This trust does not negate on the over-all objective of MGB XIII/IEC-
CD Section and supported by the MRFCs in Caraga Region to give more preferences or emphasis on
sustainable livelihood programs for mining host communities.
6.3.3.2 Implementation
The Mines and Geosciences Bureau (MGB) has approved the SDMP submitted by CMC as contained
in Table 6.4. The actual implementation has gone beyond or exceeded its target financial projected
plan. Based on its annual report to MGB, CMC has actually contributed Php 4,981,758 to the
development of Cagdianao, particularly to Barangay Valencia. This is on top of the 1% DMMC CY
2005 which amounted to Php 817,584.58 (Table 6.5). Hence, CMC received an employer’s award as
a result of a job well done. Reforestation, school (includes salary and accommodation of teachers)
and road constructions; marine sanctuary; and other socio-economic activities have been successfully
accomplished by CMC’s CRDO personnel. Another achievement of the project is the formation of
Employees’ Cooperative, wherein most or all of the company’s and employees’ provisions have been
provided by the cooperative’s program. As a result, CMC received awards from various agencies.
For the future, the company has a Social Development Plan already in place and the details are
presented in Table 6.6.

Table 6.4 MGB-approved SDMP as of Year 2001-2005
TARGET
PROJECT LOCATION TIMEFRAME COST
BENEFICIARIES
Livelihood Program 2001-2005 60,000.00
Construction of Payaw/Amatong and other marine-based and other Brgy. Valencia and Residents
marine-based livelihood technologies neighboring communities
Artificial reefing of the seawaters of Valencia
Industry-based livelihood
Education Program 180,000.00
Hiring of (3) elem. Teachers Brgy. Valencia Valencia Elem.

School
Health Program 50,000.00
Free first-Aid medicine and Medical consultations Brgy. Valencia and Residents/Health
neighboring communities Centers
Infrastructure Program 339,998.00
Valencia-Legaspi-Boa
Road construction Brgy. Valencia and Residents
Construction of Maraging Bridge neighboring communities
Rehabilitation of water system
TOTAL 629,998.00
(Source: MGB profile, see also attachment current 2005-2008 SDMP Framework)

Table 6.5 3rd Qtr 2006 SDMP Financial Monitoring and Evaluation Report (1% DMMC CY 2005 Php:817,584.58)
AMOUNT BASED ON ANNUAL BUDGET BASED ON PROJECT COST

PROJECT ANNUAL
UTILIZED
COST ALLOTMENT AMOUNT % TOTAL % TOTAL
PROJ / PROG / ACTIVITY (PPA) FOR THIS
5-yr Plan (CTWG) UTILIZED UTILIZED AMOUNT UTILIZED
QUARTER
TO DATE TO DATE TO DATE TO DATE
A B C D E (D/Bx100) F G (F/Ax100)
1. Creditable to 10% of 1% DMMC

1. a Newsletter/Radio Prog. - Kinaiyahan & Katilingban 100,000 20,000 4,700 9,400 47.00% 9,400 9.40%
1.b SDMP / IEC Mtgs,/Conferences/Consultations/Pulong Pulong 51,758 11,758 1,700 6,900 58.68% 6,900 13.33%
1.c IEC Related Trainings and Seminars 190,000 30,000 4,000 14,000 46.67% 14,000 7.37%
1.d IEC Related Info Materials incl. Equipment 140,000 20,000
Total 481,758 81,758
2. Creditable to 90% of 1% DMMC
2.a Socio- Economic Programs and ServIECs
a.1 Man-power Skills Trainings and Seminars 500,000 100,000
a.2 Trainings and Seminars for Income Generating Projects 1,000,000 200,000 _ 2,221 1.11% 2,221 0.22%
a.3 Group IGP Assistance Program/Livelihood Programs 1,000,000 200,000

a.4 Clam and Green /F.A.I.T.H. Program 310,000 62,000
Sub Total 2,810,000 562,000
2.b Valencia Infrastructure and Other Development Projects
b.1 Baliwan Electrification ( Fuel & Maintenance of Genset ) 500,000 100,000
b.2 Construction, Repair & Maintenance: Boa-Valencia-Legaspi Roads 200,000 40,000 _ 40,000 100.00% 40,000 20.00%
b.3 Construction of Sea Wall 95,000 25,000

b.4 Projects for Neighboring Communities
* Brgy. Boa, Cagdianao 55,000 9,000 9,326 9,326 103.62% 9,326 16.96%
* Brgy. Legaspi, Cagdianao 55,000 9,000 7,584 7,584 84.27% 7,584 13.79%
* Sitio Maytubig, Brgy. Bayanihan, Libjo 55,000 9,000 5,750 5,750 63.89% 5,750 10.45%
Sub total 165,000 192,000
2.c Socio Cultural and Basic Welfare & Dev't.Assistance/Projects

AMOUNT BASED ON ANNUAL BUDGET BASED ON PROJECT COST

PROJECT ANNUAL
UTILIZED
COST ALLOTMENT AMOUNT % TOTAL % TOTAL
PROJ / PROG / ACTIVITY (PPA) FOR THIS
5-yr Plan (CTWG) UTILIZED UTILIZED AMOUNT UTILIZED
QUARTER
TO DATE TO DATE TO DATE TO DATE
A B C D E (D/Bx100) F G (F/Ax100)
c.1 Free first aid Medicines and Free Clinics/Medical Mission 480,000 96,000 99,689 116,596 121.45% 116,596 24.29%
c.2 Honorarium for Brgy. Day Care Teacher 90,000 18,000 4,500 9,000 50.00% 9,000 10.00%
c.3 Provision of Individual Toilets 10,000 2,000 2,000 2,000 100.00% 2,000 20.00%
c.4 Socio-Cultural/Religious Activities 150,000 30,000 15,000 15,000 50.00% 15,000 10.00%
Sub total 730,000 146,000
Total 4,500,000 900,000
Grand Total 4,981,758 981,758
3. On top of 1% DMMC
3.a Comprehensive Educ'l Assistance Prog.-Valencia Integrated

School (VIS)
Construction and Repair of Classroom & Bldg.,Equipment &

Facilities, Perimeter Fencing, Honorarium of Teachers 1,500,000 300,000 56,044 56,044 18.68% 56,044 3.74%
Office Supplies & Other Improvements & Projects.
3.b Other Projects
b.1 Valencia Electrification (Fuel, Maint. Of Genset &
550,000 150,000 207,356 207,356 138.24% 207,356 37.70%
Street Lighting.
b.2 Renovation of Valencia sports Complex 50,000 50,000 50,000 100.00% 50,000 100.00%
b.3 Site Preparation for Valencia Wet Market 60,000 60,000 60,000 100.00% 60,000 100.00%
b.4 Repair of Water System of Valencia 40,000 40,000
b.5 Construction of foot Bridges: Purok 3, Purok 6 & Campuroy 20,000 20,000
b.6 Construction of Waiting Sheds 30,000
Total 2,250,000 620,000

Table 6.6 Social Development Plan for Barangay Valencia
Government Agency/Non-
Responsible Community
government Agency and Indicative Source of
CONCERN Member/Beneficiary Proponent
Services Timeline Fund
1. Relocation Barangay Chairman LGU – Municipal Assessor CMC Legal Officer Pre- CMC Corp.
Brgy. Valencia based on cadastral survey construction
Gender Responsive Association Chairperson LGU – Municipal Planning Pre-
Livelihood / Employment • Affected Women, Youth & Office CMC Corp. HR and construction
and Credit Facilities (Men, Elderly TESDA/TLRC Community Relations Construction LGU – IRA /
Women, Youth & elderly) Funding of small livelihood Officer Operation CMC Corp.
Women handicraft skills projects
High value crops for Skills training in handicraft and
farmers technical mechanic, driving,
Method of fishing for etc.
fisherfolks DA / BFAR
Technical training in farming,
fishing methods
2. Employment Organize FARMC, and BAFC
Job opportunity and local Provide seed/seedlings
hiring Provide production training for
Skills training for both high value crops
qualified and unqualified
workers
3. Health and Safety Barangay Kagawad for Health MHO Pre-
Provide Health services CMC Corp. HR and construction
Provide potable water Community Relations Construction LGU – IRA /
Provide supplemental feeding Officer Operation CMC Corp.
to malnourished children
Provide assistance to Senior
Citizens and Persons with
disability
Barangay Disaster
Management Training
4. Education and Barangay Kagawad for Education DepEd CMC Corp. and LGU – IRA /
Recreation Barangay Schools Setting-up of scholarship ComRel Officer CMC Corp.
program for qualified students
Literacy programs and Non-

Government Agency/Non-
Responsible Community
government Agency and Indicative Source of
CONCERN Member/Beneficiary Proponent
Services Timeline Fund
formal education
Out-of-school youth program
5. Environment and Barangay Kagawad for MPDO / ENRO CMC Corp. Community Pre-
Sanitation Environment Formulate training in CBFM Relations Officer construction LGU – IRA /
Reforestation Project Affected Community Solid waste management Construction CMC Corp.
Brgy. Solid Waste program Operation
Management Plan Reforestation
Water sealed toilets Establishment of forest
nurseries
Environmental monitoring
training -MHO
Health programs- MHO
Water sealed toilet provisions
6. Peace and order Barangay Kagawad for Peace LGU / PNP Chief Security Officer Pre-
and order Capacitate and Strengthen construction LGU – IRA /
Barangay tanods in peace Construction CMC Corp.
keeping Operation
7. Spiritual Barangay Assigned Catholic Parish Priest CMC Corp. Community Pre-
Priest, Pastor Relations Officer construction LGU – IRA /
Pastor of different denomination Construction CMC Corp.
or Ecumenical organization Operation

6.3.3.2.1 Environmental Protection
Majority of the population in Barangay Valencia are largely dependent on land and water resources as
their main source of income. It was known during the series of consultations, perception survey and
meetings that most of them are engaged into farming and they are worried that the mining operations
will cause siltation, landslides and other environmental-related disaster especially in disaster prone
areas.
Environmental management is very important to ensure that land and water resources in the area will
be protected. Watershed delineation and protection is the best approach to mitigate possible
environmental damages. Through watershed management approach, it will determine what particular
water sources and areas might be affected and what interventions are best to be put in place.
However, there is a need to further study the conditions of the watershed areas before a management
gplan will be formulated.
6.3.3.2.2 Livelihood and Enterprise Development
The project generated substantial employment to the area. The proponent will continually be hiring
more or less 2,000 individuals that will work in the expansion of nickel mining project. It also means
that from the total household population of 130, each qualified representative from each household
are ensured that they will be hired to work in the project.
The proponent is encouraging the residents to create a cooperative to improve the marketing of local
products and to engage into other enterprise development projects. This will provide additional
income to the community if it will be manage successfully.
Another potential project for the cooperative is they can be sub-contracted by the proponent in relation
to nickel mining activities.
6.3.3.2.3 Community Strengthening and Organizational Development
In relation to the creation of cooperative, they have to apply first for legal identity. To attain this, the
officers and members of the organization must be skilled in financial management, marketing,
bookkeeping, etc. To strengthen their organizational capacity, they have to conduct trainings and
seminars on cooperative management and skills upgrading.
The community should also learn about environmental management and protection. They can seek
the assistance of DENR to provide seminars to residents about environmental awareness and
policies. This step of community strengthening will reinforce the capacity of multi-partite monitoring
and evaluation team.
6.3.3.2.4 Education
The presence of the mining company assisted and dramatically improved educational quality and
facilities in the area. With regards to improvement of educational quality the support of the LGU and
DepEd is necessary to achieve it. The proponent alone could not respond to it without their
assistance.
The employment and other livelihood opportunities that the proponent provided to residents helped a
family to bring their children at the high school, vocational school or college level. Some residents are
benefited from the company of scholarships to deserving individuals whose families do not have
enough financial resources to bring them into college level. CMC tapped TESDA and other technical
trainings for the host barangay.
6.3.3.2.5 Health and Safety Works
Improving health services is another important aspect to be established. The proponent must provide
additional health services based in the mining area and in Barangay Valencia. A planning meeting

has to be facilitated to discuss probable cause of mining that might affect health condition of the
residents and miners. Mitigating measures have to discussed carefully and put in place at the onset
of the project operation.
Due to the concerns of the safety of workers, the company should formulate occupational health and
safety measures including emergency response. The improvement of health services needs
additional manpower, financial to procure important first aid materials and medicines. The support of
the LGU and DOH can be tap to provide trainings and other form of assistance.
6.3.3.2.6 Infrastructure Development
Aside from mining road construction, other existing barangay roads will be improved. In this way,
transportation of goods and other local products will become easier. Moreover, good road condition
will help improve the delivery of basic services and socio-economic development in the area.
Another infrastructure project will be developed are additional health stations both in the barangay
and mining site, additional electricity including street lights, and improvement of school facilities. A
sports and recreational facilities can be improved in the barangay while another one will be developed
in the mining site that can be used by mining workers.
6.3.3.2.7 Financing Strategy
The financial source that will be utilized in the implementation of SDP will be coming from the
additional revenue that the barangay will be receiving as a result of the company’s operation, the IRA
and host barangay’s share from the 1% of direct milling benefits. The funds must be expended
carefully based on the approved expenditures or activities stipulated in the SDP. The barangay
council has a major role in monitoring the release and auditing of funds.
6.3.3.2.8 Monitoring and Evaluation
A multi-partite monitoring team will be formed to examine the effects of mining operations to the
environment and people. The monitoring team is composed of different stakeholders who have the
capacity to implement team’s tasks. Regular monitoring and evaluation activities will be carried out by
the team and will report their findings to the residents, local organization, academe, LGU and
proponent.
The team is also responsible to inform the proponent in case that a problem was found out. The team
and the proponent will work together to take actions to resolve or prevent the problem.
6.3.3 Structural Organization
Figure 6.1 illustrates the organizational structure that is being followed in the implementation of the
SDMP. This is headed by the Resident Manager but the Community Relations and Development
Officer is the one directly involved in the implementation. Other departments are also helping to push
the program forward.

Resident
Manager
MEPEO
CRD Officer IEC Officer
SOCIAL DEVELOPMENT AND IEC Programs

MANAGEMENT PROGRAM
- Newsletter /Radio Prog. (Katilingban ug

SDMP/ Kinaiyahan
Community Organizing (CO) - Valencia Waves
Team Newsletter
- Mine Tours, etc.
- Seminars
- Community consultation/meetings and
Community TWG-SB conferences
Figure 6.1 Organizational Chart of Social Development and Management Program
6.3.4 Information, Education, and Communication (IEC)
IEC will be utilized as feedback mechanism approach and will be conducted on a regular basis. The
content of the IEC will be based on the action plans that will be conducted by the monitoring group
and its findings or assessment. Feedback mechanism is very important tool to educate people
regarding the mining developments whether it has negative or positive effects. This process will
involve more people in taking care of the physical environment and larger society because their lives
are at stake with this type of intervention. It will strengthen the knowledge of the people with regards
to the positive impact of the project and the effort of the monitoring team and the proponent to resolve
unfavorable event.
Integral to IEC is the regular reporting of the proponent on the progress of their operations. They
have the responsibility to update the people if the agreements are followed or there are minor or major
changes to be made. It is also their liability to inform people if they have seen possible problem that
might occur and advice them what appropriate preparations are needed to avoid unnecessary result.
Table 6.7 presents the approaches for the IEC.

Table 6.7 Regular Information Education Campaign Framework for Brgy. Valencia, Cagdianao, Dinagat Province.
Target Sector
Major Topic/s of IEC Scheme / Indicative
Identified as
concern in Strategy / Timelines
Needing Project Indicative Cost
Relation to Methods/Responsible Information Medium and
IEC
Project Officer Frequency
1. LGU The EIA Process Groups The following IEC materials and
2. Pos status strategies should be an effective
3. Laborers EIA findings Individuals strategy in a simplified form that On the regular basis P500,000 as
4. NGOs The operation of Nickel can be easily understood by local and or as needed by initial fund and to
5. Schools Mining This will be handled by stakeholders. It is suggested that the community. be increased by
The remuneration of the MEPEO it is illustrated in the local Specifically, a monthly 10% quarterly as
identified land areas to be language: IEC is recommended operation
used by mining operation progresses
The potential a. EIA process
consequential impacts on b. The Mining Project’s expansion
the residents of the
community To contain the following
The benefits of the project information:
on their socio-cultural, The project description, a graphic
economic and bio- illustration about the process of
physical environment of nickel mining operation and the
the affected residents as mitigating measures
they address the major The major mining activities.
issues of air water The structural, supporting and
pollution using IEC non-structural measures (SDP) for
the successful implementation of
the project
Location map that indicates exact
location of activities.
Answers to FAQ about the project.
The identified impacts and
mitigations written in tagalong: on
the Health and Safety measures
related to construction and
operation of the project; on the
Solid Waste Management R.A.

Target Sector
Major Topic/s of IEC Scheme / Indicative
Identified as
concern in Strategy / Timelines
Needing Project Indicative Cost
Relation to Methods/Responsible Information Medium and
IEC
Project Officer Frequency
9003; on the correct behavior in
relation to the project; on the
residents who will be affected by
the mining activities showing their
right to complain for violations of
ECC conditionalities.
The following are IEC materials to

be used:
Invitation letters
Focus Interviews
Focus Group Discussion
Hand-outs
Audio-visual presentations/ film
showing
Comics on EIA in local language
Illustrative primer about the
project
News paper publication
Radio broadcast
Multi -sectoral Cluster Meetings
Posters and wall drawings
School dramatization
Environmental awareness
contests

Series of IECs were conducted with the local communities in compliance with the ECC conditions and
during the formulation phase of the Social Development and Management Program. Host barangays
identified SDMP projects that they themselves would implement in their respective barangays. The
SDMP was validated by the Community Technical Working Group and endorsed by a panel of
reviewers organized by MGB 13 to review the plans and programs of the company’s SDMP.
Complaints may be filed at either the Community Relations Development Office or the Mine
Environmental Protection and Enhancement Office or to the Resident Manager himself through
informal and formal means - texting or verbal reporting of complaints is common. CTWG meetings are
also venues for the lodging of complaints. No environmental complaints have been filed so far.
Community requests and social concerns are acted upon immediately.
6.4 Environmental Risk Management and Emergency Response
Please refer to Annex B.
6.5 Abandonment and Rehabilitation Plan
Please refer to Annex C.
6.6. Institutional Set-up
Community Relations and Development Office (CRDO) and the Mine Environmental Protection and
Enhancement Office (MEPEO) are responsible for the implementation of the Social Development and
Management Program and the Environmental Protection and Enhancement Program/Final Mine
Rehabilitation and Development Plan (FMRDP), respectively.
In compliance with the Philippine Mining Act, the CRDO and MEPEO report directly to the Resident
manager (Figure 6.5).
Resident Mine
Manager
MEPEO
Environmental
Coastal DEMO Farm/
Environmental Reforestation and Engineering
Management Landscaping and ICE Program
Monitoring Rehabilitation Structures and
Program Research Center
Maintenance
Figure 6.2 Organizational Framework of the CRDO and MEPEO

7. REFERENCES
1. Bibby, C.J., Burgess, N.D., Hill, D.A., 1992. Bird census techniques. Academic Press, UK.
2. Brassington, R.1998. Field Hydrogeology, 2 nd ed., John Wiley and Sons, England, 248 pp.
3. Brower, J.E., Zar, J.H., & von Ende. 1989. Field and Laboratory Methods in Ecology. Wm. C.
Brown Publishers.
4. DENR Administrative Order No. 14, Series of 1993, “Revising Chapter II, Section 57 to 66 of the
1978 Implementing Rules and Regulations for PD 984”, Quezon, City, Philippines, 1993.
5. DENR Administrative Order No. 34, Series of 1990, “Revised Water Usage Classification/Water
Quality Criteria”, Quezon City, Philippines, 1990.
6. DENR Administrative Order No. 40, Series of 1996, “Revised Implementing Rules and
Regulations of RA 7942, otherwise known as the Philippine Mining Act of 1995”, Quezon City,
Philippines, 1995.
7. DENR Administrative Order No. 99, Series of 2000, “Rules and Regulations on the
Implementation of the Social Development and Management Programs (SDMP) for Mining
Projects”, Quezon City, Philippines, 2000.
8. English, S. 2001. Survey Manual for Tropical Marine Resource. ASEAN - Families. Pasig City.
ANVIL Publishing, Inc. 510 pp.
9. English, S. C. Wilkinson and V. Baker (eds.) 1994. Survey Manual for Tropical Marine
Resources. ASEAN-Australia Marine Science Project: Living Coastal Resources. Pp 119-194.
10. Environmental Impact Assessment. 1998. Cagdianao Mining Corporation, Barangay Valencia,
Province of Dinagat Islands.
11. Meñes EG, Phillips RC, Calumpong H 1983. Seagrass from the Philippines. Smithsonians
Contrib. Mar. Sci. 21, 40p.
12. Presidential Decree No. 984, “National Pollution Control Decree of 1976”, Manila, Philippines,
1976.
13. Republic Act No. 8749, “Philippine Clean Air Act of 1999”, Manila, Philippines, 1999.
14. Republic Act No. 9003, “Ecological Solid Waste Management Act of 2000, Manila, Philippines,
2000.
15. Surigao Integrated Resources Corporation, “Environmental Protection and Enhancement

Program”, Pasig City, Philippines, 2004.
16. Uychiaoco, A.J., S.J. Green, M.T. dela Cruz, P.A. Gaite, H.O. Arceo, P.M. Alino and A.T. White.
2001. Coral Reef Monitoring for Management. UPMSI, MERF, FDFI, VSO-Phil., BIDFI.
17. Vermaat JE, Agawin NSR, Fortes MD, Uri JS, Duarte CM, Marba N, Enriquez S, Van Vierssen W.
1997. The capacity of seagrasses to survive increased turbidity and siltation: the significance of
growth form and light use. Ambio 26:499-504.
18. Veron J.E.N. 1986. Corals of Australia and the Indo-Pacific. Argus & Robertson Pub. 644pp.
19. White, A. 1987. Coral Reefs: Valuable resources of Southeast Asia. ICLARM Educ. Ser. 1, 36p.
International Center for Living/aquatic Resources Management. Manila, Philippines.

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Cagdianao Mining Corporation Valencia Nickel Project

Environmental Performance Report and Management Plan Page ii

Project Name Valencia Nickel Project

New: Incremental impacts associated with the proposed increase in

including non-mineable areas.

Environmental Performance Report and Management Plan Page ii

Project Fact Sheet---------------------------------------------------------------------------------------------------------------------------- i

1. BASIC PROJECT INFORMATION -----------------------------------------------------------------1

Environmental Performance Report and Management Plan Page iii

4.1.1.1 Built-Up Areas ------------------------------------------------------------------------------------------------------ 22

Environmental Performance Report and Management Plan Page iv

4.2.5.2.3 Reef fishes in the causeway area. ---------------------------------------------------------------------------- 71

Environmental Performance Report and Management Plan Page v

5.1.1 Progressive Revegetation -------------------------------------------------------------------------------------- 102

Environmental Performance Report and Management Plan Page vi

6.3.3.2.5 Health and Safety Works -------------------------------------------------------------------------------------- 145

Environmental Performance Report and Management Plan Page vii

Figure 1.1 Satellite image of the Province of Dinagat Islands ....................................................... 2

Environmental Performance Report and Management Plan Page viii

Photo 4.1 Barangay Valencia ...................................................................................................... 25

Table 3.1 Technical description of the MPSA area ......................................................................10

Environmental Performance Report and Management Plan Page ix

Table 4.22 Coral Category (Uychiaoco et. al. 2001) ......................................................................77

Environmental Performance Report and Management Plan Page x

Brief Project Description

Brief Summary of the EIA Process

Brief Description of the Existing Project and the Proposed Modification

EIA Findings on Key Significant Impacts and Corresponding EMP Highlights

Environmental Monitoring Plan on Key Impacts and Measures

As indicated in the Environmental Monitoring Plan, environmental quality will be monitored on a

Environmental Performance Report and Management Plan Page xi

Impact Management Plan and Corresponding EMP Highlights

Destruction of Coral  Enhanced Coastal Resource Management Program for

Environmental Performance Report and Management Plan Page xii

Social Resource  Provide CMC workers with in-house basic services to

Abandonment Phase A. The Land

Environmental Performance Report and Management Plan Page xiii

Environmental Monitoring Plan on Key Impacts and Measures

2. Ambient Air and Noise Quality

Environmental Performance Report and Management Plan Page xiv

1. BASIC PROJECT INFORMATION

Project Name Valencia Nickel Project

Project Location Barangay Valencia, Municipality of Cagdianao

Proponent Cagdianao Mining Corporation

Nature of Project Resource Extraction – Nickel Laterite Mining

ECC Amendments 1. Increase in Nickel Ore Production Capacity from 500,000 MT to

Environmental Performance Report and Management Plan Page 1

Figure 1.1 Satellite image of the Province of Dinagat Islands

Environmental Performance Report and Management Plan Page 2

2. DESCRIPTION OF THE EIA PROCESS

2.1 Terms of Reference

2.2 EIA Team

Research Team Area of Expertise Module

2.3 Study Schedule

2.4 Study Area

Module Methodology Source

Environmental Performance Report and Management Plan Page 3

CMC Admi Compound

The Open Pit Mine

Figure 2.1 Mining area of Cagdianao Mining Corporation

2.6 Public Participation

2.6.1 Information Education Campaign (IEC)