The Rapu-Rapu Polymetallic Project…Then and Now

After the controversial environmental incident and financial difficulties encountered by the then Lafayette Philippines Inc. (LPI) and Rapu-Rapu Minerals Inc. in October 2005 and January 2008 respectively, the new management of the company was able to transform it into an environmental friendly and financially stable mining operation.

This was attained when the new management amended its corporate name from LPI to Korea Malaysia and Philippines (KMP) Resources Inc. on November 26, 2008.

KMP introduced improvements to the environmental management system by installing pH meter with real time measurements at the environmental area. The pH meters are installed at the lime mixing zone, effluent from the wetland and downstream of Hollowstone Gully. Likewise mechanized lime dozing and aeration were introduced in the environmental area reducing lime consumption by almost 200% and increasing the efficiency in neautralizing the effluent from polishing pond by 100% under normal conditions.

Based on the monitoring conducted by the Multipartite Monitoring Team for the 3^rd quarter of 2010, the introduction of mechanical lime dozing, filtration tank, aeration at the environmental ponds and real time pH meter, the water coming from the environmental areas are compliant for pH.

For the 1^st two (2) quarters of 2010, the company was able to ship a total of 10,625.52 DMT of zinc concentrate valued at $6,369,145.55; 14,065.01 DMT of copper concentrate valued at $13,914,207.75; 7,475.12 troy ounces of gold (by product of copper concentrate) valued at $2,294,296.05.

The taxes paid (excise taxes, real property tax, business tax, etc) for the period covering January to July 2010 amounted to P360,728,867.15 while the taxes paid from start of the project to April 2010 amounted P739,464,218.00.

As of the 1^st quarter of 2010, the total investment stood at about $153, 970,807.00. The company employs an average of 1,314 employees per month, of which 42% comes from the three (3) direct impact Barangays (Malobago, Pagcolbon and Binosawan) and 16% from other barangays in Rapu-Rapu, Albay. The remaining 42% is either from Albay Province, Bicol Region or outside the region. (foresight July-Dec. 2010 issue)