SINOSTEEL PHILIPPINES H.Y. MINING CORPORATION Nickel and Chromite Project Mine Site : Brgy. Panamaon, Loreto, Province of Dinagat Islands Field Office : Brgy. Esperanza, Loreto, Province of Dinagat Islands

A. BASIC PROJECT INFORMATION

EPEP/PEIR Control No./Date of Approval FMR/DP Control No./Data of Approval CMP Date of Approval

: Submitted March 09, 2011/Not yet approved : Submitted June 13, 2011/Not yet approved : March 15, 2016

Name of Proponent Project Title Project Stage Location Start of Operations Mine Life Commodity Mineral Reserve/Resources Mining Method

: Sinosteel Philippines H.Y. Mining Corporation : SPHYMC Nickel – Chromite Project : No mining operation : Brgy. Panamaon, Loreto, Dinagat Islands : Year 2012 : Twenty Five (25) Years : Nickel and Chromite : 2,650,500 WMT : Open Pit Mining and Direct Shipment

Mineral Production Sharing Agreement MPSA Area Coverage Environmental Compliance Certificate

: 002-90-X, Approved May 15, 1990 : Nine Hundred Seventy Two (972) Hectares : ECC-CO-1005-0013, Granted June 09, 2010

President

: Mr. Ty Tiao Hui : Head Office; Unit 1614 Tower One, Ayala Triangle, Ayala Avenue, Makati City, M.M. : +63 920 921 4033

MEPEO

: Mr. Allan A. Conales : Field Office; Brgy. Esperanza, Loreto, Dinagat Islands : +63 946 178 3607 : [email protected]

Email Address

B. Panoramic View of the Mining Area Technical Description of the MPSA Area

CORNER

LATITUDE

LONGITUDE

1

10̊ 24’ 30’’

125̊ 37’ 00’’

2

10̊ 25’ 30’’

125̊ 37’ 00’’

3

10̊ 25’ 30’’

125̊ 40’ 00’’

4

10̊ 24’ 30’’

125̊ 40’ 00’’

C. Permits and Clearances Date Issued June 09, 2010 May 15, 1990 April 16, 2009

Permit/Clearance Environmental Compliance Certificate - CO-1005-0013 Mineral Production Sharing Agreement - 002-90-X Exploration Permit

Status (Date of Expiry) Valid & Operational Renewed awaiting for approval April 15, 2017

D. Environmental Performance Date October 5-7, 2011

Activity (MMT) Multipartite Monitoring Inspection Third quarter of calendar year 2011

Summary of Findings 1. The company should hire a new Mining Engineer that will oversee the overall mining activities of the company. 2. The company should fully comply the mandates of the Labor Code of the Philippines (SSS, th Philhealth, Pag-ibig， 13 month pay, execute employees contracts) 3. The company should deposit the required amount intended for the ETF, MTF, and RCF. Updates will be presented during the MRFC Meeting on Oct. 13, 2011. 4. The company should haul the retrieved timber and to be deposited in a designated area for proper disposition of DENR-PENRO. 5. To enhance the existing settling ponds and construct additional environmental structures which will be needed in the area. Said structure should be complemented with appropriate signages. 6. Provide additional waste segregation bins and enhance the existing compost pit particularly at the contractor’s bunkhouse. 7. To construct motorpool and storage facility (fuel, used oil, tire, and batteries). 8. To install additional safety, traffic and i Transfer or enhance the Nursery House and ensure that the produce seedlings will not be damaged.nformation signages within strategic area. 9. Transfer or enhance the Nursery House and ensure that the produce seedlings will not be damaged. 10. Maintain good house-keeping in contractor’s area 11. To enhance the existing causeway by super elevating the ramp. 12. To prepare and submit the ASDMP and AEPEP for CY 2012. Also, to present to the MRFC on Oct. 13, 2011 a work plan related to ASDMP and AEPEP for the remaining quarter of 2011. 13. The company to provide separate office space for MEPEO and CRO.

Date

Activity (MMT)

Summary of Findings 1.

April 3-5, 2013

August 6-9, 2013

Multipartite Monitoring Inspection Third and Fourth quarter of calendar year 2012, and First quarter of calendar year 2013

Multipartite Monitoring Inspection

Second quarter of calendar year 2013

May 7-9, 2014

Multipartite Monitoring Inspection

First Quarter of calendar year 2014

To install additional safety and information signage at the active mine pit of the Company, Pit 1. 2. To improve the existing settling ponds by increasing its capacity to cater bigger volume of wastewater from bigger disturbed area and conduct regular desilting therein. 3. To further recover the timbers scattered along the side slopes of the active mine pit. 4. To recover the topsoil and overburden materials at the active mine pit and properly stockpile the same. 5. To stabilize the existing berms. 6. To totally remove the polyethylene bags of the planted seedlings. 7. Provide silt collector sump along the haul roads near the Bali-bali Bridge. 8. To construct additional comfort rooms and further improve and maintain proper sanitation of the existing sanitary facility at the Contractor’s area. 9. Improve the existing settling ponds near the stockpile area 10. To conduct intensive water spraying along haul roads connecting to the causeway especially during loading. Likewise, to conduct scraping to minimize slippery roads. 11. To implement proper waste management practices. Additionally, to orient all workers regarding the program. 12. To improve the existing motorpool by concreting its flooring and provided with oilwater separator. Likewise, a wash bay will also be constructed. 13. To provide information board at the nursery. 1. To construct series of settling ponds on strategic areas at the newly opened mine pit. 2. To recover overburden materials and store the same in designated waste dump area. 3. To increase the capacity of the existing settling pond 4D. 4. To restore the bale-bale bridge immediately. 5. To consider the said scraped-out materials as matting in the maintenance of access road in the stockyard. 6. To compel the attendance of the Contractor during MMT inspection. 7. Stabilized and increase the level of perimeter berm to 0.5 meter near Contractor’s bunkhouse. 8. Improve the design of water & oil separator at the contractor motorpool. 9. Refrain or prohibit burning of garbage and observe proper solid waste disposal at the contractor bunkhouse. 10. Additional 50,000 endemic seedlings already procured by the company. 11. Replace the bulletin board at the nursery 12. Stabilized perimeter berm and construct drainage canal towards SP1A.Replace the

bulletin board at the nursery. 13. Desilt SP3A and used boulder materials to stabilize safety berm.

Multipartite Monitoring Inspection

June 25-27,2014

Second Quarter C.Y. 2014 October 15-17, 2014 July 17-19, 2015

Multipartite Monitoring Inspection

Third Quarter of C.Y. 2014 Multipartite Monitoring Inspection

1st & 2nd Quarter of C.Y. 2015

Multipartite Monitoring Inspection

June 02-04, 2016

First quarter monitoring at Stockyard, Causeway & Nursery (due to rain minesite area is inaccessible)

1. To construct silt collector sumps at Mine Pit 2. 2. The contractor to construct washing bay at strategic area 3. 1. Enhance the newly constructed settling ponds, drainage canal and collector sumps 2. Company to install signsge/landmard at Mine Pit 1 & 2. 1. The company to submit agreement regarding the usage of stockyard and implementation regarding environmental mitigating measures said document will be presented during MRFC meeting. 2. Improve & strengthen safety berm at mine pit 3 3. To conduct immediate mechanical de-silting and repair.

4. There was no activity for slope stabilization at Mine pit 2 Block B at mine site area which was targeted on the first quarter. 5. Settling pond no. 2A, 2B, & 2C (in series) is full of silt and other materials.

E. Notice of Violation Date NOV Issued July 27, 2012

Detail of Violation

Action Taken

1. The company had pushed the overburden and topsoil materials on the side slopes at the active mining pit. Some overburden materials were also not recovered.

1. Waste stripping involves removal of all waste materials, hauled to mine out areas, pushed overburden materials was disposed to designate waste dump area. Some waste materials was utilized for the construction of berm, dikes in settling ponds to minimize siltation and possible sedimentation. 2. The company is utilizing a right after the issuance of the ECC, started tree planting at mine site area, access roads, & safety berm to mitigate Green House Gas emission reduction program where the area was not specified in the initial environmental examination. Submitted Green House Gas reduction program July 20, 2012. 3. The company conducted Information, Education and Communication campaign March 25, 2012 and April 01, 2012 in synchronized implementation with other mining companies through

2. No GHG reduction program.

3. No IEC conducted.

Status of NOV Complied

Complied

Complied

4. No segregation of solid waste and open burning of solid waste were observed at the Contractors Area and Motor-pool Area.

General Assembly initiated by the Community Relation Officers on their SDMP’s. 4. Proper waste segregation was implemented by providing trash bins and compost pits.

Complied

F. Other Environmental Activities/Endeavor Undertaken Date July 13, 2011

March 22, 2013 May 20, 2016

Activity

Status

Implementation of the National Greening Program. Area of re-forestation; Mine site safety berm & Mine out area. Haulage road, stockyard, & causeway berm, mangrove area and Panamaon National High School. June 06, 2016 conducted tree planting activity relative to the World Environment Day and Philippine Environment Month celebration. MOA signing. Conducted clean up of the adopted Balibali River quarterly.

To date the company planted only 12.500 Ha. out of the 33 Ha. computed area for reforestation.

ISO 14001:2015 EMS Standard

Recommended for Certification

Planted 200 hills of Manggium species at stockyard. MOA will expire March 21, 2016

G. Photo Documentations National Greening Program Re-forestation and Maintenance from C.Y 2012 – 2016 (Causeway, Haulage Road Safety berm from causeway to mine site area and Mine out area at mine pit 1 block B)

Reforestation at Mine pit 1 Block B, Mine out area. Nursery Maintenance and Propagation

Adopt-An-Estero/Water Body Program (Adopted River, Blibali River twice a year clean-up)

Upper stream portion of the adopted river.

Lower/Down Stream portion of the adopted river.

Prepared by:

ALLAN A. CONALES MEPEO/PCO