LEPANTO CONSOLIDATED MINING COMPANY

Lepanto Mine Division Mankayan, Benguet, Philippines

Mankayan

Brief History
Revisiting the Past

Pre-Spanish and Spanish Era

12-13th Century (Ming Dynasty) Chinese traders exchanged their wares with copper ingots from Mankayan 16th Century Spaniards set foot on Philippine soil Mankayan became their key source of metals using crude mining methods. In 1864 the Cantabro-Filipino Company became the first organized company to operate the mine and it lasted for 10 years. 1930 The start of the mining boom in Mankayan There was an increase of gold price, High gold content of the mines ore, Improvement of access roads to Mankayan greatly enhanced the prospect of a largescale mining operation.

Old Spanish Adit

Before World War II

Brief History
Revisiting the Past

September 21, 1936 Victor Lednicky, formed the Lepanto Consolidated Mining Company. The company built the countrys first copper plant at 400 tonnes per day then increasing it to 1,000 tonnes per day OUTBREAK OF WW II (1940s) Outbreak of the World War II. Mitsui Company operated the mine for 3 years during the war. AFTER WW II 1947 rehabilitation of the mine destroyed during the war leading to resumption of operation. Through the Years, the mill capacity was expanded to 4,500 tonnes per day and operated at this level until the present. .

Victor Lednicky

Brief History
Revisiting the Past

Far Southeast
1980 - Far Southeast gold-rich porphyry copper deposit was discovered Huge, but deeply seated copper deposit Geologic resource of 650 million tonnes A grade of 0.65% copper and 1.33 g/t gold. The deposit is undergoing a thorough study to achieve new ways of bringing it into development stage.

Lepanto Underground Mines

Brief History
Revisiting the Past

Victoria & Teresa Gold Mine

1995 September 1995 the Victoria and Teresa gold ore deposit was discovered November 1996 Construction of the CIL plant was started March 15, 1997 the Victoria mine officially came to being with the completion of its modern CIP Plant During the first ten (10) months of its operation, it produced 106,000 ounces of gold 71,000 ounces of silver. The projected mine life from 1997 is 20 years. Today, it is one of the primary gold producers of the country.

Gold bar from the Victoria Mine

The Stakeholders : -Stockholders -Employees -Community -Business Partners LCMC Board of Directors & Corporate 0fficers

Lepanto Consolidated Mining Company

Lepanto Mine Division Resident Manager

Lepanto Roaster Division, Subsidiaries & Affiliates

General Mgnt.
Office of the RM Project Engg, Safety & Loss Control, Assay, Civil Engg ESDEV.

Mine Group
Mine Engg Development Mine Services Mine Information

Mill Group
Mill Operation CIP R&D

Technical & Maintenance Services Group

Exploration
Mine Geology Exploration

Finance Group
Accounting Inventory Management

Admin Services Group

HR, Legal Medical Security

Mine Mechanical & Electrical Power/Electrical Mechanical Shops Transportation Mill Maintenance

Lepantos Mining Business Process

EXPLORATION DEVELOPMENT MINING MILLING

SUPPORT SERVICES : -Environment & Social Development -Technical Maintenance and Services -Safety and Loss Control -Engineering Services - Administrative Services - Finance Management - Human Resource - Other Units

Stakeholders

WORKFORCE PROFILE

Total Regular Manpower (as of March 2011) is 1,424. Average Manpower Age is 44 yrs. old, mostly comprise of third (3rd) generation workforce. Gender : 95.16% (Male) 4.84% (Female) 32 % Surface

Work Area Deployment : 62% UG % Job Types / Levels :

18.80% - Professional / Technical & Staff

81.20% -Rank & File

Exploration

Core House

Underground exploration through diamond drilling

Mining Method
Uses the semi-mechanized cut-and-fill. A series of 2-meter slices are mined and backfilled in a continuous cycle. Uses hand held pneumatic jacklegs for drilling &

rockbolting
In blasting

- Ordinary blasting caps & fuses with 25 mm. dynamite sticks and an ANFO

- Use non-electric detonators (for development)

Mining Method

removal.

Load-Haul-Dump (LHD) & Slushers for muck

Chutes / ore passes /rotary dumpers / conveyors LPT, Rail-Mounted Cars, Hoist for ore/waste

transport

Mining Method
Load-Haul-Dump (LHD)

Ore Hoisting

Rotary Dumpers

Mine Cars

Mine Facilities

Nayak Twin Declines

Tubo Shaft

Milling Processes

Grinding Plant Gravity Concentrator Plant Copper Flotation Carbon-in-Leach Sand & Water Recovery Chemical Fixation Plants

Gravity Concentrator
Bowl concentrator (2 units SB 38 Falcon) Shaking Table

Shaking Table

40% recovery from mill feed

Drying the gold dust

Flotation Plant

Carbon-in-Leach (CIL) Plant

Refinery
The refinery section, which is located at the CIP Plant complex processes the: gold dust
Gold Pouring

gold sludge

Gold Bar

Support Facilities and Family Welfare Program

CPJ Community Center

Support Facilities

10-MW standby Power Plant

Support Facilities

Oil Analysis Laboratory (one of its kind in the mining industry)

Support Facilities

Security posts are designated at critical entry ports and gates .

Support Services
Company Plane
Scheduled flights at least once a week to mine site and mercy flights as the need arises.

800-meter Airstrip

Twin-engine Beechcraft King Air

Support Services
Guest Houses
6 - guest houses with a total of 59 rooms available for visitors, suppliers and employees.

Labaan Guest House

La Guerta Guest House

Support Services
Transportation

Free transportation service is provided to all workers. School children have school buses that bring them back & forth to their schools

Community Facilities
Health Services
Hospital: 30-bed capacity, Complete surgical, dental, and medical facilities including X-ray/ECG units, clinical laboratory,

out-patient department and family planning clinic.

Community Facilities
Miners Bunkhouse

Housing
59 Three to four-bedroom houses 54 Two-bedroom houses and apartments 123 Two-bedroom units in multiplex cottages 819 Units in bunkhouses
Staff Cottage

Community Facilities
Theater for movies and programs Training Center Gallery Offices

Canteen
Sport Facilities Childrens Playground & Park

CPJ Community Center

Community Facilities
Recreation
Golf Course Bowling Hall Shooting Range Billiard Hall

Basketball Court
Volleyball Court Tennis Court Badminton Court Chess
18-Hole Golf Course

Community Facilities
Education
Schools established include:

9 - preschool,
2 - elementary schools 1- high school

that have produced prominent professionals and citizens.

Lepanto National High School

Community Facilities
Iglesia Ni Cristo Roman Catholic Church

Religious Sects of Employees Roman Catholic Anglican Iglesia Ni Cristo UCCP Others 63.78% 14.98% 6.11% 3.36% 12.77%

Anglican Church

Community Facilities

Felipe U. Yap Community Library

Lepanto Plaza sells dry & wet goods

Lepanto Consumer's Cooperative of Employees

Community Facilities

Lepanto Savings and Loan Association

Post Office

Memorial Chapel

Programs for Employees and Dependents

Training for employees are regularly done to improve competencies

Programs for Employees and Dependents

Annual gift giving to children during Christmas season.

Gawad-Lepanto, an annual event highlighting LCMC Anniversary to recognize outstanding employees & other community members.

Programs for Employees and Dependents

Ecumenical spiritual services are regularly held in thanksgiving for all the blessings the company are having.

Fun games are actively participated by labor and management to promote sound camaraderie and cooperation.

Programs for Employees and Dependents

During summer, arts classes and other creative arts programs are held for employee dependents

Tanghalang Lepanto is actively participated by employee dependents. In 2006, It was one of the finalists in the search for the Ten Outstanding Youth Organizations (TAYO) in the country

Culture Promotion and Preservation

Lepanto respects the culture and tradition of the Benguet Province. A Canao is done to commence new undertakings or before the initial use of a new equipment/facility. Pigs are butchered with the presence of a Mam-bonong, or elder ; the Tayaw is danced. Since Lepanto is considered a melting pot, other tribes are also encouraged to practice their respective beliefs.

Safety and Loss Control

To ensure that its people and assets are protected, employees regularly undergo trainings and seminars

Safety and Loss Control

Lepanto workers are considered one of the best in the industry. They are recognized during the holding of Annual National Recognition by the Philippine Mine Safety and Environment Association.

Environmental Protection and Enhancement Program

Tailings Dam 5A
Zoned, earth-fill catch-all dam
Twin concrete lined system decantation

600-meter span of 4.0 x 5.0 meters concrete lined diversion tunnel 12-meter freeboard maintained to handle a 600-year flood event. The final height of the dam, when completed, will be 132 meters with a total impounding capacity of more than 50 million cubic meters.

Environmental Protection and Enhancement Program

Dam Rehabilitation
In consonance with the principle of sustainable development, decommissioned tailings pond no. 3 is being rehabilitated while tailings dam no. 4 has become a grazing land after it has been rehabilitated.

Tailings Pond 3

Tailings Dam 4

Environmental Protection and Enhancement Program

Reforestation
Since 1965 when we started this program, a total of 6.5 million trees has been planted covering an area of 800 hectares with a survival rate of 90% for pine tree and 83% for gmelina. In 1999, the company won 1st Prize during the PMSEA held in Baguio City for planting 1.2 million trees in support to DENRs Adopt A Tree, Adopt A Mining Forest program.

Environmental Protection and Enhancement Program

June 2002: Mine personnel and staff plantIng Benguet Pine seedlings along the slopes of the Nayak Mine Office

May 2011: Nayak Office

Social Development and Management Program (SDMP)

What is it about?
a tool for the development and implementation of community programs and projects, in consultation and partnership with the host and neighboring communities of the mining company.

SUMMARY OF SDMP EXPENDITURES (2002-2010)

PROJECT COMPONENTS Social Infrastructure Livelihood COST 15,175,900.35 900,040.60

Education
Health Sports Religious Cultural Peace and order Trainings/Peoples Organization Watershed Protection & Management Project Management & Supervision Meetings & Consultations Information, Education, Communication

7,776,422.60
5,289,255.89 159,677.04 546,635.42 30,000.00 267,155.33 555,148.48 498,896.50 142,516.50 63,468.32 761,322.83

GRAND TOTAL

32,166,448.73

Development of Host & Neighboring Communities

Livelihood Programs for Host Communities

Cattle raising Longganisa making

Development of Host & Neighboring Communities

Swine Production Apiary/Beekeeping

Development of Host & Neighboring Communities

Lepanto Educational Assistance Program (LEAP)

Designed to help indigenous students from Indigent families from the host & Neighboring Communities finish college. There are 164 college students currently enrolled for the 2 nd Semester of SY 2010-2011 and 100 students have graduated under this program.

Development of Host & Neighboring Communities

Social Infrastructure

Water systems were installed to provide potable water to residents Bridges were constructed to provide better access to barangays

Emergency Response and Rescue

In times of calamity and emergency situations,

Real, Quezon and Diwalwal, Davao

Lepanto has always been in the frontline to help out victims, clear out road slides and wash-outs . Rescue and recovery operations in fulfillment of its social responsibilities.

Road clearing at Halsema H-way

Thank You!