HOLCIM MINING AND

DEVELOPMENT CORPORATIONLimestone Mining Project

Municipality of Maasim, Sarangani Province

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BASIC PROJECT INFORMATION

Project Name: Mining of Limestone

Project Type: Resource Extractive

Permit: MPSA274-2008-XI Parcel 4

Total Area of MPSA: 425.1146 hectares

Area covered by the project:Brgy. Kamanga and Brgy Tinoto,

Municipality of Maasim, Sarangani Province, Region XII

Annual Production Capacity: ≥ 2.1 Million MT

Commodity: Limestone

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IMPACT AREA- HMDC

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LOCATION MAP OF PROJECT SITE

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LOCATION MAP OF PROJECT

SITE

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PROJECT

COMPONENTSMAJOR

COMPONENTS

Exploration

Quarry Development(Road and Land Access, Construction of Support Facilities)

Extraction of Limestone

Quarry Rehabilitation

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PROJECT

COMPONENTS

SUPPORT FACILITIES

Office Building

Housing and Facilities and Bunk Houses

Security Outposts

Workshop, Warehouse, and Fuel Depot

Tree Nursery

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PROJECT

CYCLE

MINING PLAN

Surface Mining Method

DEVELOPMENT AND CONSTRUCTION PHASE

Construction of access and haul roads

Site preparation and construction of mine facilities such as office building, bunk houses,

warehouse, etc.

Construction and establishment of pollution control facility.

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PROJECT

CYCLE

OPERATION PHASE

Mining of Limestone

Implementation of progressive rehabilitation

Continues Implementation of EMP, EMoP, and SDMP

ABANDONMENT PHASE

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GOVERNMENT REQUIREMENTSPHILIPPINE MINING ACT OF 1995

Proposed mining projects should be technically and financially feasible

Mine Stage EnvironmentalSafety and

HealthSocial Development

ExplorationEnvironmental Work

Program-CostIntegrated w/

Exploration CostCommunity Development

Program

FeasibilityEnvironmental Cost Integrated with FS

Integrated w/ Mine Operating

cost

Social Development cost integrated with FS

Construction/Development

ECC, EPEP (Environmental

Protection & Enhancement Program)

SHP, ERPSocial Development and

Management Program (SDMP)

Commercial Operation Annual EPEP Annual SHP Annual SDMP

Mine ClosureFMR/DP (Final Mine Rehabilitation and/or Decommissioning Plan

integrated in the EPEP to include Decommissioning Plan, Final Mine Rehabilitation Plan, Social Plan and Maintenance and Monitoring Plan for

a period of 10 years or lesser if success indicators are achieved earlierPost Mine Closure

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GOVERNMENT REQUIREMENTS

ENVIRONMENTAL

Life of Mine Environmental Protection and Enhancement

(3-5% of Direct Mining and Milling Costs and 10% of Capital Costs)

1. Minimal Surface Impact

2.Progressive rehabilitation

3. Operationalization of the Multi-partite Monitoring Team

4. Establishment of MEPEO

5. Road Maintenance

6. Slope Stability

7. Pollution Control Structures

8. Maintenance of drainage system

9. Water sprinkling of access and mine haul roads

10. Research

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GOVERNMENT REQUIREMENTS

ENVIRONMENTAL

Final Mine Rehabilitation and Decommissioning Plan

(Based on predetermined decommissioning and rehabilitation costs)

1. Rehabilitation of disturbed areas after end of the project

2.In consultation with stakeholders

3. Required budget deposited during life of mine

4. Based on success indicators

5.Implemented for 10 years after closure or until rehabilitation is successful based on agreed indicators

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GOVERNMENT REQUIREMENTS

SAFETY AND HEALTH

1. Personal Protective Equipment

2. Safe Work Place

3. Medical Benefits

4. Medical Check-up

5.Health Clinic

6. Safety Trainings

7. Budget to be approved by MGB

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GOVERNMENT REQUIREMENTS

ECONOMIC IMPACTS

A. TAXES PAID BY THE COMPANY

NATIONAL GOVERNMENT

1. Excise Tax on Minerals (2% of Gross Sale)

2. Corporate Income Tax (30% of net income)

3. Customs Duties

4. Value Added Tax (12%)

5. Documentary Stamp Tax

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GOVERNMENT REQUIREMENTS

ECONOMIC IMPACTS

A. TAXES PAID BY THE COMPANY

LOCAL GOVERNMENT

1. Business Tax

2. Real Property Tax

3. Registration Fee

4. Occupation Fees (PHP 75/hectares)

5. Community Tax

6. Other Local Taxes

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GOVERNMENT REQUIREMENTS

ECONOMIC IMPACTS

B. ALLOCATION FOR PROGRAMS

1. SDMP Budget 75% of the 15% of the Operating Costs

2. IEC 15% of the 1.5% of the Operating Costs

3. Promotion of Science and Technology

10% of the 1.5% Operating Costs

4. AEPEP 3-5% of the DMMC

5. EPEP

6. FMRDP

C. EMPLOYMENT OPPURTUNITIES

D. BUSINESS OPPORTUNITIES

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GOVERNMENT REQUIREMENTS

SOCIAL DEVELOPMENT

Livelihood Development & Income Augmentation Program

Infrastructure Development

Access to Education and Literacy Program

Health, Sanitation, and Nutrition Program

Community Empowerment and Human resource Development

Sports and Cultural Program

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TAXES FROM MINING

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ROLE- MUNICIPAL LEVEL

A. HOST OF PROJECT

B. TAXES

C. HOST MINING COMMUNITY

1. Priority of hiring of qualified residents

2. Livelihood Development and Income augmentation Program

3. Access to Education and Literacy Program

4. Health, Sanitation, and Nutrition Program

5. Community Empowerment and Human Resource Development

6. Sports and Cultural Program

D. ACTIVE PARTICIPATION IN MONITORING THE PROJECY

1. Member in Mine Rehabilitation Fund Committee Member and Multi-partite Monitoring Team

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ROLE-MUNICIPAL LEVEL

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FUTURE ACTIVITIES

CONSTRUCTION AND DEVELOPMENT

1. Haul and access roads

2. Causeway

3. Stockpiles and dumps

4. Pollution control devices and facilities

5. Support facilities

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FUTURE ACTIVITIES

OPERATION PHASE

1. Actual extraction of limestone ore, etc.

2. Implementation of progressive rehabilitation

3. Continues implementation of EMP, EMoPand SDMP

4. Hauling of Ore to designated processing area

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FUTURE ACTIVITIES

ABANDONMENT PHASE

Removal of equipment out of the project area

Rehabilitation of mined-out area, mine years, waste dumps, siltation traps and ponds

Transfer/donation of fixed structures of host LGUs

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AERIAL PHOTOS OF THE

PROJECT SITE

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THANK YOU!