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ReferencesCode Title of Document

Annex A

ECC Application (ECC-CO-1212-0029) of Masada Resources and MiningCorporation for the Proposed Hemani Chromite Property at General MacArthur and Hernani, Eastern Samar

Annex B

MGB Letter to PMDC dated January 17, 2014 regarding the Filing of theDMPF by MFI, Inc. for the San Femando Limestone Project

Certification of IEC Activities Conducted at the San Fernando LimestoneProject

. Brgy.Basak: July 19,2014

. Brgy.Lantawan: June 26, July 20, and Aug. 17,2014

. Brgy. Tonggo: June 2'1, July 19, and Sept.20,2014Post-Visit Reports

. May 12,2014

' July 8,2014

' July24,2O14. August 19,2014

' September 22,2014

Annex CCopy of Posting of Notice in PhiIGEPS and Newspaper of GeneralCirculation

Annex D

School Building ProjectMemorandum of Agreement by and among the Departrnent of Education,Mt. Diwata Elementary School, and Philippine Mining DevelopmentComoration

Annex E

School Building ProjectMemorandum of Agreement by and among the Departrnent of Education,Sombrado Elemnentary School, and Philippine Mining DevelopmentComoration

Annex F

Agro-Forestry and Reforestation ProjectMemorandum of Agreement between Philippine Mining and DevelopmentCorporation (PMDC) and Barangay Tribal Council of Leaders (BTCL)

Annex G

Agro-Forestry and Reforestation ProjectService Contract between PMDC and the ff:

. Luzminda M. Latiban

. Pedro V. Bacan

. Gregorio Bacan & Angelita Bacan

. Victor G. Amandoron

. Hermelina O. Wabinga

. lan M. Latiban

. Pedelito C. Latiban

. Lorenzo V. Bacan(Attachment: Agro-Forestry and Reforestation Project ImplementationProcedures)

ffi PHILTPS'i hi B. IVIININGDEVELC' T}MENTCORPOIIATION

Cte e aill g Vre al t h. Earlc hlng Live s,

25 September 2014

MINES AI\D GEOSCMNCES BUREAUNorth Avenue, Diliman, Quezon City

Dt?T. 0t fl{vti0ti}rIfT AND flATURlt, R[S0UICESRECoRDS MAtiAcEu€NT 0tVtst0il

Attention:

Subj ect:

Leo L. IasarenoDirector lvlAsAtr {e<! o,€CeS -

Environmental Compliance Certificate (ECC-CO-,I 2 I 2.0029) *Application of Masada Resources and Mining torporation , ,,

Gentlemen: ---&:zD_This refers to your Memorandum dated 19 May 2014 ("Memorandum") addressed to theoffice of the Secretary relative to the Environmental compliance certificate (Ecc-co-1212-0029) Application of Masada Resources and Mining corporation (MRMC) for its proposedHemani Chromite Property Located at Gen. MacArthur and Hemani, Eastern Samar.

In the said Memorandum, you recommended that the operators of the philippine MiningDevelopment corporation (PMDC) or any holder of a Joint operating Agreement withPMDC shall secure Exploration Permits, Financial or Technical Assistance Agreementsand/or Mineral Agreements in order for them to be allowed to undertake exploration"development and/or utilization of mineral resources in the PMDC-held or JoA-held areas

At the outset, allow us to explain the nature of PMDC. For your information, pMDC(formerly known as "Natural Resources Mining Development Corporation,, [NRMDC]) wascreated by virtue of the order of the President of the Republic of the philippines, throughMemorandum tr'rom the President dated 9 April 2003, mandating the creation of pMDCto engage in the exploration, mining and development of the goverffnent's mineral assets.Pursuant thereto, PMDC was incorporated and registered with the securities and Exchangecommission (sEC) on 2 February 2007. Subsequently, NRMDC amended its corporate nameto Philippine Mining Development Corporation (PMDC), due to its name's closesimilarity to Natural Resources Development corporation (NRDC), another attachedagency of the Department of Environment and Natural Resources (DENR), the onlydifference being the word "Mining", thereby resulting in confusion not only among thegeneral public but even among government agencies and instrumentalities.

Paragraph f of the said Memorandum from the President dated 9 April2003r, states that:

A copy of which is attached hereto as Anrex "A", for your ready reference.

uon 3001B w€st Tovcr, Phnippine stck Exchange centre, Iixchangc Road, o.rigas centc., p6rg ciq, Tets 7061610-3r .

/A1 t., u'

"The NRMDC shall be primarily tasked to conduct and carry on thebusiness of exploring, developing, mining, smelting and producing,transporting, storing, distributing, exchanging, selling, disposing, importing,exporting, trading and promotion of gold, silver, copper, iron, and all kinisof mineral deposits, and substances.,,

The records will show that the mining tenement known as the "Hernani chromite property"(previouslv covered by MLC No. MRD-V-000262-vIII under La playa Mining corpoiation)was "transferred" to PMDC by then DENR secretary, sec. Angelo T. Reyes, under DENRMemorandum order (DMo) No. 05-2007 entitled "TRANSTERTITNG To rHtrPHILIPPINE MINING DEVELOPMENT CORPORATION (FORMERLY THENATURAL RESOURCES MINING DEVELOPMENT CORPORATION ALL THENON-PERFORMING MINING TENEMENTS ALREADY CANCELLEDPURSUANT To DMo No. 2005-13 AND DMo No. 2005-03'2. The pertinent provisionsof DMO No. 05-2007 state thar:

"In line with the government's thrust to revitalize the philippine mineralsiydustry, all non-performing mining tenements already canceitid pursuant toDepartment of Environment and Natural Resources (DENR) M-emorandumOrder (DMO) No. 2005-13 and 2005-03 are hereby translerred to thePhilippine Mining Development Corporution (pMDC), the minine arm ofthe DENR. for the purpApg of disposing, developing or operating the subjeirtenements by itself (PMDC) or in partnerchip or in ioint venture with aqadifred private party or contructor.

"The Mines and Geosciences Bureau is directed to coordinate with thePMDC on the orderly and appropriate transfer to pMDC of all the relevantdocuments and information pertaining to the subject mining tenements in thesoonest possible time. " (emphasis and underlining supplied)

Hence, it is very clear that the said mining tenement was already legallv transferred toPNDC, ipso jure, by virtue of DMo No. 05-2007. In fact, the said DMo iro. 0s-2007 atsoexpressly directed Mines and Geosciences Bureau (MGB), as follows: "rft e Mines andGeosciences Bureaa is directed to coordinate with the pMDC on the orderlv and

transfer to PMDC of all the relevant documents and information perteining tothe subject mining tenements in the soonest possible time." Thercfore, no other acts,contracts, or agreements whatsoever are needed to implement and give full force and effect tothe said clear and express order (DMo No. 05-2002) and directive by the DENR Secretaryto transfer to PMDC "All rhe Non-Performing Mining Tenements Already CancelledPursuant To DMo No. 2005-13 And DMo No. 2005-03-, which includes the subiect HernuntChromile Property.

This view has been upheld by then DENR Asst. sec. and concurrent Director of MGB.Jeremias L. Dolino, in his letrer to PMDC 0VRMDC) dated 2g September 20053. as follows:

- "This refers to your letter dated Sept. 7, 2005, requestingconfrmation whether the Memorandum of Agreement (MOA) betwei

A copy ofwhich is attached hereto as Annex ,iB', for your ready reference.A copy ofwhich is attached hereto as Annex .,C", for your ready reference.

forthe

Department of Environtnent and Natural Resources (DENR) and the NaturalResources Mining Development Corporation Q,IRMDC) dated May 5, 2005relating to the management/administration, exploration, develooment andutilization of the mineral resources within the surigao Mineral Resirvation willdispense with the need to apply for a Mineral piduction Sharing Agreement(MPSA) or a Financial or Technical Assistance Agreement (FTAA).

" Pursuant to Chapter II of R.A. 7942, the State through the Departmentof Environment and Natural Resources shalt itself or thriugh a contractorundertake mining operations in mineral reservations or other governmentreservation.

"Perwal of the Memorandum of Agreement (MOA) shows that theDepartment wishes to exercise its mandate under R.A. No. 7942 Io undertakethe mining operation in Surigao Mineral Reservations thru NRMDC, itscorporute arm in mining, thus, there is no need to issue a Mineral productionSharing Agreement MPSA) or a Financial or Technical AssistanceAgreemcnt (FTAA).

"Further, Article YIII, Section 8.1 of the MOA provides that NRMDChas the exclusive right to explore, develop, utilize and/or process mineralresources in the Contract Area, either by itself or through a qualifrcd party.The NRMDC, being an attached agency of the DENR and DENR's corporitearm in mining activities, can always be authorized by DENR in themmagement/administration, exploration, developmcnt and utilization ofmineral resources belonging to the stote.

"ln view thereof it is our view that, R.A. 7942 and the subiect MOAbetween the DENR and NRMDC, authorize the NRMDC to undertake mineraloperdtions by itse( or through a qualiJied party and there is therefore no needto apply for an MPSA or an FTAA. " (emphasis supplied)

To expound fi.rthcr on this matter, the basis for the issuance of the afbresaid Memorandumfrom the President dated 9 April 2003 is the 1987 philippine constitution, morespecifically, Article XII, Sec. 2 which provides that: "x x x The exploration, development, andutilization of natural resources shall be under the full control ind supervision iy th, stotr.The state may direclly undertake such activities, or it may enter into ctt-production, jointventurc, or production-sharing agreements with Filipino citizens, or corporatiois orassociations dt least sixty per centum of whose capital is owned by such citizens." Trisconstitutional provision is consistent with tlre Regalian Doctrine which has been adoptedand enunciated in Art. XII, Sec. 2 of the 1987 philippine constitution as follows: *Alt landsof the public domain, vtaters, minerals, coal, petroleum, and other mineral oih, all forcesof potential energt, faheries, forests or timber, witdtife, Jlora andfauna, and other iaturatresources are owned by the state." Under the above-quoted provisions of the 19g7Philippine constitution, the state, as t}re sovereign owner olall lands ofthe public domain,forests, minerals, and other natural resources, may directly explore, develop, ind utilize suchnatural resources, or it may enter into co-production, joint venture, or production-sharingagrcements with Filipino citizens, or corpolations or associations.',

fh9 said constitutional provision or authority for the State to undertake mining activities, byitself, or through qualified private parties or contractors was explained bv an eminent

constitutionalist, Fr. Joaquin G. Bemas, S.J., in his book "The Phitippine Constitution"a, as

follows:

" Exploration, development and utilization of inalieruble resources

'With regard to natural resources other than agricultural land, twoquestions need be answered. First. who mqy parlicipate in their exploration,development and utilization? Second. if natural resources, except agriculturalland, cannot be alienated, how may they be explorcd, developed, or utilized?

"Xxx xxx xxx"The answer to the second question departs from the 1935

Cot stitution which had prescribed that natural resources could be explored,

developed or utilized only by "license, concession or lease." The 1987

Constitution no longer spealts of "grant, lease, or concession" but of eilherdirect undertahing of activities by the State or "co-production' ioint venture,

or production-sharhg agreements" with the State and all "under the fullcontrol and supenision of the State. " (emphasis supplied)

Nonetheless, the said constitutional provision or authority for the State to undertake mining

activities, by itself, or through co-production, joint venture, or production-sharing agleements

was recognized and conflrmed in Sec. 4 of R.A. No. 7942 ("Philippine Mining Act of.199f'), as follows:

"section 4. Ownership of Mineral Resources.- Mineral resources are

owned b, the State and the exploration, development, utilization, andprocessing thereof shall be under its full control and supemision. The State

may directly undertal<e such activilies or it moy enfur into mineralagreernen8 with contractots. Xr x." (emphasis supplied)

From the above discussions, there is therefore no question whatsoever that PMDC may enter

into mineral agreements with qualified private parties or contractors.

However, despite the very clear and express provisions of Article XII, Sec. 2 of the 1987

Philippine Constitution, Sec. 4 of R.A. No. 7942 ("Philippine Mining Act of 1995") and

DMO No. 05-2007, it appears in your Memorandum that regardless of the Joint OperatingAgreement (JOA) of PMDC with Masada Resources and Mining Corporation for this

Hernani Chromite Property you still require Masada Resources and Mining Corporation to

secure a Mineral Agreernent.

We surmise that your position may have arisen out of a misconception or misunderstanding

of the nature of the Joint Operating Agreement (JOA). PMDC's standard Joint OperatingAgreements (JOA), including the JOA of PMDC with Masada Resources and MiningCorporation for this Hernani Chromite Property, a copy of which was previously registered

with your Office, is a "production-sharing agreement". In fact, the main and basic

provisions of the JOA were based/copied from the standard Mineral Production SharingAgreement (MPSA) of DENR/MGB. A cursory reading of the JOA will immediately reveal

that this is a "production-sharing agreement" allowed and permitted under Article XII, Sec.

2 of the 19E7 Philippine Constitution, Sec. 4 of R.A. No. 7942 ("Philippine Mining Act of1995") and DMO No.05-2007.

The Philippine Corctitution for Ladies, Gentlemen and Others,2007 , pp.240'241.

Hence, the only reason we can think of for your misgivings or doubts as to the legality oftheJOA is because there is no such mineral agreement mentioned in R.A. No. 7942

("Philippine Mining Act of 1995"). Section 26 of R.A. No. 7942 defines a "mineral

agreement" as a"grant to the contractor the exclusive right to conduct mining operations and

to extract all mineral resources found in the contract area."

It is true that R.A. No. 7942 (" Philippine Mining Act of 1995") does not mention "JointOperating Agreemenf' as one of the mineral agreements. R.A. No. 7942 mentions only four

(4) kinds of mineral agreements, namely: (1) Mineral Production Sharing Agreement

MPSA); (2) Co-Production Agreement; (3) Joint-Venture Agreement; and (4) Financial

or Technical Assistance Agreement (FTAA). At this juncture, it should be emphasized that

the said mineral agreements mentioned in R.A. 7942 refer to agreements between the

Republic of the Philippines (Govemment), represented by DENR, and privateparties/contractors, and does not covel or refer to agreements or anangements between the

Govemment/DENR and another govertrment entity, such as PMDC, which is a wholly-government owned and controlled corporation.

The following points/discussions will further explain the nature of JOA, to wit:

EUny, the grant or authority for PMDC to conduct mining activities and

operations in the Contract Area./Mining Tenement, or more specifically, inHernani Chromite Property is DMO No. 05-2007. As discussed above,

DMO No. 05-2007 is already the equivalent or conesponding "mineralagreemcnf' for the subject mining tenement to be transfened in the name

of PMDC and for PMDC to conduct exclusive mining operations

therein. Or, to borrow the definition of a "mineral agreemenf in Section

26 of R.A. No. 7942 ("Philippine Mining Act of 1995"), DMO No.05-2007 is the governmental/legal authority or grant to PMDC to have

"exclusive right to conduct mining operations and to extract all mineral

resources found in the contract area" -

Secondbt. DMO No. 05-2007 itself mandated that the subject mining tenement isbeing transferred to PMDC for the purpose of disposal, development or

operation by PMDC itself, or "in partnershiL or in ioint venture with aqualifud private parQ) or contrdctor".

Thirdlv, by virnre of the mandate stated in DMO No. 05-2007, PMDC opted toseek a qualified private party or contractor to develop and operate the

subject mining tenement, on behalf of PMDC. In choosing a qualified

operator or contractor for the subject mining tenement ("Hernani ChromiteProperty"), PMDC, being a wholly-government owned and controlled

corporation (GOCC), has to comply with the provisions on competitivepublic bidding required under R.A. No. 9184, otherwise known as the

"Government Procurement Reform Act". In the public biddingconducted, MRMC was the winning bidder. It should be emphasized here

that the "Joint Operating Agreemenf' between PMDC and Masada

Resources and Mining Corporation only authorizes Masada Resources and

Mining Corporation to conduct mining activities, on behalf of PMDC'Unlike the mineral agreements mentioned in R.A. No. 7942 ("Philippine

Thank you

Very truly yourq

./4--ATTY. LITO A. MONDRAGONPresident and CEO

Copy turnighed:

Secretary Ramon J.P. PajeDepartnrent of Environment and Natural Resouroes

Maseda Resources rnrl Mining Cortr orrtionNo. 5l Daffodil St., Zinnin DriveLadislawa Vilage, BnhanginDavao City

*dVN&X'..*.*L*

lvlALAO{NANG

Aprit 9, 2003

MEMORAI{DUM T'ROM TIIE PRESTDENT

TO : HON, VTNCENT S. PEREZ, JR,Sacretun i)l Encr{r, d|l(1 L:hHirm(n,philippirre Narr(,nal (:ril C omp6rlv lpNOCl

HON, ELISEA D. GOZUNSecrciary of Envir(,nmrnt and Natural lRcsources

SERGIO A, F. APOSTOLprcsiden!. PNOC Encrgy Dcvelopmcnt Co(poration

RE : NCORPORATION OF THE NATUR]|L RESOURCESUMIITG iJ{D DEVELOPUENT CORTORATTOII UNDERTHE DEpARTME!rr oF El[vrRorMElr,t mro reiunrJRESOURCES

Upon the rccoomendstron di Lhi secrera4f of Snvironmen( andNatural Rcsourccs, the Direc(or-Gcneral of rhc Nationgl e"".o.," ^"JDevclopincnr Authority, and rhe prcsidcnr of ,r," pnOC en..n, 6l"ii"prni"lCorporation TPNOC-EDC,, you arc hcrebv Hurhorizcd ro incorpirarc ,rndcr rt.LorporatDn Codc of thc phitippincs a wholly-owncd and conrrollcdgovernme t corporation to bc k:nown as tl,lc Natural RcacnrrccE Minins and

Dcveloprnent -Corporstion INRMDC;, \,hich snaff U. .rttalr,eJ io'ii"

Lrepsrunent ot Environment and Nalural Resources lDENRl. subjecr ro thefollowing conditions;

a. Unless pn\,arizcr1 wrth rhe dpproval of th€ prcsident of rhcPhilippines, rhe NRMDC shalt ql ir ltDes he a wholl!,_owned dnd cDnlr(,ltedqovernmcnL cc'r'poratrun. \rrth ihe loll!1wrng proDorlion of ownershrp.

Na(lral ResourccE DevelopDtcnL L.r)rporatlonIN RDC'I

PNOC.EDCfiftv.ftve pcrccnr l5Sat)foftv-five percent (459.;1.

$ltlililnuill^1.*-' 19208

iI

i.i,ki

H,,'',j,:,r i\4,rrr,.1,: i,lii! iilli|i];;,rij]uii,l,'r auifrorizecr ,,.pirar s(ocr( or on.

^" ,,.t ]'he cqutry rrrlirsrr

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c. Thc NRJVIDC shi,Jl h(,r[ilcl)F(i Lo lhe lJlit{R.

,- | Thi_ Nkl\,il)(. jh.rtl,,), ',,",n(ss ,r -xp1 ,,,,u ;, 1'-J'Jl"] ' j, l,"l::"..;,,,i1;,,,,;;, ,, .,r.r\ r,

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l:,1?i,- ,"#'.i;;'t:',ilil;;;lii;',l,,1-.y^":.shalr bc,.ornprrsed o, ni,,s {er

t;iil::'', ;i i:, il ;ilr l;; ;i::,1[r,f ,,JiJ#]ilri =l]ili

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r. t Jl tr n n id( t Drr\ ,,i/

;:;,?ll,. " llL t'; ;Ul'lii:,ilil,lli .',ll"ll,llii,llil*;

.ll"il .tiil;il;r(:'cva,r\,,n,r.,!., ",.,.,, .'''., li]:

': ll;,r',:1,,,,.."r,.,r q,.ri.rrn .\,.,r .,,,,1

$iilil/ilililililtilItil1liililil-h----. 19209

CFRTIFIED COPY:

enceLe !J rnrer0 iRECtoF ,,,

r\^-^..- - Repriblic ofthe philippines

""t*ll,:]:^.]fI'nvj16nyne1l1 rrr-] j,jrrtLurr j j{5r,, ri,:e,,

,Jfi:i i:*i;;;l:;3;'ills, qu"",,n ciq,''"g2g _66-?.a,* 9rn_9"

{o:e1 029-ur-i,

929-70-4t to 4i

ArvNEx *?,**

,Y^EMojANDUM ORDER.vu. Lrb - 4.o0|

The DirectorA.ll Regional Directorswtrnes and Geosciences Bureau

r;*"**q;tnt?*=r+,m;ti$['*;H-=,-*'

i $x ;'*ffi ffi ililffi 1^1 thrusr. to revitarize the phirippine

m inerals ind ustrv. :. Envrronment

"no ru"tr-r.t"3lments

a lready canc"rruo ilir;;il' tl. ;il:l,::*;Ub_13 and 2005_03 lr-fu;orr.u. roer.inl-nrlrJ"o

pursuant to Deparrment

ejlronmentc*p;;";;"il'"#",:",H jfi;l.J"jfl ,'t?i{::?f;Jfi

tfi l#"g

. ..

_otsposins, devetoping "; ";;;i;;';#':::iY^1fl_or

the DENR, tor tne purposl,, pu rin" r"riip l-,. ];'ffi i# jl^"raias the s u bject tenrrture with L q,dfi;il;;#Hff."?yc:ff

X"glaoc) or

.-I::: and. Geosciences Bureau is directed to cor:: orderly and appropriate rransrer to pMDC of "il

;jd:31: with the PMDC on' ffiarron pertainins to the subjecr

''niningiu;";,,J,,: fi,![:":"1XJJiil,:ils

r'U^pJECt

's Order shall take effect immediatelv.

\-'--'--

.I-et's (io {ir:rcn

^-*%Nr ffi Siilil;fnl1;?n',m-*ud4= ENVTRoNMENT ANDgtr NriunoLnisouncrs

rvrruiS nr'ro GEOSCIENCES BUREAUNorlh Av€n!e. Diliman, Ouszon CrtyFar f, 920-16.15 Tel. 928'86-42

Mr. Artemio F. DisiniPresidentNatural Resources Mining Development CorporationDENR Comrpound, Visayas AvenueQuezon City

Dear Mr. Disini:

JEAssistant Secietary, D Concurrent Director

0

.... "MINING SHALL 8E PRO.PEOPLE AND PRO-ENVIRONMENT INsusrArNrNG wEALTH cREATToN ;ND ift*';r;;'Qil',iry oF LIFE

r'\itjNEX j _.*,

28 Se ptem ber 2005

very truly you

DOLINO

This refers to your retter dated septembe r 7, 2005 requesting for confrrrnationwhether the Memorandum_ of Agreemert (lr4OA) between the Department ofEnvironment and Natural R9.:o_yr*: (DEflRj and' the Naturat Resources MinrngDevelopment Corporation (NRMDC) dared N4ay 5, 2005, relating to thema nagemenvad min istration, exproration, deveropment and utirrzation of t6e mineral::tour?:. wtthin the Surigao Mineral. Reservation. will dispense with the need to appiytor a Mineral Production sharing Agreement (MpsA) or a Financrar or TechnrcalAssistance Agreement (FTp"q)

.^..,-^l:1._1"1!_to..Claplel il of R.A. 7942, rhe State through rhe Deparrment o,trnvrTonment and Naturar Resources shar rtserf or through a contractor undertakemrnrng operations in mineral reservations or other government reservatron.

Perusal of the Memorandum of Agreement (MOA) shows that the Departmentwshes to exercise its mandate under R.A Nr.7942 to undertake the mrning dp"i"tr.in surigao Minerar Reservations thru NRMDc, its corporate arm In mrnrng, thus there isno need to issue a Minerar production sharing Agreement (N4psA) or Financiar orTechnical Assistance Agreement (FTAA)

, Further, Adicte V,ll, Section g.1 of tfie MOA provrdes that NRMDC has theexcrusive right to explore, deverop, utirize andlor process mrnerar fesources in the!:i]i".1 Area, either by irself or througrr a lruiilJJ pu,ry the NRMDC, being anattached agency of the DENR

.and orNR,s .orporitJ -ur.

in mrning actwriies,"can:Iiy^t-j:-."rtlor1.z-,9d bV

-D_Er_\R in il e,anigu.uJaomrnrstration, exptorarion,development and utilization of mineral resourca:s Oet-onging to tne state

tn view thereof, it is our view lhat, RA 7942 and the subject MOA between theDENR and NRMDC authorize the NRMD. to u no "Ju*"

'.inerar operarrons by itserf of

fough a qualifled party and there is therefofe no need to appty ior an MPSA of anFTAA

A

Republicof the Phitippines '\NNBX -s'--Department of Environment and Natural Resources

MINES AND GEOSCTENCES BUREAURegional Office No. VliGreenpoins Subd., Bonilod, Mondoue Ciiy' Cebu 6014

-r.-"r x", i*es sz) 344-3047 t34J8557; Fox No. l+:6332134G917r, E-moil; mgbTcebu@yohoo'com

Please be guided accordinglY.

Very truly yours,

Ro,{Eso vl

% lftggqlifg#ftrd**hr""

ilililt|lltillili fliiiiiilililil ll I ilt il ilt

lln2n|tl L.trer 0j$!apM

')

'lltt'&t, ' I{,g ru January 17,2014 ,*.',-1,1,,.

/ u' (rav+ ,r-jlil, , ;. -^Z/ r, ,_l A ri).: ,\ :

Atty. Lito A. My'ndragon :, e., -i .-;-^-' cpreiident ano/cEo i,":/l,llH ? 3*?01{

Philippine Mining Development Corporatio ';...-' l'^"*-:^,r-:Unit'ioo1BWestTower,Phi|ippineStockExchangeCentreExchange Road, Ortigas Center, Pasig City

DearAtty. Mondragon:

This refers to your letter indorsing the filing of the Declaration of Miningproject Feasibility (DMPF) by Mabuhay Filceme]lt Inc. (MFl) pursuant 1o the

Joint Operating t-he latter 'hai

executed with PMDC. The DMPF is intended for

the area previously covered by the cancelled MPSA 0678-97-Vll, particularly

Block "D" ihereof located at Baringays Basak and Tongo, San Fernando' Cebu

Relative thereto, we are enclosing herewith a checklist of Requirements

for DMPF for your compliance with/submission of lacking

documents/requirements (marked "X") hereof.

cc: - Mabuhay Filcenent, Inc'

dUcomp4/Edward/ltr.fn/ltr.att. Mondragon.jan.17.20l 4esm'14

,'MINING SHALL BE

IN SUSTAINING WEALTH

PRO-PEOPLE AND PRO-ENVIRONMENT

CREATION AND IMPROVED QUALITY OF LIFE.''

RECUIVII)

rl:ll lPll!l \t:rlr'J(:oLvL LrrPrit hT Lok rDlr ATlol{

Lq- eir,t- Ct'lC

Republic ot Ine PhrlippinesDEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCES BUREAU

| :t /tL:r ;KI.I.\rl (),1',KLiQ'UItR,!::v L:M.\ttlt":.(.:t,:l,futtlltr't\it)q'-I4llNl!N()'l'.tl(\'t,(qqtL::/1.\^Jttt,'ll'

j t fiting with the RO of the Sworn Declaration of Mining Project Feasibility

i .. R.- R^_i".+aA;^| 2 Secretary's Certificate attesling to a Board Resolution as to the authority of! person who is filino the Declaration

I €- \"-61'4.*5*:^3 Mining Feasrbility Study Report/Pro1ect Descrptron

j 3 1. MGB Form No. 05-3/05-34j X 3 2 Evaluation Fee (P20 000 00)j 3 : One (1) printed copy _- No e',3n o$,,vasI x 3 4 One (1) digital copy

] 4 Three (3)-Year Work Progran (MGB Form No. 6-2)

- \.to 9r. arrn..A.-rc-eX5. Application for Order oT Survey or Approved Survey Plan

*6 Environmental Conrplrarrce Cerlifroate

7 Errvironmental Protection and Enhancernent Program

- No g..o";L-o tB. Social Development arid Management Prograrr

the

4

T

Il

i

ifi

\:o \r--5v'..c.,\r "e :9. Complete and Final Exploratton Report

10. Pro1ect approval/endorsement by the Sanggunian concerned

1'1 . Proof of Cornpliance with the terms and conditions of the MPSA

12. Proof of technical competence to undertake the implementatron of the activitresunder the Work Program

12 1. Bio-data and track records in mining operatlons and environmentalmanagement

12.2. Sworn statement/employment contract/proof of availed servrces of thetechnical person/s wlro wrll undertake the lmplemeniatron of the WorkProgram

13. Proof of financial capabrlrty to (indeflake the rmplementatron of the activitiesunder the Work Program

1 3 1 Latest audrteo F Inancral Staternent'13.2 Latest Annual Report'13 3 Credit Lines/Bank Guarantebs/Deposrts

1x 14 Sales AgreementiMarketing Contract

X " rne ri' :

W I , rlL_r. : , ,t ri I )

vi

REPUBLIC OF' THE PHILIPPINESPROVINCE OF CEBU

MUNICIPALITY OT SAN FERNANDOBARANGAY BASAK

-ooo_

OFFICE OF THE BARANGAY COUNCIL

Cf,RTIFICATION

This is to certify that thegoveffrment orr,ned and controlled

"orporuti. iand communication (IEC) ActiuLry, with regard to the pMDC and san r.m*co ii-.ston.lroperty, for_ihe barangay officialvresidenti of Barangay Basak on July 19, zbr+ ir"ra

"tBarangay Hall, Barangay Basak, Municipality of San Feirando, province or c.tu.

Issued this 19s day ofJuly 2014 at Barangay Basak, San Femando, Cebu.

and theBarangay Councilors

1..,

3.4.5.6.1

E.9.

10.

. RECIIVED ,S' ...

1AUG o r f'@-',n+--;;G-- -rcto*

pi{ir tipPll9J: MtNtilgsar,lii o,i!,ltrliNx can tont frdtu

Certified by:

t{ol.

/-rr-tnt-9\tF)

GtN+?-o l. Srcrol

REPUBLIC OF THE PHILIPPINESPROVINCE OF CEBU

MUNICIPALITY OF SAN FERNANDOBARANGAY BASAK

-ooo-

OFF'ICE OF THE BARANGAY COUNCIL

CERTIFICATE OF APPEARANCE

This is.to cfli-fy that Engr. Marites M. Reotutar and Engr. cesar Anthony A. Aben ofPhilippine Mining Development corporation, have conducied an Informat.in, niiiitlooand comnunication (IEC) Activity, with regard to the pMDC and San Fernando Li-esiorr"lroperty' for.lhe barangay officials/residenti of Barangay Basak on July 19, ioi+i"ra

"tBarangay Hall, Barangay Basa( Municipality of San Firando, province of Cebu.

Issued this l9h day ofJuly 2014 at Barangay Basak, San Fernando. Cebu.

Certified by:

REPTIBLIC OF THE PHILIPPINESPROVTNCE OF CEIIU

MUNICIPALITY OF SAN FERNANDOBARANGAY LANTAWAN

-o()o_


CERTIFICATION

This is to certiry that the PHILIPPINE MINING DEVELOPMENT coRpoRATIoN. a govemmentowned or controlled corporation, has conducted an Information, Education, and communicuion (IEC)ActivhJ,, with regard to the PMDC and the san Femando Limestone property, for the barangayofficials/residents of Barangay Lantawan on June 26, 2014 held at Barangay Hall, Barangay Lantawan,Municipality of San Femando, Province ofCebu.

Issued this 26'h day ofJune 2014 at Barangay Lantawan, San

JCrptain

'ha .:

Cebu.

1.

)

4.

5.

6.

7.

8.

rwW. hl/"ka" /( P,t {rrp't-''lll

and theBarrngav Cou

D10 p, c{:L)^.aL\

I{ECEIVED

fJ I 'r t! r \i tNlNooE\,!LOr,r{BNT r-oll PonAltoN

.at- 0) 4- ot?+

REPUBLIC OF THE PHILIPPII\ESPROVINCE Or CEBU

MUNICIPALITY O[. SAN FERNANDOBARANGAY LAI\ITAWAN

-oOo-

OFT'ICE OF THE BARANGAY COTJNCIL


This. is.to r{ry that Engr. Marites M. Reotutrr and Engr. cesar Anthony A. Aben ofPhilippine Mining Development corporation, have conducted an Informtfin, naicititrnand communication eEc) Activio, with regard to the pMDC and san r"-a"ao ii.estonlronertr, for the barangay officialvresidentr of Barangay Lantawan on July 20, 2014 held atBarangay Hall, Barangay Lantawaq Municipality of san*Fernando, province of cebu.

Issued this 20b day of July 2014 at Barangay Lantawa4 San Fernando. Cebu.


MUNICIPALTTY OF SAN FERNANDOBARANGAY I,ANTAWAN

-c'Oo-

OTFICE OF THE BARANGAY COUNCIL

CERTIFICATION

government owned and controlled corporation, n*@and communication (EC) Aaivity, with regard to the pMDC and san Fernando Limestonelroperty' for the barangay officials/residentr of Bar*gay Lantawan on July 20, 2014 held atBarangay Hall, Barangay Lantawan, Municipality of SL-Femando, province of cebu.

Issued this 20o day of July 2014 at Barangay Lantawan, San Femando. Cebu.

This is to certifu that the

[Iqn, Marvin T. Bolo1.,3.4.

6.1

8.9.

Hon, Napoleon LauronalHon. Concorsio R GenayasHon. Enrico BarredoHon. Analie AledonHon. Juan S, GiucoHon. Jose Rinqo Sato

Bre!'. Sec. Edlyn T. ImoasBrsv, Tres, Apolonio Trava

RECEIVED- ^R_rto(^\AUtr Ut Z['14----<

--D,rrE- --Tffi7-Pllll lFtr!t !{ tNlNo

D!V!!orMItNr (.oR f or aTtoN

CAI - art,r-^cfl

RSPUBLIC OF THE PHILIPPINESPROVINCE OF CEBU

MLINCIPALITY OF SAN FERNANDOBARANGAY LANTAWAN

-oOo-

OFFICE OF THE BARANGAY COT]NCIL

CERTIFICATION

This is to certifv that the PHILIPPINE MINING DEVELopMENT coRpoRATIoN, agovernment owned and controlled corporation, has conducted an Information, Etlucationand communication (IEC) Activity, with regard to the pMDC and San Femando LimestoneProperty, for the barangay officials/residents of Barangay Lantawan on August 17, 2014 heldat Barangay Hall, Barangay Lantawan, Municipality of San Femando, province of cebu.

Issued this I 7ft day of August 2014 at Barangay Lantawan, San Femando, Cebu.

l.).'.4.S.

6.1

8.9.

Hon. Marvin T. BoloHon. Napoleon LauronalHon. Concorgio R GenavasHon. Enrico BarredoHon. Analie AledonHon. Juan S. GiucoHon. Jose Rineo Sate

Brgy. Sec. Edlvn T. ImpasBrw. Tres. ApolonioTraii-

I ' i.tr,,

l&epublic ot tle lp!ilippineePHILIPPINE MINING

DEVELOPMENTCORPORATION

Creatlag WeaIth. Eadchlag Llves.

ATTENDANCEPublic Consultation/ Information Education Communcation Campaign

Barangay Lantawan, San Femando, Cebu, PhilippinesAugust 17,2014

aviianq Rr

iragol .luort1,

Utut 30tllB Wcst 'l owcr, Phrllppinc Stock Flxchrnge Ccnt'e, Iixchmge Road, Ortigs Center. Pasig Ciq,, Tels. 7061630,31 . ;nfo@pmd€.conph

l&epublir ot tbe lPbilippinesPHILIPPINE MINING

D,EVEI,OPMENTCORPORATION

Crcatlag WeaIth, Eatlchlag Llves.

ATTENDANCEPublic Consultation/ Information Educatjon Communcation Campaign

Barangay Lantawan, San Femando, Cebu, philippinesAugust 17,2014

Name Address Contact Number Signature

O/c,ro b. "/'lla,^toPLr^pa Lan$;o^

" J o,r{on-a a S ell1yt CS

lL/a^p,t '{;^+l; tt MJL.,.,']r,,r, 4an n^ i r,, J<Aov G "

Cil'q^ \)L-^.lo- "" tl BooJeccl Lo, Vitt**U i\ a ,.r. /hla"rna b*s LnPa Lq, hu) art n.k,':t t I'9 nLche.4l tn'bnV L*u Lqnhhtaa 'hj".w'/1 t11Certlq N*--ehudn, L".'p" h" A,nlan c.:p.

'/*,/'ro ("*a.-^ L'fA I n tutAwAb (n'li;Lnt. AP4A ?,1"'tt l( '1 *4h,n,HeBee.ltn (cn{;tt&o ((t ( [ { H rz,--

aausil qrup L/[f+ilriqr).,\, c{ ,/2Utotaxq fDQ< 4nlegi l^^6** th#kuu^L qo

^Ln\l,aa[.".t1a.* / U&o*-.t.!tl'[* ' W I .4-loh \,a'4 O"\ *^it 6^J

plYQ^) CoL,v? t f-2,)l-kvJfil YLG.ttte2 t/r-rrz4 LIPTA VA u -4 W)l(4Ar.v, r.u )- ?lr rr lku-lTwfr>t

. G<Rh

) ptvas2yo 1 tuo"l a t-AdDq r,9r+,J aJ;-U4Z//'11'<,L/

S,u"-rad,"t Ttd " L+t, h. Leg,t L rL ffiTratu*a il't,aud,L[o LOa .l a^; *w Y *h"

av(""-r}-n 4ruo.ta --/ -+t/aa,I.'a-^ fzJAt)v1 p' 4ma€amtr, LtTtlAt^&lJ "iy'R&Lv4YU Wwrrmvt \hrJ741,1^, W

l8,epubtic of tbe lFbilippinegPHILIPPINE MINING


Creatlag WeaIth. Earlchlag Llves.


Barangay Lantawan, San Fernando, Cebu, philippinesAugust 17,2014


tb;rrai,eG[îlû> J ^l;ro,^

&"'faa ,11L..-----9r-E--E--

/P.6|uuhd, /.afu":l4pD J rr^Tau*, &.,+A) tp. c-ffi fl*{ l,r-ta,"n-ô,

"&f-\ -? ,a., t, ') nn - I rrr tn- ( -,rirrl\ nh -Jrr h,h,oa.,-'._ B-.'4*- €^_k"Nttir

" [on.(o.rtn bnl.rPa 2.,^ ry.rrcn Aa w^.--,

LA,-nt"rr"e^ru 1 ). bt$.z/r7-\ tY-fvzA/l/-L

JAilA14 H-*,<n,/o* W@TFtut- vr4ontr, t(/ W,J;'a[w," !,tilFn Lattfur^lqtt Cn +X0fury'"/ [.*, l-.6t,17$u.zz. (,, |Ma -/ -w-Atu" kq,f J Ca.tn,rot &h 6.4/^- 'h,'/{t/,/,Jonahx Jny, lt,rf'da"; Un frlo. eAu ;o',,?A

U\J

Barangay LantawanCommunity's Feedback on MFI/San Fernando Limestone Property

Usa sa target sa Mabuhay Cement Philippines ang atong Barangay nga ilang kubkuban . Recently,

nag negotiate pa sila kung mooyon ba ta sa ilang offer .

Palihog comment niining among post and tagai mi sa inyong tagsa2x ka opinion nganung mooyonug nganong dili ka mooyon para mahibawo mi sa inyong idea, aside from this aduna kita public

hearing about niini.

DAGHANG SALAMAT.

Base on our research:

Water scarcity : Mining either by opencast or by underground methods damages the water fegimeand thus causes a reduction in the overall availability of water in and around the mining areas. In thesedimentary deposit mining areas the water table and aquifers are damaged and thus the availabilityof water from these sources reduces.

Health impacts: Health and well being of the people living in and around the mining complexes getaffected due to the pollutants in the air and water, noise and vibrations. In fact, the society in themining complexes has to bear the various costs of abating the affects of environmental pollution invarious ways. The people working in the mines and associated facilities also get affected by thework place environment, which can cause various problems, e.9., skin problems, lung diseases,

deafening, etc.

Infrastructure facilities: The mining and associated activities in the mineral bearing areas bringabout infrastructural development, i.e., roads are conslrucled, schools and hospitals are established,communication facilities are developed, etc., which tend to improve the qual;ty of life of thecomolexes.

Employment opportunities : The mining and associated activities offer opportunities of employmentto the eligible people from the ethnic population. The Project Affected People (PAPs) are given jobsand are trained for self employment as a result of the provisions in the Rehabilitation andResettlement (R & R) schemes. People also get employment in the other developmental activitiesand also the mineral based activities in and around the comDlexes.

FROM MABUHAY CEMENT PHILIPPINES: about safety and health impacts" the company had invested much on advanced and modern technology to ensure safety andsecurity, citing that the plant has two oversized electrostatic precipitators as pollution-control devicesthat can accumulate ionic dust particles and also has sound insulators to prevent noise." He saidthat the company is confident to defend what is truly right and is slill welcome to accommodate theopposing side for a plant tour."Our doors are open to all every single day. We have not violated anyregulation. We aim to be environmenf friendly. You can see and verify it yourself, " said EnrisonBenedicto, chief executive officer of MFl.

n.Karen Yap please state their purpose and also the advantages and disadvantages of this project...if we canbenefits with this ortake risk for our livelihood and most sgeciallv is it safe for us all...tnxAt,gfrsi 2 :,ri ia.:i)atr 2.TClaire Oiolan Emphasis definitely NO !!!!lA'Jllfisi 2 ,:i 't1 '11;r. 2

.HRonnie Larrobis Heruela Love nature, study nature, close to nature ...it will not fail you.....hopefully NOAlqirst il .rl 1 :l i f Drl 3

.HMichel Villaver Bernabe Albeios Dili ky mkadaot sa atong kinaiyahan, ug natong mga katawhan nga lumulopyo,A,,orlst: irri 1.1 1.llD:1t 2

.ryRoel Remz murag uyon ko mura sad og dili ako sa ni patambagan ni noy kulas ha......pero ato sad tan awon angubang lugar nga naay mining murag niasenso ang ilang lugar hasta sad ang katawhan ky mo generate man na ogemployment daghan na man ang makatrabaho....AfrrLrsi: irt 'i,: :'2t:- 'lHI:.ilKaren Yap yah dats it employment wise but what about the nature of place.. . mountain barangays so when there'sa mining industry no doubt it will go down and sink so figure out what will be the outcome of this ...l\riL:r.rsi : .ri :: -q:fr' 4.EMichelVillaver Bernabe Albejos Kung mag base ta sa trabaho ok kau ky mkatrabaho na ang mga tawo labi naldsa mga lumulopyo ky ma priority man jd guro na, pro simbako my calamity moabot pra nko murag dli safe sabarangay lantawan,,,,Aunl'si:l iii I .i-lD.' 5r-xa-ttMichel Villaver Bernabe Albejos Protect the nature,,, so definitely NOlll!!lAuqrlsi 2 at i 03i:,r]: 1.f,Lea Quisagan pwede dli..Autltsi :l :,rt 1 1llcjl 2.rHadli Orobla ako isip ngdako sa Barangay Lantawan San Fernando dijud ko musugot.., Ngano...?kabalo mn tahog unsa cause anah di,mura rtah ngkuha og bato nga idokdok sa atong ulo......dapat atong hunahunaon ang mgakatawhan sama rah nga ato silang giinanay og patay kong musugot kita.....\Uir|si : .rt : i,r, fjr- ti:lti. I 3.rHadli Orobla unsaon mnang trabaho kong ang health sa mga taw in danger mn pd.......dapat mgkahiusa ang mgakatawhan sa Barangay Lantawan San Fernando nga dili uyunan ang maong plano.....unsaon nlng di na tah freshair diha

A!,.r!,!i 2 al: 12!rjr iaii ie'-i 3rL

Roel Remz ingon c noy kulas ang toledo nahimong toledo city niadtong 1961 tungod sa paningkamot nicongresman manuel zosa og sa contribution sa atlas mining nga naa sa lotupan......so uyon ko ana ky wa man lagimahugno ang toledo....nya speaking of fresh air nganong mopoyo man tag syudad nga tanang klase sa abog naaman dre,,,, so tongod ky naa ta nanginabuhi sa syudad uyooooon ko............... .

/lr:Just 2 :,ri i'j l?[,ri 1.ITita Anderson ato nana gipoy an sa dugay nga panahon,,,gikan sa Naga,,wala pa gyud ko matawo ana,,,unyaniabot sa lungsod sa San Fernando,,, dugay nana diha,,,sa crases sa mga tawo nga molupyo sa Brgy Lantawanmas ilang pwesto safety sila kay taas ang lugar ug taas ang daganan sa hugaw,,high tech na ang pamaagi sacompaniya nga itukod,,, benifasyo sa mga tawo,,,tarbaho sa local resident kinahanglang in writing ang tanan,,paradli mawad an sa maaung resulta,,,,,,,,tingale sa kadugay na nga hingos sa mga CEMENT FACTORY,, nganoh ngadili man,,,,,the location is not bad for the loc€l resident,,,,GO FOR 1T,,, Practical innovation,,,,,, KAAYUHAN saTANAN,, so dili ipadayon ang kinaraan,,,kita ang magkalisod lisod kon dili nato e extend ang atong bag o ngateknohiya,,,, HIGH TECH na ang mga companiya karon......Thank you ,,maona akong hunahuna,,isip sakop sa SanFernando.A:.g.rsi .' ;i ? :Jil i: 2.trRonnie Larrobis Heruela Health imDact must read.....Arrqr,st: :ri i -::'r.- 3TY.HJenien Giucs a big NO! Preserve the good that we have Nindot na sa sugod, pero atoang tan.awon ang iyahanglifelong effect which is more or less, NEGATIVE!Ar,.r,-,sl: ::3 f i-'- 4

.HRonnie Larrobis Heruela Maypa camellia home inyo e project dha daghan pah foreigners magka interest. ....kfresh airtaas ug lantawan. .....A.r'.rL si i :rl .1 .2'.,rrrr. 2.Eiilichel Villaver Bernabe Albeios Motoo ko nga ma control sa ilang mga hi-tech devices ang noise ug ang mgadust particles pro ang pangutana lOO% ba???Alors12 ei 4 -lJa_,'l j 2.5Ako Si Phil Barbz No.dili natu gub.un ang likas na kaanindot sa atong lugarA!,gLrsl 2 al ai 5lli,r'r, 3

Sheilame Onglao Big NOlll!!llunta dili madayonllll!lAug.isi: .i i' i1!ilr 3.rSheilame Onglao Kalinaw sa ato palibot og kanindot niya ato jud cila tagaan og dan para muguba og magsamoksa ato lugar,,,,,!ll! Unta dilijud madayon,,,,l\i,.rir-sl : ?t i'.1i' r 2

T

Alice Alcoseba for my opinion dili na maau oi kai makadaut na sa atong kina iyahan sama sa abug naabut manganiang nag kadaiyang sakit nga layo2 pana sa atong barangay unsa nkaha kon nia na sa atong dapit uniabuyohon lang ta anang trabaho? maau pag manguling kai mutobo bag blik ang kahoi kai sa abug ang mutapot sanagkalainlaing utanun ilabi na gyud sa labing mportante sama sa kamonggay saksi ko sa tonggo ang kamonggayperting abug unia pwede ntang bayran kai erelocate dayon ta sus magpakamatai ko ining Barangay Lantawan SanFernando kai mao ni akong natawhan ug namat anAirc\rst .i !:1 ; .l i r]rr i (l i.t:j 2rr-

Grace Sasutana Unsa man ilang kubkubonALir-rirll 2 nt ,' :l2.r,r

gtE*Michel Villaver Bernabe Albejos Correct ka ng Alice supak jd mo huh,, bsan tood ug Diana ko puyo sa mandauepro naa jd akong family dra, nya ang atong tubig my na kau ang dagan uroy ug ma apjktohan tubod gd na gkan,,,,Arrgg,:i 2 ;1 :Jlii,r-.r 1

Alice Alcoseba mining ang porpuse DaiAii,j.jsi ,: ei , .rar., r'

-TGrace Sasutana Ok l'm in favor of big no no no "no" as in no q anaAlllsi :l .: I: ir'i 'l

-Alice Alcoseba mao Dai unsaun nlang ug ingnun ta nga hallow na ato lugarAirj.r:1 :: ti . : ir-:'r 1

--Grace Sasutana Mao hugno man gni ang atlasAu:.1,J: : rl :: Li:,r 1

rIAlice Alcoseba mao nai labing pait Dai GraceArr'i!:si i .i : l!,i!r,l

Alice Alcoseba karon d nta mag expect nga wlai kalamidad sama sa linog labing kuyw ug wlai maka predict anajesus simbakoAL,rl,.ri:r :ri : 4::t]D 1nHEGalo Dacalos asa mna cla dapit magkubkub unya unsa mn pod ilang offer?Augj;l : ai fl ,,);i,r,r 'l

Alice Alcoseba patrabahuon ntang tanan Dong hehehe btaw musta man ka Dong .. ...wla pta kabalo ug unsailintunganay ini nagkinahangan lang sa atong tagsa2 ka hunahuna DongALrat,,isi 2 ai ! ilaio'r, 2--gGalo Dacalos ah ok, te dli ko sugot ana te nga mgkubkub dha sa atoa nga barangay agree ko ana te nga ska hightech krn kya nla pogngan ang abog ug walaon ang kasaba sa planta,ang pangutana dha te kng may katamidadnahibaw-an nba nla nga moabot ug mapogngan ba sad na nla.

l\LrajLjsi: et 'n 421i. 2.rAlice Alcoseba conect Dong sa akong pangagpas Dong d maau ang sangputanan okey na kaau atong kahimtangbsan ug mag uuma lang nganong minahon paman nga nagpakabuhi man tang pinubre taas man atong panlantawug lab asnga hangin ug piskai atong lawasA.i.]|rsi 2 at 816i]r Foiiei 1.EGaIo Dacalos DILI JUD KO UYON SA IYANG PLANO NGA MINING SA ATONG BARANGAY LANTAWAN..,...,A.r0rrst: a,t 3 4g!'F'r 2.flHadli Orobla kanindot sa atong dapit unya mg- unsa nlng ang atong umaabot nga kaapo-apohan di nila makitaang kanindot niini unya wla na silay mahangap mga fresh air.....mao raniang butong ntong ikapanghambog ngabisan pubre tah nindot atong lugar.....Au.t,rsl 2 al {l i;; L-rr 2

.:Alice Alcoseba sakto gyud ka Dai/\!qust 2 3i ! !-1r i-rr 1G.GQuisagan Nestor Ayaw gyud n og sogot ky lain ang ila gi mina dli para himoon og cemeto... ... Naa bolawn s ato

Au.l!s1 ,' lt ^ ,4i.,".. 1.IAlice Alcoseba mao gyud DongALi-rusl :i :: a il:r:'.tTessie Tanongtanong Onglao i hope daghn ang dli mouyon ani ako isip lumolopyo sa lantawan dlijud ko muoyonky cla ang mabulahan kita ang tnang lumolopyo ang alaot...tungod sa ka high tecl ato nlng isugalatong yutangnalawhan oh tnuod high tect nata rn tungod sa kahigh tect nato rn dghn n ang wla kaila og ginoo busa balik t sakinaraang huna.huna....Alrglsl:J at a ::,-3:rf. 1G.c*Ouisagan Nestor Patyon ang mosogot og minahon dha s atoa...ok....ALiiust 3 irt !,11-:rrr 1.IDahlia Quiiano BIG NO NO NO.....i hope wlay mosugot.../iLrousl:l al 14, il:lar1 1

sd.r4Quisagan Nestor Mao jud...Ari.lirri -:l:ri it Oier:- I.LRandy CG Manggay So my opinion about us... Una di ko mooyon nga adunay minjng sa ato lugar baranggaylantawan,kay mao nay makaguba sa ato kinabuhi og sa ato kaugmaon og labi na sa ato mga anak.ikaduha...ang mga tubig na ilang gigamit nga anaay sagol na mga kimikal og asa agos diin diin...lkatulo,dili goodhealth ang mga tawo diha sa baranggay,kay ang tubig na ato giimom kadaadlaw imbis tiyempiyo

og tin-aw Adina nay sagol kimikal hugaw na. daghang mga two magkasakit og labi sa mga bata looy kaayo..ika upat... kana ila giingon na hitect na ang panahon karon.makiuso dab ta diay. dili tanan ato sundon og makiusopara di maguba ang ato mga yuta.

aka upat ... Maayo ra na sa una sabot or nego pero ikadugay gooby na... kay humana na ang ilang pagtingoha saatong baranggay... Mao nga ampin ang punong baranggay og ayaw padani ana mga salapietc... hunahuna angmga kinabuhi nga a to nasasakopan.di na bali magtrabaho mi sa malayo basta di lang makaguba og isigkaingon...Mag unsa mana ang kuwarta kung ang kinabuhi hinayhinay sab mawa. .

lkalima... Kung ang mga tanel na ila nahimo og ila giagi-an.Mao nay makahatag sab og dako na problema sa atoKay moabot ang dakong lindol kita tanan matabonan Kay manlusno man... Mawagtang na ang baranggaylantawan na inyo palang gipa improbe para sa mga tawo.lka anim.. Ang uban mga tawo OK sila.pero wala sila kahibalo kung unsay dangaton bandang huli... Ang ubanuyon sab kay wan-a man sila magpuyo diha... Mao natunga ang atention nila... Disagree and agree ang nahitabo...Pero para sa ako bilang apo ni Faustina Caballero Manggay... di ko mosugot na tugotan na sila na mag Mining...soMaraming salamat sa iniyo pakunsulta....Good Bless U all ..

Arig$l .l ll I i..r.1ir'r 1

E

-Alice Alcoseba pagka proud ug pagka nindut handumon sa mga kinaraang kansion dli sama karon timan iangpinulongan sa mga batan un sama kang Tessei onglao ug niNestor sa kabata sa ilang pangidaron naghandum saatong hiyas pilipinhong tugon sa nag unang mga respitadong panahon nag amping sa kinaiyang pilipinhon pagamping sa umaabut nlang kaliwatan nga unta mkasud ong pa sa ka husay ug kaanindut ning atong barrangayiliqrt::ri i:r:r|, 1 i;:cir 2

rIAlice Alcoseba sama kang Randy manggay atong panalipdan ang atong kina iyahan sama sa tubig abug ect.AL'!j::-r :r r" 1 r':,i,r I 1

t-Alice Alcoseba sakto kaau imong edia Dong Randy saludo ko.Arrarrsl , .r' .r tl-ir,r 1

Roel Remz ayaw mo kahadlok ky di na madayon ky masuko man ang engkanto sa busay kon ila na padayonon nailigid na ila buldozer sa ubos........he heAlqjii :1,:ri : I ri|r 1

Alice Alcoseba wahahahahahaA1rli,"rt ll ;it :t I i]|1ri

T.LRoel Remz di na nya na pahuwam plato he heAii,rL,sf.l :r!: i!ri,r 1

Ailama Misa Macuras Big NO NO NO NO. ! pag ka anindot sa ato barangay ato lang ipaguba tungod anangmrnrng..ALr!! sl ' ,:r::':': " 2

ICherleet Baricuatro Remeticado bitaw uyon ko sa opinion ni Ms. Ailama Misa Macuras...ang atong mahanggabdha kay ABOG na gyud ug dili na presko nga hangin.. ug isa pa maguba na ang nature.Arr.iir::l :i irt ',,, 1-,'. i: 2

Ronnie Larrobis Heruela Ayaw lang ipa level sa sangat nang Alice Alcosebaang kinubkubay.....Aucrust4atll lOanl.IAlice Alcoseba sakto gyud Dong Ronie Larrobis d na maaung patagun DongAugust 4 at 11 53am

Lizaldy Sarucam ehmmm,......its a big NO NO...,dha,,,ta nakamatngun ug bo,ot sa lugar nga atu ,,,,poy,an nya ebaylu lang natug kwarta,,,,,,,,,,,,sa lain lang ioALlousi 5 at I 460n 1.tAlice Alcoseba mao Donor\ucJlstOat339aDr

THadli Orobla ipakubkub Ing nila ang bisan asa pero ang atong lugar dijud pwede....once mguba nah angkinaiyahan,muabot ang panahon nga maningil kini.....Auqust : at 1C 24om.EMichel Villaver Bemabe Albejos Oi,, ug ilang Patagon nang Alice Alcoseba Di nana barangay lantawan ky dinaman ta mkatantaw hehe.,3 frours ago

nBarangaytanan.

Lantawan San Fernando Na appreciate namo ang inyong mga komentaryo , manggilabot gyud kitang

Matod sa Representative sa Mabuhay, dlidiay mining ang ilang purpose, quarrying diay.Quarry is magkubkob dli sa ilawm kundili mupatag ug bukid. Ang ilahang kubkuban kadto pd nga area nga wlanagpuyo. Purely yota ra jd ilang kwaon.

Para sa kompleto nga impormasyon, para matubag ang inyong mga pangutanana ug mapadayag ninyo ang inyongtagsa2x ka opinion, attend ug panggilabot Kay aduna kita General Assembly ,Aug 17, Dominggo alas g:30 sabuntag.uagrrar rg raralrct.

ArJa!tsl .1 :rl !1 1:tarr

.EBarangay Lantawan San Fernando In public mo presentar ang taga Mabuhay Cement .

Andama inyong mga pangutana kabahin sa ilang katuyoan u9 sa benepisyo nga atong makuha.SalamatAlgust.1 .rt i !i;,irir 1

.ryRoel Remz aw kinubkubay ra diay cge ipakubkob dayon didto sa busay tan awon ta.....Arrgi]st 4 al !i;t:jiir''r 'l

Alice Alcoaeba okey daghang salamat sa atong barangay sa pagpasabut sa lintunganai nga posible nga maoimahitabo pinaagi sa tagsa2 ka opinionAlEusl 4 3i I254r,'i Fi.i t:,:j 2

Ailama Misa Macuras Dijpun ma.ayu ang quarry.maupaow jpun a.2 bukid ana.ALloL,sl I iii a, .1i:,r"r F:l i.,,1 I

.:Alice Alcoseba correct Dai big big big no ghapon tambungan ta gyud ni DaiArrg.rst.1 il !l 4:Jrr,r 2

Ailama Misa Macuras Mao jud nang 4alice. Patagon 2ud ang bukid pero wla nay tanom. BIG NO NO jpun.Ar,.rL,s1 .i :rl !' .1ar,r'rr.tCherleet Baricuatro Remeticado Advantanges: Lots ofjobs are available, lots of limestone is being produced,

limestone is commonly found in a nature saght Disadvantages: Creales noise pollution, is an eye sore, looks aMul,creates lots of tratfic, very busy, lots of commotionAuqusl .i a,ii ':l a 1;lrr

.:Alice Alcoseba correct DongAuqlsi 4 .ri l{l flfl.inr 1.TDjfrancis Baclaan Alcuirez bisag dli q taga lantawan coment q ha..NO hahaAriatirst 1tr .rl 1il I!tiilfl

REPUBLIC OF THE PHILIPPINESI'ROVINCIT OF CEI}U

MUNICIPALITY OF SAN FERNANDOBARANGAY TONGGO

-oC)o-


CERTIFICATION

This is to certif that the PHILIPPINE MINING DEVELopMENT coRpoRATIoN. a governmenrowned or controlled corporation, has conducted an Informatian, Education, and commiicinn eac)Adivity, with regard to the PMDC and the san Femando Limestone property, for the barangayofficials/residents of Barangay Tonggo on June 2j,2014 held at Barangay Hall, Barangay Tonggo,Municipality ofSan Femando, Province ofCebu.

Issued this 27rh day ofJune 2014 at Barangay Tonggo, San Femando, Cebu.

Certilied by:

Ffl, o 7,f <==_t_:)llw (zsLLo l" 9i /vt.-' '

and theBarangay Councikrrs

/urp- on*.''rc '24\Ar. '1>/,1ui4.

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6.

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8.

DATE

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MUNICIPALITY OF SAN FERNAIIDOBARANGAYTONGGO

-oOo_

OFFICE OF'THE BARANGAY COUNCIL

CERTITICATION

This is to certify that thegovemment owned and controlled corporation, ha "ond@io,and communication (IEC) Activity. with regard to the pMDC and san Femando LimestoneProperty, for the barangay officials/residents of Barangay Tonggo on July 19, 2014 held atBarangay Hall, Barangay Tonggo, Municipality of San Femando, novince of Cebu.

Issued this 19b day of July 2014 at Barangay Tonggo, San Femando, Cebu.

Certified bv:


l. Hon, Felix SiarotHon. Cresenciano BarnigoHon. Jude Farvic DayaoHon. Apolonia CanoHon. Manuel GenarzueHon. Rosa SarolHon. Cresenciano O. Cafionero

Brw, Sec. Aida VillarasaBrw. Tres. Merlinda Cafionero

)3.4.5.6.1

8.9.

Hon. Virsilio P. Siarot

r t,lLl PPt Vt Mt!JtNCDI}V!I.OPMENT COIIOR TION

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REPUBLIC OF TIIE PIilLPPINESPROVINCE OT'CEBU

MUNICIPALITY OF SAI\ FERNANDOBARANGAYTONGGO

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OFFICE OF THE BARANGAY COT'NCIL


Thi.s. is.to T$ry that Engr. Merites M. Reotutar and Engr. Cerar Anthony A. Aben ofPhilippine Miynq Delglopment corporation" have conducied an InJomutiin, Educatbnand communication (IEc) Activiry, with regard to the pMDC and san Femando Limestoneltop.rty' for the barangay offrcialvresidents of Barangay Tonggo on my re, zor+ rr.ra

"tBarangay Hall, Barangay Tonggo, Municipality of san Fernanao, province of iebu.

Issued this 19ft day ofJuly 2014 at Barangay Tonggo, San Femando, Cebu.

Certified by:

Hon. Viilqifo P. Siarot


MUNICIPALITY OF SAN FERNAI{DOBARANGAYTONGGO

-oOo-

OFF'ICE OF'THE BARANGAY COUNCIL

CERTIFICATION

This is to certiSr that thegovernrnent owned and controlled corporation, has conducted iTnyor-odoijiilttonand Communicution (IEC) Activ,t4r, with regard to the pMDC and San Femando Limestonefrgnert}' for the barangay officials/residents of Barangay Tonggo on September 20,2014held at Barangay Hall, Barangay Tonggo, M'nicipality of San Fernando, province ofcebu.

Issued this 20th day of September 2014 at Barangay Tonggo, San Femando, Cebu.

Certified by:


l. Hon. Felix Siarot2. Hon. Cresenciano Barniqo3. Hon. Jude Farvic Davao{. Hon. Apolonia Cano5. Hon. Manuel Genargue6. Hon. Rosa Sarol7. Hon. Cresenciano O. Cafionero8. Brev. Sec. Aida Villarasa9. Brsy. Tres. Merlinda Cafronero

Hon. Virgllio P. Siarot

Eepublir ot tbe gbitippinegPHII,IPPINE MINING

DEVHI,OPMENTCORPORATION

Cteatlag Vealth. Ea chlzg Llves,


Barangay Tonggo, San Femando, Cebu, philippinesSeptember 20,2014


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Eepublic of rDe lFbitimdntgPHILIPPINE MINING


Cteatiag WeaIth. Ezrlchlag Llves.


Barangay Tonggo, San Femando, Cebu, philippinesSeptember 20, 2014

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Eepublic of tre SbilippinesPHILIPPINE MINING


Creatlag WeaIth. Eadchlag Llves.

DateForThruFromSubject

POST-VISIT REPORT

12 May 2014Atty. Lito A. Mondragon, president and CEOEngr. Salvador E. Herrero. Ir.. pMD Manaserg,-Engr. Cesar Anthony A. Aben, pMD TechiicalYfficerReport on the Field Verification of the San pemanio Limestone propertyof Mabuhay Filcement, Inc.

A. Objectives

' cAA & zrF to conduct field verification of the San Femando Limestone propenyassigned to Mabuhay Filcement, Inc. (MFI) and to verify its accomplishm.nt, ro. cv2013.

o To make a courtesy ca with MGB Region VIi, Municipal Mayor and vice Mayor ofSan Fernando, cebu and to make an Introduction of pMDb to trre s-gl*i*g-t"y*

B. Meeting/ Activities Undertaken

MAY 5,2014 (Day l)

o Travel from Manila to Cebu City.r Meeting with Ms. Ma. Teresita pintor, safety, Health and Environment (SHE) Manager of

MFI to introduce the PMDC personnel and to briefly discuss the itinerary ofi.ti riii.. ro,the San Femando area.

M.AY 6,2014 (Day 2)

o Travel from Cebu City to San Femando, Cebu.. Field yerification of the San X'ernando Limestone property.

The following were the highlights of the field verification:o The PMDC team were accompanied by Ms. pintor and Engr. Ben warren cachero,

Mining Engineer of MFl.o The PMDC team visited the project site in Barangays Basak and ronggo. It was observed

that there were no activities during the visit.o Block D in Barangays Basak and ronggo was first visited with coordinates N 10. 09'

20.4" E 123" 40' 47.5". rt is the proposed quarry site of MFI once its DMpF will beapproved by the Mines and Geosciences Bureau (MGB).

o Engr. cachero mentioned that the pMDC claim surrounds the MpsA application of MFIwith MGB Region vII covering 2 blocks in Barangays Basak and Lantawan. It was alsoshown in the tenement map of the pMDC claim. MFI has applied for a Small-ScaleQuarry Permit to the Office of the Govemor covering 5 hectares outside the pMDC claim.This permit is currently used by MFI to extract limeitone in their MpSA area and feed itto its cement plant.

o It was observed that MFI's submitted accomplishment reports for cy 2013 does not showany sign of exploration activity and development within the contract area.

The undersigned inquired to Engr- cachero the highlights of its exploration activities forcY 2013' however, he informed the pMDC t.". ittuti. *us onry assigned to the quarryoperation and Ms. Pintor handles the exploration.Engr'.cesar Anthony Aben team asked' Ms. pintor about the charurel sampring activities1i:!t-1 in their Cy 2013 quarterly accomplishment .rpo.t, ho*.u.., ,h;.;i;"";;;i;;":l..urj.Lt*:, and passed the question to Engi. Cachero.rvrs' zrlla f rancra inquired whetherl4Fl has. a community Relations officer (cRo). Ms.Pintor answered that she is also the CRO of the company. 'The team next visited Block H in Barangay I-uotu*in riitt coordinates N r0" 09, 19.1" E123.40, 08.2.No activities were observed in Block H. Access roads built my MFI was seen inpreparation to its commercial operation.B.lock c in Barangay Lantawan was also visited. No development or activities wasobserved aside from the constructed access roads.MFI has also constructed a new access road from the highway to the quarry exclusivelyfor MFI's transport of ore. The coordinates taken were N io os' oc.z- E l23o 41, 49.2..

The undersigned with Engr. Cachero in BIock D ofPMDC area odjacent to the SSep olMFt on its

MPSA area.

The Small Scale Quarry Permit of MFI withcoordinates N l0' 09' 50.5" E I23o 40, 29.7,,

PMDC Block H area with constructed qccess roqd

MFI Cement Plant

The PMDC Team visited the cement plant of MFI and being introduced to the cement plantpersonnel by Ms. Pintor.

oo

Meeting with Mr. Enrison T. Benedicto, CEO of Mabuhay Filcement, Inc. (MFI)

The following were the minutes of the meeting:

Mr' -Enrison

Renedicto gave.his appreciation for the presence of pMDC personnel in theSan Femando Limestone project.His first question is-when will pMDC allow MFI to operate?The PMDC team explained the concept of Declaration of Mining project Feasibility(DMPF) prior to the issuance of ore Trinsport permit (orp), ttr" ,o'i" or"punC _a ii,"role of the MGB.Mr' Benedicto informed the pMDC team that they have already known all those matters,however, according to him,

^the previous pMDC management had given a differentinformation-that rhe Joint oqer.atine Agreement (JoAj rs good as a mining permrt

without the approval of the regulating body which is tire NA'CB.The undersigned apologizes for this ionfusion and assure Mr. Benedicto that this will bedelivered to the PMDC Management. Mr. Benedicto cited that he already ,uir"o-it to-ti.PMDC top management.Ms' Zilla Francia inquired whether MFI has a community Relations officer (cRo). Mr.Benedicto and Ms. pintor answered that they have a CiO in tt" co,nfuny,;;;;i i;what Ms. Pintor answered during the project site inspection.Ms. Francia asked if MFI is undertaking community projects to its LGU/ imoacrDaranpavs_

Mr. E"#son reported that MFI had already donated cement to various LGU projects andprovided financial assistance to affrual feast celebrations and other soticitatrons. ror him,it was considered as a dole-out g{o1 of MFI and they continuously ,"ceirring .equestletter from organizations/ LGUs. He also mentioned that the more they are visible to thepublic, the more requests they received frotn the community.Mr. Benedicto added that if onry they knew from the beginning that pMDC's role is morelike a middle man, they would

. lrayg _:-uqt apply dire-ctty to N CS as the company,s

expenses doubled when dealing with pMDC too.o According to Ms. Pintor, in relation to the filing of the DMpF, MFI has only twodocuments needed for the completion of the requirements which are the order of Surveyand the Endorsement of the Sangguniang Bayan (SB) through a Resolution.o MFI is currently working for.the order of Survey. As for the Endorsement of the SB, theyare having a diffrculty obtaining the said resolution so they are asking for the assistance ofPMDC.

o Mr. Benedicto said that if MFI will do the request alone, the project might be stalled foryears so he requested PMDC to do the request to thc LGU u, u gou"--"lnt

"o.po.rion ,o

another govemment entity.o Mr' Benedicto requested the PMDC team to include the agenda on the introduction of the

PMDC to the SB the request for the Endorsement of the San Femando Limestone projecr.o The PMDC assured Mr. Benedicto that PMDC will do its best to help MFI as its partner in

any endeavor for the succession ofthe San Femando Limestone project.

o courtesy call to Director Loreto B. Alburo of Mines and Geosciences Bureau Region vIIto introduce the PMDC personnel and the purpose ofvisit to San Femando.

MAY 7,2014 (Day 3)

courtesy call to Engr. Raul Laput, MGB Region vII Mine Management Division chiefand Engr. Armando Malicse, Mining Environment and safety Division chief, to introducethe PMDC personnel and the purpose of visit to San Fernando.The PMDC team requesred MGB vII a copy of any previous field validation reports in theSan Fernando and Pinamungahan Limestone projecL, however, MGB vII answered thaL

they did.nor-conduct any varidation yet in relation to those projects. The undersignedrequ_ested MGB vll to noti$r the PMDC in advance whenever there is a scheduled ieldverification in the aforementioned areas so the pMDC can join the MGB in the conduct ofverification.Another issue raised during the

_short meeting is the approval of the Exploration workProgram (ExwP), Envrionmental work program (Enwp) and community o.u"top-"ntProgram (cDP) as pre-requisites to the field verification. According to Engi. Malicse, theycannot validate such area without any approved ExWp, EnWp and CDp.The PMDC team answered that the Exwp of pMDC projects are being forwarded toMGB central/ Regional office for information/ reference but is not being alproved as thisis already part of the requirement of the JOA.Meeting .with Atty. Tony Abellanos a, Legar officer of MFI, to introduce the pMDCpersonnel and to give an insight on how to present the request for the Endorsement oftheSB regarding the San Fernando Limestone project.courtesy call to vice Mayor Miguer Antonio N. canoy to introduce the pMDC personneland the purpose of visit to San Femando.Hon. canoy initially does not allow pMDC to present in the SB Session since it is notincluded in the agenda, however, Ms. pintor of MFI humbly requested to be included inthe "other matters" portion of the SB session.Hon. canoy also mentioned that if the presentation is about the Endorsement of the SanFernando Limestone Project, he just needs the copy of the JoA and there is no need topresent what is PMDC. The PMDC team stated that they just have to make a formalrequest to PMDC for the copy of JoA. Hon. canoy answered that that the office of theSangguniang Bayan of San Fernando will send the SB Resolution to pMDC stating thedefenal of request for endorsement of MFI and their requisite for the copy of lointOperating Agreement (JOA).The undersigned added that the presentation is only a brief introduction of the pMDCprofile so the SB will have an idea about the mandate of pMDC.

After the adjoumment of SB session, Vice Mayor introduced the pMDC personnel to thesB Members and did not participate anymore the Introduction of PMDC. The fo owineSB Members are present during the presentation:-+ Hon. Gerundio P. Taping-+ Hon. Cecilia Umbay-+ Hon. Vidala Loguiber-+ Hon. Abal Manlosa

-+ Hon. Cocoy Enad

The following were the highlights of the Introduction to the Sangguniang Bayan:

Can all the barangays be part of the impact barangays? who identifu the primary impactbarangays?

Ms. Pintor explained that the identification of the primary and secondary impact barangayswas based on Environmental Impact statement (EIS) or p.D. 1586 or it is where the minecamp is located. Inclusion of all the barangays will only mean violation of p.D. 15g6. Ms.Pintor stated that MFI may provide the SB with the copy of DAo 2010-13 for reference.

Are there any other tenements within San Fernando?

Ms. Pintor and Ms. Francia clarified that PMDC has two mining clajms within the provinceof cebu, the Pinamungahan and san Femando Limestone properties. The san FemandoLimestone Property is one of the cancelled tenements transferred to pMDC, was bidded-our,

awarded to a qualified conrractor. Mabuhay Fircement Inc. (MFI) qualified in the biddingand entered into a Joint Operating Agreement with pMDC.

If the endorsement will be granted, what is the rote of MGB?

Ms. Francia explained that MGB w l be the monitoring body for the compliances of MFI.The concemed barangays or primary impact communit]es wilt be part of ihe Multi-partrte{o!t9nng Team (MMT). MMT is composed of representatives fiom MGB, pir4S, NGO,PMDC/operator, LGU and impact barangays. The MGB will be the on. to ,p"J"ua tn.MMT members for monitoring the activity of the Operator.

What happens if the SB will not endorse the MFI?

Ms. Francia explained that the endorsement of MFI for the San Femando project is one ofthe requirements for the Filing of Declaration of Mining project Feasibility. nlaen..,ri u"approved in order MFI to proceed with its dcvelopment and commercial production. But ifin case that the sB will not issue the endorsement, PMDC will get back to sg fo. a properfeedback or the said concem will be dealt by the pMDC Legal D-partrnent.

Can MFI proceed even without the SB endorsement?

Ms. Pintor answered that MFI cannot proceed with its operation without the SBendorsement. It is an important requirement for the approvai of DMpF. Ms. Francrareiterated that San Fernando Limestone project is one oi priority projects of pMDC andthese projects are being monitored by the office ofthe Malacaffang. social acceptability andSB council has to be considered. These are vital towards pioceeding to'the miningoperation of San Femando.

o According to Hon.umbay, sangguniang Bayan recentry invited the Mabuhay Filcement Inc.,regarding the issue on cement plant dust emission and some people are gitting sick. (Jp todate, nothing has been done regarding the said concern.

PMDC team clarified that the cement plant is different from the San Femando LimestoneProject. The issue on dust emission of cement plant can be raised to DENR/ (MGB/EMB).

Lastly, PMDC team thanked the SB members and Hon. Vice Mayor for letting pMDC presentand introduce the company to the council. pMDC team respictfully requisted to sB theconsideration to endorse PMDC/ MFI in support to the priority project of the govemment. sBmembers mentioned that that the council will discuss it again togith-r with the froponent, Hon.Raymundo.

MAY 8, 2014 (Day 4)

o Exit meeting with Mabuhay Filcement, Inc. personnel.. Travel from Cebu City to Manila.

Recommendations:

Prepared by:

Concuned by:

PMDC to await the SB Resolution of san Femando requesting for the copy of the JoAbetween tle PMDC and MFI.

iffiia. to constantly coordinate with McB and MFI in relation to the fiting of the

:Hfif*T*:.a meeting with the cEo or MFr and clarift the misapprehension

PMD. to verifu with MGB Regionar office vII whether the 2009 LGU Endorsement ofMFI can be used for the requirement of DMpFPMDC to seek clarification to MGB regarding the evaluationl approval of ExWp, EnWpand CDP of PMDC projects.

m"fi/l"/Cesar 4htf,6ny A. AbenProjecy'Manager, San Fernando Limestone proiect

J^JZilla l. FranciaP roj e * Manage me nt Departme nt

Bepublir of tbe lFbitippinesPHILIPI'INE MINING

DEVEI.OPMENTCORPORATION

Creatl.ag WeaIth. EadcLlag Llves.


POST-\TSIT REPORT

08 July 2014Atty. Lito A. Mondragon, Pre sident and CEOEngr. Salvador E . Henerc, Ir., PMD ManagerProject Management DepartmentReport on the Consultation/Coordination Meeting with the MunicipalLocal Govemment Unit (LGU) of San Femando and the Barangay LocalGovemment Units of Lantawan, Tonggo and Basak as well as theRepresentative from the Mabuhay FilCement, Inc. (MFI) regarding theEndorsement of the Declaration of Mining project Feasibility (DMPF) forthe San Femando Limestone Project

A. Objectives

' Appearance in the Sangguniang Bayan (SB) Session to discuss their concems and answertheir queries with regard to the endorsement of MFI's Declaration of Minins proiectFeasibiliry (DMpF)

r Meeting with the Barangay council of the three (3) impact barangays within the sanFemando Limestone Property

o Meeting with the representative from the Mabuhay Filcement, Inc. to discuss the LGUs'recommended actions to be undertaken by the MFI/PMDC as basis of their endorsementof DMPF


JUNE 23,2014 (Day 1)

l. Travel from Manila to Cebu City2. Travel from Cebu City to the Municipality of San Femando3. Courtesy Call with the Sangguniang Bayan of Saa Femando

Highlights of the Activity:o Engr. Cesar Anthony A. Aben and Ms. Ma. Kathleen H. Ocampo went to the

Sangguniang Bayan of San Femando to conduct Courtesy Call with the Municipalvice Mayor Miguel Antonio M. canoy and the sB Member who invited us for iheSB Session, Councilor Raymundo Adlawan.

r However, both officials were out of the offrce during the visit. The PMDCpersonnel were instead assisted by the staff of Councilor Adlawan to acquire thecontact information of the Barangay LGU captains of the three (3) impactbarangays of Basak, Lantawan and ronggo for schedule and planning of meetingswith the Barangay Council.

r Engr. Aben and Ms. Ocampo were able to schedule meetings with the BarangayCouncil of the three (3) barangays.

Unit 30018 West Tower, Philipphc Stock lixchange Ccntrc, lixchangc Road, Ortigras Centcr, Pa.sig Ciry, Tets. 7061630-31 . [email protected]

JUNE 24,2014 (Day 2)

Sangguniang Bayan SessionThe following were the highlights of the activity:

o vice Mayor canoy called Engr. Aben to explain to the council the purpose of the pMDC'spresence in the Session. He introduced the PMDC staff and provided the Council with abrief background about PMDC as well as the background of its claim on the San FemandoLimestone Property. He explained that the PMDC is a govemment-owned or controlledcorporation under the Department of Environment and Natural Resources OENR).o Ms. ocampo later on added that the San Femando Limestone property is one of thecancelled tenements tumed over to the PMDC for it develop, explore, utilize and manage.The property had undergone public bidding, which was eventually won by the MFI. It wasadded that the MFI is cunently on the approval process of DMpF, in which one of therequirements is the endorsement coming from the Municipal LGU.

Open Forum:Q: Can you elaborate further on PMDC, its roles and the rotes of MFI?A: Ms. ocampo reiterated that the PMDC is a govemment corporation attached to the DENR.

It was created for the Diwalwal Mineral Reservation Area (DMRA). However, throughthe DENR Memorandum Order 2007-13, sixty-five cancelled mining tenements weretransfened to the PMDC. Its mandate is to develop, utilize, explore and manage thesemining properties. However, due to lack of funds, the govemment cannot do it alone. Itwas therefore bided out. MFI won in the public bidding and a Joint Operating Agreementwith the PMDC was awarded to them in Year 2009. The role of the MFI is to develop andoperate the property. The purpose of this is to generate revenue for the nationalgovemment and to help in the development of its host mining communities.

Q: The three (3) barangays are not contiguous? lVill there be three (3) quarry sites in allthese three (3) barangays?

A: Engr. Aben explained that the San Femando Limestone Property under the PMDC has atotal land area of around 500 has. However, it does not necessarily mean that the entireland area will be quarried. There will be a study on the specific area that has largeconcentration ofdeposit, and that will be the site ofthe quarry operation.

Q: Can we operate a quarry nearby a dam? Note that a dam is located below the quarry siteof MFL Wat is your plan about the water shed being dried up due to the quarryoperation? Is establishment of cement plants allowed in urban area when it causes noiseand pollution?

A: We are not yet familiar with the specific location of the quarry site. We may request theMFI to present their Mining Plan in ordcr for you to understand the plans which includeplan on environment and waterworks. This will be studied to determine the location of thequarry site. Engr. Aben explained that for information on watershed areas, the SB mayinquire with the Environmental Management Bureau (EMB). Regarding the establishmentof cement plants, we are not the authorized agency to answer that but instead the SB mayinquire directly with the DENR/EMB to veri$ this.

Q: Can you give details on the Responsible Mineral Development?A: Ms. Ocampo explained that essentially the concept of Responsible Mineral Development

is the utilization and development of mineral resources while at the same time conservingthe environment and other natural resources and contributins in the socio-economicdevelopment of the communities.

Q: wat will be the effect to the environment, especially, v)ith the damage to the mountains?one of the components in large-scale mining operation is the preience of Multi-partiteMonitoring Team (MMT). This team is composed of representatives from the community,LGUs (Barangay and Municipal), Mines and Geo-Sciences Bureau (MGBI.Environmental Management Bureau (EMB). and from a Non-Govemmental Organization(NGo). This team conducts monitoring, assessment and evaluation of the operation ofthemining companies as well as validation of the reports being submitted to the MGB.Environment is one ofthe aspects being looked into. If there are violations seen, there areaccorded penalizations or cancellation of permits. This is an asswance that there will becontinuous monitoring of the compliances of the mining companies with the requirementsofthe laws and regulations.

Does MFI have large-scale operation in cebu already? lhe want to see and. experiencethe beneJits of large scale mining operation.None yet. Yes, one of the benefits is the Social Development and Management program(SDMP) which is 1 .5Vo of direct mining operating cost, in consultation with thecommunity/Barangay Council. This program may cover all or some aspects of socio-economic development of the community - health, livelihood, education, infrastructure,

Can you please present the plans/program of work of MFI? When will you be able topresent the plan?Yes, we will coordinate with MFI for them to present the Mining Work Plan.

What will happen to the individuals/households who will be displaced/affected by thequarry operation?As per the Mining Act, households that will be displaced/a{fected by the operation shall beproperly compensated.

How about the welfare of the residents who will be affected?The generation of revenue is for the national govemment. In addition, the goal why thesetenements are being developed is to contribute to the development of the communities andin job generation.

Q:

Q:

Q:

JUNE 26,2014 (Day 3)

Meeting with Barangay Council of LantawanThe highlights of the activity are as follows:

o Ms. Ocampo and Engr. Aben introduced the PMDC to the Barangay Council of Lantawanand presented the objectives, history, guiding laws and regulations, mandates and roles ofthe PMDC as govemment-owned or controlled corporation attached to the DENR. Ms.Ocampo explained its mandate is to develop the cancelled mining tenements transferred toit, in which one of these is the San Femando Limestone Property. Ms. Ocampo alsoexplained about the Corporate Social Responsibility Program of the PMDC as well as theSocial Development Management Program (SDMP) effective during the period ofoperation.

o The objective of the meeting is to get opinion or insights of the Barangay Council aboutthe Mabuhay Filcement, Inc. and regarding the proposed quarry project as well as todetermine their endorsement of the project.

o As a govemment corporation, our mandate is to explore, develop and utilize the mineralresources. It does not directly do the mining operation but instead, acquires partner toconduct the mining operation. MFI is our partner operator in San Femando LimestoneProiect.

' There are three (3) affected barangays for san Femando Limestone property - Basak,Lantawan and Tonggo.

o Mabuhay Filcement, Inc. is approaching operation stage. They need endorsement fromMunicipal LGU and Barangay LGUs. we want to determine its acceptabiliw to thecommunity. Our purpose is to inform you of the project.

. The project has to be endorsed by the Barangay and Municipal LGU.

Open Forum. Wat can you give to the farmers whose farmlands wilt be affected by the quarry?

o MFI shall implement SDMp which is 1.5% of the mining operating cost.

' It will not happen. Just like in Taiheiyo, there are reports/records but the semice islacking.

o we are not familiar with raiheiyo since they arc not among our partner operator.what we are explaining is with regard to the MFI. There should be MonitoringTeam, represented by MGB, LGU, NGO, etc., who will check the compliances ofthe company. The company should also designate community Rerations officer(cRo) who shall coordinate with the barangay and consult with them the SDMpbudget and priority programs on Health, Education, Livelihood, Infiastructure,Environmenl/Disaster.

o whal protection can you give ro our water system when the quarry is implemented? ourwater system (spring) is infront of Barangay Basak

o MFI should explain about the water system since they are the operator of theproject. But there should be Mining plan to be verified by the pMDC.

o llhat about the Barangay Road to be affecled by the quarry?o This is parr of the proposed mining plan.

. IYhat about the people who will be displaced? ll'ill they receive pqlment?o It's in the law that they should be properly compensated upon negotiation.o It doesn't mean that the whole area covered in the property will be utilized for

mining.o As much as possible, residential and agricultural areas will be avoided. The

negotiations will push through only if it is proven that the land will be moreprofitable for mine use rather than paying the land owners.

o How about the relocdtion site if ever the area will be affected by the project?o There should be j ust compensation.

o What will happen if the constituents will not agree lo endorse the project?o Your endorsement is needed. What will happen is that the mineral resources will

not be utilized and the benefits will not be exoerienced.o We need consent fiom the Municipal LGU but there should be endonement from

the barangay.o MFI, with PMDC, may present the plan.

o Who will endorse? Only the Council or the whole community?o Barangay Council as representatives of the community. But we can conduct

Community Consultation/Public Hearing to inform the community.o lle can call for a Barangay Assembly and get the approval of the residents

o It's ok with us to get their approval and answer their questions.

' There was a survey conducted by MFI in the past. They ask for signatures. They said theywould return to give groceries. (Ihey could not remember the exact dates.)

o We will verify this with the MFI.

Jane27,20l4 (Day 4)l. Meeting with Barangay Council of Tonggo

The highlights ofthe activity are as follows:o Engr. Aben and Ms. ocampo started with the "lnhoduction of pMDC" to the Barangay

council and the objective of the meeting, particularly, getting the endorsement of thebarangay.

. The Barangay council reQyeste! for a meeting with MFI for presentation of the MiningPlan to the Council before they discuss the endorsement ofthe iroject.o Our main concerns are the safety of the people and the destructive noise that the quarrymay create which may affect people residing nearby.

o The Barangay council explained.that they have problems on the operation of raiheyocement. Their source. of water is affected by the quarry of raiheyo cement. Thiycommitted to resolve the problem but it did not materialize. They expressed that as muchas possible they would not like it to happen again with MFI. pMD-c assured them thatthere is a Monitoring Team, represented by the MGB, LGU, community, NGo, erc., roverifu the compliance of the MFI with the requirements and regulations. PMDC .hull ul.oconduct quarterly monitoring of MFI.

o The information they need to know from MFI are the followine:o Quarry Siteo Mining Plan (including safety, health, and environmental aspects)

2. Meeting with the MFI RepresentativeThe highlights of the activity are as follows:

o The PMDC staff discussed with the MFI the need to present the Mining plan to theSangguniang Bayan and respective Barangay Councils. The staff also addJd that beforethe Sangguniang Bayan render their endorsement; the barangays should be consulted fintfor endorsement at their level.

o Issues ofthe barangays regarding the water system and the safety plan were also tackled.

June 28,20f4 Q)ay 5)l. Exit Meeting with the MFI Representative.2. Travel from Cebu City to Manila.

Recommendationsl. Review MFI's proposed mining plan in corurection to the raised concems of the

community such as watershed, dust & pollution, resettlement, agricultural areas and roadmaintenance prior to the presentation to the community.

2. Coordinate with Mabuhay Filcement, Inc. the schedule of presentation of the Mining planin the Barangay Council of three (3) barangays and the Sangguniang Bayan.

3. The PMDC's PM should also review the presentation of the MFi foi recommendationsbased on the issues and concerns discussed in the meetinss.

Prepared by:

ofulwCesar Arithonv A. AbenProject Manager, San Fernando Limestone Property

H. OcampoDevelopment Oficer

ffi3&etlublic ot tl,o iFIJilillinss

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Cteatiag WeaIth. Eatlchlag Llves.


POST-ITSIT REPORT

24 luly 2014Atty. Lito A. Mondragon. PresiJtnr anJ ('80Engr. Salvador E. Herrero, Jr., PMD A4unager \'3 +J zd z-c t1

Proj ect Management DepartmentReport on the Consultation/Coordination Meeting with the Barangay l,ocalGovemment Units of Basak, 'Ionggo and Lantawan together with theRepresentative from the Mabuhay Filcement, Inc. (MFI) regarding theEndorsement of the Deolaration of Mining Project Feasibility (DMPF) forthe San Femando l,imestone Pro

A. Objectives

o Meeting with the Barangay Council of the three (3) irnpact barangays within the SanFemando Limestone Property to introduce the PMDC, Mabuhay Filcement, lnc. (Mfl)and the San Fernando Limestone Project

o To identi& the concems and issues of the three (3) impact barangays prior to theendorsement and conduct ofoperation of MFI in the area.


JULY 18,2014 (Day 1)

1. Travel from Manila to Cebu City2. Initial Meeting with Ms. Ma. Teresita T. Pintor, Safety, Health and Environment (SHE)

Manager of MFI to discuss the itinerary of activities and action plans.

JIILY 19, 2014 (Day 2)

1. Travel frorn Cebu City to San Fernando, Cebu2. Meeting with the Barangay Council of Basak

The highlights of the activity are as follows.. The PMDC team introduced the PMDC staff and provided the Council brief

background about PMDC as well as the background of its clairn on the SanFernando Limestone Property. It was explained that the PMDC is a govemment-owred or controlled corporation under the Departrnent of Environment andNatural Resources (DENR). It was also explained that the San FemandoLimestone Property is one of the cancelled tenements tumed over to the PMDC fbrit develop, explore, utilize and manage. The property had undergone publicbidding, which was eventually won by the MFI. It was added that the MFI iscurrently on the approval process of DMPF, in which one of the requirements isthe endorsement coming from the Municipal LCU.

r The MFI Team introduced the MFI stafT consisting of Ms. Ma. Teresita Pintor,SF{E Manager and Engr. Ben Warren Cachero, Quarry Manager of M}'I. Theygave a brief background of MFI and how it enters a Joint Operating Agreementwith the PMDC. They also presented the PMDC/MFI claitr in San Femando andthe proposed mining plan for the area.

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The objective of the meeting is to get opinion or insights of the Barangay council

about ihe proposed quarry project as wcll as to detennine thcir endorsement of the

project.

The PMDC Team infonned the council that the Mabuhay Filcement' lnc is

approaching operation stage. They need endorsement fiorn Municipal LGU and

nu.*gay LGUs. We want to determine its acceptability to the community Our

purpose is to inform you ofthe project.

o It was also explained that the project has to be endorsed by the Barangay and

Mruricipal LGU.

Open Forum:a: Can you explainJurther on I'MDC, rt's role's cnttl the roles ttJ lu'll;'[?

A: The pMDC team reiterated that the PMDC is a govemment corporation attached to the

DENR. It was created for the Diwalwal Mineral Reservation Area (DMRA). However,

tkough the DENR Mernorandum Order 2007-13, sixty-five cancelled mining tenements

were -transfened

to the PMDC. Its mandate is to develop, utilize, explore and manage

these rrining properties. However, due to lack of funds, the govemment cannot do it by

itself. These properties were therefore bided out. MFI won in one of the public bidding

and a Joint Operating Agreement with the PMDC was awarded to them in Year 2009 The

role of the MFI is to develop and operate the property. The purpose of this is to generate

revenue for the national government and to help in the developrnent of its host mlnlng

communities.

Wil! there be three (3) quarry sites in all these three (3) barangays?

Engr. Cachero explained that the San Fernando Limestone Property under the PMDC has

a total land area of around 500 has. However, it does not necessarily mean that the entire

land area will be quarried. For instance, the proposed quarw rvill be located in Basak stnce

it has been ideniified as thc location of the quarry based on exploration rvorks and

feasibility study.

what will be the ffict to the envircnment, especially, with the damap\e to lhe mountains?

Ms. Pintor answered that one of the components in large-scale mining operation is the

presence of Multi-Partite Monitorrng Tealn (MMT). This team is composed ofiepresentatives from the community, LGUs (Barangay and Municipal), Mines and Geo-

SCiences Bureau (MGB), Environmental Management Bureau (EMB), and frorn a Non-

Govemmental organization (NGo). This tearn conducts monitoring, assessment and

evaluation of the operation of the lrining companies as well as validation of the reports

being submitted to the MGB. Environment is one of the aspects being looked into. lf there

are violations seen, there are accorded penalizations or cancellation of permits. This is an

assurance that there will be continuous monitoring of the compliances of the mining

companies with the requirements of the laws and regulations.

Q: What will happen to the indivi&.nlsiltouselnltls v,ho wrll be dtsplacedia;/fected by thc

quarry operatnnlA: As per the Mining Act, households that will be displaced/affected by the operation shall be

properly compensated. lf the landowner doesn't want to sell his land for quarry, then MFIwill respect it.

Q: How about the welfure of the resident,s who u'rll he affected'?

A: The generation of revenue is for the national govemment. In addition, the goal why these

tenements are being developed is to contribute to the development ofthe communities and

in job generation.

o.

Q:A:

Q: What are the other benefits that the barangay can get prior lo operation'?MFI presented its community partioipation in several activities of the Barangays and San

Fernando as well as its contribution to the community through the donation of cement,construction of public infrastructures and developrnent of roads. lt was also emphasizedthat MFI is paying an annual occupation fee to the Provincial Treasurer which goes downto the barangays.

Hon. Gegenio S. Sarol, Brgy. Captain of Basak, and the barangay council expressed an

appreciation for the presence of PMDC and MFI in the session and fbr presenting what isPMDC and MFI together with its future plans.

He mentioned that they will conduct another barangay session for this matter to determinewhether they will endorse the project or not.

Meeting with the Barangay Council of TonggoThe highlights ofthe activity are as flollows:

r The PMDC team introduced the PMDC staff and provided the Council briefbackground about PMDC as well as the background of its claim on the SanFemando Limestone Property. He explained that the PMDC is a government-owned or controlled corporation under the Department of Environment andNatural Resources (DENR). It was also explained that the San FernandoLimestone Property is one of the cancelled tenements tumed over to the PMDC forit develop, explore, utilize and manage. The property had undergone publicbidding, which was eventually won by the MFI. It was added that the MFI iscurrently on the approval process of DMPF, in which one of the requirements is

the endorsement coming from the Municipal LGU.o The MFI Team introduced the I\,FI staff consisting of Ms. Ma. Teresita Pintor,

SFIE Manager and Engr. Ben Warren Cachero, Quarry Manager of MFI. Theygave a brief background of MFI and how it enters a Joint Operating Agreementwith the PMDC. They also presented the PMDC/MFI claim in San Femando andthe proposed mining plan for the area.

. The Barangay Council expressed their feelings to MFI representatives that theyhave problems on the operation of Taiheyo Cement. Their source of water isaffected by the quarry of Taiheyo Cement. Taiheyo committed to resolve theproblem but it did not materialize. The community expressed that as much as

possible they would not like it to happen again with MFI. PMDC and MFI assuredthem that there is a Monitoring Team, represented by the MGB, LGU, community,NGO, etc., to veriry the compliance of the MFI with the requirements andregulations. PMDC shall also conduct quarterly monitoring of MFLIt was also emphasized that MFI is paying an annual occupation fee to theProvincial Treasurer which part of it is to be remitted to the barangays.

Hon. Virgilio P. Siarot, Brgy. Captain of Tonggo, and the barangay councilexpressed an appreciation for the presence of PMDC and MFI in the session andfor presenting what is PMDC and MFI together with its future plans.

He mentioned that the barangay does not have any problem with the endorsementas long as everyhing is legal and in accordance to the mining standard andregulation.The barangay council requested for the conduct of public consultation so thecommunity will be aware and have the chance to express their opinions on the SanFemando Limestone Proiect,

JIILY 20,2014 (Day 3)

Meeting with the Barangay Council of LantawanThe highlights ofthe activity are as follows:

. The PMDC team introduced the PMDC staff and provided the Council brief backgroundabout PMDC as well as the background of its claim on the San Fernando LimestoneProperty. He explained that the PMDC is a govemment-owned or controlled corporationunder the Department of Environment and Natural Resources (DENR). It was also

explained that the San Femando Limestone Property is one of the cancelled tenements

tumed over to the PMDC for it develop, explore, utilize and manage. The property had

undergone public bidding, which was eventually won by the MFI. It was added that the

MFI is currently on the approval process of DMPF, in which one of the requirements is

the endorsement coming from the Municipal LGU.o The MFI Team introduced the MFI staff consisting of Ms. Ma. Teresita Pintor, SF{E

Manager and Engr. Ben Warren Cachero, Quarry Manager of MFL They gave a briefbackground of MFI and how it enters a Joint Operating Ageement with the PMDC. Theyalso presented the PMDC/MFI claim in San Femando and the proposed mining plan forthe area.

o The objective of the rneeting is to get opinion or insights of the Barangay Council aboutthe proposed quarry project as well as to determine their endorsement ofthe project.

. The PMDC Team informed the council that the Mabuhay Filcement, Inc. is approachingoperation stage. They need endorsement from Municipal LGU and Barangay LGUs. Wewant to determine its acceptability to the community. Our purpose is to inform you of the

project.o It was also explained that the project has to be endorsed by the Barangay and Municipal

LGU.

Open Forum. Illhat will happen to the fannlands which w ill be aJfected by thc quarryT

o Farmlands which are possibly affected by the quarry shall undergo a due process

prior to operation. If the landowner does not want to sell his land, MFI willconsider it in making the mining plan so the farmland won't be affected, however,if the farmland is to be sold, then the landowner rvill be properly compensated

based on the negotiation.c Taiheiyo's reports,/records are compliant hut the service is lttcking to the community, how

will tuIFI address this ?

o Taiheiyo is another identity and is not among PMDC's partner operator. What weare explaining is with regard to the MFI. Once the project operates, there will be aMonitoring Team represented by MGB, LGU, NGO, etc., who will check the

compliances of the cornpany. The company will also designate a CommunityRelations Officer (CRO) who shall coordinate with the barangay and consult withthern the SDMP budget and priority programs on Health, Education, Livelihood,Infrastructure. EnvironmenLDi saster.

. What protection canyou give to our l4/ater System wlrcn lhe quarr.y is implemented?o MFI explained that the water system will be considered in the mining plan and it

will be deliberated based on the mine development prior to operation.t Are the Barangay Roads affected by the quarry'?

o This is part of the proposed mining plan. Roads wrll be improved and developedfor the benefit ofthe cornrnunity.

o How about the people who will he displuced? Will the.y receive payment'lo It's in the law that they should be properly compensated upon negotialion.o It doesn't mean that the whole area covered in the property will be utilized for

mining.

t.o As much as possible, residential and agricultural areas will be avoided. The

negotiations will push through only if it is proven that the land r.vill be moreprofitable for mine use rather than paying the land owners.

How about the relocation site if ever the area will be affected by the project?o Relocation sites will be readv for the disolacernent of residents.

Wlat are the other benefts thctt tlrc barangay can get prior to operation?o MFI presented its community participation in several activities of the Barangays

and San Femando as we ll as its contribution to the community through thedonation of cement, construction of public infrastructures and development ofroads. It was also emphasized that MFI is paying an annual occupation fee to theProvincial Treasurer which goes down to the barangays.

. Hon. Rodrigo Ruben, Brgy. Captain of Lantawan, and the barangay council expressed anappreciation for the presence of PMDC and MFI in the session and for presenting what isPMDC and MFI together with its future plans.

r The barangay council requested for the conduct ofpublic consultation so the communitywill be aware and have the chance to express their opinions on the San FemandoLimestone Project,

o It was also agreed upon that the said public consultation will be conducted as one eventonly and the residents and barangay councils ofthe three barangays will just merge for theevent. Hon. Ruben will talk to the other two barangay captains for the schedule andarrangement of the said public consultation.

July 21, 2Ol4 (Day 4\

L Exit Meeting with the MFI Representative.2. Travel from Cebu City to Manila.

Recommendations1. Coordinate with Barangays Basak, Tonggo and Lantawan for the schedule of public

consultation.2. Discussion with Mabuhay Filcement, inc. ibr a rnore detailed aspect of the rnining plan

and other concems of the Barangay Council of three (3) barangays in preparation for thepublic consultation.

3. The PMDC's PM should also review the presentation of MFI for recommendations basedon the issues and concerns discussed in th9 meetinss.

Prepared by:

Ur'4M,'/Engr. C{sal Anthony A. AbenProject l,Ianager, San Fernando Lime:itone Propcrly

Noted by:

Proj ect Manugement Department Supcrv is or

ffiEepublic ot tbe lFbilippines

PHILIPPINE MININGDEVELOPMENTCORPOR"A:I'ION

Creatlrg Wealth. En chlag Llves,


POST-VISIT REPORT

19 August 2014Atty. Lito A. Mondragon, President and CEOEngr. Salvador E. Herrero, Jr., PMD Manage, t-6 d "t7 '" i7

Proj ect Management DepartmentReport on the Public Consultation with the Barangay LocalGovemment Unit of Lantawan together with the Representative from theMabuhay Filcement, Inc. (MFI) regarding the Endorsement of theDeclaration of Mining Project Feasibilify (DMPF) for the San FemandoLimestone Proj ect

A. Objectives

o To conduct public consultation in Brgy. Lantawan within the San Femando LimestoneProperty to introduce the PMDC, Mabuhay Filcement, Inc. (MFI) and the San FemandoLimestone Project.

o To identifr the concems and issues of the residents of Barangay Lantawan prior to theendorsement and conduct ofoperation of MFI in the area.


AUGUST 16,2014 (Day l)

l. Travel from Manila to Cebu City2. Initial Meeting with Ms. Ma. Teresita T. pintor, safety, Health and Environment (SHE)

Manager of MFI to discuss the itinerary of activities and action plans.

AUGUST 17,2014 (Day 2)

l. Travel from Cebu City to San Femando, Cebu2. Public Consultation in Barangay Lantawan, San Fernando

The highlights of the activity are as follows:o Hon. Rodrigo Ruben, Rarangay Captain of Lantawan, opened the event through a

welcome message to the pMDC, MFI, Barangay council and the residents ofbarangay. He explained why there is a public consultation in the baransav.o The PMDC team introduced the pMDC staff and provided tt . -puuti.

ua"rbackground about pMDC as wel as the background of its claim on the SanFemando Limestone property. It was explained that the pMDC is a sovernmenr-owned or controlred corporation under the Department of Envirinment andNatural Resources (DENR). It was also explained that the San FemandoLimestone property is one of the cance ed tenements tumed over to the pMDC fbrit develop, explore, utilize

-and manage. The property had undergone publicbidding, which was eventually won by the MFr. Ii was added that'the MFI iscurrently on the approval process of DMpF, in which one of the requirements isthe endorsement coming from the Municipal LGU.r The MFI Team introduced the MFI stafi consisting of Ms. Ma. Teresita pintor,SHE Manager and Engr. Ben Warren Cachero, euarry Manager of MFI. They

u'rt 3m1B west Towet PhilipPine stock Exchange centrc, It\changr Ro^d, odgns ccnrcr. pas;s city, l'ck. 7061630-31 . [email protected]

gave a brief background of MFI and how it enters a Joint Operating Agreementwith the PMDC. They also presented the pMDC,MFI claim in San Femando andthe proposed mining plan for the area.

. The objective of the public consultation is to get opinion or insights of thebarangay residents about the proposed quarry project as well as to determine theirendorsement of the project.

o The PMDC Team informed the public that the Mabuhay Filcement, Inc. isapproaching operation stage. They need endorsement from Municipal LGU andBarangay LGUs. We want to determine its acceptability to the community. Ourpurpose is to inform you of the project.

r It was also explfied that the project has to be endorsed by the Barangay andMunicipal LGU.

Open Forum:Q: What are the effects of mining/quarrying?A: Engr. Ben Warren Cachero stated that noise, dust and cutting of trees are the main effects

of quarrying in the area. However, there are mitigating measures on such effects like watertrucks, location of the quarry from the residential area and the compensation for every treewhich has been cut. He assured that whenever, a problem arises regarding these issues, itwill be immediately addressed by MFI.

Q:A:

What is the dffirence of mining and quarrying?Engr. cesar Anthony Aben explained that these two terms are the same, however,quarrying is conunonly used for extracting raw products for making cement.

Will there be three (3) quarry sites in all these three (3) barangays?Engr. cachero explained that the san Femando Limestone property under the pMDC hasa total land area of around 589 has. However, it does not neceisarily mean that the entireland area will be quarried. For instance, the proposed quarry will be iocated in Basak sinceit has been identified as the location of the quarry baied on exploration works andfeasibility study.

wat will be the efect to the environment, especially, with the damage to the mountains?Ms. Pintor answered that one_of.the components in large-scare mining operation is thepresence of Multi-Partite Monitoring Team (MMT). This team

-is 'composed of

representatives from the community, LGUs (Barangay and Municipal), Mines 'and

Geo-Sciences Bureau (MGB), Environmental Managemini Bureau (EMB), and from a Non-Governrnental organization (NGo). This teair conducts monitoring, assessment andevaluation of the operation of the mining companies as well as ,.,uria":tion

"iin"-."p".t,being submitted to the MGB. Environment is one of the aspects being rooked into. If thereare violations seen, tlere are accorded penalizations or cancellation of permits. This is anassurance that there will be continuous monitoring of the compliances of the miningcompanies with the requirements of the laws and .egilationr.

What will be the efect of quarry to the plants/forms especially dust particles?Engr' cachero mentioned that dust control w l be executid through the displacementwater trucks every shift.

wat will happen to the individuars/househords who wiil be dispraced/afecred by thequarry operation?As per,the Mining Act, households that will be displaced/affected by the operation shall beproperly compensated. If the landowner doesn,t want to sell his frna f", ql"u_y, tfr"" fr,fffwill respect it.

Q:A:

Q:A:

Q:A:

o.

Q:A:

Q:A:

How about the welfare of the residents who will be affected?The generation of revenue is for the national govemment. In addition, the goal why thesetenements are being developed is to contribute to the development of the communities andin j ob generation.

What are the other beneJits that the barangay can get prior to operation?MFI presented its community participation in several activities of the Barangays and SanFemando as well as its contribution to the community through the donation of cement,construction of public infrastructures and development of roads. It was also emphasizedthat MFI is paying an annual occupation fee to the Provincial Treasurer which goes downto the barangays.

Q: Can you give us an assurance that our households won't beconstruction of tunnels underneath during nining operations?

A: It was clarified that open pit mining will be conducted in the

displaced through the

area, not undergrormdmining.

Q: Do you have any other concerns which you would like to raise?A: No, everything is clear for us.

o Engr. Aben added that limestone should be extracted from the area since houses cannot beconstructed above it and it will most probably form a sinkhole when weathered.

o Hon. Analie Aledon, Brgy. councilor of Lantawan, and the barangay council expressed anappreciation for the presence of PMDC and MFI in the public consultation and forpresenting what is PMDC and MFI together with its future plans.

o Hon- Rodrigo Ruben, Brgy. captain of Lantawan, acknowledge the presence of thePMDC and MFI team and asked the PMDC team what will be the n"it .t"p after thepublic consultation- The PMDC team advised him that the council can already make adecision in the endorsement ofthe project.

' Hon. Aledon asked Engr. Aben to provide him a template for the resolution endorsinq theprojecl.

o She mentioned that they will conduct another barangay session and public survey inBarangay Lantawan for this matter to ensure the acceptability ofthe project.

August 18,2014 @ay 3)

1. Exit Meeting with the MFI Representative.2. Travel from Cebu City to Manila.

Recommendationsl. Coordinate with Barangay Council of Lantawan for the Endorsement of the Project in

form of a Resolution.2. To provide the Barangay Lantawan Council a template of the resolution endorsing the

project.3. Coordinate with Barangays Basak and Tonggo for the schedule of next public

consultations.4. Further discussion with Mabuhay Filcement, Inc. for a more detailed aspect of the mining

plan and other concems of the barangay residents in preparation for the next publicconsultations.

5. The PMDC's PM should also review the presentation of MFI for recommendations basedon the issues and concems discussed during the first public consultation.

Prepared by:

Cltt'WJEngr. Cda/Antbony A. AbenProject Manager, San Fenmndo Limestone Property

Concurred by:

Ilrorykk

Ms. M$ Kalhleen H. OcampoCommtnity Development ffi cer

Eepublic of tbe lFbitippinegPHILIPPINE MINING

DEVELOPMENTCORf-.OR.1.T'ION

Cteatlzg WeaItL. Ettlc.hlag Llves.


POST-VISIT REPORT

22 September 2014Atty. Lito A. Mondragon, President and CEOEngr. Salvador E. Herrero. Jr.. PMD Manager c4 <l z s lx ,yProject Management Department ' ) '

Report on the Public Consultation with the Barangay LocalGovemment Unit of Tonggo together with the Representative from theMabuhay Filcement, Inc. (MFI) regarding the Endorsement of theDeclaration of Mining Project Feasibility (DMPF) for the Saa

A. Objectives

o To conduct public consultation in Brgy. Tonggo within the San Femando LimestoneProperty to introduce the PMDC, Mabuhay Filcement, Inc. (MFI) and the SanFernando Limestone Project.

o To conduct a meeting with Brgy. Basak and Brgy. Lantawan regarding the status oftheir endorsement for the San Femando Limestone project.

o To identi& the concerns and issues ofthe residents of Barangay Tonggo prior to theendorsement and conduct ofoperation of MFI in the area.


SEPTEMBER 19,2014 @ay 1)

1. Travel from Manila to Cebu City

SEPTEMBER 20,2014 (Day 2)

l. Meeting with Hon. Annalie Aledon, Brry. Kagawad of Brgr. Lantawan, Santr'ernando. Cebu

o Hon. Annalie Aledon expressed her appreciation for pMDC appearance sinceshe seeks advice on what to do regarding the comments of the barangaycouncil and barangay residents after the public consultation conducted lastAugust 17, 2014 in Barangay Lantawan.

o She mentioned that based on the information she has gathered from thebarangay residents, most of them are not in favor of the project. According toher, most of the barangay council are also not in favor of ihe project.

o According to her, even though she tried to incrude the endorsement on thebarangay council session agenda, she is afraid that no one will do the secondthe motion, so she asked pMDC on what will be the right thing to do.r The PMDC team asked her on what are the reasons why the barangay counciland residents will not endorse the project. The following are the reasons:

Femando Limestone

umt 30018 west Torver, Phillppme Stoc[ lixchange Ccnrrc, l.l.-changc Rcrad, onips Centcr, pasig city, Tets. 7061630-31 . nro@pldccorllph

oooooo

The people are scared if they are going to oe relocated since most ofthem are not landownersPollution and NoiseAssurance in employmentAssurance of2,000 (unclear unit) per yearMFI does not coordinate with the baransavThe Brgy. Council does not like the perJonatity of Ms. pintor of MFINo Community Relations Officer from MFI who soes into thecommunity

o Based on the following reasons, the pMDC team advised Hon. Aledon tosuggest to the barangay council of Lantawan to make a resolution addressed toPMDC and MFI regarding the above concems in order to address those issuesprior the endorsement.

o Hon. Aledon mentioned that she will put this matter into the barangay sessionagenda on a step by step process since no other barangay councilor aresupporting her.

r The PMDC team expressed their gratefulness for Hon. Aledon's time andwillingness to discuss those issues.

2. Meeting with Hon. Gegenio S. Sarol, Brgy. Captain of Brry. Basak, SanFernando, Cebu

' Hon. Gegenio S. Sarol expressed his appreciation for pMDC appearance sincehe mentioned that the barangay council is not yet decided to endorse theproject after the PMDC and MFI participation in the barangay council sessionconducted last July 19,2014 in Barangay Basak.

. According the Hon. Sarol, the following are the reasons why the barangaycouncil of Basak would not endorse the project:

o The on-going small-scale quarry of Basak is not organizedo Farms within the area will be affectedo Employment prioritizationo According to him, only 2 were employed by MFI from Basako Barangay commitments were not implemented by MFIo Barangay sharing decreases per yearo Pollution and dust in Brgy. Balod which is the only way to Brgy.

Basako MFI does not coordinate with the barangayo No Community Relations Officer from MFI who goes into the

communityThe PMDC team explained to Hon. Sarol that MFI is still conductine a small_scale mining operation in the area which is completely differeni when itoperates a large-scale mining since there is another law that govems it. Thecommunity will benefit more fiom the large scale mining operation than insmall-scale mining operation.Hon. Sarol mentioned that the barangay council just need some furtherclarification from MFI since they are the ones who will operate the project.He added that there is no need for a public consultation in their barangay, justanother intensive and more comprehensive discussion with MFI aboui tireirconcems for the project.Hon. sarol mentionod that MFI is welcome to attend on one of their baranqavcouncil sessions every first and third Sunday of the month at 9:30 AM.The PMDC team informed him that his concems will be conveyed to MFI.

Public Consultation in Barangay Tonggo, San Fernando--The highlights of the activity are as follows:

. Hon. Virgilio P. Siarot, Barangay Captain of Tonggo, opened the eventthrough a welcome message to the pMDC, MFI, Barangay Council and theresidents of barangay. He explained why there is a public consultation in thebarangay.

o The PMDC team introduced the pMDC staff and provided the public briefbackground about PMDC as well as the backgro'nd of its claim on the SanFemando Limestone Property. lt was explained that the pMDC is agovernment-owned or controlled corporation under the Department ofEnvironment and Natural Resources (DENR). It was also explained that theSan Femando Limestone Property is one of the cancelled tenements tumedover to the PMDC for it develop, explore, utilize and manage. The propertyhad undergone public bidding, which was eventually won by the Ufi. Ii wasadded that the MFI is currently on the approval process of DMpF, in whichone of the requirements is the endorsement coming fiom the Municipal LGU.The MFI Team introduced the MFI staff consisting of Ms. Ma. Teresita pintor,SHE Manager and Engr. Ben Wanen Cachero, euarry Manager of MFI. Theygave a brief background of MFI and how it enters a Joint OperatingAgreement with the PMDC. They also presented the pMDC,MFI claim in SanFemando and the proposed mining plan for tlle area.The objective of the public consultation is to get opinion or insights of thebarangay residents about the proposed quarry project as well as to determinetheir endorsement ofthe project.The PMDC Team informed the public that the Mabuhay Filcement, Inc. isapproaching operation stage. They need endorsement from Municipal LGUand Barangay LGUs. We want to determine its acceptability to thecommunity. Our purpose is to inform you of the project.It was also explained thar the project has to be endorsed by the Barangay andMunicipal LGU.

Open Forum:Q: Ilhere is the quarry located?

Fngr. cachero explained that the san Femando Limestone property under the pMDChas a total land area ofaround 589 has. However, it does not necessarily mean that theentire land area will be quanied. For instance, the proposed quany wiil be located inBasak since it has been identified as the location of the quarry bised on explorationworks and feasibility study.

Wat w-ill be the efect of quarry to the pl(tnts/farms especially dust particles?Engr. cachero mentioned that dust control will be exicuted throug-h the displacementwater trucks every shift.

wat will happen to the individuals/households who will be displaced/affected by thequarry operation?As per the Mining Act, households that will be displaced/affected by the operationshall be properly compensated. If the landowner doesn't want to sell his iand forquarry, then MFI will respect it.

o.

Q:

Q:A:

Q:A.

Q:A:

o.

Q:

How about the security, safety and welfare of the residents wno wiV be afected?The generation of revenue is for the national govemment. In addition,-ihe goal whythese tenements are being deveroped is to iontribute to the deveropm"it or trr"communities and in job generation.

How about the agreementfor employment?As one of the host barangays, Brgy. Tonggo will be given prioritization when itcomes to employment.

will MFI conduct Medical Mission and donation of medicine in the barangay?As part of its SDMP, MFI will give priority to health and donation of medicine to itsaffected barangays.

Iryiil the MFI Management support the barangay projects such as road concreting,etc.?MFI presented its community participation in several activities of the Barangays andSan Femando as well as its contribution to the community through the don'aiion ofcement, construction of public infrastructures and development oiroads. It was alsoemphasized that MFI is paying an annual occupation fee to the provincial rreasurerwhich goes down to the barangays.

Do you have any olher concerns which you would like to raise?No, everything is clear for us.

o Engr. cachero clarified that open pit mining will be conducted in the area, notunderground mining.

o Ms. Ma. Kathreen H- ocampo cited that one of the components in large-scale miningoperation is the presence of Multi-partite Monitoring Team (MMT). This team iscomposed of representatives*from the community, LGUs (Barangay and Municipal),Mines and Geo-Sciences Bureau (MGB), Environmental Mlnug"_"'t B*"uo(EMB), and from a Non-Govemmentar organization (NGo). This'team conductsmonitoring, assessment and evaluation of the operation of the mining companies aswell as validation of the reports being submitted to the MGB. Enviroiment ls one ofthe aspects being rooked into. If there are viorations seen, there are accordedpenalizations or cancellation of permits. This is an assurance that there will becontinuous monitoring of the compliances of the mining companies with therequirements of the laws and regulations.

o Hon virgilio P. Siarot, Brgy. captain of ronggo, and the barangay council expressedaa appreciation for the prescnce of PMDC and M|I in the publii ionsultation'and forpresenting what is pMDC and MFI together with its future ;lans.

' !: 3l9o acknowredged the presence of the pMDC and MFI team and asked thePMDC team what will be the next step after the public consultation. The pMDC teamadvised him that the council can arready make a decision in the endorsement of theproj ect.

o Ms. Aida Villarasa, Brgy. Secretary, asked Ms. Ocampo to provide her a copy of thePMDC & MFI presentation and a template for the resoiution rnootring trr" pii.i"rio Hon. Siarot mentioned to keep in touch for the updates in the endorsement.

SEPTEMBER 21,2014 (Day 3)

l. Exit Meeting with the MFI Representative.2. Travel from Cebu City to Manila.

Recommendations1. coordinate with Barangay council of ronggo for the Endorsement of the proiect in

form of a Resolution.2. To provide Barangay Tonggo council a template of the resolution endorsins the

project.3. Coordinate with Barangay Basak for the schedule of next barangay session.4. coordinate with Barangay Lantawan for the updates on the status of endorsement.5. MFI should hire a community Relations ofiicer who will immerse in the communi8

to identifu their concems and issues for the project.6. MFI should present a more detailed aspect of the mining plan and answers to other

concems ofthe barangay residents in preparation for the next barangay consultations.

Prepared by:

Art4k]'/Engr. Cesay' Ahthony A. AbenProject Manager, San Fernando Limestone Property

Concurred by:

/rtoF-Ms. Ma. dfrnl*"H. OcampoCommuni$, Deve I opme nt Offic er

pnntableBidNoticeAbstracthttps://phi I geps.gov ph/GEpSNONpILOT/Tender/printableBi

dNoti..

Governmcnt Elect'lonic

Bid Notice Abstract

Reference Number

Procuring Entity

Title

Area of Deliyery

rnvitation to Bid (ITB)2831821

PHILIPPINE MINING DEVELOPMENT CORPOMTION

Construction of School Buitding

Metro Manila

Solicitation t{umberr

Trade Agr€ement:

Ptocurement Moder

Clas3ificrtionl

Category!

Approved Budget for theContractt

Deliyery period:

Client Agency:

Implementing Rules andRegulations

Public Bidding

Civil Works

Construction projects

PHP 5,600,000.00

75 Day/s

Supplements

Reque$ List

loate ruoliir,eaContact personrOscar p yuviencoProcurement OfficerUnit 30018 West Tower,PSE Centre,Exchange Road. OrtigasLenter,Pasig CityMetro [email protected]

20/09/201

zqlnlZttq tt,i,oo

03/17/2OL4 LO:OO

Quantity UOM Budget (

V€nue

ffT'.ffll?:fi il:,::*"fJilil:":::T:l-b"'ld,"q at Baransav Mt. .Diwata,

Monkayo, compostera vareyLtne ftems _ ar barangay Sambrado, Basiltsa, Drnagat Istand

Deicription

Itemllo. product/Seryicel{ame

Conference

Date

Description

Tim€

1 School Building School Building at Barangay Mt. Diwata,Monkayo, Composteta Vallev

ry rr(r|.l uudget (pHp)

rlu",tl 2,Boo,ooo.oo

School Building Schoil Building at Barangay Sambrdoo,uasitisa, Dinagat Island

1 Unit 2,800,000.00

Pre-bid

10t28/2014 4..4.1 PM

printrbleBidNoticeAbstract

r3ltol2014

Creatcd by

Dat€ cr€rtedOscar P Yuvlenco

79109/2Or4

The PhilGEPs team ls not responsible brany typographlcat enors or mistnforma on presented In the system.PhllcEPs onrv dispravs intormatlon ?gv]1g roi ofrts'Ji""e.

"nJ inv'q""nes r€gardrng the posrngs shourd bedlr€€ted to the contact persods of ihe concemed party.

htpe://philgepr.gov.phlGEpSNOtrlplLOT/Iender/printablsBidNod...

Phillpplne Mtntng Development CorporatbnHead OmceUnlt 30018, West Toyyer, pSE CentFExchange Road, Orttgas Center,Paslg Clty

Help I Contact us I sftemap

10:00:00 AM

@ 200+2014 DBM proojrement Servlce. Alt rlghts reserved.

10128/2014 4:47 PM

3hepublir ot tbe lFbilippinesPHILI'PPINE MINING


Crearing Waslrh. Eorichiog Liver.

EmailAddress

t:

Lot No. Budget Contract Duration

1Barangay lvt. Diwata, Monkayo,Compostela Valley Php 2,800,00p.00 75 calendar days

2Barangay Sombrado, BasilisarDinaga! lsland Php2,800,000.00 75 calendar days

B

MEMORANDUM OF AGREEMENT

This Memorandum of Agreement made and entered rnto by and among:

The DEPARTMENT 0F EDUCATTON, an Agency of the nationar government of the Repubric ofthe Philippines, with office address at DepEd complei Meiatco Ave., pasig bity ri,letro n,4anira, ieiresentedby ats officer-ln-Charge - Schools. Division superintendent, DEE o. stM, rith offir. aooress at oeproDivision.Ofice of Composteta Valley. Nabunturan. Province of Compostela valbt, ;;rern referred to as"DePEd"'

_ano_

The MT. DI{ATA ELEMENTARY scH0OL, a pubric erementary schoor rocated at Barangay MtOiwata, fvlonkayo, Province of compostela valley, represented herein by iis principaf, Mn. nnigfoualr1,hereinafter referred to as the 'Benefic!ary,,

-ano-

PHILIPPINE MTNTNG DEVELOPMEilT coRpoMTloir, a corporation dury organized andexisting under the laws 0f the Renublic of the philippines, with office address at 30018 iliest rowerPhilippine shck Exchange center, Exchang_e-Road, 0rtigas center, pasig city represented herein by rtsPresident & cEO, ATw, Llro A. MoNDRAGoN. hereinafter refened to aithe;proponent';

WTNESSETH Thar:

_ WHEREAS' Republic Act 8525, othenrrrise known as 'An Act Estahtishing the AdoplA-SchoolProgran and Providing lncentives Tlerefore and for Other Purposes", was enacted to encoufuje prlvatecompanies to assist in the delivery of better quality educatjon to public schools in the country, paricularly inthe poverty-stricken provinces;

WHEREAS, Revenue Regulations No 10 s. 2003, lmpiementing the Tax Incentives provision ofRA 8525 othervise known as the "A0opla-Sc/rooi Act of /998' has been issued by the Departnrent ofFinance thru the Bureau of Internal Revenue;

WHEREAS' DepEd has the responsibility of securing resources to make public schoolscompeiitive and is now caliing on the private sector to serve as a maior partner in the nation;s devetopmentand in the improvement ofthe public education system:

WHEREAS, DepEd believes that one way for private companies to assist in the delivery of betterquality education in the country is by providing new school buildings or classrooms to address theclassroom shortage in public schools.

^ WHEREA$ the Proponent is non-chartered, that is, organized through regisbation with thesecurities and Exchange commission (sEC), government owned and conbolled corpdraton engaged inthe administration and development of the mining properties.

ANNEX -.a_

WHEREAS, the Proponent, in the pursuit of its corporate social Responsibility (csR) program infieid of education and in support of the Governrnents "Adopi-A-school program', has proposed to

construction of a two{lassroom school building at illt. Diwata Elementary school, a publicelementary school located at Barangay Mt. Diwata. Monkayo, province of compbstela Valley (the"Project').

NOW fiEREFORE, for and in consideration of the foregoing premises and theconditions herein sei forth, the parties hereby agree as foliows:

terms and

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Section 1 Descriptian ol the proiect

The Project krrowrr as "00NATt0i! 0F TWO.CLASSROOM SCHOOLBUILDING' consists of the construction by the proponent of a Two-crassroomschonl Building, with toiret and crassroom equipment, incruding tabres, chairs andcabinels in accordance with the building plans and architect,s perspectives heret0attached as "Annex A":

Sectian 2 Rishts and Oblisations af the DepEda ) Provide |..licy g'idflnce and directions t0 ensure the proper imprementati.il of

the Froject,b ) Cootdirraie witir ihe FROPOiiENT ir the irnplernentation 0f Project activitjes

and acccpt thc Pi.ojcci throughthe School Division 0fiice;c.) Assist in the implementation and monitoring of the project;

d.) Review and endorse the application of the pROpONENT for tax rncentive ortax exemption entitlement to ihe Revenue District ofiice;

e.) The BENEFICIARY, through the school principal, shall acceot the Donation ofthe Project, and in close coordination with the pROpONENT, shall provideproper management, maintenance, and care for the imDrovement received:anD

i) Assign a loca! superuisor./Division office staff who will monitor, oversee, andprovide feedback relatlve to the implementation of the project.

Section 3 Riqhts and Obtiaations of the prcoonent

a. Tiie Proponerrt shall cause the planning and construction of a two+lassroontschool building. The infrastructure shall be built according to the dimensionsspecified by DepEd and shall be designed in accordance with the buildingptans an0 archttect s perspecttves ('Annex A". hereof);

h. The Proponent shall be entitled to engage the services of licensed architenLcand engineers to prepare the plans, designs, specifications and constructiondrawings for the school building and contract out the construction of the schgo!building to duly liccnscd ccntractor.c;

i The Proponeni shall administer the efficient and effectrve implementation ofthe construction, especially during the three-month oeriod fronr thecommencement of consuuction and cause contractors to compiy with and'adhere to basic safety pracrices in and during construction. Likersise, theProponent shall coordinate closely with DepEd in the implementation ofproject activities;

ri. Acruai cost of the consiruction shail be paid out to contractors, suppiiers andconsultants by the Proponent;

e. Pursuant to Sec. 0 of RA 8525, the 'Adopl-a-School Act of 1998, theProponent shall be entitled to have its name emblazoned beneath the name ofthe school after the words jndicaling that the school is under the 'Adot)t-a-Schoo! Program". A similar att,ribution shall also be painted on the ri,ralls at thesides of the School Buildino.Execute a Deed of Donation in favor of the Beneficiary for the completedschool bi-rilding and submit all pertinent documents in support of the amountspecifled/claimed for tax incentive application; andMake available to DepEd periodic reports on the physical and financialaccomplisnments, evaiuatron reportslstudies, databases, and other ieports ordocuments relevant to the Proiecl

The Project beneliciary shall be the lift. Diwata Elementary School, a public

elementary school located at Barangay Mt Diwata, Monkayo, Compostela Valley.

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Section 5 Prcgrcm Cost/BreakdownThe estintated consttuctiorr cost of lhe school building is php 2,940,765.06.

Breakdown of Cost of the School Buitdins is:Qetarb:Civil WorksElectrical Works

Sanitary/Plumbing WorksArchitectural Works {inafurling furn,tlre)

css:PHP 1 ,439,991.50

55,776.84

330,435.721,0't4.561.00

Secfian 6 Term (staftina tem and en(tinq terd, The School Building shall be cons*,.ructedduring a three-month periori fi"om comniencement of consiruciion and foilowing atjmeiabie which will cause the compleiion ofconstruction before February 2015.

section 7 caaaciV and Authoizailon The parties herein wanant that they have thecapaciiy, p0wer and rcquisite authorization to enter into this Agieement.

Section I Separabilitv Clause. Should any part of this Agreement be judicially declared nullanci voicj, such nuilitv sirail not affect the validity of the remainrng provisionshereof.

Section g Breach of Contract. The violation or omission of any of the provisions of thisAgreement shali be grounci for ihe cancellaiion or rescission o{ ihe same withouineed for legal or court action.

SIGNED on the date and at the place indicaterl tretorv

DEPARTMENT OF EDUCATIONBy:

,a.a.r.-.)

DEF D. SILVA.

Officer-!n-Char-ge - Schools Division Superintendent,o1A

llace signed: IJabunturan. Pi'ovince of Compostela Vallet

Wiiness:

fuiT, D|WATA Y SCHOOLDy.

MR.

Principai

Date signed:Place signed:

PHILIPPINE MININGDEVELOPMENT CORPORATiONBy:

4/*ATry. LFOA, MONDRAGONPresident and CEODate signed:Place signed:

Witness:

Wilness:

ACKI'IOWLEDGMENT

BEFORh ME, a Notary pubtic tor and in the above Jurisdictton, this _ day ofuersoriaiiy appeaied iire iuiiowirig,

REPUBLIC OF THE PHILIPPINES )PROVINCE CF COMPOSTELA VALLEY) S.S.

i\em_e

DEPARTMENT OF EDUCATIONHY: DLE U, SILVA

MT DIWATA ELEMENTARY SCHOOLBy nRiEL Di.tBLiN

2014

2014,

$

Government lssuedI 5.le1ti f i,o_s[q! Q_4rd DeklP,las_e*lss!_ed

Known t0 me and to me known to be the same persons who executed the foregoing instrument, and theyacknowledged to me that the same is their tree and voluntary act and deed and that of thecorliolaiionsieniities ihey lepfeserited. This lvienrorarrdurn of Agreernent consisting of four i4) pages.including this page in which this acknourledgement clause is written, is signed by ihe parties ind theirinstrumental witnesses on each and every paqe thereof.

wlrNFss MY HAND AND NorARlAl sEAl . on the date at the prace lirst written above

l-\nn ltlnD.^a At^

D^^1, nl^

Series of 20'14.

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES )

PASIG CITY )SS

BEFORE Ir,4E, a Notary Public for"and in the above jurisdiction, this _ day ofEersonallY a0peared the following:

Covcinment lssuedi\j?i-ire ldertifir:ation CardPHILiPPiNE lvilNlNG DEVELOPMEhiT CORPBv: ATTI, LITO A. MOi\,iDRAGON

T\^a^/nt^^^ I^^.,^..1

J

I

Known to me and to me known to be the same persons who executed the foregoing instrument, and theyacknowlecigeo to me that the same is thetr free and voluntary act and deed and that of thecofpoiatrons/eniities ihey represented. This tulenrorandum of Agreement consistjng of four (4) pages,including this page in which this acknowledgement clause is written, is signed by the parties and theirinstrumental wjtnesses on each and every page thereof,

WITNESS MY HAND AND NOTARIAL SEAL. on the date at the place first wriften above.

{ffi

Dana

Je, tes ut zu t+.

ANNEX'

MEMORANDUM OF AGREEMENT

This Memorandum of Agreement made and entered into by and amono:

The DEPARTMENT OF EDUCATION, a division under the Departmeni of Education, with office

1119:"s 9t Province of Dinagat lslands, represented by the Schools Division Superintenoent, Mhnttou a.DEDUMO, Ph.D. CESE, herein referred to as ,,DepEd;,,

-and-

The sOMBMDO ELEMENTARY scHooL a public elementary school located at Barangaysombrado, Basilisa, Province of Dinagat lslands, represented herein by its principal, Ms. MELCHoRA ll.LLEMIT, hereinafter refened to as the ',Beneficiary',

-and-

PHILIPPINE MINING DEVELOPMENT coRpoMTtoN, a corporation duty organized andexisting under the laws of the Republic of the Philippines, with office address at 3001B iVest Tower,Philippine stock Exchange center, Exchange Road, orligas center, pasig city, represented herein by itsPresrdent & cEO, ATTY. LlrO A. MONDRAGON, hereinafter refened to ai the,,proponent,;

WITNESSETH That:

_ WHEREAS, Republic Act 8525, otherwise known as "An Act Estabtishing the Adopt-A-schoolProgram and Providing lncentives Therefore and for other purposes', was enacted to encouirge pnuu,ecompanies to assist in lhe delivery of better quality education to public schools in the country, particularly inthe poverty-stdcken provinces;

WHEREAS, Revenue Regulations No. '10 s.2003, lmplementing the Tax Incentives Provision ofRA 8525 otheruise known as the "Adopf-a-school Act of 1998 has been issued bv the Deoartment ofFinance thru the Bureau of Internal Revenue;

WHEREAS, DepEd has the responsibility of securing resources to make public scnootscompetitive and is now calling on the private sector to serve as a maior partner in the nation's developmentand in the improvement of the public education system;

WHEREAS, DepEd believes that one way for private companies to assist in the delivery of betterquality education in the country is by providing new school buildings or classrooms to address lheclassroom shortage in public schools.

WHEREAS, the Proponent is non-chartered, that is, organized through registration with theSecurities and Exchange Commission (SEC), govemment owned and controlled corporation engaged inthe administration and development of the mining properties.

WHEREAS, the Proponent, in the pursuit of its Corporate Social Responsibility (CSR) Program inthe field of education and in support of the Government's 'AdoptA-school program', has proposed toDepEd the construction of a two-classroom school building at Sombrado Elementary School, a publicelementary school located at Barangay sombrado, Basilisa, province of Dinagat lslands (the "project").

NOw THEREF0RE, for and in consideration of the foregoing premises and the terms and ,,conditions herein set forth, the parties hereby agree as follows:

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S*tion I Description of the proiectThe Project known as "DONAT|ON OF TWO.CLASSROOM SCHOOLBUILDING' consists of the construction by the proponent of a Two_ClassroomSchool Building, with toilet and classroom equipment, including tables, chairs andcabinets in accordance with the building prans and architect's perspectives heretoattached as 'Annex A";

Section 2 Rishk and Obliqations of the DeoEd

t.

d.

a ) Provrde policy guidance and directions to ensure the proper implementation ofthe Project;

b.) coordinate with the PROPONENT in the implementation of project activitiesand accept the Prolect through the School Division Officet

c ) Assist in the implementation and monitoring of the project;

d,) Review and endorse the application of the pROpONENT for tax incentive ortax exemption entitlement to the Revenue Dislrict office;

e.) The_BENEFICIARY, through the school principal, shalt accept the Donation ofthe Project, and in close coordination with the pROpONENT, shall provideproper management, maintenance, and care for the improvement received;and

f.) Assign a local supervisor/Division ffice staff who will monitor, oversee. andprovide feedback relative to the implementation of the proiect.

b.

Secfion 4 Scope ofllre ProiecfThe Prolect beneficiary shall be the Sombrado Elementary School,elementary school located at Barangay Sombrado, Basilisa, province oflslands.

e.

The Proponent shall cause the planning and construction of a two-crassroomschool building. The inftastruclure shall be built according to the dimensionsspecified by DepEd and shall be designed in accordance with the buildingplans and architecl's peBpectives ("Annex A,, hereoo;The Proponent shall be entitled to engage the services of licensed architectsand engineers to prepare lhe plans, designs, specificalions and conslructiondrawings for the school building and contracl oul lhe construction oflhe schoolbuilding to duly licensed conkactors;The Proponent shall administer the efficienl and effective implementation ofthe construction, especially during the three-month period from thecommencement of construction and cause contractors to comply with andadhere to basic safety practices in and during construction. Likewise, theProponent shall coordinate closely with DepEd in the implementation ofprolect activities;Actual cost of the construction shall be paid out to conhactors, supplien andconsultants by the Proponent;Pursuant to Sec. 6 of M 8525, the "/dopfa-Schoot Act of 79g8, theProponent shall be entitled to have its name emblazoned beneath the name ofthe school after the words indicating that the school is under the ,,Adopt-a-

School Program". A similar attribution shall also be oainted on the walls at thesides of the School Building.Execute a Deed of Donation in favor of the Beneficiary for the completedschool building and submit all pertinent documents in support of the amountspecified/claimed for tax incentive application; andMake available to DepEd periodic reports on the physical and financialaccomplishments, evaluation reports/studies, databases, and other reports ordocuments reievant to the Proiect.

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Section 5 Program Cost/Breakdownfne estimateO consiruction cost of the school building is php 2,g40,765.06.

Breakdown of Cost of the Schoot Building is:Delails:

Civil WorksElectrical WorksSanitary/Plumbing WorksArchitectural Works

uost:PHP 1,439.991.50

55,776.84330,435.72

1,014,561.00

Tetm (stq.rtino tern and endins termL The school Building shail be constructed0unng a three-month period from commencement of construclion and followino atimetable which will cause the completion of construction before February 2015,

Section 7 Capacifu and Authorization The parties herein warrant that they have thecapacity, power and requisite authorization to enter into this Agreement.

Section I Separabllitv C,tause. Should any part of this Agreement be judicially declared nulland void, such nullity shall not affect the validity of the'remaining provislonshereof.

Section g Bleach of Contract. The violation or omission of any of the provisions of thisAgreement shall be ground for the cancellation or rescission of the same withoulneed for legal or court action.

SIGNED on the date and at the place indicated below.

DEPARTMENT OF EDUCATIONBy:

SchoolsDate signed:Place signed:

Witness:

SOMBRADO ELEMENTARY SCHOOLBy:

I'a"-1,,.o --r- /-tz*&MS. MELCHORA N. LLEMITPrincioal

Dalesignd: &el.hnlw q ,2914Place signed: Din'aqat. Province of Dinaqat lslands

Witness:

PHILIPPINE MININGDEVELOPMENT CORPORATIONBy:

ZtZ^ZATTY. LITO A, MONDRAGONPresident and CEO

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES )PRoV|NCE OF DTNAGAT |SLANpS) S.s

BEFORE ME, a Notary public for and in the above jurisdiction, this _ day ofpersonally appeared the following :

Government lssued

. ldentiflcation Card

/'+va kr!'r';t ir^ ghlh

'/w*a \4)#J';bF.^'!h;

Known to me and to me known to be the same persons who executed the foregoing instrument, and theyacknowledged to me that the same is lheir free and voluntary act and deed and that of thecorpffations/entities they represented, This l/emorandum of Agreement consisting of four (4) pages,including this page in which this acknowledgement clause is wri-tten, is signed oy ine pu'ries' lnd theirrnstrumental witnesses on each and every page thereof.

wlTNEss MY HAND AND NOTARTAL sEAL, on the date at the prace first written above.

Doc. No. ---;Page No._.-;Book No._;Series of 2014.

BEFORE ME, a Notary Public for and in the above jurisdiction, this _ day ofpersonally appeared the foliowing :

Government lssuedName ldentification CardPHILIPPINE MINING DEVELOPIVENT CORPBy: ATTY, LITO A. MONDMGON

Known t0 me and to me known to be the same persons who executed the foregoing instrument, and theyacknowledged to me that the same ls their free and voluntary act and deed and that of thecorporations/entities they represented. This Memorandum of Agreement consisting of four (4) pages,including this page in which this acknowledgement clause is written, is signed by the parties ind theirinstrumental witnesses on each and every page thereof.

WITNESS MY HAND AND NOTARIAL SEAL, on the date at the ptace first written above.

2014,

\5\$..

Name

DEPARTMENT OF EDUCATIONBy: |\4ARILOU B. DEDUMO

SOI\4BRADO ELEIVENTARY SCHOOLBy: l\'1S. MELCHOM N. LLEMTT

REPUBLIC OF THE PHILIPPINES )PASIG CITY )SS

Doc. No. _;Page No.--;Book No._:Series of 2014.

ACKNOWLEDGMENT

Date/Piace lssued

-ffi.u^ 1 nw.'Afru /" 6" ql*"ar l(, w

,Ur,;!^

2014,

Date/Place lssued

t\

,\NNEX'NTEMORANDUM OF AGREEMENT

KNOW ALL MEN BY ]'flESE PRXSENTS:

The PHILIPPDii.I MINING DEVELOPMENT CORPORATION (PMDC),with o{fice address at 3001B west Tower, philippine Stock Exchange centei, ortigai!_e111_ra{g City, represented by its presidlnt and CEo. a}rv. ilro i.MONDRAGON, herein leferred to as the..PMDC".

and

rhe BARANGAY TRIBAL cotrNcft oF LEADERS (BTCL), with of'ficeaddress at Barangay Upper U_lip, Monkayo, Compostela Valley province, representeJ byits Tribal chieftain, DATII MAURICIo LATIBAN, herein referred ro as the *BTCI--.

WITNESSETH THAT:

WHEREAS, the PMDC supporrs the National Greening program (NGp) of theDepartment of Environmcnt and Natural Resources (DENRI with- tfie

'objective of

contributing to the en\/ironmental rehabilitation th.rough the ..Agro-Forestry anttReforestation Project";

WHEREAS, the I)MDC shall identify, select, supervise, monitor, and evaluatethe Indigenous People (lP) Beneficiaries who shall provide labor ,"-i"", to p"rfoi,nplantation establishment act;vities from site preparation, staking, hole digging, hauling ol-seedlings to planting at thc, identified site ancl outplanting;

WHEIIEAS, the PMDC identifies BTCL as an accredited Ip Organization (IpO)located at Barangay Upper Ulip Monkayo, Compostela Valley province;

WBEREAS, the BTCL has signified inrention to act as the Locar supervisor, towhich the PMDC has acceJrted, to provide the services needed by the latter and to engagein environmental rehabililtion through replanting on the identified area;

WEERDAS, the ITTCL possesses the qualifications required to perform the jobas described herein.

Now THEREFORE, for and in consideration of the above premises. the partiesmutually agree on the follo.wing terms and conditions.

FI

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ARTIC-LE ITHE PROJECT

The Project shall be known as 'THE AGRO-FORESTRY ANDREFORESTATICN PROJECT" ("Project") i' support of the Nationar Greerii'gfrogram covering an initial area of l0 hectares and located at Barangay UppeiUlip, Monkayo, Cornpostela Valley.

The project intends to uphold the commitment of the pMDC for environmentalmanagement and conservation and to help in the rehabilitation of biodiversity ofits host barangays .(r support the National Greening program.

ARTICLE IIFUNDING

The PMDC shall provide the funding tbr the implementation of the program/project.

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Ro LE s ^'#f,i:!8

iilB rr.rrrE s

ilI.I PMDCa ldentifu potential area lor developulent for the Agro-Forestry ancl Reforestatiorr

Projectb

. Pre-assess, through georogicar mapping, the mineral potential of the identif.iectafea

c. In coordination with- the.DA and DENR undertake Soil Analysis and actualground Survey and Mapping ofthe identified aread. Assist in mobilizing the project beneficrariese Provide the beneficiaries.the needed nursery input requirements for the projectf Spearhead the supervision and monitoring of the project ;rpr.,,.niutionactivities

g Provide technical assistance a'd, va date accomprishment rendered by the"Local Supervisor"h Provide needed training to the Local supervisor to lncrease their technical

competence in sirpervising the beneficiariesi Pay_the "Locar Supervisor" and the beneficiaries the appropriate arnount basedon the accomplishment rendered as provided in the Work ptin

III.2, BTCLa Together with the pMDC, identify porentiar area ror deveropment for the Agro-

Forestry and Reforestation proiectb. Undertake mobilization of te; (10) identified beneficiaries in aclordance withthe Ancestral Domain Sustainability, Deveropment. and protection plan

(ADSDPP)c validate the legitimacy of the identified beneficiaries through Barang ay and/or

Tribal Resolutionsd. Track the progress ofwork ofthe beneficiaries and ensure that the tasks are done

as per approved Work and Financial plane. Submit regular (weekry, if t-ossible) progress report to the pMDC detairing the

progress of work ofthe beneficiariesI Report any wrongdoings exhibited by the beneficiaries andlor other

9r _groups as well as any occurrence of force majeure

individuals

Submit the billrrrg of all beneficiaries based on the actual report ofaccomplishn.rentProvide technical assistance to all beneficiariesProvide overall supervision to the project in the whole d'ration ofcontract

ARTICLB IVPAYMENT PROCEDURES

IV L The payment to ther Local Supervisor, as well as the beneficiaries, shall be macleoir a per activity br_,r;is.

IV .2. The payment procedure shall be as tbllows:a. The beneficiary sharl work on his/her claim as per activity indicated in tlie work

and Financial PIan (WFp)b. Upon completion of each activity, the beneficiary shall fifl-out the Report,tsilling

Statement indicating the particular activity completed.c T'he Local Supervisor and a representative from pMDC shall validate the

completed activity offeach beneficiary to verify their repon.d. once verified, the l,ocar Supervisor shal submit to the pMDC Depot Fierd office

his/her Report aiong with the Billing Statement ofthe beneficiary

t.

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e. The PMDC Depot Field Offlce shall then prepare thefrrwarded to Davao Field Office and erenruallv. to theapproval and preparation of paymenr ty the Finance and(FAD)

Once the payment has been prepared by FAD, it shallDepot Field Office for release of payment to theSupervisor.

g. upon rcceipt of payment, the beneficiaries shall srgn an Acknowledgmenr ofReceipt (AR) as proof of pMDC,s pavnient.

ARTICLtr VSIIARING SCHEME

V.l. The Sharing Scheme between pMDC and the communrty (incfutting thebeneficiarie';, BTCI- and other stakehorders determinecr by the BTCL) stratt ueeffective during production Stage happening within the three_year projectirnplementation (year 2014-2016) and lor the succeeding three (3) y"u., iy.u,-2016'20r9), unress earlier terminated or extended by agreement ofthe parties.

v 2 The sharing scheme between the pMDC and the community wi be 70o/o-309/o \nwhicr't'70vo goes 1., the community whire the remaining 3070 goes to the pMDC.The share of the pMDC wilr go to the company's fund to be used for reoricationof the same projecr in the community.

v.3. The Local Supervisor and the pMDc shall also monrtor and validate the harvestand the production activities. Another repo( shalr be made by both partiesindicating the quantity of harvest per beneficiary per hectare.

v.l The BTCL shall b:: tasked to re-check the report and conduct actuar re-varidationin the proiect site.

Payment Request to bePMDC Main Oftlce tbrAccounting Department

be issued to the PMDCbeneficiaries and Local

Sustainable

community

V.5 . As determined by the BTCL, based on their Ancestral DomainDevelopment and Protection plan (ADSDpp), the jTo/o share of theshall be sub-allocated for different purposes, to wit:

a. 50Y" (of 70o/o) _ Beneficiariesb. l0% - CIanc. l0%o

d. 20()'o

e. 10o/o

- rPo (UTCEL)- BTCL- Local Supervisor

wII

coNsERVArroN, MANASIHfi+:^K" DEVELopMENT srAGE

vI 1. ihe PMDC shall manage, supervise, and finance the project only within theprescribed three-yea.r project cluration. Thereafter, the pMDC shall transfer theresponsibility ofn:anagement and supervision of the proiect to the BTCL.

vI 2 However, during the turnover process, the pMDC may still provide technicalsupport and assistance to the BTCL and the beneficiaries in the form ofconsurtation, traini'g or coordinalion activities with other government agencies,The turnover period shall be good for a maximum of two (2) years.

k

VI.3. Another contract depicting the pMDC's official turnover of the project to theBTCL, including the management and the rores and responsibilities of partiesinvolved, shall be signed among the pMDC, BTCL, beneficiaries and othergovernment agencies.

RELA rroN s rr#TEIft,? K r"" pARrm s

\all 1 It is understood that this Agreement does not create an employer-employeerelationship between PMDC and BTCL or any of its employees, ug"ntr,' h"'i.r,and/or assigns; that the services rendered hereunder are not considered and willrrot be accredited as government service; and that the latter is not entitled tobenefits enjoyed by the regular personnel of pMDC.

----- >vrr.z. The purpose of this contract is exclusively for the Agro-Forestry andReforestation project of pMDC in Barangay upper Ulip, Iuonkayo, compostelaValley.

ARTICLE VIIIARBITRATION

Any dispute or controversy between the parties hereto arising under this Agreement shallbe settled by arbitration ii-' accordance with the rules provided by Republic Act No. 92g5,otherwise known as the "Alternative Dispute Resolution Law" and the decision made insuch arbitration proceedings shall be final and binding on both the pMDC and BTCL.

ARTTCLE IXAMENDMENTS

is MOA shall not be revoked, revised, amended or modified in any fespect except bye mutual consent in writirrg ofthe parties thereto.

ARTICLE XEFFECTIVITY AND TERMINATION

X.l. This Agreement shall take effect upon signing ofboth parties and shall remain inforce unless revoked, revised, or amended upon expressed mutual agreement byall parties thereto, It may be renewed for the same period upon written mutualagreement by all Parties.

x.2. Either party may rcrminate this Agreement if the other commits a violation of theprovisions of this Agreement.)

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IN WITNESS WHEREOF, both parties have hereunto set their ha.ncls thislnday of

D URICIOI.ATIBANTribal Chieft6in

D{-frJ:

ACKNOWLEDGMENT

REPUBLIC OF TI{E PHILIPPINES )Qr-TEZONCTTY )SS

BEFORE ME, this _ day offollowing:

2014, personally appeared the

Name Competent Evidence ofIdentity

DatelPlace oflssuance

PHILIPPINE MININGDEI|ELOPMENT CORPORATION(PMDC)

4,.-2'ATry. LITOA. MONDRAGON

President and CEO

BA,RANGAY TRIBAL COUNCIL OFELDERS AND LEADERS (BTCL)

NOTARY PUBLIC

Known to me be the same persons who executed the foregoing instrument andacknowledged to me that the same is their free and voluntary act and deed as well as theentities herein represented.

This instrument refers to a Memorandum of Agreement, which consists of four(4) pages including this acknowledgment page, and which is signed by the parties andtheir instrumental witnesses on each and every page thereof

WITNESS MY HAND AND SEAL on the date and at the place first writtenabove.

Doc. No.Page No.Book No.Series of 2014

UNIFIED TRIBAL COUNCIL OF ELDERS/LEADERSBARANGAvTRTBAL couNcrr, oF LEADERs CIicilupptR IrLp, Mor{KAyo, coMposrEl.,l ver,l,ny pnovirvcr

EXCERPTS FROM TI{E MINUI'ES OF TIIE TRIBAL GEIYERAL ASSEMBLYlmLD AT TRTBAL HALL uppER uln, uomceTo coMposrElA vALLEy;fi?-n"r rrME 1:00 o'clocK nv rim erienxbox DArED AUGUST 26,

Present:

Dotu Mauricio T. L{tibanDatu Leonardo E. TandaDatu Rogelio L. FranciscoDatu Ruel L. FranciscoDatu Rolden D. CastroBae Cathirene L. TagaroBae Procesa E. LatibanBae Weldinita A. Inongan

Tribal ChieftainCouncilCouncilCouncilCouncilCouncilCouncil

IpMR/Council

Resolution No. 16 s2014

A RESOLUTION AUTHORIZING DATU MAURICIO T. LATIBAIY, TRIBALCEIEX'TAIN AS PERMAI\ENT SIGNATO{Y-O} EU, T-,R INCOMINGPROJECTS OF'THE TRBAL COUNCIL OF T,NANN-NS A|M }fiN{BERS. ' * ''

. WHEREAS, During the general assembly hstAugust 26,2014, Bae WeldinitaA' Inongan, a counc' Leader/IpMR -o*n tnui DATU MAURT.I' T.LAIIBAII, a tribal chieftain,.to.be t" p."."i""t iigo"ro"y of memorandum ofagreement of all the projecls inside the Ancestral Domain.

_ WfnnneS, the Councils, Elders and Members choose Datu Mauricio T.Latiban as p€rmanetrt .rq:t:V aue to his wl ingness, capacity, competent tomanage oversee the said projects.

WIIEREAS, DATU BANDIN _S. GUBATON, a temporsry signatory as clanrepresentative where thc lirst,lO !1cta.g proiect is l,ocated, gve"n ny iUrupp_"Mining Development Corporation @MDC);

ITFIEA|, rhe nexr projecr wiil be represented by the ctan owneresentative, where the projpct is located.

'i;i::i:iiDg'

4

by council body it was;upon motion by Dafu Tomas Aquilino, Sr,, an Elder dulv

,LYED AS IT IS IIEREBY RESOLVED, the body passed a resolution to::lt"*tgSlin__ing Devetopment Corporation d,6 ), NCrp and otherfor their information and appropriate action.

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|*IH};I^LLY, that copy of this resotution is turnished to NCrp

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Unaninously Approved.

I hereby certify the correctness ofthe above quoted resolution.

Conformed:

Datu Rogelio L. Francisco

Datu Leonardo E. Tanda

Datu Ruel L. Francisco

Datu Rolden D. Castro

Bae Cathirene L. Tagaro

Bae Pmcpsa E. Latiban

Bae Weldinita A- fnongan

tu-H-flr

_-l-a-z-z-

Attested by:

q"ABae panilyn C. LatibanBTC! Secretary

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Approved by:

Tw rr"t Quu,.vnr-tr i U-i,n'zro,\. fu,>v.nJ"l,v6

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SERVICE CONTRACT

I(NOW ALL MEN BY THEST] PRESENTS:

The Philippine Mining Development corporation (pMDC) r'ith office address ar 30018 \ryest'Iorver Philippine Stock Exchange Center, Exchange Road, Ortigas Center, pasig Ciq, represenred by rtsPresrde nt and .CEO, Attv. Lito , . Mondragon, herein referred to as the *pMDC";

rt

LuzUinaL" t4 : L*h'b"r, . of legal age and with residence address at SitioDepot. Barangay upper Ulip, Monkayo, compostela Valley province, herein referred to as the"Beneficiara".

WITNESSETH THAT:

WHEREAS, the PMDC supports the National Greening program Q..lGp) of the Depanment ofEnvironment and Natural Resources (DENR) with the objective of contributing to the environmentalrehabilitation tlrough the',Agro.Forestrl and Refor.estation project,,;

WHEREAS' the PMD(I shall identify, select, supemise, monitor, and evaluate the InorgenousPeople (IP) Beneficiaries who shall provide labor services to perform plantatron establisllnent actlvitiesfrom site preparation. staking. ir,'rle digging. hauling of seedllngs to planting at the identified site andoutplantlng.

WHEREAS. the Beneficiary has signified his/her intention to which the PMDC has accepted toirrovtde the services needed by tl''e latter and to engage in the rehabilitation ofthe environment throuqlrthe project. .

WHEREAS, the Beneficiarv possesses the qualifications required to perform thejob as describedItercrn.

NOW THEREFORI', fbr and itt consideration of the foregoing mutual covenants and the Terms;rnd Conditions herein contained. the PMDC. b); these presents, hereb-v engages the service of theBeneficiarv under the following terms and conditions:

I . That the Beneficiar', shall be paid on a per activityiaccomplislment basis with theappropnate amolrnt as provided in the Work and Financial Plan (\IrFp).

2. That the Beneficiary shall be subject to supervision and validation by the designated LocalSupervisor.

3. That the Beneficiary shall have the follorving responsibilities:a. Prepare his/her own Work Plan synchronized with other benet-rciaries to be rrsed as

referencc ol thc Local Supcrvisor;b. Undertake site preparation for the project (strip brushing, staking, hole digging, etc.) per

approved agro-iorestry and reforestation development plan,c' Undertake planting of fruit-bearing trees, forest tree seedlings, ald coffee seedlings for'

one (l ) hectare area for the period ofone (l ) year;d. Undertake replarr;ing activity and ensure tbat a minimum survival rate of ninetv per cent

(907o) is atiained;e. Undertake maintenance and protection of the established plantation for the three-year

contract period;f. Prepare accomplisllnent report to be subrnitted and validated by the designated 'Local

Supervisor" before billing; andg. Immediatelv repcrt to the "Local Supervisor" and/or pMDC

mcieure or any rrntou'ard incidence beyond his/her control.anv occurrence of.force

V\

4. Ihat the PMDC shall have the following responsibilities:a Ide'tify potential area for development for the Agro-Forestrl and Reforestation pro.iect,

. together with thrr Bara:rgay Tribal Council of Leaders (BTCL);b. Pre-assess, through geological mapping. the minerar potentiar ofthe identified area;c. ln coordination rvith the DA and DENR, undertake Soir Analvsis and act.rar ground

Sun'ey and Mapplng ofthe identified area;d. Assist in mobilizing the Project beneficiaries;e. Pro'ide the beneficiaries tlre needed nursery input requirements for tre project;f. Spearhead the supervision and monitoring of tlie prqect implementation activities;g. Provide technical assistance and validate accomptishmint rendered bv the ."Locai

Supervisor',h. Provide needed training to tlre Local Supewisor to increase their technicar competence in

supervising the beneficiaries; andr' Pay the "Loca; Supervisor" and the beneficiaries the appropriate amount based on the

accornplishment rendered as provided in the Work plan.

That herein parties agree aL a 70yo-30oh profit sharing scheme in rvhich 70% goes to thecommunitl' rvhile the remaining 30% goes to the pMDC for replication of the same project rnthe community.

Tlre Sharing Schenre betrveen PMDC and the community (inchuling the bene.ficiaries, BTCLand other stakeholdcrs determined bSt the BTCL) shall be effective dunng production Stagehappening rvithin the three-year project implementation (year 2014-2016) and for thesncceeding three (3) years (Year 2016-2019), unless earlier terminated or extended bvagreement of the parties.

That the PMDC shall manage, supervise, and finarce the project only within the prescribedthree-vear project duration. Thereafter, the PMDC shall transfer the responsibilit,", of themanagement and supervision ofthe Project to the BTCL.

That it is understood that tlis contract does not create an employer-employee relationshipbetrveen tle PMDC and the Beneficiary or any of its employees, agents, heirs- and,/or assigns;that tlre services iendered hereunder are not considered and lvrll not be accredited asgovemment servrce; and that the latter is not entitled to the benefits enjoyed by the regularpersonnel of the PMDC.

7.

5.

6.

9. That the purpose ol'this contract is exclusively for the Agro-Forestry and ReforestationProject in partnership rvith the commu'ity Envirorunent and Natural Resources office(CENRO) of the Municipality of Monkayo.

10. This Contract shall be in accordance with the provisions of the Project ImplementationProcedures attacheti herewith and made integral part hereoi

IN WITNESS WI{EREOF, both parties have hereunto set their hands this day ofaI

,"-'Z->-,ATTY. LII'O A. MON N " .

Prcsidenr and CEO - |rfPMDC l,

al

14, L"hl.^^

Subscribed and slvom to before me this dav of

-- ---]\\

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SERVICE CONTRACT

KNOW ALT, MEN BY THESE PRESENTS:

The Philipprne Mining Lrevelopment corporation (pMDc) with office address at 3001B west'rorver Phrlippine Stock Excharge center, Excharge Road, ortigas center, pasig city represented by itsPresident and CEO, Atty. Lrto A. Mondragon, hcrcin refer.red to as the,.pMDC,,:

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, of legal age ald with residence address at SitioDepot, Barangay upper ulip, Monkayo, compostela valley province. herein referred to as the"Beneficiary".

WITNESSETH THAT:

WHEREAS, the PMD(I supports the Nationar Greening program (NGp) of the Department ofEnvironment and Nahrral Resources (DENR) r,vith the objective of contributing to the enviromnentalrchabilitation through the,,Aqro-Forestry and Reforestation project,,;

WHEREAS, the PMDC shall identi!', seloct, supervise, monitor, and evaluate the IndrgenousPeople (IP) Beneficianes who sirall provide labor services to perfonn plantation establislmrent actlvltresfrom site preparation, staking, hole digging. hauling of seedlings to planting at the identified srte andoutplantlng;

WHEREAS. t}e Beneficiary has signified his/her intention to which the pMDC has acceDted toprovide the services needed by thr: latter and to engage in the rchabilitation ofthe envirorunent throush! lrc proJcct.

WHEREAS, the Beneficiary possesses the qualifications required to perform thejob as descnbedllereln.

NOW THEREFORX, i'c'r and in consideration of the tbregoing mutua.l covenants and the Tennsand Conditions herein contained, the PMDC. bv these presents. herebv engages the service ofthetseneficiarv under the follor,vinq terms and conditions:

L That the Beneficiary shall be paid on a per activitv/accomplishnent basis wtth theappropriate amount zrs provided in the Wor-k and Financial plan ('rVFp).

2. That the Beneficiary shall be subject to supervision and validation by the designated LocalSupervisor

3. That the Beneficiarv shall have the follorving responsibilities:a Prepare his/hcr own work Plan sl,nchronized with other beneficiaries to be used as

refcrence of the Local Supcrvrsor;b. Undertake site preparation for the prqect (strip brushing. staking. hole digging.

approved agro-forestry and reforestation development plan:c. undcrtake plantirrg of fruit-bearing trees, forest tree seedlings, aud coffee seedlings for

one (1) hectare area for the period of one ( I ) year;d. Undertake repl:mring activiq/ and ensure t.hat a minimurn sun iva.l rate of ninetv per cent

(90qo) is.rflrrncJ;e. undertake rnainlenance and protection of the established plantation for the three-year

contract periodif. Prepare accomplishment report to be submitted and validated bl.the desisnated .'Local

Supervisor" bei:re billing; ardg. Immediately report to the "Local Supervisor" and/or pMDC any occuffence

majeu'e or an'n \rrttos'ard incrdence bcvond his/her cor.rtrol.

etc.) per

ot .furrn ,\t\ \

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l'

1 That the PMDC shall have the followrng responsibilities:a Identif' potential area for dev_elopment for the Agro-Forestry and Refor.estation project,

, together with the Barangay Tribal Corucil of Leadirs (BTCL);b, Pre-assess, tlrough geologicar mapping. the minerar potentrar ofthe identified area;c. In coordination rvith flre DA and DEN\ undertake Soil Anali,sis and achral gror"urd

Survey and Mapping ofthe identified area;d. Assrst in mobrlizing the Projecr beneficiaries.e. Provide the beneficiaries the,eeded nursery input requirements for the project;f. spearhead the supervision a'd monitonng ofthe projict implementation activiiies;g. Provide technical assistance and vatidate u""omplishrn"nt rendered bv the ..Local

Supervisor";h. Provide needed training to the Local Supervisor to increase their technical comnetence i1

supervising the oeneficiaries; andi: Pay the "Local Supervisor" and the beneficianes the appropriate amount based on the

accomplishment rendered as provided in the Work plan.

Tlot herein parties agree at a 70o/.30oh profit shanng scheme in which 70% goes to thecommunity while the remaining 30% goes to the pMDC for replication of the same prqect inthe community.

The Sharing Sche'rie between PMDC and the communlty (including the benefciaries, BTCLand other stakeholders determtned by the BTCL) shall be effective dunng production Stagelrappenrng rvithin 'rbe three-year project implementation (year 2014-2016) and for thesucceeding tlree (3) years (Year 2016-2019), unless earlier terminated or extended bvagreement of the padies.

That the PMDC shall manage, supervise. and finance the project only within the prescribedthree-year project duration. Thereafter, the PMDC shall transfer the responsibilitv of tlremanagenlent and supervision ofthe Prqect to the BTCL.

That it is understooci that this contract does not create an employer-employee relationshipbetween the PMDC and the Beneficiary or any of its employees, agents, heirs, and/or assigns;that the services ;.-ndered hereunder are not considered and will not be accredited asgovemment servrce; and that the latter rs not entitled to the benefits enjoyed by the regularpersonnel of the PMDC.

6.

7.

,5.

a

.ATTY. LITO A. MOND N , /'Prcsident and CEO -- Y

PMDC I\

(F*pw U. fSe**r,'(-"ntrrat-

9. That the purpose of this contract is exclusively for the Agro-Forestry and ReforestationProject in partnership rvitb the corn'runity Environment and Natural Resources office(CENRO) of the Municipality of Monkayo.

10. This contract shaji be in accordance with the provisions of the project ImplementationProcedures attached herewith and made integral part hereof.

IN WITNESS WI{EREOI both parties have heieunto set their hands this day of

4,"&

Beneficiary

of

\

Subscribed ald swom to before me this day

SERVICE CONTRACT

KNOW ALL MEN BY THESE PRESENTS:

The Philippine Mining Deveropment corporation (pMDC) r.vith office address at 300 r8 west'rorver Philippine Stock Exchange Center, Exchange Roacl, ortigas center, pasig city represented by itsslur,rr D.\u'in!lls Lc{*cr, rxcnange Koad, urtlgas center, paslg city represent€d by its c\President and CEO, Atry. Lito A. Moudragon, herein refer red to as the,,pMDC,,;

- -t{\R

alrcoab b/?c4n 4 anr.tirt APce;'d \S

WITNESSETH TTIAT:

WHEREAS' the PMt,i-- supports the National Greening program (NGp) of the Deparrmenr ofEnvironment and Natural Resources (DENR) with the objective of contributing to the €n;ironmentalrohabilitation through the ',Agro- Forestry and Reforestation project";

WHEREAS, the PMDC shall identif,, select, supervise, monitor, and evaluate the IndigenousPeople (lP) Beneficiaries whb shall provide labor services to perfonn plantation establis6ment actlvrtresfiom site preparation, staking, hole digging. hauling of seedlings to planting at the identified site andoutplanting.

WHEREAS. tie Beneficiary has signified his/her intention to which the PMDC has acceDted toprovide the sewices needed b]. the latter and to engage ln the rehabilitation ofthe environment throuqhthe project.

WHEREAS, the Beneficiarv possesses the qualifications required to perform thejob as describedhereln.

NOW THEREFORE, for and in consideration of the foregorng mutual covenants and the Tennsand conditir:ns herein contained. rhe PMDC. bv these presents. hereby engages the service oftheBeneficiary under the following terms and conditions:

I . Tbat the Beneficiar v sliall be pard on a per activitv/accomphsl''ent basis lvith theappropriate amount as provided in the Work and Financial plal rwFp).

2. That the Beneficiary shaJl be subject to supervisio' and validation by the designated LocalSirpervisor.

3. That the Beneficiary shall have the following responsibilitiesa. Prepare his,4rer own Work Plan sl,nchronized with other beneficiaries to be used as

refrrcnce of the l-ocal Supervisor;b. Undertale site preparation for the prqect (strip brushing, staking, hole digging,

approved agro-tbrestry and reforestation development plan:c. U'dertake planting of fruit-beari'g trees, forest tree seedlings, a'd coffee seedli.gs fot

one (l ) hectare area for the perrod ofone (l ) 1'ear;d. Undertake replaming activity and cnsure that a n.fnimum survival rate of ninetv oer cent(90%) is anaircd:

e. Undertake maint{)nance and protection of the established plantation for the three-yearcontract penod:

f Prepare accomplishment report to be submitted and validated by the designated "LocalSupcrvisor" before billing; ald

g. Immediatelv report to the "Local Supervisor" and/or pMDC any occurrence of forcemaieure ot anvrintou,ard incidcnce bel,ond his/her control.

ri\C\"Ns\N\)

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etc.) per

4.

6.

7.

That the PMDC shall have the following responsibilities:a. Identif' potential area for development for tle Agro-Forestry and Reforestation project,

together with the Barangay Tribal Council of Leadirs GTCLr:b Pre-assess, through geologicar mapping. the mineral potentral'ofthe identified area;c. In coordination with the DA a'd DENR, undertake Soil Analysis and actud lroundSurvey and Mapping of the identified area:

d. Assist in mobilizing the Project beneficiaries;e Provide the beneficiaries the needed nursery input requirements for the prqect;f. Spearhead the supervision ad monitonng ofthe projict implementation actrvities;g. Provide technical assistance and validate accomplishment rendered by the ..Local

Supervisor";h. Provide needed training to the Local Supervisor to increase their technical comoetence in

supervising the beneficiaries, andi. Pay the "Local supervisor" and the beneficiaries the appropriate amount based on the

accomplishment rendered as provided in the Work plan.

That herein parties agree aL a '70o/o-30oh profit sharing scheme in which 70% goes to thecommunity while the remaining 30% goes to the pMDC for replication of the same project inthe comrnunity.

The Sharing Scheme between PMDC and the community (including the bene-ficiaries, BTCLond other stakeholders determined by the BTCL) shall be effective during production stagehappening within the three-year project implementation (year 2014-2016) and for thesucceeding three (3) years (Year 2016-2019), unless earlier terminated or extended byagreement of the parties.

That the PMDC shall managg supervise. and finance the project only within the prescribedthree-year project duration. Thereafter, the PMDC shall trarsfer the responsibilitv of themanagenent and supervision ofthe Project to dre BTCL.

That it is understood that this Contract does not create an employer-employee relationshipbetween the PMDC and the Beneficiary or any of its employees, agents, heirs. and/or assigns;that the services rendered hereunder are not considered and will not be accredited asgovemment service; and that the latter is not entitled to the benefrts enjoyed by the regularpersonnel of the PMDC.

That the purpose of this Contract is exclusively for the Agro-Forestry and ReforestationProject in partnership with the Cornmunity Environment and Natural Resources Offce(CENRO) of the Municipality of Monkayo.

9.

10. This Contract shall be in accordance with the provisions of the Project ImplementationProcedures attached herewith and made integral part hereof.

IN WITNESS WIIEREO4 both parties have hereunto set their hands this _ day o6

5.

8.

,*/rbATTY. LITO A. MONDRAGON

President and CEOPMDC

aots"i;o.?,* %.e6ry-ContractorBeneficiary

Qnovilrtf bwq)

Subscribed and sworn to before me this dav of aI

SERVICO CONTRACT

ridNOW ALL MEN By THESE pRESENTS:

Tlie Philippine Mining Developrnent Corporation (PMDC) wrth office address ar j00lB West'rorver PhiLppine Stock Exchange ce'ter, Exchange Roacl, ortigas ce'ter. pasig city represented by rtsFlesident and CEO, Atty. Liro A. Mondragon, irerein referred to a.s the ,.pMDC.,l

and

r-t,\r\\

of lcgal age and with resrdence addr ess at SitioDepot, Barangay upper Ulip, Monkayo, compostela Valley province. herein referred to as the''Beneficiary',.

WITNESSETH THAT:

WI{EREAS, the PMDC supports the National Greening progra.'', (r',iGp) of the Depanment ofEnvironment and Natural Resources (DENR) with the objective of contributing to the environmentairel.rabilitation tltor.rgh the ,,Agru-Forcstry and Reforestation project";

WHEREAS, the PMDC shall identify, select, supervise, monitor, and evaluate the IndrgenousPeople (lP) Beneficiaries who shall provicle labor services to perfomr plantatiou establisixllcnt actlvrtiesi-rom site preparation' staking, hole digging. hauling of seedlings to planting at the identified srte a.doutplanting,

wr;li'REAS- tie Beneficiary has signified his/her intention to whjch t1e pMDC has accepted toprovide the services needed by the latter and to engage in tlre rehabilitation ofthe enviropent throughthe project.

wHEREAS' the Beneficiarv possesses the qualifications requrred to perform thelob as describedItereur.

NOw THEREFORI', fbr and in consideration of the lbregoing rnutual covenanrs and rhe Iennsand Conditions herein contained. the PMDC. bv these prese'ts- hereby engages the service ofthetseneficiara under the following terms and condittons:

l. That tlie Beneficiary shali be paid ou a per activity/accomplislmrent basis lvith rheappropriate amounr rs provided in the Work and Firancial plan fWFp).

2. That the Beneficiary shall be subject to supervision and validation by the designated LocalSupervisor.

3. That the Beneficiary shall have the folloiving responsibilities;a. Prcpare his,4rer own work Plan synchronized with other benef'rciaries to be used as

refererce of the Local Supcrr isor,b. Undertake site preparation for the prqect (strip brushrng. stakrng, hole cligging. etc.) per

approved agro-forestrv and reforestation development plan;c. Undertake plari:ing of fn-rit-beariug trees, forest tree seedlings, and coffee seedlings for

onc (1) hectare area for the period ofone (l) year;d. Undertake replanting activity ald ensure that a minimum survival rate of ninetr per cent

(90%) is attained:e. lJndertake maintenance and protection of the established plantation for the

contract Deriod.f Prepare accomplishment reporl to be submitted ond validated b'the designated "Locll

Supervisor" befbre billing; and

..1 Lnr.nediatelir report to the "Local Supervisor" and/or pMDC any occurrence of.force' maJeltre or any unto\\ard incidence bel,ond his/ber control.

three-year

6.

4. That tlie PMDC shall have the following res;ronsibilities:a ldentify pote'tial area for deveropment for the Agro-Forestry and Reforestation prolect.

. together with the Barangay Tribal Coulcil of Leaders (BTCL);b Pre-assess, through geologicar mapping. the minerar potentiar ofthe identified area:c [n coordinatioi., r,vith trre DA and DEN\ *ndertake Soil Anarvsis oJ u"n,uil.orna. Survey and Mapping ofthe identified area;Li. Assist in mobihzrng the project beneficianes:e. Provide the beneticiaries the'eeded nursery iu;rut requirements for the project:f. Spearhead the sripervision ard monrtoring ir ttie nrqect imprementation activiiies;! Provide teclxu(al assistance and varidate

"""o*prirh."nt rendered bv the '.r,ocalSupervisor";

h Provide need€d tranng to the Locar supervisor to ircrease trreir technical competence insupervising the beneficiaries; and

i Pay the_ "Local Supervisor" and the beneficiaries the appropriate amount based on theaccomplishrnent rendered as provided in the Work plan.

That herein parties agree at a 70o/o-30yo profit sharing scheme in whicb 70% goes to thecommu'ity while tlre renraining 30zo goes to the pMDC for replication of the same proiect inthe comrnunirv.

Tlre sharing sclreno between PMDC a'd the com.mu'ity (incLutling the bene.ficiaries, BTCLand other stakeholclers deterntined by the BTCL) shall be effective dunng production Stagelrappenrng rvithi. the tlrree-year prqect impleme'tation (year ?014-2016) and for thesucceeding tluee (3\ years (Year 2016-2019), unless earlier terninated or extended b_vagreement of the p.rr ties.

]'hat the PMDC shall manage, supervise. and finarce the project onlv within the prescribedthree-year project duration. Thereafter, the PMDC shall transfer the responsibilitv of thelnanagement and sirPervision ofthe Project to the BTCL.

That it is understoc'l that this contract does not create an employer-employee relatronshipbelleen the PMDC rnd the Beneficiary or any of its emplo.u-ees, agents, heirs, and/or assigns:that the services lendered hereunder are not considered and will not be accredited asgovemment service; and that the latter is not entitled to the benefits enjo-ved by the regularpersonnel of the PMltC.

9. That the purpose o:l this contract is exclusively for the Agro-Forestry and ReforestationProject in paflnel.. ..p rvith the Comm.nity Environment and Natr.rral Resources office(CENRO) of the Mrrr ricipality of Monkayo.

10. This Contract shall be in accordance with the provisions of the Project ImplementationProcedures attached rrerervith and made integral part hereof.

IN WITNESS WI{ERrIOF, both parties have hereunro set their hands this dal,of

-//aW,NPresident and CEO

PMDC

Subscribed and sworn to

t'before mc this

"l jji0.] C. rril , ..lliContractorBeneficiary

dav of

\

sERVtcE CON t'RAc.l'

KNOW ALL MEN BY THESE PRESEN'I-S:

Thc Philippine i\{i'ing Deveropnlenr corpor.arion (pMDC) with office address at 3001B westTorrer Philippine Stock Exchange Ceuter'. Exchange Road. ortigas Center. pasig Citr represented bv itsPresrdenl and (.EO- Atty. Lito A. I\,londngon. hcrcin lctbrr.ctl to as the,.pMDC,,:

of legal age and rvith residence address at SitioDcpot. Baranga' Upper tJhp. Monkavo. Conrpostcla Valler province. herein referred to as the" Ileneliciary".

WI'I'NESSETFI THAT:

WHEREAS' the PNIDC suppofts thc Nariouar crccnrng program oiGp) of the Department ofEnvirolment and Natural Resources (DF]NR) rvith the objective of contributing to the environmentalrchabiliLation through tirc ,,Agro- liorestry and Reforestation Fr-o.ject,,;

WHEREAS' the PMDC shall identif\. sclect. supcn,ise. nronitor. and evaluate the lndrgenor.rsPeople 1trP) Beneficiarres rvho shall providc labor scrvicr;s to pcrtbrm plartation establishrnelt actvltlesfionl site prcparation- staking- hole digging. haLrling of seedlings to planting at the identified srte artloutplantiDg:

WHEREAS. the Beneficiar_y has si,enrficcl h js/hcr inrcntion to rvbich the pMDC has accepted topror rde tlre sen'ices needed bv the latter and to encagc in the rebabilitation ofthe environment throushthc project.

WHEREAS- the BeneficiaT possesscs the qualificatrons required to perform thejob as describedh$rein.

NOW THEREFORE. tbr and in constdetatron of the fbregorng mutual covenants ancl the Termsand Conditrons herern contarned. the PN,IDC. b\ thesc Drescl.lts. herebl,engages the service oftheBeneficiarv under the follor ing terms and condirions

| -firat thcr Beneficialy shall bc parcl or1 l p0r actl'it\ /accomplisirnent basrs wlth the

appropriate amolrnt as provided in thc Work and Financial plan flMFp).

2. That the Beneficiary shall be sublecl to sLrpervisiou and validation bv the desrenated LocalSupen'isor.

3 That the Beneficiary shall have tlrc ibllol ing r.csponsrbilities:a. Prepare his/her os'n Work l))ar svncbronizecl rvith other beneficiaries to be used as

relcruncu of thu Local Sullerr r"or .

b. u'dertake site preparation fbr thc prolecr lstrip brushing. stakrng. hore digging. etc.) perapproved agro-fbrestn and retbrestatron development plan:

c. u'dertakc planting of fruit-bcaring trecs- forest tree seedlings- and coffee seedlings forL-5 hectare area lor the period of onc ( I ) vear:

d. Undertake replanting activitv and cnslrrc that a minimum survir,.al rate of ninetv oer cent(o0'") is .rnlrnccl.

e. Undenake mamtenance and protectron of the established plantation for the three-r'earcontract pcriod.

f. Prepare accomplishmcnt report to be sLrbrnrtted and validated by.the designated "LocalSupervisor'' befbre billing: and

g Immediatelr' fepoft to tire "l-ocal Supcrvisor" andior pMDC anl occurrence of /i.rrccmctleltre or alt\ Llnto\\ard utcrr{cnco bcrond lrrs,/hcr control

l''

antJ

h\\

4. That the PMDC shall have the follorving respons ib ilities:a. Iclentifr potcntial arda for. cle.,,elopmcnt fbr the Agro-Forestry and Reforestation project.

, togcther rvith the Bamngav Tribal Councrl of Loaders (BTCL):b Pre-assess. througlr geologrcal mappr'g. the'rine'al potential ofthe ide'tified area:c In coordiuation r.vith thc I);\ rrxr DENR. r,ncrcrtakc Soil Anall.sis and actual gro.ndSun,er and Mapping of thc rclentiliod arca;

d. Assist in mobilizing the projccr bctrcficiancs:e Provide the beneliciarics the nceded nurser1 il.tp]-tt requirements for the project;f Spearhead the supe.i'ision ancr mo'it.ring of the project implementatron activltiesig Provide tecr'rical assistance ancr r,aridate u".omprirhn int

'"na.r.a -Li,

tr,.'.'ro"urSupen'rsor':

h. Provide needed training to the Locar Supe.visor to lncrcase their technical competence insupervtsing thc benef'iciarics. ano

r. Par the "l-ocal Supcr'isor" aud lirc bc*cfrciaries the appropr.rate amount based on theaccomplishrnent rendered as provrdecl in thc Work pian.

That herein parties agrecr 2tt a 10',6-30\'/,, lr.ofit sharing scheme in ivhich 70% goes to thecommunrt' rvhile the remairring 30'2o goes to tlie pMDC for reprication of the sarne project urthe communitv.

The Sharing Sclrcnre betrrce'PiVrD(i anct trrc conrmunill. (inctuding the beneficiarie:;. BTCI-and othcr snkelloldcrs derarminad b.t, rhc R'ly't) shall be effcctrve dururg production Stagefuppenrrrc \\'rthln tllc thrce-r,car prorccr rmprenlcntation (year 2014-20 16) a'd for thesucceedirrg tluee (3) r,ears (Year 2()16-2019'r. unless earlier ter[unated or extended bYxgrcemcnt of the panres.

f

U.

6.

7. That the PMDC shall managc. supc.r isc- and finance the project only within the prescribedthree-vear project duration. Thereaftor. the pMDC shall transfer the responslbilitv of theuranagemcnt and supervision of the Project to the BTCL.

That it is understood that this contract does not create an employer-employee relationshipbetween the PMDC and the Bcneficran or anr of rts emplovees, agents- lieirs- and/or assigns:that the sen'ices rendercd hcreunder are Dol considered and r.vill not be accredited asgovemment servrce: and that tho ratter rs not entitled to the benefits enjoyed b,v the regularpersonnel of the PMDC.

9. Tlrat the purpose of this Co'tract is exclusivel'' for the Agro-Forestry and ReforestationPro.jecl in parlncrship t'r ith rhe Comrrunitr [invironment and Natural Resources Office(CENRO) of the Municipalitl of Monkavo.

10. This contract shall be in accordance nith tho provisions of the project ImplementationProcedures attached here\.r'ith and made integral part hereof.

IN WITNESS WI{EREOF. both partics have hereunto set their hands thisat

44>ATt Y. LITO A. MONDRACON

r

Presiderrt and CfO \/PMDC 1'

' .-, ,;1-:.. . -- i]l-U.tw'0.

ContractorBeneficiary

Subscribed and srorn to bcforc nrc this da-r'of at

4. That the PMDC shall have the following responsibilities:a. Ideniify potential area for del'elopment for the Agro-Forestry and Reforestation project.

. together with the Barangay TribaiCouncil of Leadlers (BTCLj:b. Pre-assess. through geological mapping, th" mirrerut potentlal ofthe identified area;c hr coordi'ati.,n r','ith trie oA and DENR, undertal<e soir A;;G,;;"JuJri"i'g-*raSurvey and Mapprng ofthe rdentified area:d. Assrst tn moblllzilg the proyect bcneficiarres:Provide the beneficiaries tlrc needed nursery input requirements for the project;Spearhead the supervision and nrorutoring ;f the prolect implementation activities;Provide teclmical assista'ce and varid-ate acco-prisirmini ,Lnoereo by the '.LocalSupervisor";Provide needed training to the Local Supervisor to increase their technrcar competence insupervising the beneficiaries; andPay the "Local Supervisor" ancl the bcneficianes the appropnate amount basecr on theaccornplishment rendered as provided in the Work plan.

e.

f.

c.

'h.

i.

7.

6.

-5. That lrerein parties agree at a 70ya-30o/o profit shanng scheme in rvhich T0% goes to thecommuruty whire the rcmaining 30% goes to the pMDC for replication of trre same project i'the community.

Tlre Sharing Scheme betrveen pMDC and the community (including tha bene-ficiaries, BTCLancr orher srakehorders determined by the BTCL) shafl be effectlve during producrion stagelrappening rvithin the tkee-1,ear project implementation (year 2014,2016) and for thesncceeding thee (3) vears (year 2016-2019)" unress earrier termrrated or erle'ded bvagrccmcnt of thc I

.arties.

That thc PMDC shall ma"rnge, supervlsc. and finance the project only within the prescnbedthree-year prqect duration. Thereafter. the PMDC shall transfer the responsibilitr,, of thenlanagenterrt and supervision ofthe project to the BTCL.

'That it is understood that this contract does not create an employer-employee relationshipbetween the PMDC and the Beneficiary or any of its ernployees, agents, heirs, and./or assigns:that the services rendered hereunder are not considered and will not be accredited asgovemment servr.:,1: and that the latter ts not entitled to the benefits en;oyed b_v the regularpersonnel of the PMDC.

9 That the purpose of this contract is exclusively for the Agro-Forestry and ReforestatlonProject in partnership with the Co*rrnunity Environment and Naturar Resources office(CENRO) of the Municipality of Monkayo.

10 Ttus contract shall be in accordance q,ith the provrsions of the proiect ImolementationProcedures attached herer,vith and made integral part hereof.

IN WITNESS WHEIIEOF, both parties ha'e hereunro set their hands this dan of

ContractorBeneficiary

4//2A-|-TY. L|TO A. MONDRAGON 1 /

Prcsidcnr and CEO YP]\{DC I

Subscribed and swr .n to before me this

Q4'.. :l----0 i.' i(-,,t.t:;

day of at

\

S[,RV|CE CONTRACT

KNOW AI-I- MEN BY THESE PRESENTS:

The Philippine Mining Development Coryoration (PMDC) rvith office address at 3001B WestTor.vcr Plllippine Stock Exchange Center, Exchzurge Roacl, Ortigas Center, pasig City representecl b), itsPresident and CEO, Atty. Lito 1r. Mondragon, lrer.ein referred to as the,.PMDC":

and

$

of legal age and with residence address at SitioDepot. Barangay Upper Ulip,"Beneficiary".

Vlonkavo. Compostela Valley Province, herein referred to as the

WITNESSETH THAT:

WHEREAS' the PMDC supports thc Nationar Gree'ing program (NGp) of the Dcpartment ofEnvironment aM Natural Resources (DENR) with tlre ob.jective of contributing to the environmentalr-chabiiitation through the,,Agro-Forestry and Reforestation project,,;

WHEREAS, the PMIIC shall idcnti!,, select, supervise, monitor, and evaluate the IndrgenousPeople (IP) Beneficianes rvho shall provide labor services to perform plantation establishment actrvltlesfrom site preparation, staking, hole digging, hauling of seedhngs to ptantrng at the identified site andoutplanting:

WHEREAS. tie Ben;ficiary has signified his/her intention to which r}e pMDC has accepte6 toprovide the sen'ices needed bv the latter and to engage in the rehabrlitation ofthe environmenr dyouqhthc project.

WHEREAS, the Bencficiarv possesses the qualifications required to perfom the job as describedhereirr.

NOW THERXFORE, for and in constderatton of the tbregoing mutual covenants and the lermsand condtions herein contained- the PMDC. by these presc.ts, hercby engages the service oftheBeneficiary undcr the following tenns and conditions:

I Tilat the Beneficiary shall be pard on a per actrvity/accouiplislllent basis rvith theappropriate amount as provided in the Work and Financial plan fWFp).

2. That the Beneficiary shall be subject to supervision and validation by the designated LocalSuoervisor.

3. That the Beneficiary shall have the following responsibilities:a. Prepare his,4rer own work Plan synchronized r.vith other beneficianes to be nsed as

rcfcrencr: of lhc Local Sup,:n,isor:b. Undertake site preparation for the pro.;ect (strip brushing- staking, hole digging. etc.) per

approved agro-forestry and reforestation development plan;c. undertake plalting of fiuit-bcaring trces, forest tree seedlings, and coffee seedlings for. L5 hectare arca for thc per.iod ofonc (I) year;d. Undertake replanting acttvity and ensure that a minimun survivaj rate of ninetv psr cent

(909/") is attained;e. Undertake maintenance and protectiol!

contract penod;of the established plantation for the three-_vear

f. Prepare accomplislmrent report to be submifted a-nd valrdated by the designated ..Local

Supervisor" before billing, ald

s\

\

SERVICE COIi]I'RACT

KNOW ALL MEN BY THESi, PRESENTS: J

The Philippine Mrnurg tr,:veropment corporation ipMDC) rvith office address at 30018 west'fower Phtlippine Stock Exchangr: Center, Excharge Roacl, Ortigas Center. pasig Cit1, representecl by rtsPresident and CEO, Atty Lito A. N4onclr.agon. herein refcrred to as the..pMDC,,l

N, LRT\FfiF)Jflp | \' _L_r t t LD'"li lH . of legal age a:rd with residence address at SitroDepot,

"BeneCornpostela Valley Province. herein referred to as the

WITNESSETH T}{AT:

WHEREAS, tlie PMDC supports the Nationar Greening progran (NGp) of the Department ofEnvironment and Nahrral Resources (DENR) with the objective of contnbuting to the environmentarrohabrlitation through the',Agro-Forestry and Reforestation project',;

WHEREAS' the PMI ]- shall identifu, select, supervise, monitor, and evaluate the IndigenolsPeople (lP) Beneficianes r'vho shall provide iabor seny,rces to perfonl plantation establishment actrvrtresfrom site preparation, staking. hrle digging. hauling of seedlings to planting at rhe identified srte andcutplanting:

WHEREAS- the Benefitiary has significd his,/her intention to which the PMDC has accepted roprovide the services needed by th: latter and to engage in the rehabilitation of tlre environment throushthe project.

.

WHEREAS, the Benefl.tary possesses the qualifications required to perform the job as riescribedherern

NOW THEREFORE, t:,r and in consrderatron of the tbregorng rnlltual covenants and the Tenlsrrnd Conditions herein contained. thc PMDC. bv thcse piesents" herebl,engages thc serv'ice of ltre8eneficiary under the following tcrms and conditions:

l. That tire Beneficiarl shall be paid on a per activltv/acco'iplishnent basis with theappropnate amount as provided in the Work and Financial plan fWFp).

2 That the Beneficiarv shall be subject to superuision and validation by ihe designated LocalSupervisor.

3. That the Beneficiarl shall have the following responsibilities:a. Prepare hrs/her own work Plan sl,nchronized with other beneflciaries to be used as

rclcrence uf tlrc L ocirl Superr isor.,b. Undertake site preparation for the project (strip brushing, sraking, hole cligging, etc.) per

approved agro-tr)restry and roforestation development plan.c. Undertake planttg of fruit-trearing trecs, forest tree seedlings, and coffee seedlings for

onc (l) hectare alea fbr tlrc pcriod ofone (l) year;d. Undertake repl.rr,lilg activitlr and ensure that a minimum survival rate of ninetv per cent

(90%) is attainoi :

e. Undertake maint:cnance and protection of tlie established plantation for the three-yearcontract period:

f. Prepare accornpltshnrent repofi to be subnritted and validated by tl.re designated ''LccalSupervisor" befole billing; ald

g. Inmrcdiatel]' repDrt to the 'Local Suporvisor" andlor PMDC anv occurrence of fircent(iatrc or an-\'ltrton,ard rncidcnce belond his/her control

and

IRi\Barangay

ficiary".

:

'iY-..

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4.

6.

7.

5.

That the PMDC shall have the following nsponsrbilities:a ldentify potenti.rl area for deveropnrent fo'the Agro-Forestry and Reforestation project,

. together with tht. Barangay Tribal Council ofLeadirs (BTCL);b. Pre-assess, tlrou..;h geological mapping. the mineral potential ofthe identified area;c ln coordinatio' lvith the DA a'd DENR, undertake Soil Analysis and actual ground

Survey and Mapping of the identified area:.' Assrsr in mobillz ng the projeci beneficiarics:e. Provide the bcncr:'iciaries thc needed nursery i'put requirenents for the project:f. Spearhead the sr'lrervision a'd mo'itori'g oftlie project imprementation activities:g. Provide techmca.l assistance and validate ac"omplishm"nt rendered bv the ..Locai

Supcrvisor";h Provide needed t.'aining to the Local Supervisor to increase their techlical competence i1

supervising the be;refi oiaries; andr. Pay the "Local 'iupervisor" and the bencficianes the appropriate amount based on the

accomplishment ;endered as providcd in the Work plan.

That herein parties agree at a 70oh-30ok profit sharing scherre in which 70% goes to thecommunltv while thr: remaining 3070 goes to the pMDC for replication of the same proiecr inthe cornmunity.

The Sharing Scher,r. between PMDC and the community (including the benefciarie.s, BTCLand other stakeholdc,s determined b), the B|'CL) shall be effectlve during production Stagehappenrng rvithin tl'.e three-year project irnplementation (year 2014-2016) and for thesucceeding three (3) years (Year 2016-2019), unless earlier terminated or extended bvagreemcnt of the par, ies.

That the PMDC sha,( manage, supervise. and finance the project only within the prescribedthree-year project duration. Thereafter. the PMDC shall transfer the responsibilitv of themanagenrent and strlxlrvisiotr ofthe Project to tlie BTCL.

That it is understoo,r that this contract does not cr,nte an employer-employee relatiorlshipbetrveen the PMDC and the Beneficiary or a'y of its employees, agents, heirs. and/or assigns:that the services re rdeled hereunder arc not considered and will not be accredited asgovemment service; and that the latter is not entitled to the benetlts enjoyed by the regularpersonnel of the PMIIC.

9. That the pr,rrpose of this contract is exclusrvely for the Agro-Forestry and ReforestationProject in partrelriup with the Community, Environrnent and Natural Resources Office(CENRO)of rhe Mu .iciprlity of Monkalo. :

10. This Contract shall bc in accordauce wrth tire provisions of the Project ImplementationProcedures attached {rerewith and made integral part hereof.

IN WITNESS WIIEREOF, both panies have hereunto set their halds this _ da1, ofat/

,.'227,r'+

ATTY. LrTO A. MONDRAGC NPresident and CEO

PMDC

\\\ ,

\l

IFI\qRI

Subscnbed and sr.vom to before me this dav of

SERVI('f, CON'IRACT

KNOW ALL MEN BY THESE PRESENTS:

The Philippine Mining Deveropmenr corporation (pMDC) rvith office address ar -i00rB wcstTou'er Philippine Stock Exchalge Center. Exchange Roacl. Ortigas Center, pasig Ciqr representecl by rtsPresident and CEO, Atty. Lito rr. Mondragon, herein referred to as the,,pMDC,,;

and

of legal age and with residence address at SitioDepot. Baiangay lJpper Ulip, Itlonkayo, Compostela Valley province, herein referred to as the"Beneficiary".

W]TNESSETFI T}IAT:

WHEREAS' the PMDC supports the National Gree'ing program (NGp) of the Department ofEnvironment and Natural Rctources (DENR) with the objective of contributing to the envrronmentairchabilitation through thc',Agro-Forestry and Reforestation project";

WHEREAS' the PMll'C shall identi!, select. supervise, monitor, and evaluate the IndigenousPeople (lP) Bencficiaries ivho shall provide labor services to perform plantation establishment actiyitiesfrom site prcparation, staklng. hole digging, hauling of seedlings to planting ar the identified site ardotrtplarrtirrg:

WHEREAS. the Beneliciary has signified hjs/hcr intentron io which the PMDC has accepred toProvide the sen'ices necded bv rhe latter and to engage in the rehabilitation ofthe environment throuqhthe project.

WHEREAS, the Beneiician possesses the qualifications required to perform thejob as describedhercin.

NOW THEREFORE. for and in consideration of the foregoing mlrtual covenants and the Termsand conditions herein containerl, the PMDC. bv these presents. hereb-v engages the service of theBeneficiary under tlre followr,r.; terms and conditions:

L That the Beneficiar-y shajl be paid on a per activitv/acconrplisiurrent basis with theappropriate amoulr as provided in the Work and Financial Plan MFP).

2. That the Bcneficia"y shall be subjcct to supcrvision and validation by the designated LocalSupcrvisor.

3. That the Bencficiary shall have the follorving responsibilities:a. Prepare his,4, ri own Work Plan synchronized r.vith other benef-rciarres to be used as

rcfercncc of tl, . Local Supertisor:b. Undertalie sitc preparation for the project (strip brusling. staking. hole digging. etc.) per

approved agro.lbrestry and reforestation development plan,c. Undertake plar ting of fruit-bearing tress, forest tree seedlings, and coffee seedlings for

1.5 heclare are for the period ofone (1) year;d. Undertakc repianting activity and ensure that a minimum survival rate of ninet.v per cent

(90%) is attair'.d'e. Undertake ma,ltenance and protection of the established plartation for the three-r,ear

contract penoc,

f. Plepare accorr rlishnrent rcport to be subntitted and validated b;, the desrgnated "Local

Supervisor" bc'bre billing. and

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That the PMDC shxll have tlre following responsibilities:a ldenti$" pote: r.al area for dcveioprnent for the Agro-Forestry and Reforestation project,

, together with tire Barangay Tnbal Council of Leadirs (BTCL);' b' Pre-assess- through gcological nupping- the rninerar potentiar ofthe identified area:c. In coordinatio,r ,n'ith the DA and DENR, undertake Soil Analysis and actual ground_ Survey and M:.pping ofthe rdentified area;d. Assist in mobiLzing the project beneficiarics:e. Provide the beneficiaries the needed nursery input requirements for the prolect;f. spearhead th' upervision and morutoring;f the project imptementation activiiies;g. Provide techn,cal assistance and vatidate u".o*ili.h-"nt rendered b;, the ..Local

Supen isor";h Provide need€d tramng to the Local supervisor to increase their technical competence in

supervising thc beneficiaries; andi Pay the "Locar supervisor" ancl the beneficiaries the appropnate amount based on the

accomplishrnenl rendered as provided in the Work plan.

That herein partier agree at a'10o/"-30o/o profit sharing scheme in ivhich 70% goes to thecommunlty while the remaining 30% goes to the pMDC for reprication of the sa:ne proiect illhe cornmunity

The Sharing Scherne between PMDC and the community (inchding the beneficiarie.s, BTCLancl other stakehol,lers determined by the BTCL) shafl be effectrve during production stagehappening .'lthin the three-r'ear project imprementation (year 20 14-20 16) and rbr the

. succeeding three (3) vears (Year 2016-2019), unless earlier terminated or extended bvagreement of the p..nies.

That the PMDC shall manage, supervise. and finance the project only within the prescnbedtkee-year project luration. Thereafter, the pMDC shall transfer the responsibilitv of thenanagem€nt ard si.rpervision of the project to the BTCL.

That it is understcod that this contract does not create an employer-employee relationshipbetween the PMDC and the Beneficiarv or any of its employees, agents, herrs- and/or assigns:that the services rendered hereunder are not considered and will not be accredited asgovemment servlc!'; and that the latter is not entitled to tle benefits enjoyed by the regularpersonnel of the PIvtDC

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9. That the purpose ,f thrs contract is exclusively for the Agro-Forestry and Reforestatio'Project rn partnership rvith tlie co'lnunity Environment and Natural Resources office(CENRO) of the Ntr-rnicipality of Monkayo.

10. Tlls contract sL.^ll be in accordance q,ith the provisions of the prqect ImplementationProcedures attachei herer.vith and made integral part hereof.

Ill WITNESS WIIEREOF, both parties have lrereunto set their hands this dav ofat

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ATTY. L|TO A. MONpRAGpNPresident and CEO

PMDCContractorBeneficiary

Subscribed and swom to before me this day of at

AGRO-FORESTRY AND REFORESTATION PROJBCTSitio Depot, Barangay Upper LIIip, Monkayo, Compostela Valley

PROJECT I]v{PLEMENTATION PROCBDURES

Project Name and Location

l. The Project shall be called the "Agro-Forestry and Reforestation project,,(..pro;ect,') in thcDiwalwal Mineral Reservation Arsa (DMRA).

2. The location of the Project shall be based on t}rc assessment of the philippine MiningDevelopment Corporation (PMDC) rvith the assistance and validation &om its partners suchas the Barangay Tribal Council of Leaders (BTCL) and various relevant governmentaqgncles.

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Initially. for the year 7014-2016, it shall be specifically located at Sirio Depot, BarangayUpper Ulip, Monkayo, Compostela Valley.

Initially, the recommended species for planting were Indigenous Trees (60%), Fast-GrowingTrees (40%), Coffee, and Agro-Forestry Trcos, particularly, fruit-bearing trecs

Project Management

The PMDC is the primary proponent/implementor of tie Project in line with its CorporateSocial Responsibrlity (CSR) program in its impact mining areas, particularly, focused on theEnvironmental Management and Conservation.

Being the primary proponent, the PMDC shall have tie overall responsibilrty to manags,supervise, and ovsrsee the irnplementation ofthe Project during the whole projcct duration asindicated in the Work and Financial Plan (WFP).

ln the community, however, the PMDC shall tap local partners to execute necessary tasks andprocedures required in each Project phase fronr prcparatory works, coordination activities,actual operation or implementation, monitoring and evaluation, validation, ard productionstage.

local partners shall be composed of the Barangay Tribal Council of Leaders (BTCL), andother related govemment agencies such as the Community Environment and NaturalResources Office (CENRO), National Commission on Lrdigenous peoples (NCIp), philippineArmy (PA) and the Barangay Upper Ulip Local Govemment Unit (LGU).

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III.

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Project Partners

A. BeneliciariesThe bpneficiaries shall be composed of nine (9) IP and one (l) nonJP land claimants of theidennfied ten (10) hectares site. The IP laud claimants belong to fwo (2) clans, the Latibanand Sandawon Clan.

The main criterion to be included in the list ofthe identified beneficiaries is their actual claimor occupancy on the targeted Project site in Sitio Depot, Barangay Upper Ulip as

attested/certified by the Barangay Council of Upper Ulip and the BTCL. The beneficiariesshall also express in writing their willingness to be engaged in the Project.

Pnor to the start of tlre Project implernentation, the beneficiaries shall sign a Service Contractas olficial manifestation of their intent, rvillingness ard acceptance to be engaged rn theProject based on the agreed terms and conditions for the whole tluee (3) year Project duration.

The beneficiaries shall submit a Certificate of Occupancy issued by the UTCEL as officralproofoftheir claim in the identified Project area.

The beneficiaries shall have the right to participate in the Consultation Meetings and

Orientation being conducted by the BTCL and PMDC in order to level offon the Project and

to clarifu any concems or issues on the Project.

B. Local Superrisor l

The 'Incal Supervisor" slnll be based on the merits ofeligibility such as;

. Membership ofa Recognized Organization as certified by the latter or the BarangayLGU or other relevant govemment agencies

. Willingness to execute th€ tasks of mobilization of beneficiaries, monitoring and

evaluation, and reporting and documentation ofthe Project. Knowledgeable and skilled on the implementation, monitoring, a:nd eva.luation ofan

agro-forestry aad reforestation Project (In partnership wrth the CENRO, the PMDCmay provide skill-set truining to the Local Supewisor.)

The BTCL, as the Prr,ject Partn€r and being thc rccognized iribal organization in thcbarangay, shall assign their authorized representative to act as the "Local Supervisor," wliichin this case refers to Datu Mauncio Latiban, the BTCL Tribal Chieftain, v"'hose authority mustbe supported by a Resolution duly executed by the Council.

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3. A Memorandum of Agreement (MOA) shall be signed between the PMDC and the LocalSupervisor to €stablish the terms, conditions, and guidelines of the Project as well as therespeqtive obligations of the parties involved.

4. The Council, albeit internal arrangement within the organization, shall designate PrqectImplementation Unit (PitD to assist Datu Latiban, especially, in the event that he could nolonger perform his roles as the lcad Local Supervisor or during exigencies requiring

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assistance from other members ofthe Council. This shall also be clearly rndicated and definedin t\e Resolution mentioned in Section III.B.2.

The $Local Supervisor" shall be paid with an honoranum equivalent to l0% of the totalamount paid to the beneficiaries for every accomplrshed actrvity. It shall be commensurate tothe work progress of the beneficiaries and supported by a report to be submitted to thePMDC. The payment shall be released only after the accomplislurent of a particular activity.

In the case of Section IILB.4, rc assigned members of the PIU shall receive fromthe LocalSupervisor the equivalent paymant for the tasks performcd, the source of whrch is thehonorarium provided to the Local Supervisor. This is an intemal arrangement between theBTCL and Datu Latiban and is beyond the scope and responsibility ofthe PMDC.

The PMDC shall only release payment to the authorized lead "Local Supervisor" which isDatu Mauricio Latiban, unless the BTCL assigns another lead "Local Supervisor" supportedby an offrcial documentation such as resolution as provided under Section IILB.4 hereof.

The PMDC shall not be held liable or accoultable to any arrangements or policies rntemallymade by the BTCL witlin their organization. The onJy accountability PMDC holds in rermsofpalnnent is tle payment made to the "Local Supervrsor rn the form ofan honorariurn.

The PMDC shall primarily transact, coordinate, and conduct needed arrangcments with DatuLatibas as the lead Local Supervisor. Hor.vever, as the need arises, the PMDC shall atsocoordinate with the BTCL, particularly with other members of the PIUi for review andvalidation of renorts.

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C. Other Government AgenciesAll related governrnsnt agencies involved in the Project shall also sign a MOA between PMDCfor the roles and obligations of parties, to wit:1. Colmunity Environment and Natural R€sources Otrrce (CENRO)

. The PMDC shall coordinate with the CENRO, padcularly, the National GreeningProgram Coorclrnator as the Project is intended to contribute to the overall NGP targetof the govemment.

o The CENRO shall assist thc PMDC in providing related supporr to the PMDC andtechnical assistance to the identified beneficianes.

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National Commission on Indigenous Peoples (NCIP). Being the govemment a.rm for matters related to the IPs, the NCIP shall provide

necessary support and intervention to dre BTCL and its rnembers, and PMDC in case

. that problems or dispute rolat€d to the Proiect arisc.

Phlippine Anny (PA)o The PMDC shall also tap support and assistarcs from the 25b IB philippine Arm-v

assigned in Sitio Depot to ensure peace, order, and secunty of the vicinity as well asthe beneficiaries rvorking in the Projcct.

IV.

. Any unwanted actrons, obstructions, or encumbrance on the Project done by anyoneshall be immediately reported to the Philippine Army for their corresponding achon.

Barangay LGU. The Barangay LGU shall assist in providing other needed support to the beueficiaries.

Ifpossible, they shall enable support to put up needed infrastructure suih as farm-to-market roads or in tapping possible market for the products to be harvested from the

Project. The Barangay LGU shall assist the PMDC in validating the legirimacy of the IP

Organization as well as the IP beneficiaries involved in the Project.

Roles and Responsibilities

I. PMDC. Identi& potential area for development for the Agro-Forestry and Reforestation

Proiect

3.

e Pre-assess, through geological mapping, the mineral potential ofthe identifiod area. In coordination with the DA and DEN\ undertake Soi.l Analysis and actual ground

Survey and Mapping ofthe identified areao Assist in mobilizing the Project beneficiaries. Provide the beneficiaries the needed nursery input requirements for the Project. Spearhead the supervision and nronitoring ofthe Project implenentation activities. Provide technical assistance and validate accomplishment rendered by the "Local

Supervisor". Provide needed training to the Local Supervisor to increase their technical

;competence in supervising the beneficiaries. Pay the "Local Supervisor" and the beneficiaries the appropriate amount based on the

accomplishment rendered as provided in the Work Plan

Beneficiaries. Prepare his/her own Work Plan synchronized with other beneficiaries to be used as

reference ofthe Local Supervisoro Undertake site preparation for the Project (strip brushing, staking, hole digging, etc.)

per approved agro-forestry and reforestation developrnent plan. Undertake planting of fruit-bearing trees, forest tree seedlings, and coffee seedlings

for one ( I ) hectare area for the period of one ( I ) year.. Undertake replanting activity and ensure that a minimum survival rate of ninety per

cent (9070) is attained. Undertake maintenance and protection of tle established plantation for the three-year

contract period. Prepare accomplishment report to be submitted and validated by the designated

"tocal Supervisor" before billing. lmmediately report to the "Local Supervisor" and/or PMDC any occunence of .force

majeure or any untoward incidence beyond his/her control

Incal Supervisor. Together with the PMDC, identiry potential area for development for the Agro-

Forestry and Reforestation Project

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Undertake mobilization of ten (I0) identified beneficiaries in accordance with theAncestral Domain Susahability, Development, ard Prorcction Plan (ADSDPP)Validate the legitimacy of the identified beneficiaries tkough Barangay and./or TnbalResolutions

Track the progress of work of the beneficiaries ald ensure that tlre tasks are done asper approved Work and Financial PlanSubmit regular (weekly, if possible) progress report to the PMDC detailing theprogress of work ofthe beneficiariesReport ary wrongdoings exhibited by the beneficiaries and./or other individuals orgroups as well as any occurrence offorce majeureSubmit the billing ofall beneficiaries based on the actual report of accomplishmentProvide technical assistance to all beneficiariesProvide overall supervision to the Project in the whole duration of contract

4. NCIP. Provide necessary support and intervention to the BTCL and its members, and PMDC

in case that matters related to the Project arise, especially concems of IPs on theProiect

5. CENRO. Extend technical assistance such as survey and mapping of the area and needed

te,chnical assisance to the beneficiarieso Provide additional support in the quarterly and yearly monitoring of the Project

Philippine Armyo Ensure peace, otder, and security ofthe vicinity as well as the beneficiaries working

in the Project

Balangay LGU. Provide otler needed support to the beneficiarieso Assist the PMDC in validating the legitimacy of the IP Organization as well as the IP

beneficiaries involved in the Proiect.

Payment Procedures

l The pa1'rnent to the Local Supervisor and the beneficiaries shall be made on a per activitybasis. The payment procedure shall be as follows:

a. The beneficiary shall work on his/her claim as per activity indicated in the Work and

Financial Plan flVFP).b. Upon completion of each activity, the beneficiary shall fill-out the Report/Billing

Statement indicating the particular activity completed.c. The Local Supervisor and a repres€ntative from PMDC shall validate the completed

activity of e3ch beneficiary to verify tlieir report.d. Once verified, the Local Supervisor shall submit to the PMDC Depot Field Office

his/her Report along with the Billing Statem€nt of the beneficiary.e, The PMDC Depot Field Offrce shall then prepare the Payrnent Request to be

forwarded to Davao Field Offrce ald eventuallv. to the PMDC Mdn Office for

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approval and preparation of paynent by the Finance and Accounting Departrnent

(FAD).

Once the pa1'mcnt has been prepared by FAD, it sha.tl be issued to the PMDC Depot

Field Office for release of payrnent to the beneficiaries and Local Supervisor.

Upon receipt of payment, the beneficiaries shall sigu an Acknowledgment of Receipt(AR) as proof of PMDC's payment.

The entire payment prciess shall take an average completion period of two to three weeks

from the dayltimo the lalidation Report of tho Local Supervisor is received. The payment tottre beneficiaries and tlre Local Supervisor, therefore, may be released withil an average

period oftwo to thee weeks. The payment shall be released individually to each beneficiary.

The Local Supervisor ,ihall also prepare his individual Billing Statement based on the

accomplishmont ofbenr;iciaries. The paymeut procedure shall be as follows:

a. Upon the Local lupervisor's validation work, he/she shall fill-out a Billing Statement

indicating ttre number of beneficiaries validated and the activity completed. The

, attachments are *re Billing Statement ofthe beneficiaries and the Validation Report.

b. T-he pa1-etrt process shall be done simultaneously with that ofthe beneficiaries.

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Payment hocess Flow

PMDCDepot Field Office processes

the BillinB Statement for submirsion

to the PMDC Main Office

PMDC Representative

conducts final verification otaccomplishment

Average of Two to Three

Weeks Processing of

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Beneficiaries undertake the Agro-

Forestry and Reforestation

Activities (as per Work Plan)

Beneflciaries submit the ActivityAccomplishment Report and

Billing Statement to the Local

Supervisor

Local Supervisor validates the

accomplishment of the

beneficiaries

Local Supervisor submits theValidation Report and the Billing

Statement to the PMOC Depot

Field Office

PMDC Main Office conductsprocessing of payment

PMDC Main Office releases theCheck Disbursement Voucher to

the PMDC DeDot FO

PMDC Depot FO issues thepayment to the Beneficiaries and

the LocalSupervisor

The beneficiaries and the Local

Supervisor submits theAcknowledgement of Receipt to

thE PMDC

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VI. Operation and Repolting Procedures

with the supervision and guidance of the Local Supervisor, each beneficiary must preparehis/her own work Plan to be used as reference of the Local Superi.isor Thc beleficiariesshall come up with the synchronized work Plan indicating the exact nun.rber of days rvithinwhich each activity is expected to be accomplished. This shall become the Local Supcrvisor'sbasis of monitoring during the validation. The Local supenrisor must ensure that thebeneficiaries comply with their individual work plan. preferably, thc penod of completion ofeach. activity is sylchronized for all beneficianes for purposes of systematlzed release ofpaylnent.

All beneficiaries are expected to comply with the said work plan except when there are validreasons for non-compliance such as emergencies arisilg from sickness or death. natural orman-made calamities or other reasons which should be brought to the attention and subiect tothe evaluation of the Local Supervisor and the PMDC.

The Billing statement shall serve as the progress report of the bencficiaries once each activitl..rs completed. This will be validated, checked and attesled bv the Local Supen,isor.

The Local supervisor shall also prepare hrs individual Billing Statement wllch shall alsosen'e as his progress report.

on a quarterly and yearly basis, a Multi-Party Validation Team, composed of representativesfrom PMDC, cENRo, PA, Barangay LGU, and the Locar supervisor, shal garher to conductmonitoring and assessment of the Project. The followin_e are the objectives of the moniroringand assessment:

o Assess the work of each beneficiaD, snd 6stermine the areas for improvement'o Assess whethcl there arg mortialitios in the species planted and with such cases- have

it replanted immediately by the concerned beneficiaries

' Determine the technical assistance or support that the beneficiaries and the LocalSupervisor need based on the result of the assesslnent

The beneficiaries, as well as the Local Supervisor, are allowed to use additional manpo*er toassist then in cofirpletirrg their tasks. However, the payment rvill still be issued only to therecognized beneficianes and local supervisor. Eryaging additronal manpower in all cases,who are not part ofthe original plan, shall be an intemal anangem€nt among parties involved,be it witli the benefici;rries or the local supervisor. The pMDC shall not be accountable to an),arrangement entered into by tbe Local Supervisor ard/or the beneficiaries other thal thoseorighally entered into.

7. Ar the end ofthe Project, 90% survival rate is expected jn the whole proiecl area.

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Other Terms and Conditions for Operation

All beneficiaries are expected to remain compliant to the agreed work plan. If for emergencyreasons, the beneficiaries cannot complete the activity as per agreed work plan, this has to beimmediately reported to the Local Supervisor and the pMDC through an official letter. whichshould be properly received and documented b,v the Local Supervisor ald the pMDC.

The beneficiaries sha.ll be given a naximum of one u'eek, from the time the activity isplarured to be complcr-ed, to finish the pendhg task. otherwise, the pMDC and the LocalSupervisor shall detennine and execute the corresponding penaltv to the benefician, ilvolved.

I! however, no official letter has been received by either the pMDC or the Local Supervisor,the beneficiary shall be given a maximum of three (3) days to finish the pending task:otherwise, the PMDC and the Local Supervisor slull execute the appropnate penalty to thebeneficiary involved.

If the non-compliance 0f a particular beneficiary with the targets and agreed work plan hasbeen habitual resulting to the negligence of his responsibilities. the pl\,IDC and the Localsupervisor shall deal uith the matter and discuss the issue with the concemed beneficiary.F{abitual non-complianr:e is defined as five (5) consecutive cases of non-compliance to theWork Plan.

If no changes have bee.r observed after section vII.4 has been done, the beneficiary shall beendorsed to the PMDCi for possible termination, as attested by other partner govemmentage-ncies. Termination sjrall be done only with tie application of due process through theValidation Team. other possible claimant with land claims contiguous to the project locationshall be identified and t;,pped to continue the Project.

The beneficiary is bound to his/her Servrce contract with the pMDC within the whole three-year Project duration, rrnless, his/her contract has been terminated by the pMDC for validreasons and purposes.

The Local Supervisor is also lequired to be compliant with the agreed wor-k pla:r and conductvalidation of the beneficiaries as per schedule.

A maximum of two (2) consecutive days shall be given to the Local supervisor to firush thevalidation activity of all the beneficiaries. unless section vIL l, Section \ril.3. and SectionVII.4 occur, in r,vhich it.should be properll' docunrented and reported to ths pMDC.

If the authorized Local supervisor, Datu Mauricio Latiban, is not able to perform his roleduring a par:ticular aciivity, the BTCL/Datl Latiban shall be in-charge of assigrung thereplacement ofor rendcring the necessary assistance to Datu l,atiban.

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10. Ifthe lead Loca.l Superrisor has been proven to have no capacity to finish lus tasks during theProject implementation. arother member ofthe council shall immediately replace him to besupported by a duly erecuted Resolution. No capacity shall mean the follou,inq:

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Failure to conduct validation for five (5 ) or more consecutive activrtres

lnvolvement jn financial issLres that are detrimental to the Pro1ect

Misuse or abuse of author.itl, given to birn as local supervisor. t e. parial or unfairvalidation of accomplisbment of beneficiaries

i l All cases relal€d to the Loca.l Supervisor shall be properly evaluated with due process throughtho Validation Team rvhich shall in tum be dccided by the pMDC Managcmenr.

VIII. Sharing Scheme

L The Sharing scheme shall be reflected in the MoA between the Local Supervisor andgovemment agencies, as rvell as in the MOA with the BTCL and on the Servtce Contract rvitlithe beneficiaries.

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The profit-sharing shall be based on the net proceeds out of the products harvested Iiom theProject after deduction ofthe mandatorr- governrnent taxes.

Tlre Sharrng Scheme between PMDC and the commu'ity (including the bene./iciaries, BTCLand other stakeholders determinecl by the Bl cL) shall be effective durrng productiori Sragehappening within the tluee-year proJect implementation (year 2014-2016) a.nd for thesucceeding three (3) years (Year 2016-2019), unless earlier terminated or exlended byagreement of tJre parties.

The sharing scheme between the PMDC and thc community will 6e 't0o/o-30ah in which 70%goes to the communiti' whils the remaining 30% goes to the pMDC. The share of the pMDCwill go to the Company's fund to be used for replication of the same proiect in thecommunrty.

The Local supervisor .o,d the PMDC shall also monitor and validate the harvest and theproduction activities. Another report shall be rnade by both parties indicating the quantrtl,oflnrvest per beneficiary per hectare.

The BTCL shall be tasked to re-check tie report and conduct actual re-validation in theProject site.

The profrt sharing shall take place in the offrce ofthe BTCL to be witnessed and verified bythe council Members and Leaders, the PMDC representative, the beneficiaries and ilpossible, the barangay i-GU. and the AFP. The BTCL. through the lead Local Supewisor.shall design the process flow of tasks ald activities related to the production, harvest, andprofit-sharing, which shall be reflected in the agreement ofthe BTCL with the beneficraries.

As determined by the BTCL, based on their Ancestral Domain Sustainable Development andProtection Plan (ADSDPP), the 70%o share of the communitv shall be sub-allocated fordifferent purposes, to wit:

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o 50o/o ! 'f 7ot:o) - Beneficiaries

o 10o/o - Clan

. 70yo - IPO(UTCEL)

. 20%o - BTCLo l0%o - Local Supervisor

9. Furthermore, the period of effectivity of the Sharing Scheme among the beneficiaries, clan,

UTCEL and the BTCI- shall be based on the consensus of the BTCL a:rd the benet'iciaries,which is beyond tle responsibility of the PMDC, This particular Sharing Scheme shall be

reflected in tle MOA botrveen the BTCL and the beneficiarres.

10. The BTCL may orgariv.r a cooperative for the Project once the number of beneficiaries has

eventually increased lri order to strengthen the profit-sharing mechanisms. The organizationof the cooperative shall be the sole responsibility ofthe BTCL with the assistance from thePMDC, if necessary.

IX. Conservationo Managernent, and Development Stage

1. The PMDC shall manal;q supervise, and finance the Project only withrn the prescribed three-year Project duration. 'Jhereafter, the PMDC shall transfer the responsibility of rnanagement

and supervision ofthe Project to the BTCL.

2. However, during tle hrmover process, the PMDC may still provide technical support and

assistance to the BT(IL and the beneficiaries in the form of consultation, training orcoordination activities rvit} other govemment agencies. The tumover period shall be good fora maximum of two (2) l,ears.

3. Another contract shall be signed among the PMDC, BTCL, beneficiaries and othergovemnont agencies for official tumover ofthe Project.

4. The BTCL shall indic:rte in t.heir contract with the beneficianes the terms and conditionsrequired duriug dre protection stage.

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