3.0 Project Description 3.1 Basic Project Information III-1 3.1.1 The EIS Team III-4 3.1.2 EIA Approach and Methodology III-4 3.1.4 EIA Process Documentation III-5 3.1.5 Field Visits and Investigation III-9 3.1.6 Public Consultations III-9 3.2 Project Location and Accessibility III-13 3.2.1 Primary Impact Area III-16 3.2.2 Secondary Impact Area III-17 3.3 Project Rationale III-19 3.4 Project Components III-24 3.4.1 Plan of Operations III-25 3.4.2 Mine Development Works III-33 3.5 Description of Project Phases 3.5.1 Exploration Works III-36 3.5.2 The Mining Operation III-37 3.6 Elements of the Mining Operation 3.6.1 Mine Design and Plan III-40 3.6.2 Environmental Mitigating Measures III-42 3.7 General Mine Development Plan III-44 3.8 Power Supply III-47 3.9 Water Supply III-47 3.10 Loading System III-47 3.11 Housing III-47

4.0 Summary of Scoping Agreements 4.1 EIS Document IV-1 4.2 Scope of the Study IV-1

5.0 Baseline Environmental Setting 5.1 Brief Profile of the Province of Palawan V-1 5.1.1 Economic Profile V-1 5.1.2 Infrastructure and Utilities V-3 5.1.3 Peace and Order V-3 5.2 Location of the Project Area V-3 5.3 Description of Existing Environmental Setting and Condition 5.3.1 Baseline Environmental Conditions V-4 5.3.2 Geology and Geomorphology V-6 5.3.3 Seismic Potential V-6 5.3.4 Geologic Setting V-8 5.3.4.1 Lithology V-9 5.3.4.2 Lithological Control and Alteration V-11 5.3.5 Topography and Geomorphology V-11 5.3.6 Ore Resource Estimate V-12 5.3.7 Hydrology and Hydrogeology V-15 5.4 Water Quality and Limnology: Ground and Coastal Waters V-16 5.4.1 Physico-chemical Parameters V-16 5.4.2 Microbiological Analysis of Water Samples V-16 5.4.3 Sediment Heavy Metal Analysis V-17 5.4.4 Stream Flow Measurements V-17 5.4.5 Collection of Samples and Sampling Locations V-17 5.4.6 Temperature V-22 5.4.7 Turbidity V-23 5.4.8 Total Dissolved Solids V-24 5.4.9 Total Suspended Solids V-24 5.4.10 pH and Alkalinity V-25 5.4.11 Color V-26 5.4.12 Dissolved Oxygen V-26 5.4.13 Water Hardness V-27 5.4.14 Salinity V-28 5.4.15 Nitrogen Metabolites V-28 5.4.16 Phosphates V-29 5.5 Stream Flow and Discharge V-30 5.6 Microbiological (coliform) Analyses V-31 5.7 Heavy Metals in Sediments V-31 5.7.1 Arsenic V-31 5.7.2 Chromium V-32 5.7.3 Lead V-34 5.7.4 Nickel V-35 5.7.5 Mercury V-37 5.8 Pedology and Land Use 5.8.1 Rationale V-40 5.8.2 Methodology V-40 5.8.3 Sampling Sites V-44 5.8.4 Results V-48 5.9 Physical Oceanography 5.9.1 Tides V-58 5.9.2 Ocean Currents V-58 5.10 Meteorology 5.10.1 Rainfall V-60 5.10.2 Temperature V-60 5.10.3 Relative Humidity V-60 5.10.4 Wind Speed and Direction V-60 5.10.5 Frequency of Tropical Cyclones V-61 5.10.6 Discussion of Meteorological Parameters V-67 5.11 Air and Noise Quality 5.11.1 Methodology V-68 5.11.2 Results V-68 5.12 Biological Environment 5.12.1 Terrestrial Fauna 1.0 Introduction 1.1 Background and Purpose V-71 1.2 Limitations of the Study V-71 2.0 General Features of the Area 2.1 The Study Area V-72 2.2 Vegetation and Forest Cover V-72 a. Mangrove and Nipa Grove V-72 b. Beach forest V-72 c. Parang vegetation V-73 d. Agricultural and horticultural areas V-75 e. Forest over ultramafic soil V-75 3.0 Methodology 3.1 Site Selection V-75 3.2 Field Methods V-75 3.3 Specimen Handling V-77 3.4 Data Management and Entry V-77 3.5 Data Analysis V-77 4.0 Results and Discussions 4.1 Wildlife Vertebrates of the study area V-78 a. Amphibians V-79 b. Reptiles V-80 c. Avifauna V-82 d. Mammalian Fauna V-84 4.2 Comparison of vertebrates per sampling area V-86 a. Gen vertebrate characteristics of the study area V-86 b. Vertebrate characteristics per sampling site V-87 4.3 Vertebrate Species Diversity V-89 4.4 Frequent Species V-90 4.5 Species Endemism V-90 4.6 Threatened and endangered vertebrate species V-91 4.7 Trophic relation V-92 4.8 Ethnozoological survey V-93 5.12.2 Terrestrial Flora 1.0 Vegetation Cover V-96 2.0 Sampling Stations V-98 2.1 Transect 1 V-98 3.0 Discussion V-100 4.0 Recommendation V-104 5.13 Marine Biology 5.13.1 Coral Reef V-105 5.13.2.1 Methodology V-105 5.13.2.2 Results V-105 a. Corals V-106 b. Reef associated fishes V-107 c. Discussion V-109 5.13.2 Seaweeds V-113 5.13.2.1 Methodology V-113 5.13.2.2 Results V-115 a. Species composition V-115 b. Frequency and Percent Cover V-116 c. Associated fishes V-118 d. Discussion V-120 5.13.3 Seagrass 5.13.3.1 Methodology V-123 5.13.3.2 Results V-123 5.13.3.3 Discussion V-124 5.14 Cultural, Economic and Political Environment 5.14.1 The Social Environment V-125 5.14.1.1 Baseline Characterization of Impact Area 5.14.1.2 Community Profile V-127 a. Topography V-130 b. Demography V-129 c. Health and Nutrition V-131 d. Water, Sanitation and Electricity V-132 e. Shelter V-133 f. Education and Literacy V-133 g. Income, Livelihood and Employment V-135 h. Waste Management V-138 i. Participation and Community Development V-138 j. Development Interventions V-138 k. Public Participation and Social Acceptability V-139

6.0 Environmental Impacts 6.1 Geology VI-1 6.1.1 Seismic Hazards VI-1 6.1.2 Start-up impacts VI-1 6.1.3 Mining Operations VI-2 6.2 Pedology 6.2.1 Preparation and Start-up VI-2 6.2.2 Impacts on Soil During Operation Phase VI-4 6.3 Land Use 6.3.1 General Impacts on Land Use below 500m elev VI-5 6.4 Agriculture 6.4.1 Impacts on Agriculture VI-6 6.5 Forestry 6.5.1 General Impacts of the project VI-8 6.5.2 Impacts during construction VI-9 6.5.3 Impacts of operation VI-10 6.6 Wildlife 6.6.1 Environmental Impacts during start-up phase VI-10 6.6.2 Impacts during operation VI-12 6.7 Hydrology 6.7.1 Impacts during construction VI-13 6.7.2 Impacts during operation VI-15 6.8 Water Quality 6.8.1 Impacts during construction VI-17 6.8.2 Impacts during operation VI-18 6.9 Freshwater Biology 6.9.1 Impacts during construction VI-19 6.9.2 Impacts during operation VI-19 6.10 Marine Ecosystem 6.10.1 Impacts during start-up and Operation VI-20 6.11 Oceanography 6.11.1 Impacts during start-up VI-22 6.11.2 Impacts during operation VI-22 6.12 Air Quality 6.12.1 Impacts during start-up of operation VI-23 6.12.2 Noise during start-up and operation VI-23

7.0 Environmental Impacts and Mitigation Measures 7.1 Rehabilitation Aspects VII-2 7.1.1 Land Use VII-3 7.1.2 Agriculture VII-4 7.1.3 Forestry VII-5 7.1.4 Wildlife VII-6 7.1.5 Hydrology VII-7 7.1.6 Water Quality VII-7 7.1.7 Freshwater Biology VII-8 7.1.8 Marine Ecosystem VII-8 7.1.9 Oceanography VII-9 7.1.10 Meteorology VII-9 7.2 Socio-Economics 7.2.1 Public and Workers health and Safety VII-14 7.2.2 Archeology VII-15 7.3 Institutional Development VII-15 7.4 Monitoring System VII-16 7.5 Abandonment Plan VII-16

8.0 Recommendations 8.1 Objectives of the Livelihood Program VIII-1 8.2 Strategies VIII-1 8.3 Promotion of Small-scale industries VIII-3 8.4 Training Programs VIII-3 8.5 Geos Inc. Agro-forestry Development Progrm VIII-3 8.6 Environmental Monitoring Plan VIII-4

9.0 Environmental Management Plan 9.1 Construction/Contractor’s Environment Program IX-1 9.2 Social Development Program IX-4 9.2.1 Social Development and Management Plan IX-5 9.2.2 SDMP Implementation Strategies IX-8 9.3 Risk Management Program 9.3.1 Project Development Activities IX-9 9.3.2 Identification and evaluation of hazards and its Potential impacts IX-11 9.3.3 Health impact of the identified hazards IX-20 9.3.4 Identification of impact population or receptors IX-25 9.3.5 Health risk assessment IX-25 9.4 Environmental Health Risk Management 9.4.1 Reduction of Community Health Risk IX-26 9.4.2 Reduction of Occupational Health Risk IX-27 9.5 Environmental Health Monitoring IX-30 9.6 Abandonment Plan IX-31 9.7 Environmental Monitoring Plan IX-31

10.0 Contingent Liability and Rehabilitation Fund X-1

11.0 Commitments and Agreements XI-1

12.0 Commitments to the Indigenous Peoples XII-1

ANNEXES

Annex 1 Factual Background: Citinickel vis-à-vis PGMC

Annex 1A MPSA Operating Agreement, Olympic and PGMC, July 18, 2003 Annex 1B Olympic letter to PGMC, termination of agreement, April 24, 2006 Annex 1C Deed of Assignment, Citinickel/Olympic, June 9, 2006 Annex 1D DENR Order, cancellation of ECCs, July 31, 2006 Annex 1E DENR Decision, cancellation of SSMPs given to PGMC, Oct. 30, 2006 Annex 1F MPSA granted to Citinickel, January 30, 2007 Annex 1G Court Order, PGMC to vacate premises of Toronto Mines, May 18, 2010

Annex 2 Transcript of Proceedings, Public Consultations, San Isidro, Sept. 5, 2007

Annex 3 Attendance Sheets, Public Consultations of Sept. 5, 2007

Annex 4 MOA, IPs/ICCs/NCIP/Citinickel, June 13, 2008

Citinickel Mines and Development Corporation vis-à-vis Platinum Group Metals Corporation

FACTUAL BACKGROUND

In 1971 and 1980, Olympic Mines and Development Corporation (Olympic) was granted “Mining Lease Contracts” (MLC) by the Minister of the Ministry of Environment and Natural Resources (DENR) covering mining areas in the municipalities of Narra and Sofronio Española, Palawan.

On 21 August 1996, aforesaid MLCs were converted by Olympic into Mineral Production Sharing Agreement (MPSA) under Republic Act (RA) 7942 otherwise known as the Mining Act of 1995. Thus, effecting Olympic’s application for mineral agreement designated as AMA-IVB-40.

On 18 July 2003, Olympic as the valid and subsisting mining claims holder and MPSA applicant entered into an Operating Agreement (Annex 1A) with Platinum Group Metals Corporation (Platinum) as project contractor of Olympic. As such, Platinum was supposed to for and on behalf of Olympic assist in securing the necessary endorsements/clearances/permits requisite to Olympic’s AMA-IVB-40.

In 2004, Olympic and Platinum were separately granted two (2) Small Scale Mining Permits (SSMP); one (1) each for Narra and Sofronio Española, by the Provincial Mining Regulatory Board of Palawan. These four (4) SSMPs expired and were renewed in 2006. The requisite Strategic Environmental Plan (SEP) clearances were likewise secured from the Palawan Council For Sustainable Development (PCSD). Small Scale Environmental Compliance Certificates (ECC) were also approved by the Environmental Management Bureau (EMB).

Thus, in the fourth quarter of 2004, Platinum mobilized and started civil works in the Narra Mining Project. Commercial Production immediately commenced thereafter with the 1st international shipment made on the 1st week of June 2005 and successively from then on until the mid or latter part of 2007.

In the course of its mining operations under the SSMPs, Platinum committed violations thereof, such as over extraction. Environmental violations prejudicial to Olympic’s AMA-IVB-040 were likewise committed. On top of these was Platinum’s usurpation and/or appropriation of mining rights covered by AMA-IVB-040 as evidenced by documents from the Sangguniang Panlalawigan of Palawan, PCSD, National Commission on Indigineous Peoples (NCIP) among others. Platinum named to itself instead of Olympic the endorsements/clearances from these bodies that were supposedly for the compliance requirements of AMA-IVB-040.

Thus, on 24 April 2006, Olympic sent a letter to Platinum (Annex 1B), informing the latter of the immediate termination of the Operating Agreement on account of Platinum’s gross violations of its terms, and directing Platinum to immediately surrender possession of the subject mining areas under the Operating Agreement.

On 09 June 2006, Olympic transferred its MPSA application which necessarily included all its mining rights over the subject mining areas to Citinickel Mines and Development Corporation (Citinickel) through a Deed of Assignment (Annex 1C). The Regional Director of the Mines and Geosciences Bureau (MGB) approved the assignment of rights on 06 September 2006.

On 14 June 2006, Platinum filed a complaint docketed as Civil Case No. 4199 for quieting of title, damages, breach of contract and specific performance against Olympic before the Regional Trial Court (RTC) of Puerto Princesa, Palawan Branch 95.

On 21 July 2006, RTC 95 presiding judge Bienvenido Blancaflor issued an order granting Platinum’s application for a Writ of Preliminary Injunction directing Olympic, its assignees, successors-in-interest, agents and representatives to respect Platinum’s rights under the Operating Agreement. Thereafter in April 2007 an extended Writ of Preliminary Injunction to enjoin the DENR and its offices and agencies from acting in any manner that will disturb the status quo or affect the full enjoyment of Platinum’s rights under the Operating Agreement was issued by Judge Blancaflor.

On 31 July 2006, Citinickel filed a complaint docketed as DENR-EMB Case No. 8253 before the office of the Secretary for the cancellation of Platinum’s small scale ECCs. On 25 September 2006, the DENR Secretary issued an Order (Annex 1D) cancelling the subject ECCs. On 26 February 2007, the Office of the President reversed the ECC cancellation. Upon Citinickel’s appeal/motion for reconsideration, however, the same office remanded the case to the Office of the DENR Secretary where it remains pending to this day. It bears mentioning, however, that, the renewed SSMPs of Platinum already expired in 2008 thus, rendering moot and academic the pending case as regards its corresponding ECCs.

Meanwhile, Citinickel filed an administrative action with the Panel of Arbitrators (POA) of the DENR, docketed as POA Case No. 002-06-B, asking for a Writ of Injunction against Platinum and for the cancellation of the Operating Agreement. On 30 October 2006, the POA issued a Resolution cancelling the Operating Agreement and Platinum’s SSMPs PLW No. 39 and 40 (Annex 1E). In a subsequent order in April 2007, the POA, likewise issued a Cease and Desist Order (CDO) directing Platinum from operating the subject mining areas.

On 03 January 2007, MPSA 229-2007-IVB (Annex 1F) was awarded by the government through the DENR as represented by the then Secretary Angelo Reyes to Citinickel as represented by Caroline L. Tanchay. Aforesaid MPSA covers the 768 and 1,408- hectare Narra and Española mine areas, respectively for a total aggregate area of 2,176 hectares.

The aforementioned string of suits and counter-suits centering/stemming mainly from RTC Case No. 4199 and the POA’s cancellation of the Operating Agreement were pursued by both parties with all the different but interrelated cases eventually reaching the Supreme Court (SC). SC Cases G.R. No. 17188, G.R. No. 180674, G.R. No. 181141 and G.R. No. 183527 were subsequently consolidated by the SC.

On 08 May 2009, the Second Division of the SC rendered judgment on the consolidated cases. The SC Decision mainly settled the issue of jurisdiction. It opined that the dispute amongst Olympic-Citinickel-Platinum is civil in nature and technically not a “mining dispute” thus, jurisdiction of falls under the RTC 95 of Puerto Princesa and not the POA. While the validity of Citinickel’s subsisting MPSA 229-2007-IVB was not in any way assailed by the SC and the environmental violations as investigated by a composite team from the DENR sometime in 2006 were stayed by the SC Decision, the SC opined that the cancellation of the Operating Agreement, being a civil contract between two corporate entities is within the jurisdiction of the RTC of Palawan.

Olympic and Citinickel separately filed Motions for Reconsideration of the SC Decision and Motions to elevate the same cases to the Court En Banc. On 15 August 2009, the SC issued a Resolution denying the aforesaid motions.

The legal dispute/issues surrounding Olympic-Citinickel-Platinum were thus remanded to the RTC 95 of Palawan. On 10 February 2010, presiding judge Blancaflor issued an Order impleading Citinickel as party-defendant in Civil Case No. 4199.

Citing the “clear and superior” mining rights of Citinickel and the undue damage thereof caused by Platinum’s continued possession of the mine areas, Judge Blancaflor on 18 May 2010, likewise issued an Order (Annex 1G) resolving the Urgent Motion (to dissolve and/or recall injunction and to issue a writ of preliminary mandatory injunction, or in the alternative, a writ of preliminary prohibitory injunction against plaintiff Platinum). The order is for Platinum to immediately vacate the premises of the mine sites involved in the case. In effect, the two (2) writs of preliminary injunction previously issued by RTC 95 against Olympic-Citinickel-DENR were lifted paving the way for Cinickel’s possession of its Narra and Española mines.

2.0 EXECUTIVE SUMMARY

2.1 Brief description of the project

The Toronto Nickel Mining Project is an undertaking of the CITINICKEL MINES AND DEVELOPMENT CORPORATION (CITINICKEL), a Joint Venture Corporation formed by Olympic Mines and Development Corporation (Olympic) of Suite 202 State Condominium IV, Ortigas Avenue, San Juan, Metro Manila and Rockworks Resources Corporation (Rockworks) of 1760 Taft Avenue corner Cinco de Noviembre, Pasay City. The Memorandum of Agreement signed by the two companies on April 18, 2006 is for the exploration, development and mining of nickel and other associated minerals in areas covered by the Mineral Production Sharing Agreement (MPSA) AMA-IVB-40 in the municipalities of Narra and Sofronio Espanola, Province of Palawan. CITINICKEL’s main office is at Citimax 81 Gil Puyat Avenue, Barangay Palanan, Makati City.

MPSA AMA-IVB-40, previously covered by an Operating Agreement between Olympic and Platinum Group Metals Corporation (PGMC), a domestic mining corporation with office address in Makati, Metro Manila, was cancelled by Olympic because of gross violations of the provisions thereof by PGMC. As a consequence, all rights and interests over MPSA AMA-IVB-40 were transferred to CITINICKEL by virtue of a Deed of Assignment with Royalty Agreement dated June 9, 2006. The small scale mining operations of Toronto Mines in Barangay San Isidro, Narra, Palawan has become the responsibility of Citinickel. The Deed was subsequently approved by the Mines and Geo-Sciences Bureau (MGB) of the Department of the Environment and Natural Resources (DENR) on September 6, 2006.

On January 3, 2007, the Secretary of the Department of Environment and Natural Resources granted to Citinickel MPSA No. 229-2007-IVB, replacing Olympic’s MPSA application AMA-IVB-40 in the municipalities of Narra and Sofronio Espanola, Province of Palawan.

The Toronto Nickel Properties in Narra, Palawan consists of two project areas formerly covered by Mining Lease Contracts PLC-V-550 and PJC-V-549. Both contracts expired on December 18, 1996, while Mining Lease Contract Nos. PLC-V- 544 and 545 expired on September 16, 1996. Applications for renewal of the lease contracts were made by Olympic through conversion into an MPSA in compliance with the provision of the Mining Code of 1995 (RA 7942). The Toronto Mines has a combined area of 768 hectares, Parcel 1 has an area of about 192 hectares while Parcel 2 has an area of approximately 576 hectares.

Estimated Capital Expenses

The capital expenditure estimates for Toronto Mining Project is PhP360,981,438.00 or US$8,594,796. This covers exploration drilling, land acquisition, mobilization/ demobilization, land clearing and preparation, road construction and rehabilitation, causeway construction, environmental protection measures, stockyard development, civil works, general services, mechanical, electrical, laboratory and office equipment, pre-feasibility studies, permitting, ECC, occupational fee and working capital. 2

Mining Plan of Operations

The general plan of operations covers pre-production, production and mine closure stages. Pre-production activities involves all development works consisting of rehabilitation and improvement of main haul roads and interior mine network, construction of offshore loading facility and ore stockpile yards, construction of drainage systems, primary and secondary silt ponds, filter and check dams, development of mine and offshore loading camps, construction of assay laboratory and exploratory works such as confirmatory and infill drilling in blocked areas and regular exploration works in unexplored areas.

The operations shall be confined to the production of ore only, with possible size reduction of hard saprolite and garnierite. The production stage involves stripping of overburden, ore-waste grade control, excavation, loading, hauling, stockpiling, drying, blending, and offshore ore transport to bulk ocean vessel.

Post mining activities involve soil cover backfilling, re-vegetation covering and post environment protection and control activities.

2.2 Brief description of the data gathering, scope of the study, duration/period, team, methodology, documentation

Members of the EIA Team

Team Leader Nori T. Palarca, BLA, MTLA, EnP Land Management/GIS Specialist Emmanuel M. Viado, BLA Water Quality Specialist Manny Capinpin, UP Terrestrial Fauna Specialist Reymar Reyes Castillo, PSU Botanist Ferdie Gaerlan , National Museum Marine Biologist Rene B. de Vera, BSU Meteorologist Raquel V. Francisco, PhD Air Quality Consultants Charlon Gonzales Soils Specialist Dennis Dolojan, DLSU Indigenous Peoples Specialist Jo Ignacio, ESI Process Documentation Specialist Martha Espano, UP Mining Engineers Vic Pulvinar, Alvaro Abenojar, Alexandrie Amadeo

Stages of EIA Study Preparation

In preparing the EIS, the Team got involved in Scoping, Baseline Study, Impact Identification, Impact Prediction, Impact Evaluation, Impact Mitigation and preparation of the Social Development and Management Plan (SDMP).

Scoping

The technical scoping with EIA Review Committee was held at the EMB office in Quezon City in March 2007 while the Public Scoping with the

community and other stakeholders was held at open basketball court of Barangay San Isidro, Narra in September 2007.

The technical scoping session touched upon the social preparation activities with the Committee recommending that the proponent conduct a new set of consultations as previous ones were done by Olympic and its previous operator PGMC. Citinickel, stated that although it can make use of the results of the previous consultations, it is committed to conduct similar activities with the stakeholders in Narra. The EIARC, Citinickel and the EIS Team signed the Scoping Checklist thus signifying that the group agreed to the content/coverage of the EIS study.

The following summarizes the activities during the visit to Narra, Palawan.

Secondary data research in Puerto Princesa and Narra

 Visit to PCSD for relevant updated information about the study area  Review of CBMS data  Review of the Comprehensive Land Use Plan of Narra  Review of the Environmentally Critical Areas Network (ECAN)  State of the Palawan Environment, PCSD  Provincial Development Plan  Google Earth satellite image of Narra, Palawan

Baseline data generation conducted within the watersheds

The EIS team specialists, aided by local research partners, conduced baseline survey on the primary and secondary impact zones of the project. The following lists the activities:

 Located the mine site and other significant areas on a satellite image of Narra lifted from Google Earth server  Using GPS, validated existing road networks and other infrastructures, river and irrigation system  Conducted water quality assessments of wells and other sources, streams and at the mouth of Balitien and Pinagduguan Rivers, with sampling sites reflected on basemap  Gathered water samples for bacteriological analysis  Gathered sediment samples for testing for presence of heavy metals  Conducted air quality assessments at the mining area, proposed mining road near existing households, at identified intersection with the national highway, and at the proposed stockpile and causeway area.  Gathered soil samples from selected sites for testing  Conducted assessment of the biological diversity at selected areas within the mine site watershed  Conducted the first public consultation attended by officials and representatives of barangay government, NGOs, community organizations, government agencies, women and tribal groups and the academe.  Conducted ocular inspection of the mine site and its infrastructures such as haul road, settling pond, stockpile area, etc.

Public Consultations

The proponent and EIS preparers conducted a public consultation in San Isidro, Narra to meet with the stakeholders and inform the latter of new developments regarding the change of ownership of Olympic Mining Corporation. The team also informed the people about the conduct of the baseline data gathering activities on the biophysical, social, economic and administrative/political aspects relevant to the planned large-scale mining activity. The consultations solicited views, comments and concerns from the local governments, community, NGOs, POs, IPs, stakeholders and other interest groups.

Around 138 participants from the municipality, led by San Isidro’s Barangay Captain and her barangay council members, came to the consultation. There were also leaders from community-based groups like the farmers’ and fisherfolks’ associations, senior citizens’, women’s and indigenous people’s groups. Other people from nearby barangays such as Poblacion, Teresa, Caguisan, Princess Urduja, and Antipuluan also attended. Representatives of PGMC observed the proceedings and acknowledged by Citinickel. Also in attendance were officials from EMB-DENR Regional Office 4B, from the CENRO of Narra, and the Palawan Council for Sustainable Development (PCSD).

The project and the EIA process were presented to solicit the people’s views, comments, and concerns. The participants were divided into workshop groups according to the organizations they represent. The following is a summary of the outcome of the group outputs. a. The hopes and expectations were centered on livelihood and basic services. (Assistance to agricultural workers and fishermen; educational assistance; livelihood assistance; Cooperatives focused on joint venture projects and water system projects) b. The fears/concerns were generally on the productivity of agricultural lands, and non-absorption of previous workers. c. The recommendations that the people submitted were immediate conflict settlement between the mining companies before project start up; the need for the endorsement from the barangay council; employment preference for former workers of PGMC; replanting of trees in the mined areas; work for senior citizens; and assurance to fisherfolks that marine life will not be affected

The participants affixed their signatures on the sectoral feedback and responses generated.

Field Work: October to November 2007

A team from the Palawan State University, helped in delineating on the ground the primary and secondary impact areas, and worked with the EIS team in doing the faunal studies and gathering of soil samples. A team from the Pangasinan State University collaborated to do the physico-chemical studies, as well as the marine

5 biology of the impact areas. Other members of the EIS team looked at the available secondary information from PCSD, the local governments and other organizations.

2.3 Brief description of the environment

Geology and Geomorphology

The project area is chiefly underlain by an assemblage of ultramafic rocks that have been subjected to weathering processes resulting in the development of nickel-iron- rich laterites, derived from the weathering of the ultramafic rocks composed dominantly of dunite, pyroxene and gabbro.

Seismicity

Palawan is not considered in a seismic hazard zone. The province is stable or part of an aseismic region characterized by rarely experienced significant seismic activities, such as earthquake incidences or active volcanism.

Water Quality

Most of the physico-chemical parameters of water samples collected in Narra, Palawan are within the suitable range set by DENR. Temperature readings fall within suitable level for the culture of marine organisms. Turbidity, as assessed by secchi disk reading, is similar to the water depth measurements as the water column was shallow. Total suspended solids results are all below the limit of 50 mg/L for class A waters, which is more stringent than class C and D waters. Water pH can be classified as neutral to slightly basic, well within the optimum pH range growth of aquatic organisms and within the range specified for Class AA (Freshwater) and SA (Coastal and Marine) waters. Alkalinity readings are high indicating high buffering capacity. DO levels observed are above the recommended values, especially the DENR standard of at least 5 mg/L for class AA and SA waters. Hardness readings indicate considerable amounts of calcium and magnesium ions and can be considered hard or very hard water. Salinity ranged from 0 ppt for rivers to 34 ppt for coastal waters. Ammonia and nitrite levels are low and undetectable in the survey. Phosphorus is way below the 0.4 mg/L limit set by DENR for class C waters.

Stream velocity ranged from 0.368 m/sec or 1.32 km/h (Pinagduguan River Mouth) to 0.592 m/sec or 2.13 km/h (Pinagduguan River). On this basis, the velocity of the streams can be considered moderate.

Microbiological analysis revealed that all water samples are positive for thermo- tolerant fecal coliform organisms.

6 from the native rocks and anthropogenic lead deposition. Nickel concentrations of sediments ranged from 1,752 ppm (Coastal water I) to 3,654 ppm (Pinagduguan River) which are considered high, due to the presence of several nickel mining activities in the area. Mercury concentrations in sediments are below detectable limit of 0.10 ppm, indicating that the samples are not contaminated with mercury. This indicates there are no appreciable sources of mercury from industrial sources in the area.

Meteorology and Air and Noise Quality

In general, the local winds monitored near the mining site blow from East to Northeast during daytime and reverses during early morning coming from the West. This pattern characterizes the land-sea breeze cycle near the coastline.

Based on the overall results of the analyses of the air samples, the quality of the air in the proposed area is considered generally good. The only exceptions are some stations where the TSP concentrations are relatively high due to frequent vehicular activity on unpaved roads.

Fauna

A total of 107 species of terrestrial wildlife vertebrates were identified from 96 genera and 58 families. The bulk of these species are birds with 64.49% followed by reptiles (18.69%), mammals (13.08%) and amphibians (3.74%). A total of 47 terrestrial wildlife species were recorded as Endemic to the Philippines. The highest endemicity is exhibited by birds with 10 species. Palawan endemics gain 13 species.

Reptiles

The study identified about 19 species belonging to seven (7) families and 16 genera. Family of Skinks obtained the highest number of species followed by the family of Geckos. Other reptilian families are represented by one or two species and genera. Reptiles are moderately diverse in all study sites. Three (3) species are in CITES list.

Birds

There are fifty-six (56) species of birds belonging to thirty-two (32) families recorded during the survey. The six (6) dominant families of birds are: the dove and pigeons (6) followed by the herons and egrets with (4) and with 3 species of eagles and hawks, cuckoo and malkoha, rails and crakes and babbler.

Endemic species of animals assessed in San Isidro, Narra are classified as threatened and endangered species under CITES and IUCN Red List of threatened animals.

Among the 89 species of vertebrates identified in the assessment, 28 species are listed under IUCN categories: 17 are listed under Least Concern, 2 are listed under Low Risk, 6 are listed under Near Threatened and 3 are listed under Vulnerable. Others are unclassified.

The assessed avian or bird group has 25 species under IUCN, followed by mammals with two (2) and one (1) for amphibians. Recorded reptiles are not in the IUCN list.

Of the 89 species identified in the assessment, 12 are listed under CITES. The avian or bird group has 6 under CITES, followed by mammals and reptiles with accounts of three (3) species. Recorded amphibians are not in the CITES list.

The result of the Participatory Rapid Biodiversity Assessment (PRBA) indicates that the area is diverse in terms of animal species, each filling a different function or role that sustains their ecosystem. A high percentage of the species in the area is threatened and is endemic.

Flora

There are five types of vegetation cover found in Barangay San Isidro, namely: i) lowland evergreen forest; ii) secondary forests; iii) thickets, brushlands and grasslands; iv) mangroves and; beach forest

A large tract of lowland evergreen forest is found along the mountain ranges of the barangay that form part of the Mt. Victoria Ranges. The secondary vegetation cover in the area is characterized by a disturbed closed canopy forest, found along the fringes of the lower slopes of the primary forest and patches along the lowland plains of the barangay. Exotic tree species plantation is observed along this vegetation cover. Leguminous trees and shrubs also colonize the open fields. Species of Dillenia, Pandanus, Fimbristylis and Chromolaena are also noted along the secondary vegetation formation and appears to be degraded converted to settlement area, cultivated lands, or idle kaingin.

Thickets, brushlands and grasslands are found near settled areas and characterized by logged-over open canopy forest, highly degraded forest cover and open fields occupied by pure stands of a single species. Common species and weeds are found in these areas. Plantations of Jatropha curcas and fruit bearing trees are found in this vegetation cover. Along with cultivated fields, the area is also planted with coconuts.

The mangroves are found along the coastal areas. They are also found in broad mud flats along the lower reaches of tidal streams and in estuaries. In wide mud flats, mangroves form a dense, almost impenetrable stands.

A narrow strip of Beach forest is found along sandy and gravelly shore.

The forest of Barangay San Isidro is of lowland evergreen forest type (primary and secondary) characterized by the presence of trees that shed off their leaves during dry months, mixed with evergreen trees.

A typical sub-type of lowland evergreen forest over ultramafic soils is located within the mine site area. They are composed mostly of woody vegetation but lacks large trees. Large area of this forest over ultramafic soils inside the project site has been cleared off timber trees.

Plants along the transect have smaller trunk diameters and shorter heights. The largest measured tree diameter in the transect is at 49.0 cm dbh while the largest measured individual is at 45.1 cm dbh and Garcinia spp.

Marine

In Caguisan, the coral area can be considered in good condition and undisturbed by destructive fishing methods (such as dynamite or cyanide) because of lack of rubble or dead corals. It is about 19 kilometers away from the project site.

In the San Isidro sites, the coral areas are considered to be in poor condition as shown by low live coral cover. High percent cover of dead corals with algae indicates that corals have already been dead for sometime as algae have colonized the skeletons. Other reef associated animals are low in number at the left side of the existing jetty. This can be attributed to the silt in the area and degraded coral cover.

The study of corals in San Isidro, Narra, Palawan shows that the coral condition is declining or becoming worst due to increasing human activities at the upland and lowland areas of the Municipality, causing pollution and probably mechanical damage to the reefs.

Seaweed

The seaweed community at Teresa, San Isidro is represented by only a few species because of limited rocky substrate for attachment. Dominant species in the shallow portion are green and brown algae. Some grow on rocks or dead corals or coral fragments on reef or rocky shores (Trono, 1997).

Only 9 species of seaweeds were identified in San Isidro, Narra. In contrast, a total of 23 species of seaweeds were recorded by PCSD (2002) during their survey in the whole of Narra. However, the survey sites of PCSD include island sites (Cudel, Banking/Temple, Linda, George, Rasa, Arena, and Taru) as well as mainland representative sites (Caguisan, Gitana, Burirao, Aramaywan, Tacras, and Linamen). These survey areas, except in Caguisan, are far from the impact sites in San Isidro.

Heavy siltation were also observed in some areas of Narra by the PCSD (PCSD, 2002), attributed to the rampant conversion of mangroves areas into fishponds, deforestation, agricultural activities and illegal fishing within the municipal water limits.

Social

Demography

Narra has a total population of 70,521 based on its 2009 Socio-Economic Profile. The annual growth rate is 3.43% and has a population density of 81.72 person per square kilometer. Males outnumber the females at a ratio of 1.09:1.00 with the males constituting roughly 52.07% of the total population. Of the total household population, 9,485 households have an average size of 5.07 persons per household. Discover Palawan data shows that Narra has an actual population of 56,845 with a

9 population growth rate of 3.53% annually and population density of 81.2 per square kilometer.

The estimated crude birth rate in 1995 (DOH, NSO) was 23.36% compared to the crude death rate of 3.73%.

The Ilongos predominate followed by the Tagalogs, Visaya (Cebuano), Ilocanos and Cuyunons. The Visayans make up 32.71% of the total population. The indigenous people as a whole ranks sixth with the Tagbanuas being the dominant indigenous group. Smaller groups constitute the rest, which account 29.19% of the whole. In terms of religious beliefs, the Roman Catholics constitute the bulk representing more than 60% of the other sects.

Impact Area Characterization

Based on NSO Survey, there are about 338 households (HH) in Brgy. San Isidro, while Brgy. Teresa has about 189. The average HH size of both barangay is 5.

In San Isidro, the children and youth population (0-16 yrs. old) constitutes 50% of the surveyed population while it is about 44% in Teresa. The highest proportion of population belongs to the age group of 6-12, followed by 0-5 age group. On the other hand, 30% in of the population in San Isidro belongs to the productive age group (15- 64 yrs. old) while it is about 65% in Teresa.

Dependency ratio in San Isidro is 85%, while that of Teresa is 70%. Both barangays are home to indigenous community known as Palaw’an. The Tagbanuas, Cagayanens, Cuyonins and the Agutaynen belong to this indigenous community and some of them are found in Teresa.

Health and Nutrition

San Isidro and Teresa can access the Emergency Services; Health Education; Immunization; Nutrition; Pediatrics; Care units; Urinalysis; Blood Typing and; Family Planning from the hospital. There are also 4 private medical clinics and 2 private dental clinics in the municipality which can provide general medical/dental services to the residents of Narra.

Mortality and Morbidity

The Municipal Health Office (MHO) reported that leading causes of morbidity in the area are parasitism, diarrhea, heart disease, influenza, malaria, skin diseases, pulmonary TB, conjunctivitis and pneumonia.

The leading causes of mortality are heart disease, pneumonia and old age. Some causes of death are undetermined. Pulmonary tuberculosis, accidents, hypoglycemia, malaria, hepatitis, renal failure, pre-maturity, diarrhea disorder and alcoholic encelopathy have caused the death of few people in the municipality.

Water, Sanitation and Electricity

CBMS Survey of 2004 reveals that the number of household with access to safe drinking water (whether own use or shared) is 94% or 308 of the 325 surveyed households. In Teresa, those with access to safe drinking water is only 37% or 93 of the 245 surveyed households.

Sources of water in San Isidro and Teresa are the community water system, deep- wells, artesian wells and dug wells, considered also as safe sources of water. Though 94% of the surveyed households in San Isidro have access to safe drinking water, not all households have their own source of water supply. This also holds true in Teresa.

Access to sanitary toilet facility

In San Isidro, only 36% have access to sanitary facility, while Teresa has 33.47%. There are still a number of households with no toilet facilities, and some are sharing toilet facilities with other households.

Access to electricity and other infrastructure projects

In San Isidro, only 31% have access to electricity. In Teresa, it is 41%. Electricity is available 24 hours a day in San Isidro but only for only 9 hours in Teresa. Many of the households still depend on kerosene as fuel used for lighting.

Shelter

Majority of the residents in the barangays occupy their own house and lot, renting them from the owners, or occupying rent-free house and/or lots with consent of the owners. In San Isidro, there are about 17 households who live in a makeshift housing, and none of the households in Teresa.

Education and Literacy

Both San Isidro and Teresa have a day-care center and an elementary school facility. Public secondary school facilities can be found in the Princess Urduja, a neighboring barangay of San Isidro and Teresa. A public tertiary school is located in Narra Poblacion.

Participation rate of children ages 3-5 years old is very low, although elementary school participation rate for both barangays is high. Secondary school participation rate in both barangays is lower than the elementary school participation. Tertiary school participation rate is very low.

The student and teacher ratio in Narra is 1:43, with student and classroom ratio at 1:45. The same is true with secondary school facilities in the municipality. Narra needs more teachers and more classrooms to ensure the quality of education of its students.

The literacy rate for both barangays is high. San Isidro has 98.09% while Teresa has 95.88%. But literacy rate of females in San Isidro is quite lower than the males.

Peace and order

The situation in both barangays is relatively peaceful as there are no reported victims of crime.

Income, Livelihood and Employment

Out of the 325 households in San Isidro, about 51.38% or 167 are considered poor. Household income is lower than PhP 12,614, the estimated poverty threshold for Palawan in 2004. A similar situation can be found in Teresa where poverty incidence is high at 59.16%.

About 79 households in San Isidro have incomes that can not support their basic food needs. On the other hand, subsistence poverty in Teresa is 41.63%, lower than poverty incidence by 17.23%.

The labor force participation rate of barangay San Isidro is at only at 66.75%, with an employment rate of 85.94%. In Teresa, the labor force is higher at 67.66% and employment rate is high at 93.27%.

Underemployment rate is very low at 14.06% in San Isidro but much lower in Teresa which is about 6.73%.

The main source of income in both barangays comes from farming, fishing, livestock and poultry raising. Farming is the main livelihood in both barangays. Rice is the most dominant agricultural crop with few households engaged in business and trade.

Waste Management

There are no sanitary disposal facilities in both barangays. Majority of the households burn their waste while few dispose theirs on open pits.

Participation and Community Development

Participation rate of members in community organization in both barangays is low. The number of persons in community organization is small at 4.69% in San Isidro and 8.4% in Teresa.

Development Interventions

There are 16 development interventions in San Isidro and about 14 development interventions in Teresa.. These are integrated projects on livelihood and enrichment that include Ecology Security, Cooperative Development, Food Security Program, Trainings, Technical Assistance, Backyard Goat Raising, Basic Leadership Development Course, Community -LGU Reforestation Project, Nursery Seedlings, Fruit and Vegetable Production, Riverbank Protection.

Summary of major impacts, main mitigating measures and main component of the Environmental Management Plan 12

Component of the Parameters to be Duration and Degree of Potential Impacts Mitigating/Enhancement Measures Environmental Management Monitored Impacts Plan  Preserving and protecting the natural drainage  Reforestation  Locate campsites at a distance where contamination of water bodies is  Disposal of mine wastes minimized if not eliminated  Pollution control structures CONTAMINATION OR  Provide sanitary facilities for workers and other people in the mining area  Solid waste disposal POLLUTION OF  Whenever possible, apply phytoremediation techniques on contaminated areas  Mine rehabilitation Water Quality Short-term, negative CREEK/RIVER  Conduct periodically how assisted natural regeneration is implemented  Mine safety and health plan WATERS  Provide ample drainage to draw water away from road centerline to hillside  Proper operation and drains in the mine site maintenance of infrastructures  SDMP - rural infrastructure development

 Operate and maintain the roads properly by collaborating and assisting the  Preserving and protecting the communities that stand to be affected should the road deteriorate natural drainage  Embark on serious re-vegetation of side slopes  Reforestation  Prescribe and enforce strictly speed limits to prevent dust generation everytime  Mine rehabilitation DUST GENERATION Short-term, negative hauling trucks use the road  Mine safety and health plan  Regularly water the road surface to suppress dust generation  Proper operation and Air Quality  Encourage and support community public service work like road maintenance, maintenance of infrastructures re-vegetation of side slopes, clearing of clogged drainage  SDMP  Observe proper road construction rehabilitation practices -integrated social service POSSIBLE INCREASE Short-term, negative  Conduct daily routine equipment and machinery check-ups delivery IN SOx, NOx , CO2  Regularly maintain equipment and machinery - rural infrastructure AND OTHER development HYDROCARBONS - rural livelihoods 13

Component of the Parameters to be Duration and Degree of Potential Impacts Mitigating/Enhancement Measures Environmental Management Monitored Impacts Plan  As much as possible, replicate the natural habitat existing before project  Reforestation implementation to encourage displaced fauna to return  Mine rehabilitation  Educate workers and the community on the significance of biodiversity in  SDMP everyday life - rural development  Keep noise levels at a minimum so as not to disturb wildlife  Always take note of the presence of keystone and indicator species to measure effects of mining activities on biodiversity DISPLACEMENT/LOSS  As much as possible, avoid unnecessary clearing of vegetation OF FLORA AND Long-term, negative  If possible, protect/avoid damaging the emerging vegetation from spread topsoil FAUNA DUE TO  Advocate biodiversity protection and conservation in the project’s area of HABITAT LOSS influence o Ensure that sizeable forest fragments adjacent to the mining site be properly set- aside to serve as refuge not just for the birds but for the whole biodiversity o A strict protection zone should be maintained in the area that will serve as Terrestrial Flora sanctuary for the wildlife and Fauna  habitat restoration should be undertaken to allow the forest to regenerate more or less to its original state after thirty years or more . Adopt mitigating measures to minimize disturbance created on wildlife habitat. LOSS OF WILDLIFE . invest in educating the community on the importance of wildlife in maintaining DUE TO HABITAT Long-term, negative ecological balance and the service biodiversity provide the people, controlling or DISTURBANCE FROM perhaps stopping wanton hunting of wildlife and other resources. MINING ACTIVITIES

 Prevent mosquito propagation by depriving them of their reproduction habitats like pools of stagnant water, cans, plastic containers, etc. PROLIFERATION OF  Maintain drainage lines with regular weed control and vegetation clearing INSECTS PESTS LIKE Short-term, negative activities MOSQUITOES  Allow insect-eating animals to control insect population  Embark on massive education campaign that cover prevention of insect pests proliferation DISTURBANCE IN THE  Provide buffer zone between waterways and mine site BIOTIC COMMUNITY  Provide silt traps, check dams and settling ponds on mine site drainage Aquatic Fauna Short-term, negative IN THE TWO RIVERS channels AND TRIBUTARIES

Component of the Parameters to be Duration and Degree of Potential Impacts Mitigating/Enhancement Measures Environmental Management Monitored Impacts Plan DISTURBANCE IN Minimize siltation by use of silt traps, settling ponds and check dams  Proper operation and MARINE LIFE AT Maintain strict compliance in preventing spillage during loading of laterite and maintenance of infrastructures Marine MOUTH OF THE TWO Long-term, negative saprolite ore on barges  Proper operation of heavy Environment RIVERS AND LOADING equipment and machineries PIER  Provide protective gears and safe equipment to workers  Preserving and protecting the  Ensure proper medical attention is available and accessible natural drainage  Make sure that all applicants undergo strict medical and physical examination  Reforestation HEALTH HAZARDS TO  Regularly conduct training programs and meetings regarding safety in the  Disposal of mine wastes Short-term, negative WORKERS workplace  Pollution control structures  Update workers on the use of new tools and equipment introduced on site  Solid waste disposal  Be strict on the disposal of domestic and industrial wastes  Mine rehabilitation  Encourage proper diet practices for workers and dependents  Mine safety and health plan  Give priority to qualified local residents to fill up the manpower requirements of  Proper operation and the project maintenance of infrastructures DISPLACEMENT OF  Provide just compensation for lost income/livelihood or damaged properties of  SDMP SOCIO-ECONOMIC affected residents -integrated social service ACTIVITIES,  Keep the workers and residents updated and informed regarding company delivery CREATION OF Social Short-term, negative activities that may potentially affect their livelihood and/or properties - rural infrastructure dev’t DISHARMONIOUS  Keep communication lines with the affected communities open RELATIONSHIP WITH  Conduct regular/special public meetings to present and discuss activities that RESIDENTS, LOSS OF may interest the general public TRADITION/CULTURES  Collaborate with the local government and affected residents in planning and implementing community development projects  Provide garbage collection bins at strategic sites within the mine area  Preserving and protecting the  Train workers to bring out non-biodegradable materials that they bring in natural drainage  Provide pits for dumping of biodegradable materials  Disposal of mine wastes DOMESTIC WASTE  Regularly remind all workers on proper waste disposal  Pollution control structures GENERATION AT MINE Short-term, negative  Initiate a system for recognizing those who observe and practice proper waste  Solid waste disposal SITE disposal  Mine safety and health plan  As much as possible, discourage workers from bringing into the workplace non- SDMP, -integrated social biodegradable and hazardous materials service delivery, rural livelihood

Summary of the Environmental Monitoring Plan

The monitoring activities will focus on: water resources, water quality, drainage and erosion control, noise level and ambient air quality. Monitoring of specific elements in the environment necessitate observations of parameters as provided for in DENR guidelines.

The following matrix outlines the monitoring activities.

Sources of Parameters Purpose Standard Methods Location Frequency impacts  Mine dimensions To monitor and mitigate  Bench height significant impacts To maintain mine  Berm Mine site Mining stability Visual inspection  Mine slope Access roads Weekly infrastructures To maintain access and surveying  Settling pond Haul roads  Access roads hauling road  Waste dumps  Color To monitor and mitigate Effluent sampling  TSS/TDS significant impacts Pinagduguan and Water quality  pH using Wells and clear monthly Baliti-en rivers  Pb, Cr, Hg, Ni, DENR standards water quality Fe monitoring To monitor and mitigate Mine site To be Noise Noise level significant impacts Noise meter Access road determined Haul road To monitor and mitigate Mine site To be Air quality Suspended PM significant impacts Air sampler Access road determined Haul road Buffer zone, To be Flora Species in the To monitor effects on Transect method undisturbed areas determined inventory existing flora within mine site To monitor effects on Visual/ auditory Species in the wildlife observations for Buffer zone, To be Fauna inventory birds; undisturbed areas determined Trapping for within mine site mammals

Monitoring activities cover both operation and post operation phases of mining. During operation phase, monitoring shall focus on the documentation of the changes on the vegetation coverage area as site stripping and excavation continue. The changes will be indicated on maps for a graphical representation the activities’ impact on flora. When referred to the company’s mine development plan, the monitoring output becomes an accomplishment report that is useful not only for management but for the community as well.

In post operation, monitoring shall include faunal recovery patterns with the same methodologies used in establishing baseline data prior to operations. For instance, visual and auditory observations can be done for birds, while trapping, sightings and key informant interiews can be utilized for mammals, reptiles and amphibians.

Estimates of the costs for monitoring shall include the following: • MMT Core members – Php2,000/month allowance throughout duration of engagement (while the mine is operating) • Specialists – Php10,000/day + DSA/Travel costs (+ costs of equipment rental) • Air sampler team – Php100,000 + lab costs

Toronto Mining Nickel Project Chapter III-1

Chapter 3. PROJECT DESCRIPTION

3.1 Basic Project Information

NAME OF PROJECT Toronto Nickel Mining Project Barangay San Isidro, Narra, Palawan

PROJECT PROPONENT Citinickel Mines and Development Corporation Citimax 81 Gil Puyat Ave., Brgy. Palanan, Makati City

TELEPHONE NUMBERS (02) 889 1129 to 32

FACSIMILE NUMBER (02) 888 5253

CONTACT PERSON Caroline L. Tanchay Chairman /President

CORPORATE OFFICERS

Chairman / President Caroline L. Tanchay Vice-President- Finance Alonzo C. Espanola Vice-President- projects Engr. Fernando Esguerra Vice-President Ferdinand M. Pallera

PRODUCTION OFFICERS

Project Manager Engr. Vicente T. Pulvinar

PROJECT CONSULTANT Mining Consultant Engr. Alvaro S. Abenojar Environmental Consultant Engr. C.O, Romero & Associates

EIS PREPARER Team Leader Nori T. Palarca, BLA, MTLA, EnP Cellphone: 09174218081 Email address: [email protected] [email protected]

The Toronto Nickel Mining Project is an undertaking of the CITINICKEL MINES AND DEVELOPMENT CORPORATION (CITINICKEL), a Joint Venture Corporation formed by Olympic Mines and Development Corporation (Olympic) of Suite 202 State Condominium IV, Ortigas Avenue, San Juan, Metro Manila and Rockworks Resources Corporation (Rockworks) of 1760 Taft Avenue corner Cinco de Noviembre, Pasay City, through a Memorandum of Agreement signed by the two companies on April 18, 2006. The Agreement was for the exploration, development and mining of nickel and other associated minerals in areas covered by the Mineral Production Sharing Agreement (MPSA) application of Olympic designated as AMA-IVB-40 in the municipalities of

Toronto Mining Nickel Project Chapter III-2

Narra and Sofronio Espanola, Province of Palawan. CITINICKEL’s main office is at Citimax 81 Gil Puyat Avenue, Barangay Palanan, Makati City.

MPSA AMA-IVB-40 was previously a subject of an Operating Agreement between Olympic and Platinum Group Metals Corporation (PGMC), a domestic mining corporation with office address in Makati, Metro Manila. However, the Operating Agreement was cancelled by MPSA holder Olympic because of gross violations of the provisions thereof by PGMC. As a consequence of the cancellation of the PGMC contract and the subsequent transfer of all rights and interests over MPSA AMA-IVB-40 by Olympic to CITINICKEL by virtue of a Deed of Assignment with Royalty Agreement dated June 9, 2006, the small scale mining operations of Toronto Mines in Barangay San Isidro, Narra, Palawan is now the responsibility of Citinickel. The Deed was subsequently approved by the Mines and Geo-Sciences Bureau (MGB) of the Department of the Environment and Natural Resources (DENR) on September 6, 2006.

On January 3, 2007, the Secretary of the Department of Environment and Natural Resources granted to Citinickel MPSA No. 229-2007-IVB, replacing Olympic’s former MPSA application AMA-IVB-40 in the municipalities of Narra and Sofronio Espanola, Province of Palawan.

The Toronto Nickel Properties in Narra, Palawan consists of two project areas formerly covered by Mining Lease Contracts PLC-V-550 and PJC-V-549. Both contracts expired on December 18, 1996, while Mining Lease Contract Nos. PLC-V-544 and 545 expired on September 16, 1996. Applications for renewal of the lease contracts were made by Olympic through conversion into an MPSA in compliance with the provision of the Mining Code of 1995 (RA 7942). The Toronto Mines has a combined area of 768 hectares, Parcel 1 has an area of about 192 hectares while Parcel 2 has an area of approximately 576 hectares.

Since the issuance of the Small-Scale Mining Permit to Olympic, a total of 20 hectares have been developed and opened for mining. An estimated 500,000 WMT of nickel ore valued at around Php600M has been produced by the previous contractor Platinum Group Metals Corporation (PGMC). On October 30, 2006, the Panel of Arbitrators Region IV-B cancelled the operating agreement between Olympic and PGMC due to gross violations and fraudulent misrepresentations made by the latter.

The operation of the Toronto Mines by PGMC also caused alarm among farmers in the affected areas due to the amount of silt and sediments from the mines that reached their croplands. As the site is now the responsibility of Citinickel, a letter dated June 14, 2007 was sent to the Environment Management Bureau (EMB) of the Department of Environment and Natural Resources (DENR) Plate 3-1. Aerial photo of Toronto Mines, taken last March 9, 2008.

Toronto Mining Nickel Project Chapter III-3 to allow the company “to institute urgent environmental protection and safety measures covering all disturbed areas in Block A of Toronto Mines to avert further degradation and potential damage to downstream farmlands and communities.”

A factual chronology of events is in Annex 1. All relevant legal documents are attached to Annex 1.

This Environmental Impact Statement (EIS) report is in preparation for Citinickel to take over operation of the Toronto Mines. This EIS will address the following concerns:

 Identify the initial environmental impacts and issues affecting the project;  Identify environmental mitigating measures for the protection and enhancement of the environment;  Recommend measures to ensure the social acceptability of the project.

If the EIS is accepted and approved and an Environmental Compliance Certificate (ECC) is granted, the company can immediately act on the adverse impacts of PGMC’s mining activities. The EIS also aims to identify and address other potential effects and issues affecting the environment while undertaking mining activities.

The EIS also has the following specific objectives.

 To determine and delineate the areas that will be influenced and directly impacted by the mining operations;  To identify the mitigating measures or alternatives to minimize, if not prevent, the adverse impacts; and  To present a preliminary environmental management plan.

The basis for the preparation of this EIS report are the studies done by Olympic for a small-scale mining permit (SSMP) that was granted an ECC paving the way for the PGMC operation of Toronto Mines, and the results of the very recent studies conducted by Citinickel for the EIS, Social Development Management Plan (SDMP) and the Environment Protection and Enhancement Program (EPEP) of Pulot Mines, located more than 40 kilometers away in Sofronio Espanola Municipality, and the Toronto Mines. Both mine sites are covered under the same MPSA awarded to Citinickel.

Also cited in this report are documents from major stakeholders secured by the Olympic- PGMC partnership for the SSMP operation, field studies on terrestrial and marine ecosystems, as well as review of historical meteorological information. Citinickel contends that these documents are significant and relevant because Olympic, a co-owner of Citinickel and holder of the MPSA that was later entrusted to Citinickel, went through the process and complied with all the requirements for an ECC for Toronto Mines.

Toronto Mining Nickel Project Chapter III-4

3.1.1 The EIS Team

The team of preparers is composed of specialists who have long years of experience in the industry, government service involving technical, public administration, legal and mining rights administration, formulation and implementation of environmental policies, and in the academe. Each member contributed their individual and collective experiences in the various fields and operations of the mining industry.

An EIA Team was organized to conduct the study. The members of the multi-disciplinary team are mostly practitioners, researchers and faculty members.

Members of the EIA Team

Team Leader Nori T. Palarca, BLA, MTLA, EnP Land Management/GIS Specialist Emmanuel M. Viado, BLA Water Quality Specialist Manny Capinpin, UP Terrestrial Fauna Specialist Reymar Reyes Castillo, PSU Botanist Ferdie Gaerlan , National Museum Marine Biologist Rene B. de Vera, BSU Meteorologist Raquel V. Francisco, PhD Air Quality Consultant Charlon A. Gonzales Soils Specialist Dennis Dolojan, DLSU Indigenous Peoples Specialist Jo Ignacio, ESI Process Documentation Specialist Martha Espano, UP Mining Engineers Vic Pulvinar, Alvaro Abenojar, Alexandrie Amadeo

3.1.2 The EIA Approach and Methodology

The Environmental Impact Statement System in the country emanates from Presidential Decree 1151, also known as the “Philippine Environmental Policy”. Since 1977, the preparation of an environmental impact statement (EIS) of any project or undertaking that have an effect on the environment has been mandatory for all national government agencies, government-owned and controlled corporations, private firms and entities.

The EIS system examines the direct and indirect impacts of a project on the biophysical and human environment and prescribes that these impacts are addressed by the appropriate environmental protection and enhancement measures.

The EIA Procedural Manual for DENR Administrative Order No. 30 Series of 2003 (DAO 03-30) provides a clear direction on the preparation of an Environmental Impact Statement (EIS). The document is a road map to ensure that EIS preparers are able to produce a useful and significant document.

Toronto Mining Nickel Project Chapter III-5

The study initially focused on a review of relevant materials and reports gathered by a team of researchers. Other relevant documents were reviewed, compiled and analyzed. The EIS Team conducted the following activities:

 Preliminary Scoping at EMB, DENR  Secondary data assessment  Second Scoping at Barangay San Isidro, Narra, Palawan with more than a hundred community leaders, representatives from NGOs, POs, religious groups, academe and other local functionaries in attendance.  Baseline data generation  Processing, analysis and interpretation of information  Identification of bio-physical, administrative/political, social, economic and environmental issues and concerns regarding the mining of laterite in Narra  Identification and formulation of appropriate mitigating measures aimed at addressing the environmental issues and concerns that the mining activities may cause

3.1.4 EIA process documentation

The EIA Process Documentation Report describes the participation of stakeholders, the processes by which their concerns and interests were ventilated and/or addressed and how these were articulated and addressed in the different stages of the EIA study.

The report covers the activities of the mining company in relation to the communities that will be affected by the mining operation in the municipality of S. Española, Palawan.

The report also makes reference to the Social Development and Management Plan (SDMP) and copies of the endorsements and/or agreements reached with concerned local governments during the previous operation that were secured from the mining company.

Stages of EIA Study Preparation

The activities leading to the preparation of the EIS involved Scoping, Baseline Study, Impact Identification, Impact Prediction, Impact Evaluation, Impact Mitigation and preparation of the Social Development and Management Plan (SDMP).

Scoping

The first meeting was held last EMB and a succeeding meeting with the broader stakeholders was held on 5 September 2007 at Barangay San Isidro, Narra. The first meeting was with the EIA Review Committee members and resource persons, the representative of the mining company and the EIS Team.

Toronto Mining Nickel Project Chapter III-6

The Review Committee touched upon the legal issues surrounding the proposed mining project, initially presented as one as the two mining projects of Pulot and Toronto, separated by about 50 kilometers, that are both covered by one MPSA granted to Citinickel. Discussions regarding the legal issues were deferred at the moment as a Committee has been constituted to address these.

The scoping session also touched upon the social preparation activities, with the Committee recommending that the proponent go through a new set of consultations as previous ones were done under an agreement between Olympic and its previous operator PGMC. Citinickel, stated that although is now the new owner and now in a position to make use of the results of the previous consultations, it is committed to conduct new consultations with the stakeholders in Narra.

The EIARC members and resource persons, representatives of Citinickel and the EIS Team signed the Scoping Checklist, thus signifying that the group agreed to the content/coverage of the EIS study.

The EIARC provided a copy of its comments to be considered in the preparation of the EIS. Among the comments expressed are as follows:

1. Multi-sectoral consultation concerning the following:  Selected NGOs  Selected POs  Selected religious groups  Farmers and fishermen groups  IPs and non-IPs ( you are free to choose whatever is appropriate for the consultations, ex. FGD) 2. Step-up information dissemination activities as part of the social preparation 3. Suggestion to include in the SDP, aside from activities for income generation/economic gains  Education - Environmental issues awareness (kaingin) - Scholarship for technical/vocational programs/degree programs - Skills training  Utilities and infrastructures 4. Programs for the enhancement of the culture of the indigenous peoples (IPs)  Micro-finance for crafts that IPs can sell  Program that highlight their culture 5. SDP which include health services for the the IPs 6. Resolution of the issue regarding the nearness of the mining site (more or less 1 km) to the two river systems that flows down into a dam (NIA loan project). Mining near the two rivers systems may affect the volume of water flow which are the source of irrigation to the farmlands downstream. 7. Consideration in planning the mitigation measure of the projects and during the mining operation of the project’s location within a watershed area.

Toronto Mining Nickel Project Chapter III-7

8. Discussion on the use of access road for hauling activities including the proposed jetty and its marine baseline data. Also discuss the mode of transport projected schedule of deliveries, number of vehicles, transportation route (with map) and the associated environmental impacts and mitigating measures (in table form),

The second on-site scoping/public consultations were held last 5 September 2007 at Barangay San Isidro, Narra. The activity was attended by a broad representation of stakeholders and officials from the affected areas.

The consultations at Narra were primarily to meet with the stakeholders and inform them of new developments regarding the change of ownership of Olympic Mining Corporation, former owner that brought in operator PGMC for the small- scale mining operation, and inform everybody about the conduct of the baseline data gathering activities. The research will be conducted by a group of scientists and specialists to establish baseline information on the biophysical, social, economic and administrative/political aspects relevant to the planned large-scale mining activity.

The following summarizes the activities during the visit in September 2007.

Secondary data research in Puerto Princesa and Sofronio Espanola

The examination of satellite images of Narra, with the location of the mine site indicated using the technical description in the MPSA, helped identify the primary and secondary impact areas. The activity validated that two river systems drain the mining site, both flowing southeast towards the Sulu Sea. Pinagduguan River drain the northwestern part of the area while the Balitien River drains the southeastern part.

Baseline data generation conducted within the watersheds

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 Conducted air quality assessments at the mining area, proposed mining road near existing households, at identified intersection with the national highway, and at the proposed stockpile and causeway area.  Gathered soil samples from selected sites for testing  Conducted assessment of the biological diversity at selected areas within the mine site watershed  Conducted the first public consultation attended by officials and representatives of barangay government, NGOs, community organizations, government agencies, women and tribal groups and the academe.  Conducted ocular inspection of the mine site and its infrastructures such as haul road, settling pond, stockpile area, etc.

The public consultations aimed for the following: o To share information on the current status Toronto Mines to the residents of San Isidro, Nara. o To gather updated information for the baseline survey o To solicit views, comments and concerns from the local governments, community, NGOs, POs, IPs, stakeholders and other interest groups.

A team from the Palawan State University, helped in delineating on the ground the primary and secondary impact areas, and worked with the EIS team in doing the faunal studies and gathering of soil samples. A team from the Bolinao State University collaborated with the EIS team to do the physico-chemical studies as well as the marine biology. Other members of the EIS team looked at the social information available.

The EIS Team also made use of the following documents:

 Latest Socio-Economic and Development Plans of the Municipality of Narra  The Initial Environmental Examination for Fenway’s Palawan Integrated Cement Project  RA No. 7611 or the SEP law for Palawan  Other documents provided by the proponent particularly the documentations on the dialogues and conferences conducted with the local officials, the indigenous peoples, the residents and other stakeholders.  Satellite images of the site

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3.1.5 Field Visits and Investigation

In applying for the small-scale mining permit, Olympic sent two members of the IEE team from February 23-25, 2004 and inspected the proposed mining site and shipping points. The visit conducted meetings, courtesy calls and project briefings with the Provincial Mining Regulatory Board (PMRB) of Palawan, the Palawan Council for Sustainable Development (PCSD) and the Office of the Provincial Environmental and Natural Resources Officer (PENRO) of the DENR in Palawan. A reconnaissance to determine the site’s environmental status and conditions was also conducted.

The Environmental and Natural Resource Officer (ENRO) of Palawan was briefed about the mining project to be undertaken. Likewise, the ENRO also briefed the team on the requirements of the PMRB for the speedy processing of the mining permit applications.

The meeting with the PCSD likewise focused on the discussion of the requirements for the mining permits. The team explained why small-scale mining permits are being applied despite the application for MPSA over the same areas and the need to expedite said SSMP applications.

The meeting with the PENRO was for the purpose of discussing the small-scale mining permit applications and the requirement for a certification on the track record of the proponents on environmental management and community relations. The OIC was also briefed about the project.

Field personnel of the proponent facilitated the field investigations and provided factual information about the conditions in the project area through dialogues and consultations with residents in the affected communities. Their familiarity with the area provided useful insights that guided the team. The information generated was turned over to the new owners by Olympic.

For the large-scale mining permit, the new owner Citinickel formed an EIS team that gathered biophysical, aquatic, marine and social information for the two mine sites of Pulot and Toronto covered under its MPSA. In Toronto, the EIS team made use of relevant secondary information together with updated information from CBMS, PCSD and the municipal and provincial planning offices. Specialists on water, air and noise quality, flora and fauna, marine biology and soil, among others conducted field study from October to November 2007.

3.1.6 Public Consultations

On September 5, 2007, a public consultation at Barangay San Isidro, Narra was held as part of the preparatory requirements of the Environmental Impact Statement (EIS). The proponent and the EIS Team, together with the representatives from EMB-DENR and members of the Review Committee, conducted the public consultation meeting with the local stakeholders of the Municipality, specifically with the leaders and residents of the seven puroks in Barangay San Isidro.

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The objectives of the activity are the following:

 To share information on the current status of the Toronto Mining Project with leaders and residents of barangay San Isidro, indigenous peoples, and representatives of community-based groups and NGOs of the Municipality of Narra;

 To solicit views, comments, and concerns from the leaders and residents of barangay San Isidro and representatives of community-based groups and NGOs, indigenous peoples, and other interest groups as regards the Toronto Mining Project.

Also in attendance were officials from EMB-DENR Regional Office 4B, from the CENRO of Narra, and the Palawan Council for Sustainable Development (PCSD).

Around 138 participants from the municipality, led by San Isidro’s Barangay Captain and her barangay council members, participated. Leaders from community-based groups like the farmers’ and fisherfolks’ associations, senior citizens’, women’s and indigenous people’s groups also came. People from the Poblacion, Teresa, Caguisan, Princess Urduja, and Antipuluan also attended. The presence of PGMC representatives who observed the proceedings were properly acknowledged by Citinickel.

The project and the process of environmental impact assessment were presented to solicit the people’s views, comments, and concerns. The participants were divided into workshop groups according to the organizations they represent. The following is a summary of the outcome of the group outputs. a. The hopes and expectations were centered on livelihood and basic services. (Assistance to agricultural workers and fishermen; educational assistance; livelihood assistance; Cooperatives focused on joint venture projects and water system projects) b. The fears/concerns were generally on the productivity of agricultural lands, and non-absorption of previous workers. c. The recommendations that the people submitted were immediate conflict settlement between the mining companies before project start up; the need for the endorsement from the barangay council; employment preference for former workers of PGMC; replanting of trees in the mined areas; work for senior citizens; and assurance to fisherfolks that marine life will not be affected

The following are the specific responses from the different sectors as regards their hopes and expectations from the project, their fears/concerns; and their recommendations. These were the written outputs during the workshop and were classified by sector.

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Table 3-1. Sectoral responses, San Isidro Public consulations Suggestions/ Sector/Group Issues and Concerns Expected Benefits Recommendations Barangay Council Ang endorsement ng Barangay Council sa PGMC ay hindi pwedeng gamitin ng Citinickel dahil alam po namin na PGMC ang inindorso ng barangay. Fisherfolks Group Dumumi ang tubig inumin Anong proyekto ang Assurance na hindi masisira and Alikabok maitutulong ninyo sa dagat Mawala ang lamang isda sa dagat mangingisda? Ang basakan kapag naabot ng laterite

Mang-u-uling Group Baka Pagdating na kayo na ang nasa posisyon, kaming mga datihan ng nagtatrabaho ay hindi na makakapagtrabaho. Baka mas mauna pang makapasok ang mga hindi taga San Isidro. Baka ang malapit sa sandok ang laging busog. Gusto lang po sana namin ay kahit isa lang sa pamilya namin ang makapasok na permanente. Senior Ctiizens’ After 25 years, ano ang mangyayari sa aming Pwede ba makapagtrabaho ang group mga magsasaka kung wala ng tubig ang mga senior citizens kung sakali aming mga basakan. sigurado na ang Citinickel mag- operate. Nangangamba sa darating na 25 years ay wala kaming mapakinabangan sa aming lupain dahil sa laterite. Tubig inumin. Bato-bato Multi- Ang pangamba po naming ay baka maulit na Maibibigay ng Citinickel na Handa ang kooperatiba na maki- purpose hindi mabigyan ng pansin ang aming livelihood sa cooperative na transact sa Citinickel Cooperative kahilingan tulad na nakaraang pangako. hindi nabigyan ng pansin ng Hindi po kami humihingi o nagso-solicit , kami PGMC tulad ng: po ay makikipaghanap-buhay sa inyo maliban sa pag-eempleyo. -water system ng barangay (potable water level III) to be operated and managed by the Cooperative. -joint venture project ng reforestation and rehabilitation. - food and rice supply for food security of all employees Farmers’ Group Nais po sana namin malaman kung ano ang Inaasahan naming na hindi Mabayaran ng tamang halaga ang inyong katugunan kung sakaling humina ang lang yong malapit sa sandok kasiraan ng basakan dulot ng ani ng bawat magsasaka dahil sa epekto ng ang mabubusog (ibig sabihin laterite na dumaloy mula sa mina. laterite. sana lahat ng taga-rito ay magkaroon ng trabaho na Tamang solusyon para masagot Baka masira ang palayaan. hindi putol-putol ang ang kakulangan sa patubig sa basakan. pagtrabaho Baka magkaroon ng problema kung mag- Ang mga scholars ng dating Sana magkasundo muna kayo ng ooperasyon na kayo ayaw namin ng gulo dito mina pag take-over ninyo iya- PGMC bago kayo magsimula ng sa aming barangay. absorb din po ba ninyo? pagmimina. Baka kung operasyon na kayo baka hindi Tulong sa magsasaka priority ang mga taga- San Isidro sa trabaho. Tulong sa edukasyon Ayusin ang mga irrigation system Magkaroon ng Level III na tubig inumin

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Suggestions/ Sector/Group Issues and Concerns Expected Benefits Recommendations Women’s Group Ang PGMC po ay maraming mga kabataang Na lahat ng taga-rito sa Palitan ng mga puno ang pinutol at pinaaaral, scholarship po, at nangangamba barangay San Isidro ay magkaroon ng katuparan ang po kami na baka hindi na nila maipagpatuloy magkaroon ng trabaho at inyong pangako. ang kanilang pag-aaral kung sakaling kayo na benepisyo ng mga workers. ang manunungkulan. Na sana ang lahat ng mga tao ditto Magkaroon ng trabahong sa barangay na qualified ay Baka may palakasan system. tuloy tuloy na pwede sa mga maaasahan namin na makakapag- kababaihan avail ng trabaho o ma-employ ng Ano ang mangyayari sa aming barangay kung Citinickel Mines. sakaling gumuho ang bundok. Baka matabunan dito. Workers’ Group Malupit na pamumuno Makatulong sa mahihirap na Extra job for the students (during mamamayan sa pag-aaral, vacation) Pagkasira ng pinagkukunan ng hanap buhay sa hanap buhay nh mga Job for women Hindi pagtupad sa mga kasunduan. magsasaka at mangingisda Hindi tamang proseso. Kaunlaran sa barangay Pagtaas o tamang pagbigay ng sahod sa manggagawa. Indigenous Peoples Masira ang kabundukan at wala na kaming Ang aming inaasahan ay Magtanim ng mga native na kahoy mapagkukunan ng kabuhayan. magkaroon ng trabaho sa kagaya ng Pine tree, Almaciga at pagmimina na naaayon sa Ipil tree aming kakayahan.

As most of the people are aware of the conditions they observe and experience from the previous mining activities, relevant inputs for the baseline study were provided. The participants affixed their signatures on the sectoral feedback and responses generated.

Barangay Captain Betty Ignacio thanked the guests who joined the consultation and the proponents who presented the project to the people. She added that it is the hope of the barangay that the consultation will bear positive developments, and that before the approval and start up of the agreements about the project, the two companies – Citinickel and PGMC have threshed out their specific concerns. She also mentioned the need for the people and the companies concerned to observe sobriety and respect for each other and finally, that the life and livelihood of the people will not be affected with the current situation of the two mining companies. Good relationship between Citinickel and the barangay will be maintained and observed.

The transcript of the Public Consultations is Annex 2.

The Attendance Sheet is Annex 3.

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3.2 Project Location and Accessibility

Toronto Mines is situated in barangay San Isidro, Narra in the province of Palawan. The application for mining permit lies within the area described by coordinates 9º 12’ to 9º 14’ N latitudes and 118º 14’ to 118º 16’ E longitudes. Narra is centered at 9º 12’ to 9º 14’ N latitudes and 118º 14’ to 118º 16’ E longitudes. It is 110 kilometers PROJECT SITE along the National Highway south of Puerto Princesa City, which is about 55 minutes via direct flight from Manila. From the city, the mine area is accessible by buses, jeepneys, commercial vans or rented vehicles. From the national road, an old access road of about 5 kilometers can be traversed to reach the minesite. Due to current conditions in the area, hiking is the appropriate way to reach the site. Plate 3-2. Map of Palawan indicating proposed mine site.

Geographically, the Toronto Nickel Mines is bounded by 9°12’48.89” to 9°14’50.09” north latitudes and 118°15’44.011” to 118°16’36.43” east longitudes covering approximately 768 hectares. Most of the mine area is within Barangay San Isidro, Narra. The following provides the geographic coordinates of the Toronto mining parcels in San Isidro. The locations of these parcels are in Plate 3-3 on page III-14.

Table 3-2. Mining Parcels of Toronto Mines, San Isidro, Narra, Palawan Parcel 1 Corner Latitude Longitude 1 9°’14’50.091” 118°15’44.011” 2 9°14’50.091” 118°14’51.590” 3 9°14’07.010” 118°14’51.590” 4 9°14’07.010” 118°15’17.800” 5 9°14’33.050” 118°15’17.800” 6 9°14’33.050” 118°15’44.011” Parcel 2 Corner Latitude Longitude 1 9°13’40.97” 118°16’36.430” 2 9°13’40.97” 118°14’51.590” 3 9°12’48.89” 118°14’51.590” 4 9°12’48.89” 118°15’44.011” 5 9°12’22.85” 118°15’44.011” 6 9°12’22.85” 118°16’10.220” 7 9°12’48.89” 118°16’10.220” 8 9°12’48.89” 118°16’36.430”

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TOPOGRAPHIC AND BATHYMETRIC MAP Toronto Nickel Mining Area, Narra, Palawan Narra Poblacion

Road

River

Mine Site

Toronto Mines

San Isidro

Plate 3-3. LOCATION OF TORONTO MINES on Topographic and Bathymetric Map, Toronto Nickel Mining Area, Narra, Palawan

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PARCEL 1

PARCEL 2

Plate 3-4. Primary Impact Area, Toronto Mines

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3.2.1 Primary Impact Area

This impact zone covers areas where project facilities or infrastructures will be located, such as buildings, drainage, irrigation, access roads and other utility areas. This zone may include:

 Areas where there will be displacement of settlements or livelihoods  Areas directly vulnerable to potential flooding or inundation that may be caused by the project  Areas along main tributary downstream of the river system that will be the receiver of waste discharges  Areas where there will be disturbance of habitat of endangered species  Catchment area of river system or watershed  Ancestral domain of indigenous communities that may be directly affected by the project

The Toronto Mines is located in an area of moderate relief with flat to gently rolling ridge tops at elevations ranging from 100 to 472 meters above sea level. The site is on a plateau at 450-meter elevation covered with secondary growth vegetation and grassland of minimal or no commercial value. There are no residential structures seen in the area, and without any noticeable agricultural activity.

The Northern block of Toronto mine is traversed by the Pinagduguan River. Part of the southern block is likewise drained by the river. The river’s tributaries and main channel drain southeast to the east and discharges to the Sulu Sea. The south flowing Baliti-en River and its tributaries drain the area on the southwestern side. The tributaries of the Pinagduguan River, which also flows southward, drain the area on the eastern side. Both the Baliti-en and Pinagduguan Rivers empties into the Sulu Sea.

The areas within the watershed of the two river systems comprise the primary impact areas of project. Areas along the rivers that can be reached by the highest water line will experience the immediate impacts of any alterations in the upstream areas, and also fall within the designated primary impact zone.

In addition to the primary impact zone within the vicinity of the river systems, additional primary impact areas are on both sides of the hauling road that will link the mine site to the stockpile and drying area and causeway. A new haul road of about 5 kilometers from the mine site to the national highway and another 1.5 kilometers to the stockpile area and causeway will be constructed. Downwind areas where dusts and other potential contaminant rendered airborne by the mining activities and the wind are also considered under the primary impact areas.

The primary impact zones include the areas within the flood plain of the Pinagduguan and Baliti-en Rivers, the immediate vicinities on both sides of the hauling road, the stockyard, loading area and pier/causeway. The Primary impact area includes the immediate vicinity of the mining site, along the whole length of the hauling road, on areas reached by the highest water line of the two rivers, as well as the site for the proposed Toronto Nickel Mines pier.

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3.2.2 Secondary or Indirect Impact Area/Zone

This refers to the influence area of the project that could be indirectly affected by the proposed development, and may include areas in the vicinity of the direct impact zone, such as:

 Communities or settlements outside the direct impact zone which can also be benefited by the employment opportunities created by the project  Sub-tributaries of the river system which can be indirectly affected by pollution  Areas where water sources will be directly affected by the drawdown in the direct impact area

Within the watershed, the areas higher than the elevation of the two rivers constitute the secondary impact zone. In addition, the communities located outside the boundaries of the two watersheds but has territorial jurisdiction over the mine site also are considered part of the secondary impact zone. This is barangay Teresa. The secondary impact area covers the barangays located beyond the primary impact areas but lies within the watershed of the two river sytem. These are Barangays Teresa, Calategas, Urduja and Batang-Batang, all in Narra Municipality.

The primary impact zone can be seen in Plate 3-4.

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3.3 Project Rationale

The Philippines is one of the world’s most richly endowed countries with respect to mineral resources. It is fifth among the most mineralized countries, ranks second in gold, third in copper, and established to possess about 20% of the world’s nickel resources.

Plate 3-6. Regional Map of Asia

The mining capacity in the country is underutilized. Of its 30 million hectares, 9 million are identified to have high potential for mineral deposit. The U.S. Department of State claims that the Philippines has an estimated $840 billion of untapped mineral wealth. According to the The Resource Information Unit (Register of Pacific Mining 2000), the Philippines is second to Indonesia in the Asia Pacific Region in terms of mining potential. However, as of September 23, 2004, only 473,373 hectares have been covered with existing mining rights.

In the mid-60s, the country was one of the key players in the global mining industry being one of the biggest producers of gold, copper, chromite, and nickel. This trend continued to the mid-80s when mining contributed as much as 2.5% of gross national product (GNP) and 20% of the country’s exports.

By the mid-80s until 1999, a decline in international metal prices attributed to rising environmentalism, high operating and production costs, low foreign investment, political instability, labor problems and natural disasters (Mt. Pinatubo eruption, earthquakes and

Toronto Mining Nickel Project Chapter III-19 typhoons) led to the decline of the mining industry. At the turn of the century, the mining industry in the country accounted for only less than 2% of GNP and export receipts.

PROJECT SITE

Plate 3-7. Geological Map of the Philippines

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Table 3-3. Summary of Economic Contributions of the Minerals Industry for 2003 Production value - P41.5 Billion Value-Added Contribution - P17.9 Billion or 1.5 % of Phil. GDP Exports - US$638 million or 1.8 % of total Phil. exports Approved FDI in mining – P855 Million Employment - 104,000 Wages and benefits - P4 to 5 Billion Taxes and fees - P2 Billion Multiplier effect - For each mining job, 4 to 10 allied jobs are created upstream and downstream Source: Mines and Geosciences Bureau – Briefing Kit on the Philippine Minerals Sector 2004

The administration of President Gloria Macapagal-Arroyo is optimistic about the mining industry and has declared it as one of the focal areas in the 2004-2010 Medium-Term Philippine Development Plan. The plan states that the industry could be the vehicle for generating employment and reducing poverty, but must be done responsibly with due consideration given to the environment and to the indigenous communities.

In January 2004, President Arroyo released Executive Order No. 270, putting in place the Mineral Action Plan (MAP). The MAP Policy Agenda states that:

 Government recognizes the critical role of investments in the minerals industry for national development and poverty alleviation and shall provide support mechanisms for a sustained mineral exploration program. This includes the streamlining of procedures of concerned government agencies and instrumentalities relating to the grant of mining tenements, responsive research and development priorities and capability building for industry manpower.  Clear, stable and predictable investment and regulatory policies shall be instituted to facilitate investments in mining, leading to a prosperous minerals industry.  Value-adding as a measure of optimizing benefits from minerals shall be pursued through the development of downstream industries to achieve greater productivity and efficiency.  Small-scale mining shall be promoted as a formal sector of the mineral industry and as part of the development initiative for both downstream and upstream industries.  Efficient technologies shall be adopted to ensure the judicious extraction and optimum utilization of non-renewable mineral resources to enhance sustainability.  Protection of the environment shall be a paramount consideration in every stage of mining operation; mitigation and progressive rehabilitation measures shall be integral components of mining operations. Decommissioning and/or final mine rehabilitation shall be supported by the most appropriate environmental surety.  The ecological environmental sustainability of areas affected by mining operation (including biodiversity resources and small island ecosystem) shall be safeguarded in order to protect public welfare, safety and environmental quality. The rights of affected communities, including the rights of indigenous cultural communities, especially the free and prior informed consent requirement shall be protected.  Mining operations shall be pursued within the framework of multiple land use and sustainable utilization of mineralized areas.  Remediation and rehabilitation of abandoned mines/sites shall be accorded top priority to address the negative impacts of past mining projects.  The economic and social benefits derived from mining shall be equitably shared by and among various units of government, as well as the affected communities.

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 Sustained information, education and communication campaigns shall be vigorously pursued, jointly with the industry and stakeholders, about the minerals industry for purposes of enhancing public awareness and respect for the rights of communities, and reaching informed decisions on mining and related projects both at the national and local levels.  Continuous and meaningful consultation processes with the industry and all other stakeholders shall be instituted to integrate concerns on minerals in resource management policy and planning.

Consequently, the government laid the groundwork for the development of 24 large-scale mining projects that was estimated to bring in $4-6 billion dollars in investments and more than 200,000 forms of direct and indirect employment.

Nickel Mining in the Philippines

The Philippines produced approximately 59,139 tons of primary nickel in 2006. There are 4 medium-scale nickel mines (Palawan Project of Rio Tuba Mining Corp., Cagdianao Project of Cagdianao Mining Corp., South Dinagat Project of Hinatuan Mining Corp., and Taganito Project of Taganito Mining Corp.) and one nickel production plant – Coral Bay Nickel Corporation in Bataraza, Palawan.

In 2006, the Phlippines shipment of nickel ore to China reached 3.34 million tons – an increase of 11.6% from 2005. The amount supplied 88.5% of China’s imports of nickel ore. China’s nickel producers have found the low-grade nickel ore of the Philippines to be more cost efficient than those of competing other countries, specifically Australia.

International mining company Crew Gold estimates that the Philippines has 20-25 million tons of nickel in its soil.

Nickel Market Outlook

Nickel is a base metal used in the production of stainless steel, super alloys, electroplating, batteries, coinage, magnets, etc. According to the London Metal Exchange, approximately 65% of primary nickel goes to the production of stainless steel. In 2006, 1.3M tons of primary nickel was produced globally.

Nickel prices have risen from $2/lb in late 2001 to $20/lb as of June 2007 – a 900% increase. The surge in nickel prices can be attributed to the growth in the demand for nickel and the simultaneous shortfall in supply.

The reason behind the surge in global demand for nickel is China’s booming production of stainless steel. In 2006 alone, China produced 3.6M tons of stainless steel – a 68% increase from 2005. China’s production of stainless steel and other uses of nickel translated to 200,000 tons of primary nickel consumption for 2006.

Year 2000-2005 figures illustrate the growth of China’s nickel consumption. During this period, stainless steel production increased by 47% and nickel consumption increased by around 130,000 tons.

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On the supply side, despite the 66% increase in global nickel production in the past 12 years, nickel supply has yet to catch up with demand. Delays or significant revisions in the capital costs of large-scale nickel mining projects have contributed to the disruption in supply growth. These include the BHP Billiton Ravensthorpe project, forecasted to produce 50,000 tons of primary nickel annually, and the CVRD Goro project in New Caledonia.

Limited availability of resources, lengthy regulatory processes for resource production, exhausted machinery, and the difficulty in securing machines and people, are some general factors that contribute to the lagging growth in nickel production. In fact, nickel production fell short by 70,000 tons in 2005, and as of the 4th quarter of 2006, production was short by approximately 60,000 tons.

China’s production of stainless steel is projected to reach 9M tons for the year 2010. Consequently, China is expected to consume 400,000 tons of nickel annually by the year 2010.

Furthermore, the projected annual production of 3 million hybrid cars by 2010 will translate to a consumption of approximately 30,000 tons of nickel. Nickel metal hydride batteries in hybrid vehicles contain 8-10kg of nickel.

In the meantime, research firm Canaccord Adams recently forecast nickel supply to fall short of demand by 13,000 tons this year, 28,000 tons in 2008, and 17,000 tons in 2009. Increase in capital and operating costs and the more challenging extraction of lateralite ore bodies will impede any significant increase in nickel supply. Moreover, limited tolerance for lower grade stainless steel will offset the threat of stainless steel substitution and demand destruction. Hence, the market deficit is expected to stretch for at least 3 more years.

With a current worldwide demand and high prices, a clear opportunity to revitalize the mining industry is in the Toronto Nickel Mining Project. The mines will capitalize on the favorable world market growth without necessarily losing sight of sustainable mining operations. The mines will be a source of raw materials to produce nickel and associated mineral commodities in high demand among developed and industrialized countries.

Large scale mining operations guarantee additional income to local and national governments, provide employment opportunities to residents of its host community, and can usher in an accelerated community development program that is reinforced by revenues realized from the area’s natural resource. It is expected that the communities within the mining sites’ area of influence will benefit from this undertaking.

Large scale mining operations also mean upsetting the natural equilibrium currently obtaining in the area and effectively disturbing a large part of the territory. However, the mining company is tasked, and will undertake progressive rehabilitation and restoration of the mined-out and other affected areas by applying various mitigating measures in anticipation of the undesirable effects and impacts of mining. These measures will be laid out in consideration of the factors and forces at play before, during and after mining operations, identified and implemented through collaboration between the company, local governments and host communities. Monitoring activities involving those directly affected will be instituted, with the mining company putting in place an Environmental

Toronto Mining Nickel Project Chapter III-23

Protection and Enhancement Program (EPEP) to adequately address the felt and expressed environmental issues and concerns.

The project is about extraction of laterite by open pit mining methods. An evaluation of the Narra nickel deposit by Queensland Nickel Inc. (QNI), an Australian exploration company, delineated a reserve of 11 million metric tons of laterite and saprolite ores.

3.4 Project Components

Toronto Mines, previously operated by PGMC, is already developed with a road network and working benches. A 5-kilometer haul road has been established towards Block B. Citinickel has not done any mining activity in the area since the PGMC operating agreement was cancelled by the Panel of Arbitrators last October 30, 2006. The following illustrates existing development in Toronto Mines.

Plate 3-7A. Existing Development in Toronto Mines

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The most suitable and common method for extraction of a lateritic ore deposit is by contour mining. This is accomplished by clearing the area to be mined, developing a strip cut to form a substantially horizontal bench and a vertical high wall that exposes the mineral deposity to be mined. Mining sequence follows the surface contour line of the deposit. For Narra, mining will be by benching method. The mining development program is as follows:

 Construction of access roads to augment/modify existing old mine roads  Clearing of the ore zone of shrubs and brushes or trees  Stripping of overburden and construction of access ramps  Bench mining  Construction of solar drier near the loading port

Existing old mine roads used during the early exploration activities will be repaired or modified with the construction of new ones and improved access to the mining areas. The area where the ore occurs will then be cleared of shrubs and brushes or trees. This activity, however, will be limited only to the area to be worked on. The overburden will then be stripped and the wastes temporarily dumped on level surfaces away from slopes. These wastes will be replaced on the mined-out areas during restoration and rehabilitation.

Next to be undertaken will be the construction of access ramps as mining progresses. Once the overburden is removed and access ramps provided, mining of the laterite ores by benching follows. Mined ores will be temporarily stockpiled on level surfaces to allow drying before hauling to the loading area by dump trucks. At the loading point, drying areas will also be constructed and the ores dried to the specified moisture content. Only then will the ores be loaded to the ship. Transporting of the ores to waiting ocean-going vessels docked away from the shore will be done by LCTs.

3.4.1 Plan of Operations

The general plan of operations covers pre-production, production and mine closure stages. Pre-production activities practically involves all development works consisting of rehabilitation and improvement of main haul roads and interior mine network, construction of offshore loading facility and ore stockpile yards, construction of drainage systems, primary and secondary silt ponds, filter and check dams, development of mine and offshore loading camps, construction of assay laboratory and exploratory works such as confirmatory and infill drilling in blocked areas and regular exploration works in unexplored areas.

The operations shall be confined in the production of ore only with possible size reduction of hard saprolite and garnierite. The company has no plan to invest in either hydrometallurgical, pyrometallurgical, sintering or pelletizing operations. The production stage involves stripping of overburden, ore-waste grade control, excavation, loading, hauling, stockpiling, drying, blending, offshore ore transport to bulk ocean vessel.

Post mining activities involves soil cover backfilling, re-vegetation covering and post environment protection and control activities.

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3.4.1.1 Pre-construction phase

Pre-construction covers activities with corresponding environmental protection measures, such as in the following:

 The minimal cutting of trees/vegetation on site in setting the grid layout of the drill holes will be observed. To maintain the line of sight during the survey, obstructions like big trees will be avoided by off-setting.  During initial exploration, manual methods and/or those that require small trails/access roads, with less cutting of trees and vegetation while providing more mobility will be used.  Smaller drill rigs will be preferred over huge mechanical drills as these require smaller access roads and are lighter to transport by air.  Access trails or road networks will be properly planned/designed to keep the total length to what is necessary and help limit the area to be disturbed;  Route selection will be carefully studied to identify road alignments that most likely will be retained to minimize duplication of access roads;  Steep terrain where erosion and sediment control will be a problem will be avoided in laying out the road.  Suitable areas for storage of road construction materials and topsoil stockpiles for mine restoration/rehabilitation will be set aside.  The stockpiles will be located near ridges or away from gullies to minimize the need for drainage diversion works and the potential for stockpile erosion.  Road construction side slopes or batters will be designed to attain geotechnically stable slopes.  Re-vegetation of the fill portions will be applied in cut-and-fill techniques areas of the road.  Drainage along roads will be installed such that surface water from areas higher than the road does not collect or run on the road surface. Where roads are permanent, drainage culverts will be provided with sediment traps at the inlet and allow water to be discharged into natural drainage away from the road.  Velocity control weirs and/or sediment traps will be installed in areas of steep gradient or long slopes to minimize erosion and remove suspended sediments. Settling ponds and/or filtration dams to be provided downstream of road or gully/stream discharge will also help remove suspended sediments.

Public Consultations and Endorsements

Tribal communities, local residents and government units will be consulted regarding the acceptability of the Toronto Nickel Mining Project and its Social Development and Management Plan (SDMP).

Survey works

The whole area covered by MPSA of CITINICKEL shall be surveyed in compliance with the law. This includes detailed topographic survey of mine sites, survey of mine roads, interconnecting mine roads and proposed causeway and offshore loading facility.

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Exploration

The inferred reserves will be part of CITINICKEL’s 2-year Exploration Work Program for Toronto Mines. Test pits and infill drilling will be done to delineate the extent of the deposits and guide future mining development and production operations. Establishing the possible presence of chromite deposit underlying nickel and other ores will also be part of the exploratory targets, should there be indications that may require such work.

During exploration stage, only the areas necessary for the construction of access roads and drill sites will be cleared of vegetation. Where it is possible, the organic rich topsoil will be stripped from these cleared areas and stockpiled to be re-used during mine rehabilitation.

Where applicable, exploration access roads cut into the side of the hill will be applied rather than the cut-and-fill method. This method provides a more stable road base because the lower hill slope is undisturbed and capable of diverting surface water from disturbed areas into either vegetated sites or collection and treatment facilities before it is discharged downstream. A natural embankment on the downhill side will be provided, the height of which will be related with the maximum size of vehicle that will use the road.

All excess cut materials from road construction will be collected and stockpiled in designated places. Permanent road embankment batters will either be rip-rapped, reinforced with rock armor or vegetated to prevent/minimize batter erosion.

Previous exploration activities were done by OMDC in collaboration with foreign exploration companies. Priority areas were done in detail while those with very good ore potentials underwent semi-detailed exploration. The latter areas, together with other unexplored areas, will be subject to further examination.

3.4.1.2 Construction phase

The site has been subject of small-scale mining activities and developed by PGMC until it was ordered to stop operation by the DENR. The actual mined area is still subject to validation. Mining site investigation by the EIS preparers in 2007 was stopped by security guards of PGMC.

MINING METHOD

The undulating topography of the mine areas, situated at the elevated portion of San Isidro, dictates that mining will be done either by simple contour bench excavation down to bedrock, by quarry-type operation allowing the selection of ore from within less mineralized laterite, or a combination of the two methods.

The laterite deposits in the project sites are in low profile terrain and are best excavated by the bench and contour method. Benches will be cut to a maximum height of three (3) meters with a berm width wide enough to provide safe passage for two (2) dump trucks. Benches will be cut starting from the lowest elevation upwards following the contour, with access ramps provided at appropriate sections. The walls

Toronto Mining Nickel Project Chapter III-27 will be kept geotechnically stable by maintaining a slope of not more than 30o in limonite and 40o in saprolite deposits. Hydraulic backhoe excavators, front-end loaders and dump trucks, bulldozers and/or scrapers will be used for ore extraction.

Generally, the ore to be mined is soft that blasting is not required. This condition of the ore will allow the limonite/saprolite to be mined down to the bedrock contact.

HAUL AND ACCESS ROAD

The ore will be brought to stockpile areas, where it will be sorted out and dried, through the all-weather main haul road. The 12-meter main road will have shoulders and drainage lines on both sides, and shall be properly used and maintained to make it available all-year round. The road shall have an average grade of 8% with a cross-fall of about 2%, enough to drain surface water from the road centerline.

Pilot roads to new exploration sites shall be constructed on a quarterly basis. These roads will have a width of at least 5 meters while mine haul will have 8 meters carriage way. All roads will be constructed higher than the existing grade for a more efficient drainage and guarantee continuous use under any weather condition.

The equipment to be used are bulldozer, back hoe, grader, wheel loader and dump trucks.

Once the roads are in place, the ore zone to be mined will be cleared of existing shrubs, bushes, trees and other vegetation. The overburden consisting of topsoil and/or waste materials will be stripped using hydraulic excavators or shovels. The process will expose the ore deposit.

ORE STOCKYARD

There will be two ore stockyards located in two areas, one near a suitable and flat area in the mine site and another at the barge loading facility or pier site..

The stockpile area will be on a flat terrain that does not collect water run-off. Stockpile slope is 30 degrees or lower in order to ensure its stability.

Dumping

In surface mining operation, overburden materials will be generated and these need to be dumped somewhere. The creation of dumps in areas that are to be mined yet (referred to as out-of-pit dump) will be prevented through proper site selection for the overburden material. In-pit dumps will be preferred to reduce the total disturbed area thereby limiting areas susceptible to erosion and/or to be rehabilitated.

During the initial stages of operation, some out-of-pit dumping may not be avoided. These will be located in flat or shallow valley areas. If gullies or creeks are to be used, the company will see to it that the upstream catchment area will either be: small as possible; or, the gully used is dammed with rocky and steep sides.

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In areas where rainfall and erosion potential is quite high, overburden dumps will utilize the bottom-up design as ensure the lowest closure cost and enhance the implementation of sustainable mining practices. Progressive re-vegetation of disturbed areas can be realized with this design. To minimize erosion and sedimentation downstream, the dumpsite construction will take the following into consideration:

 Settling and/or filtration dams will be constructed downstream of the dump toe and under-drainage discharge points;

 An under-drain of screened waste coarse material that can be used as the access road for trucks disposing of the overburden materials will be laid across the base of the dump or on one complete side of the dump. The under-drain could also divide the dump in half through its axis, or serve to dissipate infiltrated waters from within the dump.

 Drainage lines from areas above the dump will be diverted and directed through settling and/or filtration dams or ponds before being discharged downstream. The diversion line will be designed to efficiently control runoff volume without overflowing

 The limits and extent of the catchment area will be determined and delineated on a map to calculate the maximum amount of rainfall run-off to manage.

 The final top surface or crest of the dump will have a slope of 2% minimum but not to exceed 4% from the front to the rear to drain surface water runoff.

 Steep dump slopes will be provided on the protruding dump benches and the final dump crest. The construction will allow water to flow along the benches.

 The base and the slope against which the dump is to be supported will be cleared of any vegetation to avoid the formation of voids at its base that later will become drainage paths for infiltrated water, causing environmental and dump stability problems.

 To ensure the continuity of the under-drain, coarse materials for the drain will be laid before the fine-grained overburden.

 A high toe bund will first be constructed out of the coarse-screened reject material at the front of the dump; the under-drain will then be constructed up to the toe bund.

 The waste overburden material will be dumped in piles and then spread by a bulldozer in a single layer of about 5 meters thick or in three successive layers of about 1.5 meters thickness

 The front wall of subsequent higher layers will be set back from the lower layer front wall in a stepped fashion to keep the 30o from the horizontal, and;

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 The vertical height of the dump will not exceed 40 meters unless greater height is geo-technically possible.

3.4.1.3 Operational phase

As mining activities have been done at a relatively bigger than the small-scale operation permitted, the installation of protective and corrective measures in the disturbed areas becomes an important and immediate action to take. This will prevent further environmental degradation like landslides, siltation, severe surface run-off generation in areas stripped or devoid of vegetation, erosion in unstable slopes and/or contamination of tributaries and rivers. The granting of an ECC will pave the way for Citinickel to institute measures to assess and address these immediate environmental concerns.

Once the ECC is issued to CITINICKEL, existing mine roads and other interconnecting roads will be rehabilitated and improved. This will be followed by pier construction, campsite and open pit development works based on an approved 3- year Work Program and Mine Development Plan.

Mine development will commence with the clearing of secondary growth and stripping of overburden to reveal the ores. The stripped overburden material will be temporarily dumped and compacted on depressions and flat ground away from natural slopes to be used for future rehabilitation and/or restoration of mined out areas. Clearing of vegetation and stripping of overburden shall be limited to programmed areas to minimize impact on the environment. Areas for stockpiling will be within the site and near the loading pier.

Settling ponds, silt traps, concrete weirs, and check and filtration dams will be constructed before the production phase commences. Reinforced concrete pipes and/or box culverts will be used where roads and waterways cross to prevent any overflow, inundation of slopes, embankments and road surface. Concrete lining, weirs or rock facing will be installed on soft to medium ground materials directly exposed to erosive water flow.

DRAINAGE CANAL

As the site’s topography favors surface drainage, the pit will be free-draining throughout its minelife. Water channels or drain canals (0.4m wide x 0.4 m deep) will be constructed along the mine haul road and mine benches to direct surface run-off to strategically located silt ponds. This will prevent siltation along the river and creek channels that flows towards agricultural plains of San Isidro. SILT TRAPS (ROCK FILTER)

Run-off water will be filtered of total solid particles (TSP) with a series of Silt Traps 1 meter wide by 5 meters long and about 1.5 meters deep. A section of the silt trap will be covered by gravel materials, preferably G-1 (40mm rocks) to act as rock filter. Clear water will flow out as solid particles will be trapped inside the ditch. It will be located along the drain canal every 150 meters, or whenever necessary. SETTLING POND

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The run-off water from the silt traps and ditches will eventually drain towards a settling pond for final filtering and decantation of solid particles before it can be released to the rivers and creeks. The number of silt ponds to be installed will be determined once detailed survey of the area is done. Water from upstream of the quarry area will be diverted to the settling and/or filtration dams/ponds before it exits the site. This will help minimize erosion of quarry walls and reduce the volume of generated water from the quarry. Quarry water will be collected and be re-used on site for dust suppression. When water is discharged into settling and/or filtration dams or ponds, the suspended sediments will settle at the bottom and can be removed, thus allowing only clear water to be discharged into creeks and streams.

A buffer zone around the site will be installed during mining excavation. This will help prevent run-off from the mined sections from entering the undisturbed areas and cause erosion and sedimentation. Likewise, the vegetation in the buffer zone will not be disturbed to prevent erosion.

In most cases, the management of surface run-off deals with the understanding and control of the transportation and deposition of soil particles and suspended solids. Sedimentation in downstream areas can be controlled with the use of any of the following options:

 In-flow mine control. This prevents the build-up of fast moving surface runoff from the mine site and on roads to help control the generation of water- borne sediments. This is achieved by providing several settling ponds/silt traps in mined/disturbed areas instead of constructing one large pond or dam outside the area. A combination of settling ponds and filtration dams will be utilized in times of very high rainfall to ensure that the filter dams will contain the sediments and help prolong the life of the filter.

 Upstream velocity/direction control structures. Control structures such as velocity weirs on roads of steep slopes and in narrow, small cross road drains and “speed bumps” limit the volume of water leaving the minesite. Installation of these structures will direct run-off into settling ponds or filtration dams, or both, and help minimize erosion and sedimentation especially during heavy rains.

 Filtration dams. These structures allow the passage of water through some form of filter to trap the large particle materials. The fine suspended sediments generated during mining of laterite will be effectively removed by filters consisting of well-graded gravel and/or fine sand laid out in the dam.

 Settling ponds. Settling ponds lower water flow velocity and allow the sediments and other water-borne solid particles to settle at the bottom. These ponds will be well-designed and periodically maintained, provided with an overflow to allow clarified water to discharge to existing water courses, or a storm bypass flow to avoid re-suspension of collected sediments. Access to the pond will be maintained to allow periodic dredging as well as in flushing out the pond during heavy rains.

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 Buffer Zone. A 20-meter wide buffer zone will be left undisturbed in the mine site, especially along river banks and drainage channels. This will not only prevent surface run-off entering the minesite from higher areas, but help control erosion and siltation as well. This zone will be covered with vegetation, with slopes further stabilized by either benching, lowering of slopes, rip-rap or with drainage channels.

The mining operation also includes the management and handling of several support facilities like the mine camp, the workshop, fuel storage, and field laboratory. These support activities often contribute to and/or become the source of environmental risks. For instance, waste fuel, solvents and oils are often generated and their improper disposal poses a threat not only to the site’s environmental integrity but also to mine workers and residents of the affected areas. It must be noted that the proposed mine production will not involve ore processing, so it is expected no other hazardous chemical wastes will be generated.

To avoid or minimize the possibility of spillage, the company will make sure that the containers where the fuels, oils, lubricants, etc., are temporarily stored are leak-proof and secured to avoid any contamination of the surroundings. Spilled liquids will be recovered and disposed off properly at authorized disposal sites where they are prevented from infiltrating the soil or be carried by wastewater into surface water channels.

The direct discharge of contaminated wastewaters will be prevented with the use of an oil and sediment separator. The separator will be regularly inspected and cleaned, and the sludge wastes disposed off at authorized sites. Similarly, solid wastes will also be collected, placed in containers and appropriately disposed off. Contaminants from the field laboratory, possibly as waste water and/or used/spilled reagents will be handled in the same manner.

3.4.1.4 Abandonment Phase

Company activities in the mined-out areas will not stop even after the mining operation. Restoration and/or rehabilitation of affected areas constitute a major part of the company’s commitment to bring the affected area’s former condition.

The rehabilitation/restoration activities of the disturbed areas shall focus on stabilizing the altered landforms to mitigate, if not prevent excessive erosion. Slope stabilization and protection measures like immediate re-vegetation, riprapping or rock armoring will keep the replaced soil and allow natural seed collection and propagation. Raindrops dislodge soil particles but this will be kept at a minimum as the mitigating measures are designed to reduce surface run-off flow velocity as well as broaden water flow path. Whenever the opportunity arises, all disturbed areas will be progressively re-vegetated and completed during the mining operation.

The stockpiled topsoil will be replaced and spread directly over the exposed mined- out area to ensure successful re-vegetation. The topsoil that was set aside during stripping operations retains significant amounts of organic material, like seeds, that lay dormant until the appropriate conditions for regeneration is attained. This activity will generate savings as the plant materials naturally found in the topsoil are difficult

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and expensive to obtain through artificial means. The stockpiled topsoil remains the richest source of natural seed stock of endemic plant materials for the mine-out areas.

Another factor to consider for this phase is the post mining land use that must address community needs. The land use for the area must be consistent with local plans and development trends, and designed with the users and stakeholders. The active participation of local leaders and the communities in the planning activities will provide a sense of ownership for those who will be left with what remains of the area. Consideration and adoption of user recommendations can ensure the area’s suitability for future use.

The company’s Abandonment Plan will include recommended actions on the disposal of corporate infrastructures on site. An option is to transfer to the community those that the company will no longer need. It is company policy to provide due compensation for all environmental damages and disturbances caused by the mining operation.

3.4.2 Mine Development Works

A. Main Haul Road Rehabilitation and Improvement

The main haul road is vital during the development stage and production of ore. It shall be an all-weather type with a maximum 12-metre width inclusive of open canals on both sides. It shall be free from the effects of flood and any kind of obstruction and will be available all-year round. For safety and equipment maintenance considerations, the road shall have an average grade of 8%, making it self draining.

Open canals will have a width range from 0.5 to 1.5 meters equipped with sump as silt trap. Culverts and concrete beds/linings will be provided in portions where soil is traversed by these canals. Sub-surface cross-drainage systems will be provided at strategic points along the length of the haul road.

Steeply dipping embankments shall be lowered to prevent slides and slips. Those with loose and unconsolidated formation shall be provided with rip-rap.

B. Mine Haul Road

The existing mine haul road would not be able to serve and sustain the production target as programmed for the site. The existing road’s steep slope and unfavorable ground at which it was cut through makes it unsafe to use, especially during heavy downpour or during the wet season. Since the mine haul road is vital for the delivery of nickel ore to the pier throughout the year, it is imperative to transform this into an all-weather road to ensure that annual production targets and commitments to foreign clients are met.

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Table 3-4. Features of the Mine Haul Road MAIN HAUL ROAD FEATURES Olympic Road Length:5.5 km (from Toronto Mine to National Highway); Width: 12 m; No. of Bridges: 1; No. Major Cross Drains: 16 concrete box; Works Required: Development, rehabilitation and improvement Pier Road Length: 1.0 km (from National Highway to Pier – Ore Stockyard); Width: 12 m; Major Cross-Drains: 6 concrete box type; Work Required: Rehabilitation and improvement

The main haul road shall be completed in 2 months.

C. Offshore Loading Facility

The existing rock-fill causeway of Olympic in San Isidro has no provision for culvert to allow deltaic silt and sediments carried by natural seashore current to roll and move freely on the shore beds. Sediments or silt flow is obstructed and diverted forming a spit at the tip of the bulkhead. This makes it necessary to regularly dredge or increase the length of the pier.

To prevent damming of silt and damage to coastal environmental, Citinickel shall construct offshore loading facility similar to the Barangay Punang rockfill-causeway at Sofronio Espanola.

D. Stockyard

Ore from the mine shall be hauled and stockpiled at designated areas in a 12 hectare stockyard depending on its grade for drying and blending prior to shipment. Samples from each raw stockpile shall be taken to determine its ore grade prior to and after blending.

The stockyard shall be elevated and compacted to prevent the stockpiles from being contaminated by surface run-off or affected by flooding. It shall be fenced to secure the area from unwanted contaminants. It shall also be provided with perimeter drainage system, silt traps and ponds to protect the immediate environment from siltation and discoloration of surface water.

The stockyard shall be finished in 30 days.

E. Equipment Yard and Office

A 1 hectare yard shall be acquired adjacent to the ore stockyard. The yard will have an office that will house the personnel that will supervise and manage the operations of the stockyard and ore shipment operations and maintenance of loading equipment. Logistical support to mine operations shall also be handled and coordinated through this office.

The equipment yard and office shall be finished in 60 days.

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F. Exploration Roads

The rehabilitation of mine haul road and access ramps will be finished in 45 days. Driving of pilot roads leading to new exploration areas shall be done on a quarterly schedule basis. Roads for exploration will have a width of at least 5 meters while mine haul roads will have 12 meters width. All roads are to be elevated from the ground and self-draining so it could be used any time of the year at any weather condition.

The equipment to be used are dozer, back hoe, grader, wheel loader and dump trucks.

G. Mine Camp

The mine camp will have 2 bunkhouses, an office building, power, security and communications building, a mess hall, equipment shed, core samples store house, repair parts warehouse and equipment maintenance shed.

The construction of the mine camp structures and facilities will be accomplished in 45 days.

H. Assay Laboratory

The laboratory is vital in all stages of the production. It shall be located at the ore stockyard within the 1 hectare lot. It shall have a capacity of assaying 300 samples per shift for laterite ores and other minerals. These samples will be coming from exploration works for ore grade analysis and mine valuation, from mining for grade control and production scheduling and from ore stockyard for blending and attaining client market specifications.

The cost of construction of the laboratory and the acquisition of laboratory equipment and consumables will amount to P6,000,000.00. It will take 60 days to erect the laboratory and acquire all the laboratory equipment, chemicals and apparatus before it becomes operational.

I. Dams and Ponds

The mine shall be self draining throughout its life from development to closure and mine rehabilitation stage. Surface water shall be directed to silt ponds before it is allowed to flow to natural gullies and water ways. There will be check and filter dams that shall be installed at strategic points downstream to arrest siltation and discoloration of water.

The construction of these structures shall be done during first phase of development stage to immediately arrest siltation to identified primary and secondary downstream impact areas.

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Table 3-5. Silt ponds to be constructed STRUCTURE DIMENSIONS SCHEDULE Silt Dam 120m (L) x 155m (W) x 5 m(H) Development Stage Silt Pond #1 200m (L) x 98 m (W) x 3 m (D) Before Year 1 ends Silt Pond #2 460m (L) x 200m (W) x 3 m (D) Before Year 4 starts 12 Units Check & 20 m (L) x 5 m (W) x 3 m (H) Development & Production Filter Dams Stages

Dams shall be constructed from available waste stripped overburden materials compacted using 4 tonner smooth drum vibratory compactor. Compaction shall be at minimum of 4 passes at 0.30 meter interval overlay of non-porous soil fill. Fill embankment shall have a slope of 35º to have greater resistance against lateral forces of the water and silt in the structure. The width of the embankment at the top shall be 4 metres while at the bottom width will be 18.28 metres.

Typical Sectional Design

The equipment to be used are as back-hoe, wheel loader, dump trucks, boom truck and compactor

3.5 Description of Project Phases

3.5.1 Exploration Works

Confirmatory exploration activities shall be implemented simultaneously with other development works to validate previously dug pits and bored holes by Olympic and other companies prior to production stage. Channel sampling at 1 meter interval will be undertaken in relocated and recovered test pits. An additional of 200 confirmatory holes at 25 to 50 metres interval with average depth of 20 metres will be bored on blocks A and B in Pulot and Toronto Mines to validate collapsed pits and holes from previous activities and to determine the persistency of high grade saprolite and enriched garnierite.

Detailed mapping of structures, mineralization and profile shall be done as a forward activity to subsequent regular test pitting and exploration works.

The company has allocated Php 50 Million for Toronto for drilling exploration either as an infill to augment the current delineated mineable reserves as exploration drilling for areas that have been identified with potential resource. Average drill depth target is 20.0

Toronto Mining Nickel Project Chapter III-36 meters. A total of 280 resource drilling (50m x 50m) and 1,120 reserve drilling (25m x 25m) are planned.

3.5.2 The Mining Operation

The mining operation is programmed for an annual tonnage of 1,200,000 MT of laterite and saprolite blend that will be shipped directly to international market. Except for drying of the wet ore, no other processing on site is necessary.

The bench mining method is an open pit system that is a traditionally used in the Philippines. The main features include:

 3-meter bench height  Multi-level mining that provides flexibility in handling various grades and tonnages  Mined-out areas can be used as waste dumps  Multiple mining areas can be programmed as the need arises

The typical truck and shovel operation for bench mining is widely used in most Philippine open pit mines and quarries. Top soil will be stripped and stockpiled separately for use in rehabilitation. All run-of-mine (ROM) ore are hauled to the stockyard downhill and dumped in windows for sun drying. Rocks and oversized materials above 200mm will be hauled back to the pit. A conveyor will be used to load the ore on barges for transfer to waiting ocean-going vessels.

A minimum of two pits will be maintained at all times for flexible operations and grade control. Pits will start from the lowest elevations progressing upwards to higher elevations. Waste from other benches will be used to backfill the mined-out areas for early rehabilitation. Progressive mining rehabilitation and reforestation will be employed.

Plate 3-8. Mining Operation Scheme

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Earthmoving equipment like backhoes and loaders, in combination with dump trucks, will be used during operations. Bulldozers will be utilized for overburden stripping, waste dump rehabilitation and maintenance earthworks. All run-of-mine ores (laterite and saprolite) will be hauled direct to the port stockyard and storage area where it will be sun- dried in preparation for shipment.

Considering the shallow depth and geological characteristic of the deposit, the following parameter and typical design shall be applied.

Table 3-6. Typical Road Design Road width 10 meters Road gradient (pit to mine stockyard) 12 percent Bench width 5 meters Bench height 3 meters Bench slope (active) <45 degrees

To prevent laterite or soil particles finding their way into gullies or drainage systems, retaining walls consisting of rip raps or other types will be constructed around stockpile areas. A series of check dams will be built along gullies and drainage lines to prevent silt and sediments from entering the natural waterways. Sumps and catch basins will also be built on strategic places to collect silt and help minimize or prevent silt accumulation on the drainage lines. Longitudinal drainage ditches will likewise be built along roads that will be shaped sloping towards the hillside. This will prevent water from flowing on the road surface and prevent an early deterioration. Proper slope or road cuts will likewise be observed to prevent slope failures. Where necessary, appropriate structures like retaining walls, rip-raps or vegetation as slope protection will be utilized to prevent slope failures, erosion and siltation.

Based on current delineated reserve and demand for nickel in the world market, the project will have the following annual production:

Table 3-7. Toronto Mines Schedule of Annual Production Year Toronto Mine (WMT) 1 800,000 2 1,200.000 3 1,200.000 4 1,200.000 5 1,200.000 6 1,200.000 7 1,050,000

Operations will be limited to approximately 156 days per year, which corresponds to the projected dry season in Palawan. The Toronto Mines is expected to have an average daily output of around 9,910 WMT.

The project will not require any processing or the establishment of a mill facility. The mined ore will be stockpiled for sun drying to reduce the moisture content.

The project will only employ Filipino citizens. Key technical personnel in the fields of mining, engineering, geology, environmental science, administration and finance will be

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Mineral Reserves

Resource delineated based on a 25m x 25m drilling/test pit pattern (one parameter used by the MGB to classify nickel resource as a measured reserve) is 7,359,527 DMT or 10,822,834 WMT. The reserve delineated for Toronto mine is 7,850,987 WMT.

The breakdown of resource in Toronto is in the following:

Table 3-8. Mine DMT Measured Indicated Inferred Toronto 14,684,437.50 8,863,710.00 5,008,267,50 812,460.00

In the block modeling of the ore resource of the project, a Microlynx Mining Software was used with combination of MS Access Database. The sections were digitized to determine the boundary of each lithographic unit. An estimate of the resource was then calculated on tonnage and grade assigned to each block.

Cut-off Grade

The average grade of ore by classification in Toronto Mine is as follows:

Table 3-9. Resource Classification DMT %Ni %Fe %Co SG Measured 8,863,710.00 1.59 24.97 0.07 1.23 Indicated 5,008,267.50 1.53 16.54 0.05 1.31 Inferred 812,460.00 1.43 34.29 0.11 1.10 Total/Average 14,684,437.50 1.56 22.61 0.07 1.25

Based on the prevailing market, the cut-off grade for the project is 1.50% Ni. Low nickel high iron ores or reserves that have 1.0-1.2% Ni with Fe above 40% will also be mined and marketed.

Estimated Mine Life

Projection for Mine Life for Toronto based only on initial mineable reserave of 10,822,834 WMT is seven (7) years. However, the company is optimistic that this will be extended to another five (5) years upon conducting infill drilling and further test pitting as well as drilling on identified potential areas that are not yet explored.

Exploratory drilling at 25m x 25m grid will be conducted at depths reaching 20 meters on previously explored areas that were not classified as measured or mineable reserve. The infill drilling program is anticipated to delineate an additional 15.0 million MT of mineable reserve. Test pitting will also be conducted on unexplored areas.

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3.6 ELEMENTS OF THE MINING OPERATION

The goal is to provide the company management proper guidance for the proposed company mining operation of Toronto Mines, Narra, Palawan, basically to excavate the nickel ore in a short period of time at the most economical and sound method of mining.

3.6.1 THE MINE DESIGN AND PLAN

A. MINING METHOD

The most suitable and common mining method for a lateritic ore deposit is the contour or bench type of mining wherein ore extraction follows the surface contour line of the deposit.

B. PIT BENCH DESIGN

Considering the shallow depth and geological characteristic of the limonite deposit, the following typical design shall be applied in the extraction of the ore.

Overburden thickness = 1 meter Bench Height = 3 meters max Bench width = 5 to 8 meters Bench Slope = 30 degrees

1 m OVERBURDEN 3 m

LIMONITE ORE

5-8 m

Plate 3-9. DIMENSIONAL VIEW OF A TYPICAL MINE BENCH

C. HAUL AND ACCESS ROAD DESIGN & CONSTRUCTION

The mine haul road shall be an all weather rough road that will be traversed by loaded dump trucks throughout the year. And considering the load and the volume of traffic that passes trough this road, the following design shall be adopted and maintain.

Toronto Mining Nickel Project Chapter III-40

Cross drain box culvert will be constructed if it could not be avoided to reduce soil erosion and minimize damage to haul road .

Road width = 12 meters wide Sub-base thickness = 100 mm thk Topping ( base course) = 50 mm thk

BASE COURSE 50 MM THICK

150 MM TH SUB-BASE 100 MM THICK 12 Meter K WIDE

Plate 3-10. TYPICAL CROSS SECTION DESIGN OF HAUL ROAD

MINE BENCH DRAINAGE DITCH

HAUL ROAD

LIMONITE ORE DEPOSIT

Plate 3-11. TYPICAL CROSS SECTION OF MINE BENCH AND HAUL ROAD

D. ORE STOCKYARD

There will two ore stockyards located in two areas. Stockyard 1 will be located near a suitable and flat area in the mine site and Stockyard 2 will be near the barge loading facility or pier site.

The stockpile area will be on a flat site that does not collect so much water runoff. Stockpile slope is 30 degrees or lower in order to ensure stability.

Toronto Mining Nickel Project Chapter III-41

Drain canal

Original slope 3-4 m maximum height < 30º slope

< 30º slope

Nickel Ore stockpile

Typical ore stockpile section

PLATE 3-12. STOCKPILE SECTION

3.6.2 ENVIRONMENTAL MITIGATING MEASURES

There will be several mitigating measures that will be adapted early and during the mining operation to limit or minimize environmental degradation and avoid a potential social problem. These engineering interventions are needed to prevent problems such as soil erosion, sedimentation, flashfloods, air and water pollution and others. These measures are as follows: DRAINAGE CANAL

With favorable topography, the pit will be a free-draining area. Drain canals (0.4m wide x 0.4 m deep) will be constructed along the haul road and benches to channel run-off water to suitably located silt ponds. The aim is to prevent siltation on the water channels as they drain towards the agricultural plains of Narra. SILT TRAPS (ROCK FILTER)

Run-off water will be initially filtered of total solid particles (TSP) using a series of Silt Traps (ST). These are small ground excavation 1 meter wide by 5 meters long and about 1.5 meters deep. A section of the silt trap will be covered by gravel materials, preferably G-1 (40mm rocks) to act as rock filter, allow clear water to flow through it and trap solid particles in the ditch. The silt traps will be located along the drainage canal at intervals of about 150 meters.

MINE HAUL ROAD , 12 meters wide (TWO LANE ROAD)

DITCH SILT TRAP DITCH

Rock Filter

RUN OFF WATER FLOW DIRECTION Plate 3-13. A Typical Silt Trap Design with Rock Filter

Toronto Mining Nickel Project Chapter III-42

SETTLING POND

The run-off water from the silt traps and ditches will eventually drain towards a settling pond for final filtering and decantation of solid particles before it can be release to natural riverways and creeks. Considering the topography and that a wide area will be covered by the mining operation, there will be several silt pond that may be constructed depending on the volume of runoff water and the terrain of the area.

30 M 30 M

Intake Flow

Discharge Flow SETTLING SETTLING CHAMBER #2 CHAMBER #1

30 M

ROCK FILTER Plate 3-14. PLAN VIEW OF TYPICAL SETTLING POND

60 M

3M Intake Flow Intake Flow

Plate 3-15. CROSS SECTION VIEW OF TYPICAL SETTLING POND

Toronto Mining Nickel Project Chapter III-43

3.7 GENERAL MINE DEVELOPMENT PLAN

Plate 3-16. Toronto General Mine Development Plan

SP4

SP2

SP3

SP1

Toronto Mining Nickel Project Chapter III-44

The major stages follow the mining operation and shall be adopted all throughout the life of the mine. a) DEVELOPMENT STAGE Manpower Requirement

This is the initial stage prior to mining wherein all ore data are verified on the ground. The team will conduct ground investigation and collect samples for assay and grade control. They will also provide data and identify areas for advance development.

Team : Geology & Exploration group composed of two personnel namely the following: 1. Geologist - 1 -Team Head 2. Geologic aide - 1 - assistant

Their activities will include the following: i. Location survey of exploratory drill holes and delineation of the prospective area. ii. Confirmatory sampling and assaying by the assay laboratory. iii. Stacking and lay outing of the deposit for grade control iv. Advance and continuous detailed exploration

b) PLANNING AND ENGINEERING STAGE

The data and information that will be provided by the geology group will be processed during this stage. They will develop the mining plan for the eventual extraction of the deposit.

Team : Planning and Engineering Group – composed of the following personnel 1. Mine Planning Engineer - 1 -Team Head 2. Draftsman/ Cad Operator - 1 - assistant

Their activities will include the following: i. Mapping of ore assay per drill hole for grade control operation ii. Access road and ramp design iii. Drainage canal plan and design iv. Environmental control measures plan and design v. Heavy equipment resource planning vi. Manpower source planning

c) MINING OPERATION STAGE

The actual extraction will be done by this team which will implement the mining plan, develop the roads and conduct grade control of ore delivery.

Toronto Mining Nickel Project Chapter III-45

Team : Mine Production Group – composed of the following personnel. 1. Mining Engineer - 1 -Team Head 2. Grade Control Engineer - 1 - assistant 3. Mine Shift Supervisor - 2 - shift head 4. Heavy Equipment Operators - 7 - operators 5. Hauling checkers - 2 - checkers 6. Hauling contractor

Their activities will include the following: II. Tree cutting and logs stockpiling operation III. Stripping (clearing and grubbing of tree stumps and vegetation) IV. Haul road and ramp construction V. Drainage canal and silt trap construction VI. Actual mining operation for limonite ore i. Initial bench development and ore extraction commencement ii. Continuous and routine loading by excavator to haul truck until the grade limit boundary had been reached as per supervision of the grade control officer. iii. Hauling and stockpiling of the ore to the air drying stockyard (either direct to ship loading stockyard or to a transfer stockyard located near the mine site.) iv. Samples will be taken from each truckload for assaying

VII. Actual mining operation for saprolite ore a. Saprolite ore in the form of nodules and pillow blocks will be exposed by the excavator and then extracted to the surface. b. The saprolite ore are loaded and hauled to a designated stockpile c. Grade control shall designate are for stockpiling of the saprolite ores d. The ore nodules are broken into smaller fragment by a hydraulic breaker for better material handling properties. e. Samples from each stockpile will taken and assayed for grading and blending.

d) ORE SAMPLING AND ASSAYING STAGE

This stage will conduct the testing and analysis of samples taken from the geology group and take care of continuous sampling of ore delivery. They will determine the assay of each stockpile if they meet the shipping grade or not. They will provide the data to the planning and engineering group in order to develop and design the mining plan of a particular area.

Team : Laboratory group – composed of the following personnel 1. Metallurgist/ chemist - 1 -Lab Head 2. Laboratory Technicians - 4 - assistant 3. Ore sampler - 4 - samplers

Their activities will include the following: A. Receive and test ore samples from the exploration and geology group

Toronto Mining Nickel Project Chapter III-46

B. Provide the data to the exploration group and then to the engineering and planning group C. Secure samples from each truckload that is being delivered to the stockpile and test each sample. D. Provide data to the grade control engineer for the scheduling of area to be extracted and for proper ore blending

3.8 Power Supply

The power requirement of the project will be limited only for lighting, offices, laboratory and worshop/warehouse use. The estimated power requirement for Toronto is 51.4KW/hr. The company plans to use 3 units of 64 KVA Komatsu diesel engine generator to supply the power requirements.

The main power line where Toronto can tap is about 2.0 km.

3.9 Water Supply

Since no ore processing will be done on site, water supply is not a critical factor in the mining operation. Domestic water supply will come from ground water through deep well drilling. Water for drinking will pass through a multi-stage filtration device to remove impurities and unwanted chemicals and bacteria.

Loading System

The company will construct its own private offshore loading facility near the existing PGMC causeway. The facility shall have provisions for culvert to allow deltaic silt and sediments carried by natural seashore currents to roll and move freely on the shore bed.

Nickel ores will be dried and stockpiled near the loading area. The ores for shipment will be loaded by front-end loaders into CLTs which in turn will transfer to vessels anchored at a distance from the shore to their final destination either in Australia or China.

Toronto will conduct direct shipping ore (DSO) operation and no milling or industrial processing will be required, hence power and water requirement will be minimal.

3.11 Housing

A site in Narra has been acquired and allocated for housing facilities and other structures needed for the operation. Some of the structures in place are used as offices, warehouse, staff and guest houses and employees quarters. The proposed site is at the flatlands located south of the project area. It is provided with adequate water supply, sanitary facilities and other amenities. Employees residing within the vicinity of the site are just be given housing allowances.

Toronto Nickel Mining Project Chapter V-1

Chapter 5. BASELINE ENVIRONMENTAL SETTING

5.1 Brief Profile of the Province of Palawan

Palawan consists of 1,777 islands and is the second largest province in the country with an irregular coastline ideal for harbors and berthing facilities. It has a total area of 14,896.55 square kilometers and lies some 509 kilometers southwest of Manila. It is composed of 23 municipalities (Discover Palawan, 2000), 427 barangays and one city. Eleven of the municipalities are in the mainland while the rest are island municipalities. Puerto Princesa City is the capital of the province.

Palawan has two (2) types of climate. Type I climate prevails on the western side where there are two (2) pronounced dry and wet season while Type III (no pronounced seasons) prevails on the eastern side. The average rainfall is 2,183 mm based on data on the eastern section of the province.

Fron later statistics, Palawan has an actual population of 755,412. From the 1995 NSO data, the population is 633,584 and a total of 124,928 households. The population is growing at the rate of 3.64%, an increase from the 3.9% figure in 1995. The population density increased from 43 in 1955 to 50.7 persons per square kilometer, with an average family size of five (5) persons per family. Agriculture, commence and trade opportunities are the major economic activities in the southern part of the province while tourism and related businesses are the main attractions in the north.

The province is a melting pot of nine (9) different ethnic groups, which include the Tagbanua, Pala’wan, Batak, Ken-uy, Calamian and Muslim subgroups of Jama, Mopun, Molbog and Tausog. The Cuyunon or the native-born Palawenos dominate the populace at 40% of total. The average immigration to the province is about 11%, consisting of Ilongos, Tagalogs, Bicolanos, Ilocanos and even some U.S. and European expatriates. There are 52 dialects spoken in the province with the Tagalog- based Filipino being spoken by one-third of the population. In some municipalities, some native languages are spoken like Cuyunon, Agutaynon and Cagayanon.

The provincial literacy is increasing by 2% annually (Discover Palawan). Public school enrolment in the elementary increased from 110,430 in year 2000 to 141,319 in year 2001. There are 605 elementary schools, 110 secondary schools and two (2) universities established by government, while 19 elementary schools, two (2) colleges and 14 vocational schools are ran by the private sector.

5.1.1 Economic Profile

Agriculture, fishery and forestry account for up to 67% of the employment in the province with the rest coming from other industries and services. Palay/rice remains the major crop with cashew nuts, coconut, corn, banana and mango as the other crops.

The petroleum/mining sector constitutes a significant economic activity in Palawan. In 1995, 700,483 barrels of crude oil valued at US$10.427 million was exported. Mining significantly contributed also to the economy. Minerals produced are nickel Toronto Nickel Mining Project Chapter V-2 ore, chromite, silica sand, sand, gravel and pebbles with a total value of P350,043,440 in 1995. The recent extraction and utilization of the natural gas found in Palawan is another big boost to the economy.

PROJECT SITE

Plate 5-1. Palawan Existing Infrastructure Map (Source: PPDO, Palawan)

Tourism is another one of the major contributors to the province’s economy. Among the 14 premier tourism sites in the province are the Puerto Princesa Subterranean National Rover Park, Caluait Game Preserve and Wildlife Sanctuary, Ursula Island Toronto Nickel Mining Project Chapter V-3

Game Refuge and Bird Sanctuary, El Nido Marine Reservoir and the Tabon Caves dubbed as the Philippines’ “Cradle of Civilization”.

5.1.2 Infrastructure and Utilities

Palawan has a total road network of 3,439.5 kilometers of which 9.3% are paved/concreted/asphalted roads. There are 40 ports/piers of which four are national; 25 are municipal; and 11 privately owned. The fishery infrastructure includes 16 storage facilities and ice plants. There are 20 airports/airstrips found in the province of which three are national, four are operated by the military, and the rest privately maintained.

The advent of the cellular phones adequately equipped the province with communication facilities thereby greatly improving/enhancing communication.

With regards to power generation, there are 17 NAPOCOR Plants that produce and distribute a total power capacity of 48.543 MW. (Discover Palawan). However, this is not sufficient as there are still some municipalities and barangays that do not have electricity.

5.1.3 Peace and Order

The province is relatively peaceful, and is considered as one of the most peaceful in the country. The reported crime incidence for the first half of 1995 was 4.3 per 10,000 population. For the same period, the index crime volume was 153 while the non-index crime volume, 90.

5.2 Location of the Project Area

The Toronto Nickel Project is situated in barangay San Isidro in the town of Narra, and lies within the area of the application for MPSA bounded by the geographical coordinates 9º 12’ to 9º 14’ N latitudes and 118º 14’ to 118º 16’ E longitudes. Narra is 96 kilometers south of Puerto Princesa City, 101 kilometers north of Brooke’s Point, 64 kilometers away from the town of Quezon in the west and bounded in the east by the Sulu Sea. Geographically, Narra is located at 9º05’ to 9º45’ north latitudes and 118º05’ to 118º30’ east longitudes. The Toronto Nickel Project lies within a zone where opportunities for mining development are present.

Typhoons seldom pass this side of Palawan as it is not within the typhoon belt. However, whenever typhoons occur in the Visayas and cut across through the Province of Batangas towards the China Sea, heavy rains fall in the area resulting in flash floods in low-lying sites.

Toronto Nickel Mining Project Chapter V-4

5.3 Description of Existing Environmental Setting and Conditions

5.3.1 Baseline Environmental Conditions

Physical Environment

a. Forestland (Plate 5.2) – The existing forest land of Narra is classified into primary forest and secondary forest. The following is the breakdown of the forest land:

 Timberland 33,495.00 has  Mossy forest 7,904.00 has  Non-commercial forest 2,837.00 has  Mangrove 1,067.00 has  ISF 133.00 has

b. Agriculture land. This has a total area of 30,596 hectares composed of certified A&D with an area of 16,856 hectares and proposed “A&D”, 13,740 has. c. Built up areas covers 4,864 hectares. These tract of land encroached into the agricultural land occupied by the residents as a result of the population explosion. d. Open-land areas are estimated to cover 1,337.00 hectares, which are squatted by the growing population. e. Urban land use. The municipality is entirely traversed by the National Highway where most of the barangays are established. Growth centers situated at the foot of the mountain or at the coast are connected with the highway by feeder roads. Settlements are also being established at the junctions,

Toronto Nickel Mining Project Chapter V-5

Plate 5-2.

PROJECT SITE

Plate 5-2. Land Use and Vegetation Map of Narra (Source: MPDO, Narra) Toronto Nickel Mining Project Chapter V-6

5.3.2 Geology and Geomorphology

The project area is chiefly underlain by an assemblage of ultramafic rocks that have been subjected to weathering processes resulting in the development of nickel-iron-rich laterites, In the Toronto Mines, the laterites were derived from the weathering of the ultramafic rocks composed dominantly of dunite, pyroxene and gabbro.

The mine area in Toronto is principally drained by the tributaries of the Baliti-en River on the western side that flows southward and empties into the Sulu Sea. While in the eastern side, the mine area is drained by the tributaries of the Pinagduguan River, which also flows southward toward Sulu Sea.

5.3.3 Seismic Potential

Palawan has few major faults and is considered an inactive seismic zone, as clearly indicated in the following Plate 5-3.

PROJECT SITE

Plate 5-3. Seismicity Map of the Philippines, 1990-2001 Toronto Nickel Mining Project Chapter V-7

Earthquake Density Map

Average Number of Earthquakes per Year, Magnitude 5 and Greater, all Depths

PROJECT SITE

Plate 5-4. Earthquake Distribution per Year.

The maps show seismicity and the distribution of the occurrence of earthquakes in the Philippines. The maps indicate that Palawan is not considered in a seismic hazard zone where development activities tend to be limited. The province is identified to be part of the stable or aseismic region of the Philippines which is characterized by rarely experienced significant seismic activities, such as earthquake incidences or active volcanism. The tectonic history of Palawan is complex, with uplift, subsidence, tilting and faulting, and some 27 earthquakes were recorded during 1945 to 1975, indicating on- going but minor tectonic activity (HTS 1983). Toronto Nickel Mining Project Chapter V-8

5.3.4 Geologic Setting

Palawan is an island province of the Philippines located west of the Visayas Region consisting of three island groups namely, the Calamian, Palawan mainland and the Balabac groups. These islands generally trend along the southwest axis. The island of Palawan measures roughly 430 km long with varying widths along its length. The maximum width of 50 kilometres can be found in the municipality of Brooke’s Point.

Four geological regions can be distinguished on Palawan Mainland, namely north of St Paul's, between St Paul's and the Quezon-Aboabo gap, south of the Quezon-Aboabo gap, and the lowland fringe within the first three regions. The region north of Mount St Paul is dominated by metamorphic rocks of the basement complex, with volcanics around Cleopatra's Needle and the sedimentary Bangley Formation in the west. Slightly metaphorsed limestone forms the impressive karst landscape around Mount St Paul and El Nido Cliffs. Central Palawan is mainly underlain by ultramafic rocks giving rise to poor soils and vegetation cover. South of the Quezon-Aboabo gap, the ultramafic outcrops are mixed with undifferentiated volcanic and tertiary limestone. Tertiary sandstones and shales occur along the south-west coast. The lowland fringe of alluvial plains and terraces are extensive along the south-eastern half of the mainland such as the plains of Narra, Aborlan and Brookes Point. These are virtually absent in the north except around Abongan (HTS, 1983).

The Sabang thrust or Ulugan Bay Fault divides structurally the province into Northern and Southern Palawan.

Northern Palawan is composed of pre-Cretaceous sedimentary and metasedimentary rock formations. Exposed in the north-central portion of this structural unit is the basement which is made up of phyllitic rocks and mica schist, overlain by Tertiary sedimentary formation. These rock units exhibit widespread deformation which is believed to have resulted from the collision of the western Palawan terrain/structural unit with the proto- Philippine arc during the Miocene period.

The Southern Palawan structural unit consists of basal formations found southwest of the Ulugan Bay Fault and is composed of Cretaceous to Oligocene sediments and ultramafics. An ophiolite suite believed to be Eocence overlies the basal formations. Basalt and ultramafics abundantly occur in the central part of the terrain and form the Victoria Mountain. The proposed nickel mining project is situated in this structural group.

Toronto Nickel Mining Project Chapter V-9

5.3.4.1 Lithology

Southern Palawan is underlain by these major formations arranged stratigraphically in an increasing age towards its depth.

Table 5-1. Major Geologic Formations of Palawan FORMATION AGE SYMBOL LITHOLOGY Quarternary Alluvium Holocene Qa Unconsolidated sediments and reef limestone Iwahig Formation Pliocene PLi Consist of Pusok Conglomerate and Panoyan Limestone Clarendon Fornmation Pliocene PLc Interbedded sandstone and shale Alfonso XIII Formation Miocene Ma Coral reef limestone grading to chalky marl Sayab Formation Miocene Ms Quartztose sandstone and shale Isugod Formation Miocene Mi Interbedded shale and sandstone Ransang Formation Miocene Mr Sandy to silty limestone Inagauan Metamorphics Miocene Eim Metamorphosed rocks Pandian Formation Oligocene Op Arkosic sandstone with mudstone and siltstone Panas Formation Eocene Kebp Sandstone interbedded with shale and mudstone Mt. Beaufont Ultrmafics Eocene Ebu Serpentinized peridotite and dunite Stave Range Gabbro Eocene Esr Isotropic gabbro with minor layered Sulu Sea Mine Formation Cretaceous Kc Interbedded chert, conglomerate, wacke and mudstone Tagbros Formation Cretaceous Kt Interbedded siltstone, wacke and conglomerate Espina Basalt Cretaceous Keb Consists of pillow basalt and basalt flow with chert. San Vicente Gabbro Cretaceous Ksg Isotropic gabbro (Source) Mines and Geosciences Bureau, Region IVB, MIMAROPA

In the Toronto mine, Mt. Beaufort Ultramafics, Espina Basalt, Inagauan metamorphics and Stave Range Gabbro formations are present. The mine is underlain by ultrmafic rocks of Upper Cretaceous age. These rocks lie within a thrusted wedge, surrounded by apparently younger gabbros and basalts.

The Panas Formation is a type of turbidite formation that is mainly composed of shale, sandstone, mudstone/shale and associated and partially alternates with the limestone member. The sandstone is light brown to gray, thinly bedded and highly indurated while the shale and siltstone are brown to dark gray, thinly bedded and friable.

Mt. Beaufont Ultrmafics consist chiefly of harzburgite with irregular patches and lenses of dunite. Chrome spinel/chromites are identified to be present and occur as dissemination in these rocks.

Stave Range Gabbro and Mt. Beaufont Ultramafics comprises the Palawan Ophiolite Sequence which is thrusted over the Early Oligocene Pandian Formation and the Eocene Panas formation. The thrusting is inferred to have occurred throughout the Eocene to Middle Miocene; although the start of this activity is thought to have begun during the Paleocene age.

The Pandian Formation is composed basically of arkose sandstone that is associated with shale and siltstone and thought to be of Lower Oligocene in age. It is distributed at the west cost of the southwestern side of Quezon, overlying the Panas formation conformably. Toronto Nickel Mining Project Chapter V-10

PROJECT SITE

Plate 5-5. Geologic map of Palawan Island (Source: MGB, DENR)

Toronto Nickel Mining Project Chapter V-11

5.3.4.2 Lithological Control and Alteration

Generally, nickelliferous laterite occurs in areas where peridotites, dunites and its serpentinized derivatives predominate over all other rock types. Narrow gabbro dikes are common in structural zones and the pyroxenite dikes cut the dominant peridotite. Olivine dunite produces the high grade ore in the weathered zone. Massive rock replacement/alteration by serpentinite independent of the normal weathering processes seldom yields any ore in the overlying weathered zone.

Nickel enrichment is a function of permeability because the lack of permeability in serpentinite tends to inhibit circulation of the downward migration of the mineral-bearing waters.

The Toronto mines are chiefly underlain by an assemblage of ultramafic rocks which have been subjected to weathering processes that resulted in the development of nickel- iron-rich laterites. The central part of the mine is dominated by dunite and serpentinized peridotites. The eastern and western portions are underlain by basement complex and gabbro (Lewis, D. E., 1971).

5.3.5 Topography and Geomorphology

The topography is moderately rugged with mountain high and slopes. The Northern block of Toronto mine is divided by the east-west trending Pinagduguan River down to the southern block. The tributaries and main river flows southeast to east and discharges its load to the Sulu Sea.

Table 5-2. Topographic Features of Toronto Mines EXPLORED AREA TOPOGRAPHY ELEVATION RANGE North Block (Block D) Moderate to rugged (lower slope type deposit) 600-1000 m South Block (A and B) Block A - Moderate to flat (slope and ridge type deposit) 400-472 m Block B – Moderate to rugged (slope type deposit) 500-740 m Unexplored north areas Moderate to rugged 600- 1000 m

Ultramafic rocks in the low-lying water-logged coastal regions generally do not produce ore-grade nickeliferous laterite deposits because of periodic aeration in the laterite profile.

Subdued topography is essential for the concentration of the better grade nickel ore on gentle slopes and ridges. Nickel migration has been downward, thru lateral migration has produced some deposits near the bases of gentle slopes. Better grade ore lies at the base of the steep slopes (Lewis D. E., 1971).

This mine has been extensively explored by test pitting and auger drilling by various exploration companies from the 70’s up to the late 90’s. Olympic worked closely with Marubeni Corporation of Japan in exploring Toronto during the early 70’s to block the nickel-laterite deposit with a minimum shipping grade of 1.6% Ni.

In the late 90’s, Queensland Nickel Industries (QNI) of Australia evaluated the area and came out with encouraging resource estimates and mineable nickeleferous deposits. This led to further evaluations by QNI over the area to confirm other similar ore resource Toronto Nickel Mining Project Chapter V-12 evaluations performed by Olympic and other companies. Detailed re-confirmatory and infill drillings were done at 50 meters square grids in between previous drill hole patterns used resulting in 12.5 to 25 meter intervals in some portions.

In the final evaluation of QNI, a total of 588 drill holes and test pits at 6 meters average depth were used as basis in evaluating 120 hectares. This led for QNI to provide Olympic with a mine development plan and production schedule.

Pending approval of Mineral Production Sharing Agreement under AMA-IVB-040, Olympic secured two (2) Small-Scale Mining Permits under PD 1899 in Toronto in 2005. Each Permit contains 20 hectares, more or less, and both are adjacent and contiguous. This paved the way for Olympic, through its contractor to develop the mine and produce nickel ore in 2006.

There is a 4 kilometre all-weather road from the National Highway leading to the mine site and a 1.5 kilometre road leading to the pier. The pier and adjoining stockyard has a loading capacity of at least 50,000 WMT of ore per month

The mine camp consisting of administration office, warehouse, ore stockyard, equipment yard and other camp facilities are situated at the foothill of the mining area about 500 meters from the national highway. The mined ore are stockpiled, dried and blended at the mine camp and pier ore stockyards.

Hard saprolite and garnierite are excavated using breakers and rippers. Then, it is hauled and dumped at ore stockyards for ore grading and segregation. Local laborers are used in hand sorting of boulders from the pile.

From the time of the issuance of the Small-Scale Mining Permits to Olympic a total of 20 hectares has been developed and opened for mining. At present a total of about 500,000 WMT of nickel ore valued at no less than Php 600M has been produced from Toronto. The types of nickel ore produced and exported to China and Australia were limonite, saprolite and garnierite.

5.3.6 Ore Resource Estimate

Olympic Mines and Development Corporation (Olympic) provided hard copies of the topographic maps with test pit and drill hole data of Pulot and Toronto mines. These were culled from exploration works performed by Olympic over the area during its Mining Lease status. Subsequently, two (2) foreign exploration groups conducted confirmatory and reconnaissance drill holes and test pits to verify the soundness of geologic evaluation report produced by Olympic.

The depth of the test pits and drill holes averages from 4 meters to 8 meters only or basically touches the upper layer of semi-soft saprolite, leaving the hard high-grade saprolite practically unexplored. The bouldery grade and hardness of saprolite ore increases in depth and therefore delimit the earlier rapid ore valuation and recent exploratory works. The total number of drill holes and test pits driven in Toronto is 588 at 25 to 50 meter square-grid intervals.

Toronto Nickel Mining Project Chapter V-13

The limonite ore, waste and 1 to 2 meters contact layer between limonite and saprolite are dozer rippable. Beyond these layers, the high-grade saprolite becomes hard and may be subjected to drilling and blasting to facilitate excavation of run-of-mine.

Methods Used

The Polygon Method of ore reserve blocking was used in this study. The mid-bench method of area computation was used in the ore reserve computation.

Ultramafic rocks of serpentinized peridotite and dunite underlie the area. The weathering of the ultramafic rocks results in the development of laterite that has primarily iron and nickel. Cobalt and chromite also occur. The slow process of enrichment where the iron is retained at the upper horizons and the nickel becomes richer in concentration as solutions trickle down the weathered zones accompanies the continuous weathering process. Here, the iron content is reduced with the increase in nickel. The nickel content where enrichment does not occur becomes lesser toward the bedrock. The horizon where the iron is high is the laterite layer and the horizon where the nickel is rich and low in iron is the saprolite layer. Occasionally, cobalt and/or chromite also occur in this zone. The weathered zones, which will form the deposits, are thickest in the plateaus where erosion is slow and thin in steep slopes.

In the Toronto project, the laterite-saprolite reserves occur in the plateau-like terrain with elevations that vary from 100 meters above sea level to 450 meters at the ridges. QNI Philippines, Inc. estimated nickel reserve of 11.1 million metric tons of laterite and saprolite averaging 1.85% nickel with 0.08% cobalt. This is based upon the evaluation done by QNI Philippines.

Table 5-3. Ore Resource Estimate Ore Ni (%) Fe (%) Limonite ≥ 1.20 ≥ 35.0 Low grade ore (LGO) 1.4 to 1.99 20.0 to 34.9 Low grade ore (LGO) 1.6 to 1.99 10.0 to 19.9 High iron ore (HFO) ≥ 2.0 ≥ 20.0 Saprolite ≥ 2.0 < 20.0

Toronto Block A resource is a saprolite deposit similar to most nickel mines in the country. The mine can supply the Japanese and Australian markets. The cut-off grade (COG) was used:

Table 5-4. Limonite and Saprolite Deposits

MINE BLOCK DMT %Ni % Co %Fe A 4.340,000 1.98 0.07 20.06 Limonite 860,000 1.47 0.15 42.5 Toronto Saprolite 3,480,000 2.16 0.05 15.8 B 1,710,000 1.82 0.09 28.50

Total 6,050,000 1.93 0.08 22.80

Toronto Nickel Mining Project Chapter V-14

Plate 5-6

Plate 5-6. Designated Mining Blocks, Toronto Mines

Toronto Nickel Mining Project Chapter V-15

5.3.7 Hydrology and Hydrogeology

Water is an important resource for the people of Palawan, where many remain dependent on groundwater for their domestic requirements. The area with available groundwater (shallow and deep well area) is only 2,242 km2 or 15.05% of the province’s total land area (PCSD, 2005). The rest are considered difficult areas because supply is scarce. The agricultural sector is the main user of the surface water, using some 43 communal irrigation systems in entire Palawan with a service area of 492 ha. However, only 47% od these is considered functional (PCSD, 2005). Palawan has 28 rivers, 15 lakes, 44 waterfalls and countless small streams (PCSD, 2005). Potential volume of water for domestic and industrial use is assumed high throughout the mainland.

PROJECT SITE

Plate 5-7. Hydrological Map of Palawan (Source: NWRC) Toronto Nickel Mining Project Chapter V-16

5.4 Water Quality and Limnology, Groundwater Quality and Coastal Water Quality

The PCSD (2002), in collaboration with the municipal government of Narra, Palawan, conducted a marine water quality monitoring along the coasts of Narra in February, March, and May 2002 to determine the condition of the water quality and its level of pollution, if any, and compared it to their baseline information gathered in April 1997. Water quality parameters include temperature, pH, dissolved oxygen, conductivity, total dissolved solids, salinity, alkalinity, transparency, color, turbidity, and suspended solids. Likewise nutrients analyses such as nitrate, nitrite, and phosphate, and bacteriological test such as total coliform count were included. There were 9 and 27 sampling sites in 1997 and 2002, respectively.

In the present survey, results were compared with the DENR standards as stated in DENR Administrative Order No. 34, Series of 1990, more often referred to as the revised water usage and classification/water quality criteria. Likewise, present survey results were compared with the PCSD data.

METHODOLOGY

5.4.1 Physico-Chemical Parameters pH was measured using a pen type pH meter (pH 600, Milwaukee), salinity using a refractometer (Aquafauna Bio-Marine, Inc.), dissolved oxygen and temperature using a portable DO meter (YSI 55,Model No. 55/12 ft).

Alkalinity and hardness were determined using rapid test kits (Freshwater Aquaculture Test Kit, Code 3633-03, Model AQ-2, La Motte) for freshwater samples. For salt water samples, alkalinity was determined using a rapid test kit (Salt water Aquaculture, Model AQ-4, Code 3635-03, La Motte).

Phosphate was measured using the ascorbic acid molybdate method (PHRDC, 1984) and the Total Suspended Solid was determined using the oven-drying method (PHRDC, 1984).

5.4.2 Microbiological Analysis of Water Samples

Water samples were also submitted to the Environmental Sanitation and Public Health Laboratory, of the Provincial Health Office located at Malvar St., Puerto Princesa City for microbiological coliform analysis. The water samples were placed in an ice box and delivered within 24 hours.

The analysis made was simply the determination of coliform organisms as indicator of degree of contamination of soil surface runoff and more specially contamination of water with wastes from human or animal sources. The standard multiple-tube fermentation test was used in this process (Umaly and Cuvin, 1988). Tests for the coliform bacilli are conducted in three stages: the presumptive test, the confirmed test, and the complete test. The lactose broth was used in presumptive test, the Brilliant Green Lactose Bile Broth Toronto Nickel Mining Project Chapter V-17 test was used as confirmatory test, and the EC test or the elevated temperature test was used to differentiate coliform of fecal and non-fecal origin.

5.4.3 Sediment Heavy Metal Analysis

Sediment samples were air-dried and submitted to the Assay Laboratory of McPHAR Geoservices Phil. Inc., located at BJS Compound, 1869 P. Domingo Street, Makati City, Metro Manila, Philippines for heavy metal analysis. Metals such as arsenic (As), chromium (Cr), iron (Fe), nickel (Ni) and lead (Pb) were assayed using Atomic Absorption Spectrophotometry (AAS), following standard sample preparation on a 1 g sample, arsenic (As) by vapor generation/AAS, and mercury (Hg) by cold vapor/flameless AAS.

5.4.4 Stream Flow Measurements

The volume of flow in the stream was determined from the relationship below:

Volume/time = (mean depth)(mean width)(mean current velocity)

The procedure, adapted from Umaly and Cuvin (1988), was suggested as one that works well for relatively shallow streams similar to the ones encountered in the survey. The width of the stream was taken using a calibrated rope. The width was then divided into three equal segments using sticks placed into the substrate for demarcation. The depth and a mean current reading were taken in the center of each segment. Timed surface floats were used, and then from this a mean current velocity (m/sec) was computed. The volume flow R in each segment of the stream’s cross section was approximated by the following formula: R = WDV where: W = width of the segment in meters D = depth of the segment in meters at midpoint V = mean current velocity in meters/second

The total flow rate (m3/sec) was found by adding the flows of the three segments.

5.4.5 Collection of Samples and Sampling Site Locations

A one liter sample was taken for most physical and chemical analysis. Plastic containers were thoroughly rinsed with distilled water, drained before use, properly labeled and stored in a cooler with ice until further analysis were used during sampling.

For microbiological analysis of water, autoclaved glass bottles were used.

The sampling locations were noted using a global positioning system (GPS) and plotted in a map (Figure 1). Toronto Nickel Mining Project Chapter V-18

Plate 5-8. Water quality sampling sites.

1 2

4 6

7 5 9 10 8 11

Site Description Coordinates Elevation (masl) WS 1 Tagbubunot River 9°12'10.34"N, 118°15'22.96"E 141 WS 2 Deep well I,San Isidro 9°11'55.39"N, 118°17'27.38"E 27 WS 3 Baliti-en I River 9°11'37.69"N, 118°15'34.03"E 47 WS 4 Deep Well II,Parian 9°11'14.51"N, 118°15'41.51"E 23 WS 5 Sunugon Sugon River 9°10'49.93"N, 118°15'6.91"E 16 WS 6 Pinagduguan River 9°11'15.22"N, 118°17'17.33"E 8 WS 7 Pinagduguan River Mouth 9°10'50.53"N, 118°17'26.06"E 0 WS 8 Coastal water I 9°10'44.45"N, 118°17'3.91"E 0 WS 9 Coastal water II 9°10'51.44"N, 118°18'44.33"E 0 WS 10 Balitiin I River Mouth 9°10'32.66"N, 118°16'7.71"E 0 WS 11 Coastal water III 9°10'35.17"N, 118°16'27.21"E 0

Toronto Nickel Mining Project Chapter V-19

RESULTS AND DISCUSSION

Table 5-5. Physical Characteristics of water samples taken at different sampling sites in Narra, Palawan.

Total Station Location of Water Turbidity Temperature Salinity Suspended Number Station Depth (m) (m) (ºC) (ppt) Solids (mg/L) Tagbubunot WS 1 0.32 0.32 25.1 0 7.25 River Deep well I WS 2 - - - - 8.30 San Isidro

WS 3 Baliti-en I River 0.10 0.10 30.2 0 11.80

Deep Well II WS 4 - - - - 2.80 Parian Sunugon Sugon WS 5 0.21 0.21 31.3 0 7.80 River Pinagduguan WS 6 0.27 0.27 24.8 0 18.40 River Pinagduguan WS 7 0.32 0.32 25.3 0 1.34 River Mouth

WS 8 Coastal water I 0.80 0.80 29.9 24 20.00

WS 9 Coastal water II 0.85 0.85 29.6 34 14.23

Balitiin I River WS 10 0.22 0.22 28.2 3 3.72 Mouth

WS 11 Coastal water III 0.80 0.80 32.6 33 12.62 Toronto Nickel Mining Project Chapter V-20

Table 5-6. Chemical characteristics of water samples taken at different sampling sites in Narra, Palawan.

Ammonia Nitrite Alkalinity Station Location of DO Phosphate Hardness pH (NH3, (NO2, (ppm Number Station (mg/L) (ppm) (ppm CaCO3) mg/L)) mg/L) CaCO3) Tagbubunot WS 1 8.1 7.90 0 <0.3 276 0.172 304 River - WS 2 Deep well I 7.8 0 <0.3 308 0.301 314

WS 3 Balitiin I River 7.5 6.39 0 <0.3 320 0.249 304

- WS 4 Deep Well II 8.0 0 <0.3 548 0.351 -

Sunugon WS 5 7.8 6.38 0 <0.3 283 0.209 284 Sugon River Pinagduguan WS 6 8.0 7.78 0 <0.3 236 0.159 224 River Pinagduguan WS 7 7.8 6.80 0 <0.3 216 0.172 344 River Mouth Coastal water WS 8 8.0 6.62 0 <0.3 146 0.085 - I Coastal water WS 9 8.0 6.42 0 <0.3 110 0.108 - II Balitiin I River WS 10 7.7 5.32 0 <0.3 368 0.214 - Mouth Coastal 312 WS 11 8.0 6.34 0 <0.3 0.140 - water III Toronto Nickel Mining Project Chapter V-21

Table 5-7. Stream flow measurements of selected river systems in Narra, Palawan.

Segment A Segment B Segment C Mean Discharge (m3/sec) Tagbubunot River (WS1) Width (m) 0.5 0.5 0.5 0.5 0.231 Midpoint depth (m) 0.25 0.45 0.25 0.317 Velocity (m/sec) 0.334 0.550 0.523 0.469 Flow rate (m3/sec) 0.042 0.124 0.065 0.077 Balitiin I (WS3) Width (m) 0.67 0.67 0.67 0.67 0.104 Midpoint depth (m) 0.10 0.11 0.08 0.097 Velocity (m/sec) 0.561 0.535 0.513 0.536 Flow rate (m3/sec) 0.038 0.039 0.027 0.035 Sunugon-Sugon River (WS5) Width (m) 1.0 1.0 1.0 1.0 0.371 Midpoint depth (m) 0.16 0.26 0.21 0.21 Velocity (m/sec) 0.579 0.618 0.558 0.585 Flow rate (m3/sec) 0.093 0.161 0.117 0.124 Pinagduguan River (WS6) Width (m) 1.57 1.57 1.57 1.57 0.809 Midpoint depth (m) 0.14 0.32 0.34 0.27 Velocity (m/sec) 0.354 0.880 0.541 0.592 Flow rate (m3/sec) 0.078 0.442 0.289 0.270 Pinagduguan River Mouth (WS7) Width (m) 2.1 2.1 2.1 2.1 0.731 Midpoint depth (m) 0.17 0.43 0.35 0.317 Velocity (m/sec) 0.377 0.369 0.359 0.368 Flow rate (m3/sec) 0.134 0.333 0.264 0.244 Balitiin I River Mouth (WS10) Width (m) 2.67 2.67 2.67 2.67 0.687 Midpoint depth (m) 0.15 0.28 0.22 0.217 Velocity (m/sec) 0.385 0.427 0.365 0.392 Flow rate (m3/sec) 0.154 0.319 0.214 0.229

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Table 5-8. Heavy metal content of sediment samples

Station Location of Station Cr (ppm) Fe (%) Ni (ppm) Pb As (ppm) Hg (ppm) Number (ppm) WS 1 Tagbubunot River 3,252 5.69 2,833 <10 <1 <0.10 WS 3 Balitiin I River 3,821 7.91 1,993 <10 1 <0.10 WS 5 Sunugon-Sugon River 10,820 8.91 2,808 <10 2 <0.10 WS 6 Pinagduguan River 10,730 8.94 3,654 <10 <1 <0.10 WS 7 Pinagduguan River Mouth 10,940 6.48 1,873 <10 11 <0.10 WS 8 Coastal water I 16,090 6.99 1,752 <10 10 <0.10 WS 9 Coastal Water II 2,631 5.74 1,944 <10 4 <0.10 WS 10 Balitiin River Mouth 6,453 6.15 1,927 <10 16 <0.10 WS 11 Coastal Water III 3,036 5.53 1,854 <10 6 <0.10

Table 5-9. Microbiological analysis of water samples.

Presumptive test Confirmatory EC test for presence Station Number Location of Station for presence of test of fecal coliform coliform bacteria WS 1 Tagbubunot River Positive Positive Positive WS 3 Balitiin I River Positive Positive Positive WS 5 Sunugon-Sugon River Positive Positive Positive WS 6 Pinagduguan River Positive Positive Positive WS 7 Pinagduguan River Mouth Positive Positive Positive WS 8 Coastal water I Positive Positive Positive WS 9 Coastal Water II Positive Positive Positive WS 10 Balitiin River Mouth Positive Positive Positive WS 11 Coastal Water III Positive Positive Positive

5.4.6 Temperature

Temperature is the measurement of the intensity of heat rather than the quantity of heat. It is a parameter important in aquatic ecosystems because it affects a wide spectrum of biological, physical and chemical processes. It affects the distribution of organisms, the density of the water, and the solubility of minerals and gases (such as oxygen), rate of decomposition, respiration, photosynthesis, and chemical reactions in a body of water. At high temperature, density and DO are lower. Also at high temperature, rate of decomposition, respiration, photosynthesis and chemical reactions are faster. The measurement of temperature just below the water surface and just above the bottom, taken at different sites is usually sufficient for a general analysis of habitat. The mean temperature is calculated from these readings. A detailed study, however, involves the measurement of the temperature at different depths, usually at one-meter intervals at different sites. From these measurements one can make a temperature profile of that particular body of water. The degree of thermal stratification of a lake or pond is a function of several factors such as depth, season when sampling was done, and degree of mixing of the water layers.

Temperature in streams as in lakes is due to light penetration and absorption of heat from solar radiation. However, different set of condition may occur due to variation in velocity, volume, depth, substrata cover, water source and other factors operating seasonally, daily, and even longitudinally along the stream course. There is no stratification in streams and that stream temperature usually follows atmospheric temperature closely. Toronto Nickel Mining Project Chapter V-23

In this present survey, however, the depths of the water bodies never exceeded 1 meter. Hence, only a single reading was sufficient since it was shallow enough and there is constant mixing of the entire water column, therefore, no thermal stratification will result.

Temperature readings in the present survey ranged from 25.1 to 32.6ºC. These values fall within suitable level (26-32ºC) for the culture of marine organisms (Chiu, 1988), except for the lowest value of 25.1ºC in Tagbubunot River. The PCSD (2002) also reported a range from 28.5 to 32ºC in their 1997 and 2002 survey. The PCSD (2005) reported temperature values of 23.36 to 34.8 ºC and 26.1 to 30.1ºC in southern and northern Palawan, respectively. Highest and lowest values were noted at noon time and early morning, respectively at Aramaywan River located in southern Palawan.

5.4.7 Turbidity

Turbidity is an expression of the optical property of a water sample which causes light to be scattered and absorbed rather than transmitted in straight lines through the sample (Umaly and Cuvin, 1988). It is usually due to presence of suspended matter such as clay, silt, finely divided inorganic or organic matter and even microorganisms like bacteria and plankton. The suspended material ranges in size from colloidal to coarse particles. High turbidity can cause temperature and DO stratification. In calm lake conditions, turbidity is mostly due to colloidal and extremely fine suspended particles whereas in fast-flowing rivers as in cases of after a heavy rain or flood, it is due to clay or washed topsoil and other relatively coarse particles.

Domestic sewage (treated or untreated) and some industrial wastes may add organic and inorganic materials that may contribute to turbidity. These substances may be used by bacteria and other microorganism as food material and result in their growth and thus contribute to turbidity. It is however not practical to correlate directly the turbidity of the sample with the amount of suspended particle because it is not only the concentration but also the size, shape and refractive index of the suspended material that affects turbidity (Umaly and Cuvin, 1988). Planktonic organisms are desirable when not excessive, but suspended clay particles are undesirable. It can cause clogging of gills or direct injury to tissues of aquatic animals. Erosion or the water itself can be the source of small (1-100 nm) colloidal particles responsible for the unwanted turbidity.

The degree of turbidity affects the amount of light that can penetrate through the water column and therefore can limit photosynthesis, and hence, the aquatic productivity.

In this present study, the secchi disk was used to estimate turbidity, as the secchi disk reading is a simple method for measuring light penetration. However, this method is more of an index of visibility than a true measure of light penetration. In all cases, the secchi disk readings were all similar to the water depth readings as the water column was shallow enough to allow light penetration to reach the bottom. Similar results were observed by the PCSD (2002) where they reported transparencies at sampling areas equivalent to the depths of the seagrass beds and coral reef areas which varied from 0.46 to 7.31 m.

Toronto Nickel Mining Project Chapter V-24

5.4.8 Total Dissolved Solids

Total dissolved solids were not monitored in the present survey but PCSD (2002) reported TDS values measured using an ultrameter in 2002, were generally higher than their 1997 data. The 1997 values ranged from 20.1 to 28.83 g/L whereas their 2002 data ranged from 27.5 to 32.9 g/L.

Conductivity is a measurement of water’s capacity to convey electrical conductance and is directly related to the concentration of ionized substances in water. Conductivity was used by PCSD (2005) to approximate the total dissolved solids in water. They reported conductivity and TDS measurements for southern and northern Palawan rivers to be within the DENR standard of 1,000 ppm for class A freshwater, except in Labog river in southern Palawan, due to coastal water intrusion during high tide.

5.4.9 Total Suspended Solids

All matter contained in a water sample is classified as solid matter. Hence, total solid is the matter that remains as residue upon evaporation and drying at 103-105ºC. Total solids include “non-filterable residue”, the portion of the total residue retained by a filter, and “filterable residue” which is the portion of the total residue which passes through the filter. Their quantity can however be affected by the chemical and physical nature of the material in suspension.

TSS values reported in the survey ranged from 3.72 to 20.00 mg/L which are all below the limit of 50 mg/L for class A waters, which has more stringent water quality standards than class C and D (DENR-AO No. 34).

The PCSD (2002) also cited suspended solids ranging from 0-2 mg/L both in 1997 and 2002. Similarly their turbidity readings ranged from 0-2 Formazin Turbidity Units (FTU) in 1997 and 2002. These results showed that the waters in the sampling areas were generally clear as also supported by their transparency data (PCSD, 2002).

The PCSD (2005) also cited suspended solid concentrations of below 50 mg/L limit set for class A freshwaters (DENR AO No. 34), except for some occasions (>150 mg/L) during the rainy season in 1999-2000 for some rivers in southern Palawan. Generally, the concentration of solids and values of turbidity are higher during the wet season compared to dry season as explained by the sediments that go with the runoff water during wet season (PCSD, 2005).

Toronto Nickel Mining Project Chapter V-25

5.4.10 pH and Alkalinity pH is an expression of hydrogen ion concentration in water (pH = -log[H+]) and therefore serves as an indicator of acidity and basicity. It is an important parameter to consider because it affects the metabolism and other physiological processes of aquatic organisms. A pH of 7 is the neutral point, and water is acidic below pH 7 and basic above pH 7.

Water pH in the present survey ranged from 7.5 to 8.1 (Table 2) and can be classified as neutral to slightly basic. It is well within the optimum pH range (6.8-8.7) for growth of aquatic organisms (Chiu, 1988) and well within the range specified for Class C and Class D waters of 6.5-8.5 and 6.0-9.0, respectively (DENR AO No. 34). Spotte (1979) reported safe pH ranges of 7.1-7.8 for freshwater, and 8.0-8.3 for brackishwater and seawater for culture of fish and invertebrate culture. The PCSD (2002) reported values of 7.87 to 8.5 in Narra, Palawan during their 1997 and 2002 survey. They also noted normal range (6.5-8.5) in several rivers in northern and southern Palawan in 1999-2000 during dry and wet season (PCSD, 2005).

Total alkalinity is a measure of the total concentration of bases in the water. It is measured by the amount of acid required to change the pH of water to 4, as indicated by the color change of methyl orange indicator. It is usually reported as ppm calcium carbonate (CaCO3) equivalent to the acid used to titrate the water. At optimum pH for growth of aquatic organisms (pH 6.8-8.7), the ions titrated would mainly be bicarbonate and carbonate (forming a buffer). Water of high alkalinity is therefore generally well buffered. pH changes in water are mainly influenced by carbon dioxide and ions in equilibrium with it. Like dissolved oxygen, a diel fluctuation pattern that is associated with the intensity of photosynthesis, occurs for pH. This is because carbon dioxide is required for photosynthesis and accumulates through night time respiration. It peaks before dawn and is at its minimum when photosynthesis is intense. All organisms respire and produce CO2 continuously so that the rate of CO2 production depends on the density of organisms. The rate of CO2 consumption depends on phytoplankton density. Carbon dioxide is acidic and it decreases the pH of water. Also, at lower pH, CO2 becomes the dominant form of carbon and the quantity of bicarbonate and carbonate would decrease. The consumption of CO2 during photosynthesis causes pH to peak in the afternoon, and the accumulation of CO2 during dark causes pH to be at its minimum before dawn. Ideally, pH should be monitored before dawn for the low level and in the afternoon for the high level. The magnitude of diel fluctuation is dependent upon the density of organisms producing and consuming CO2 and on the buffering capacity of the water (greater buffer capacity at higher alkalinity).

It can be noted in Table 2 that alkalinity values in the present survey ranged from 110 to 540 ppm CaCO3 which are high, meaning that it has high buffering capacity. It connotes high and constant pH. Diel fluctuation of pH is not as great in water with high buffering capacity. An alkalinity of above 20 ppm CaCO3 is preferred in culturing aquatic organisms (Boyd, 1982; Chiu, 1988). Alkalinity measurements indicate the stability of a pond or its capacity to resist pH changes. The PCSD (2002) also reported high total alkalinity values ranging from 70 to 79 ppm CaCO3 in coastal waters of Narra, Palawan. The PCSD (2005) reported alkalinity of water samples from monitoring sites ranging from 11 to 215 mg/L CaCO3 in southern Palawan, with Calategas and Labog rivers exhibiting the highest average value of alkalinity at 144 mg/L CaCO3.

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It should be noted that carbon dioxide cannot make water more acidic than pH 4.5. Water pH below 4.5 can be attributed to mineral acidity, the most common cause being sulfuric acid and originating from the oxidation of iron pyrite (FeS2). This typically happens when bodies of water containing potential acid sulfate soils are exposed to the air and oxidized. For example, areas located in coastal mangrove tidal swamps contain acid sulfate soils.

5.4.11 Color

Color in water results from leaching of organic debris, metallic salts and dissolved or suspended materials. The apparent color includes not only the color due to substances but also of suspended matter. The nature of the soil within the catchment area also affects the color of the water that drains to the river water being sampled.

No color readings were taken in the present survey. However, the PCSD cited baseline data for color of 0-9 units in 1997 and 0-8 units in 2002. Based on their data, they concluded that water was generally clear and that no abnormal discoloration from unnatural causes was observed.

However, the PCSD (2005) cited that Labog river has the highest average value of color compared to other rivers in southern Palawan with values ranging from 54 to 523 units. At the time of samplings, traces of river bank erosion were noted and gravel and sand extraction at the upstream were noted, thus affecting the color values. Moreover, decomposing organic matter such as leaves, trunks and mangrove bark left at the river bank could have also affected the values. As to the other sites, Calategas river values ranged from 37 to 1,022 units, Aramaywan river ranged from 42 to 720 , and Iraan river ranged from 29 to 281 units. Only Tigpalan with color values from 0 to 101 units or average of 34.39 units had met the 50 units DENR standard for class A water.

5.4.12 Dissolved Oxygen

Dissolved oxygen (DO) analysis of surface waters and waste waters provides important information on the biological and biochemical reactions going on in these waters. The amount of DO affects directly the aquatic organisms especially those that depend on aerobic respiratory reactions for energy production needed for growth and reproduction. The amount of DO also determines the capacity of the water to receive organic wastes without affecting aquatic life. The main sources of DO are atmospheric oxygen through diffusion from the atmosphere and through photosynthesis by aquatic plants. However, the same plants will also utilize the oxygen present for their respiratory needs. DO also affects the solubility and availability of many nutrients. Low levels of DO can cause changes in oxidation state of substances from the oxidized to the reduced form. This is because under anaerobic conditions, these substances function as electron acceptors in place of oxygen. Some reduced and unionized forms of nitrogen, sulfur, and carbon metabolites such as ammonia (NH3), hydrogen sulfide (H2S) and methane (CH4) are harmful to aquatic organisms even at low concentrations (Wetzel, 1983). In the presence of adequate oxygen, microorganisms convert - -2 these metabolites to harmless or less toxic forms such as nitrate (NO3 ), sulfate (SO4 ), and carbon dioxide (CO2). With heavy organic pollution, high levels of metabolites are produced, and oxygen consumption greatly increases.

In aquaculture, it is important to continuously maintain DO at optimum levels of above 3.5 ppm (Boyd, 1982; Chiu, 1988). However, some authors recommend a DO of above 5 mg/L in Toronto Nickel Mining Project Chapter V-27 standing water as desirable range, and in running water, the desirable range is 6 mg/L (Boyd, 1982; Stickney, 1979). DO levels observed in the present survey (Table 2) were above the recommended values, especially the DENR standard of at least 5 mg/L for class C and 3 mg/L for class D waters (DENR-AO No. 34). Moreover, DO depletion is indicated by surfacing to the water of fish, snails, tadpoles, etc. and the presence of dark streaks in the water body, accompanied by odor of methane and hydrogen sulfide. There were no indications of low DO. Hence, the reported DO values were within optimum limits for the growth and reproduction of aquatic organisms. The PCSD (2002) also reported DO values above 5 mg/L in all their sampling sites, except in Malinao estuary where they obtained a DO of 4.65 mg/L in 1997.

The PCSD (2005) also reported values within desirable range in southern Palawan except for some readings in some rivers in 1999. Generally, they reported higher concentration of DO during the wet season compared to dry season because of greater stream flow that aerated the water.

5.4.13 Water Hardness

The term “hardness” originally refers to the capacity of water to precipitate soap. Dissolved ions principally calcium and magnesium combine with soap to form insoluble precipitates and thus delay the formation of suds until such combination is complete (Umaly and Cuvin, 1988). For limmologists, knowledge of water hardness provides information as to the quantity of carbonates that could be used as reserve source of CO2 for photosynthesis. Hardness is also intimately associated with alkalinity. Aside from calcium and magnesium, other polyvalent metals like aluminum, iron, strontium, manganese and zinc also contribute to hardness but since their natural concentrations in inland waters are low, their contributions are generally considered insignificant compared with calcium and magnesium. Waters are commonly classified in terms of the degree of hardness as follows:

0 - 75 mg/L = soft 75 - 150 mg/L = moderately hard 150 - 300 mg/L = hard >300 mg/L = very hard

Based on the results shown in Table 2, the values obtained for water hardness indicate that all the water samples contain considerable amounts of calcium and magnesium ions and hence, referred to as hard or very hard water. For freshwater, hardness of 20-150 mg/L is recommended (Boyd, 1982).

Water hardness refers to the total concentration of calcium (Ca+2) and magnesium (Mg+2), expressed in ppm CaCO3. In most cases, the magnitude of total alkalinity and total hardness is comparable in a pond. This is because equivalent quantities of calcium, magnesium, bicarbonate and carbonate are derived when limestone is present in the aquatic ecosystem. However, there are cases where total alkalinity is high and total hardness is low, pH may become too high when photosynthesis is intense. Generally, it would advisable to maintain total alkalinity and total hardness between 20 and 200 mg/L CaCO3.

The PCSD (2005) reported high values of 238 mg/L CaCO3 in Calategas and Iraan river and the lowest in Guineratan river at 8 mg/L. They also stated that hardness of water is lower during wet season compared to dry season because of dilution from rainfall. Toronto Nickel Mining Project Chapter V-28

5.4.14 Salinity

Salinity is the total amount of solid materials (in grams) contained in 1 kilogram of seawater when all carbonates has been converted to oxide, the bromide and iodide replaced by chloride and all organic matter completely oxidized. Bodies of water are classified as follows based on salinity: freshwater, <0.5 ppt; oligohaline, 0.5-3.0 ppt; mesohaline, 3-16.5 ppt; polyhaline, 16.5-30 ppt, marine, >30 ppt; and hypersaline, >40 ppt.

The effect of salinity on the organism is somehow related to the ability of the organism to osmoregulate. Osmoregulation is the maintenance of constant internal environment with respect to blood of the organisms with that of the environment.

The PCSD (2002) reported salinity values ranging from 30 to 35 ppt in coastal areas of Narra. The average salinity of the ocean is 34.7 ppt. Hence, the reported values of PCSD (2002) are normal values for seawater. The salinity values reported in this present survey ranged from 0 ppt representing rivers to 34 ppt representing coastal waters (Table 1). In coastal areas, salinity variations can be extreme. In some areas like Balitiin river mouth (WS10), the salinity was 3 ppt because physical conditions create brackish water. Brackish water is produced in areas where fresh water (from rivers and high rainfall) and seawater mix.

5.4.15 Nitrogen Metabolites

Large quantities of organic matter originating from heavy pollution accumulate in bodies of water. These undergo oxidation-reduction reactions leading to decomposition, mainly through the action of bacteria. Nitrogen-containing amino acid and proteinaceous compounds are generally utilized more rapidly than carbohydrate-based compounds. Different forms of inorganic nitrogen are produced during decomposition (Wetzel, 1983). Ammonia + (NH3/NH4 ) is a product of protein metabolism in aquatic organisms. Ammonia released into the bloodstream or environment is in the unionized form (NH3). It establishes equilibrium with the ionized form (NH4+) and this is pH and temperature-dependent. As pH and temperature increase, the proportion of total ammonia nitrogen present as unionized ammonia increases.

+ Ammonium (NH4 ) is relatively non-toxic to aquatic animals while unionized ammonia (NH3) is highly toxic. Adverse effects can occur with long term exposure to 0.1 ppm NH3-N. This corresponds to total ammonia nitrogen concentrations of 11.1, 1.1, and 0.2 ppm for pH 7, 8, and 9, respectively at 32˚C. Higher ranges of ammonia (0.6-2 ppm) are tolerated for short term exposure. Beyond these concentrations, aquatic organisms may become more susceptible to diseases (Chiu, 1988). Excessively high pH can therefore cause serious ammonia toxicity problems.

Analysis of nitrogen in various forms may therefore serve as basis of judging the sanitary quality of water. Presence of high organic nitrogen means presence of a lot of organic material that could exert oxygen demand. High concentrations of ammonia and nitrite mean that anaerobic or reducing conditions predominate in the water (Umaly and Cuvin, 1988). A large quantity of nitrates means that organic matter has already been established into a form that can easily be assimilated by algae and aquatic plants. This may lead to heavy algal growth and hence to eutrophication.

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Ammonia and nitrite levels were low and undetectable in the present survey (Table 5-6). Hence, it indicates relatively safe and clean waters in all sampling stations, which are relatively free from recent pollution. Moreover, pH readings taken were below 8.5, hence it is safe from ammonia toxicity. The PCSD (2002) reported nitrate values from 0 mg/L (San Isidro coral area) to 1.04 mg/L (Bingawan 1 coral area) whereas nitrite values ranged from 0.001 mg/L (Calategas) to 0.011 mg/L (Aramaywan). The nitrate value obtained in Bingawan 1 (1.04 mg/L) by PCSD exceeded the nitrate limit (1.0 mg/L) for class SA waters but within limits (10 mg/L) for class SB waters (DENR AO No. 34). They further concluded that based on collected data, the concentration of nitrates and nitrite were low to cause eutrophication (PCSD, 2002).

DENR AO No. 34 stated a nitrate as nitrogen limit of 10 mg/L for class C waters, particularly to lakes, reservoirs and similarly impounded waters. In the present survey, no nitrate readings were taken. Since the source of nitrate is from nitrification of nitrite to nitrate by nitrifying bacteria (Wetzel, 1983) and since no ammonia and nitrite were detected in the survey, nitrate levels are expected to be lower than the DENR standards.

Concentrations between 0.6 and 2 mg/L NH3-N and as low as 0.5 mg/L NO2 are toxic to fish (Boyd, 1982).

The PCSD (2005) noted nitrate concentrations ranging from 0 to 7.5 mg/L, with Inandeng River having the highest value of nitrate (7.5 mg/L) while Iraan and Guineratan rivers had the lowest (0 mg/L). In terms of nitrite, Iraan, Inandeng, and Abongan rivers had lowest nitrite (0 mg/L) whereas Guineratan had the highest (0.119 mg/L). They also noted higher concentrations of nitrate and nitrite during the wet season caused by carabaos and cows using the rivers as a temporary corral and leaving the leaching waste behind. As indicated the observed nitrate concentration of water samples were still within the 10 mg/L maximum level for class A freshwater.

5.4.16 Phosphate

Phosphate and nitrate concentrations are the most important chemical parameters that influence the rate of eutrophication in lakes. Phosphates play an important role in biological metabolisms, i.e. source of ATP for bioenergetics, phosphate in salts that serve as structural materials (skeleton), an important constituent of nucleotides and nucleic acids, etc. The amount of phosphate in natural waters is usually limited although domestic sewage and waste containing detergents may increase phosphate concentrations in rivers and lakes.

Concentrations of total phosphorus in natural waters seldom exceed 1 mg/L (Boyd, 1982). DENR Administrative Order stated a limit of 0.4 mg/l phosphate in class C waters (freshwater rivers). All the readings taken during the survey (Table 5-6), ranged from 0.085 to 0.351 mg/L, which were below the 0.4 mg/L limit. The PCSD reported phosphate values of 0.01 to 0.13 mg/L for coastal waters. However, phosphate is not included in the water quality criteria for coastal and marine waters so no comparison can be made. The PCSD (2005) reported phosphorus levels found in water samples taken were not within the DENR standard for class A freshwater (0.1 mg/L), except for Inandeng River (ave. of 0.09 mg/L).

Phosphorus is much scarcer than other principal elements that constitute living things (Aguilar and Gonzales, 2001) because it lacks an atmospheric reservoir and it clings Toronto Nickel Mining Project Chapter V-30 stubbornly to its geological parent. In other words, unlike nitrogen, phosphorus is relatively immobile in water. It much prefers to stay bound at the bottom of the aquatic habitat. It combines with cations to form insoluble compounds or adheres to the edges of clay particles. Normally phosphorus is fixed in sediment rather than dissolved in the water column.

Croplands are famous for loading surface waters with eroded soil particles as well as animal feedlots. Overland flow or irrigation water washes these particles and incidentally phosphorus to nearby water bodies. Aside from that runoff containing fertilizer, phosphorus-containing detergents and soils/sediments are carried.

5.5 Stream flow and Discharge

Flowing water makes its way to the sea under the influence of gravity. The time required for the journey depends upon the velocity of the stream, which is measured in terms of the distance the water travels in a given unit of time. Some sluggish streams travel at 0.8 km/h, while a few rapid ones reach speeds as high as 32 km/h (Lutgens and Tarbuck, 1986). As shown in Table 3, stream velocity ranged from 0.368 m/sec or 1.32 km/h (Pinagduguan River Mouth) to 0.592 m/sec or 2.13 km/h (Pinagduguan River). On this basis, the velocity of the streams can be considered moderate.

The ability of a stream to erode and transport materials is directly related to its velocity; thus, it is a very important characteristic. Even slight variations in velocity can lead to significant changes in the load of sediment transported by the water. Several factors determine the velocity of a stream and therefore control the amount of erosional work a stream may accomplish. These factors include (1) gradient; (2) shape, size, and roughness; and (3) discharge. The higher the gradient, the more energy available for streamflow. The cross- sectional shape of a channel determines the amount of water in contact with the channel and hence affects the frictional drag. The size and roughness of the channel also affect the amount of friction.

The discharge of a stream is the amount of water flowing past a certain point in a given unit of time. This is usually measured in cubic meters per second or cubic feet per second. Discharge is found by multiplying a stream’s cross-sectional area by its velocity. The Mississippi river, the largest river in North America, discharges an average of 17,715 m3/sec. Although this is a huge quantity of water, it is small compared to the Amazon, the world’s largest river. The discharges of rivers are far from constant, however, because of variables as rainfall.

Stream beds gradate in nature and composition from the river’s upper reaches down to its lower regions. The gradations are related to fluvial processes operating within the system and to the gradient and types of substrates encountered by flowing water. Along with other factors, they significantly influence the distribution of plants and animals.

A stream flowing near its base level and approaching its mouth (lower stream course) carries large amount of silt, loose mud, and organic debris. These same materials make up its bottom. Due to the low relief of the surrounding land, the river’s shores are poorly defined. Owing also to the flatness of the area which prevents good drainage into the river, it is typically bordered by large swampy areas.

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The middle course generally has steeper gradient and greater water velocity than nearer the mouth. Consequently, the stream bed is typically made up of coarser and heavier materials. Mud and lighter sediments are usual only in quiet pools or side-waters. The flood plain is normally less extensive and the stream borders are defined by well-developed natural levees. Natural levees are elevated banks that results from the accumulation of flood-deposited materials along the margins of the stream. In addition, wooded stretches rather than swamps characterize the surrounding area.

The upper reach is marked by very steep gradient. Accordingly, water plunges down the incline at high velocity, only occasionally slowing down in pools. Boulders and rubble of various sizes are scattered on the channel and often along the shores as well. Light deposits of sand and organic detritus may be found on the bed where the stream flows into pools or briefly into a meadow.

5.6 Microbiological (Coliform) Analyses

The microbiological analysis done in this survey simply dealt with the determination of coliform organisms as indicator of degree of contamination of soil surface runoff and more specially contamination of water with wastes from human or animal sources.

In many cases it is important to differentiate between the fecal and non-fecal coliforms. Recent studies show that coliform from feces of warm-blooded animals generally includes organisms which are capable of producing gas from lactose in a suitable culture medium at 44.5±0.2ºC.

The coliform group comprises all of the aerobic and facultative anaerobic, gram-negative, non-spore-forming, rod-shaped bacteria which ferment lactose with gas formation within 48 hours at 35ºC.

The results of water samples for microbiological analysis revealed that all water samples were positive for thermo-tolerant fecal coliform organisms (Table 5).

Qualitative analysis consists of tests for the presence of Escherichia coli and related organisms of the colon-aerogens (coliform) group. These bacteria are normal inhabitants of the intestine of man and animal, and if they are abundant in a water sample, this is strong evidence that intestinal wastes have polluted the water (Burdon and Williams, 1968). Further, coliform bacteria can be identified by specific test as to their origin from human or animal sources. For example, organisms from human feces will grow at 44.5ºC, but those from nonhuman material will not (Burdon and Williams, 1968). The presence of human coliform bacteria indicates that the water is contaminated with human intestinal waste.

5.7 Heavy Metals in Sediments

5.7.1 Arsenic

Arsenic is classified chemically as a metalloid, having both properties of a metal and a non- metal; however, it is frequently referred to as a metal. Arsenic is usually found in the environment combined with other elements such as oxygen, chlorine and sulphur, and is Toronto Nickel Mining Project Chapter V-32 referred to as inorganic arsenic. On the other hand, arsenic combined with carbon and hydrogen is referred to as organic arsenic. Arsenic occurs naturally in soil and minerals and it therefore may enter the air, water and land from wind-blown dust and may get into water from run-off and leaching. It is also associated with ores containing metals, such as copper and lead. It may enter the environment during the mining and smelting of these ores.

Arsenic cannot be destroyed in the environment. It can only change its form, or become attached to or separated from particles. Many common arsenic compounds can dissolve in water. Thus, arsenic can get into lakes, rivers, and underground water by dissolving in rain or through the discharge of industrial wastes. Some of the arsenic will stick to particles in the water or sediment in the bottom of lakes or rivers and some will be carried along by the water. Ultimately, most arsenic ends up in the soil or sediment. Although some fish and shellfish take in arsenic, which may build up in tissues, most of this arsenic is in an organic form called arsenobetaine (commonly called “fish arsenic”) that is much less harmful (ATSDR, 2007). Analytical methods used by scientists to determine the levels of arsenic in the environment generally do not determine the specific form of arsenic present. Therefore, we do not always know the form of arsenic a person may be exposed to. Similarly, we often do not know what forms of arsenic are present at hazardous waste sites. Some form of arsenic may be so tightly attached to particles or embedded in minerals that they are not taken up by plants and animals.

Because arsenic is a natural component of the earth’s crust, low levels of the element are found in all environmental media. The concentration of arsenic in soil varies widely, generally ranging from about 1-40 ppm, with an average level of 3-4 ppm. Lowest concentrations are found in sandy soils and soils derived from granites whereas higher arsenic concentrations are found in alluvial soils and soils with high organic content. However, soils in the vicinity of arsenic-rich geological deposits, some mining and smelting sites, or agricultural areas where arsenic pesticides had been applied in the past may contain much higher levels of arsenic. The concentration of arsenic in natural surface and groundwater is generally about 1 ppb, but may exceed 1,000 ppb in contaminated areas or where arsenic levels in soil are high.

Arsenic enter rivers from where mining operations occurred and is transported downstream, moving from water and sediment into biofilm (attached algae, bacterial, and associated fine detrital material), and then into invertebrates and fish.

Natural concentrations of arsenic in sediments are usually <10 ppm dry weight, but can vary widely around the world. Sediment arsenic concentrations reported for U.S. rivers, lakes and streams range from about 0.1 to 4,000 ppm, with very high concentrations of arsenic in river basin sediments widely contaminated by metals from past mining, milling and smelting activities. In the present survey (Tale 4), sediment arsenic concentrations ranged from <1 ppm to 16 ppm (Balitiin river mouth), with most arsenic concentrations <10 ppm, indicating that the sediments are relatively uncontaminated.

5.7.2 Chromium

Chromium is a naturally occurring element found in rocks, animals, plants, soil, and in volcanic dust and gases. Chromium is present in the environment in several different forms. The most common forms are chromium(0), trivalent (or chromium(III)), and hexavalent (or Toronto Nickel Mining Project Chapter V-33 chromium(VI)). Chromium(III) occurs naturally in the environment and is an essential nutrient required by the human body to promote the action of insulin in body tissues so that sugar, protein, and fat can be used by the body. Chromium(VI) and chromium(0) are generally produced by industrial processes. Chromium compounds, mostly in chromium(III) or chromium(VI) forms, produced by the chemical industry are used for chrome plating, the manufacture of dyes and pigments, leather tanning, and wood preserving.

Chromium enters the air, water, and soil mostly in the chromium(III) and chromium(VI) forms as a result of natural processes and human activities. Emissions from burning coal and oil, and steel production can increase chromium(III) levels in air. Stainless steel welding, chemical manufacturing, and use of compounds containing chromium(VI) can increase chromium(VI) levels in air. Waste streams from electroplating can discharge chromium(VI). Leather tanning and textile industries as well as those that make dyes and pigments can discharge both chromium(III) and chromium(VI) into waterways. The levels of both chromium(III) and chromium(VI) in soil increase mainly from disposal of commercial products containing chromium, chromium waste from industry, and coal ash from electric utilities.

In air, chromium compounds are present mostly as fine dust particles. This dust eventually settles over land and water. Rain and snow help remove chromium from air. Chromium compounds will usually remain in the air for fewer than 10 days. Although most of the chromium in water binds to dirt and other materials and settles to the bottom, a small amount may dissolve in the water. Fish do not accumulate much chromium in their bodies from water. Most of the chromium in soil does not dissolve easily in water and can attach strongly to the soil. A very small amount of the chromium in soil, however, will dissolve in water and can move deeper in the soil to underground water. The movement of chromium in soil depends on the type and condition of the soil and other environmental factors.

Chromium released into the environment from combustion processes and ore processing industries is present mainly as chromium (III) oxide (Cr2O3). However, chromium (VI) has been detected in fly ash from coal-fired power plants (Stern et al. 1984 as cited in ATSDR, 2000) and from chromate manufacturing and user sites. Chromium is primarily removed from the atmosphere by fallout and precipitation. Most of the chromium in lakes and rivers will ultimately be deposited in sediments. Chromium in the aquatic phase occurs in the soluble state or as suspended solids adsorbed onto clayish materials, organics or iron oxides. Most of the soluble chromium is present as chromium (VI) or as soluble chromium (III) complexes and generally accounts for a small percentage of the total. Soluble chromium (VI) may persist in some bodies of water for a long time but will eventually be reduced to chromium (III) by organic matter or other reducing agents in water (Cary, 1982 cited in ATSDR, 2000). The residence times of chromium (total) in lake water range from 4.6 to 18 years (Schmidt and Andren, 1984).

The chromium concentrations in U.S. river waters usually range from <1 to 30 µg/L, with a median value of 10 µg/L (ATSDR, 2000). The total chromium concentration in U.S. drinking water range from 0.4 to 8.0 µg/L, with a mean value of 1.8 µg/L (Greathouse and Craun, 1878 cited by ATSDR, 2000). In ocean water, the mean concentration is 0.3 µg/L (Cary, 1982 cited in ATSDR, 2000). In general, the concentration of chromium in ocean water is much lower than that in lakes and rivers. Total chromium concentrations in conterminous U.S. soils range from 1.0 to 2,000 mg/kg, with a mean of 37.0 mg/kg (USGS, 1984 as cited in ATSDR, 2000) whereas in Canadian soils, it ranged from 5 to 1,500 mg/kg, with a mean of Toronto Nickel Mining Project Chapter V-34

43 mg/kg (Cary, 1982 as cited in ATSDR, 2000). The chromium levels in soils vary greatly and depend on composition of the parent rock from which the soils were formed. Basalt and serpentine soils, ultramafic rock, and phosphorites may contain chromium as high as a few thousand mg/kg (Merian, 1984 as cited in ATSDR, 2000), whereas soils derived from granite or sandstone will have lower concentrations. The typical chromium levels in most fresh foods are <50 µg/kg (Fishbein, 1984). Chromium was detected in sediment obtained from the coastal waters of the eastern U.S. seashore at concentrations of 3.8 to 130.9 µg/g (ppm) in 1994 and 0.8 to 98.1 µg/g (ppm) in 1995 (Hyland et al. 1998 as cited in ATSDR, 2000).

Based on the present survey, the chromium concentrations in sediments taken at Narra, were relatively high which ranged from 2,631 ppm (coastal water II) to 16,090 ppm (coastal water I) as compared to U.S. soil and sediments (Table 4).

5.7.3 Lead

Lead is a heavy, low melting, bluish-gray metal that occurs naturally in the arth’s crust. However, it is rarely found naturally as a metal. It is usually found combined with 2 or more other elements to form lead compounds.

Metallic lead is resistant to corrosion (i.e. not easily attacked by air or water). When exposed to air or water, thin films of lead compounds are formed that protect the metal from further attack. Lead is easily molded and shaped. It can be combined with other metals to form alloys. Lead and lead alloys are commonly found in pipes, storage batteries, weights, shots and ammunition, cable covers, and sheets used to shield us from radiation. The largest use for lead is in storage batteries in cars and other vehicles. Tetraethyl lead and tetramethyl lead were once used as gasoline additives to increase octane rating. However, their use was phased out in the U.S. in the 1980s, and lead was banned for use in gasoline for motor vehicles since 1996. Tetraethyl lead may still be used in developing countries. Most lead used by industry comes from mined ores (“primary”) or from recycled scrap metal or batteries (“secondary”).

Lead occurs naturally in the environment. However, most of the high levels found throughout the environment come from human activities. Environmental levels of lead have increased more than 1,000-fold over the past three centuries as a result of human activity. The greatest increase occurred between the years 1950 and 2000, and reflected increasing worldwide use of leaded gasoline. Lead can enter the environment through releases from mining lead and other metals, and from factories that make or use lead, lead alloys or lead compounds.

Lead is released into the air during burning coal, oil or waste. Before the use of leaded gasoline was banned, most of the lead released into the U.S. environment came from vehicle exhaust but this was reduced when leaded gasoline was banned in 1996. Once lead gets into the atmosphere, it may travel long distances if the lead particles are very small. Lead is removed from the air by rain and by particles falling to land or into surface water. Once lead falls into soil, it sticks strongly to soil particles and remains in the upper layer of soil. That is why past uses of lead such as lead in gasoline, house paint and pesticides are so important in the amount of lead in soil. Small amounts of lead may enter rivers, lakes and streams when soil particles are moved by rainwater. Small amounts of lead from lead pipe or solder may be released into water when the water is acidic or “soft”. Lead may remain stuck to soil particles or sediment in water for many years. Movement of lead from soil particles into groundwater is unlikely unless the rain falling on the soil is acidic or soft. Movement of lead from soil will Toronto Nickel Mining Project Chapter V-35 also depend on the type of lead compound and on the physical and chemical characteristics of the soil. Sources of lead in surface water or sediment include deposits of lead-containing dust from the atmosphere, waste water from industries that handle lead (primarily iron and steel industries and lead producers), urban runoff and mining piles. Some lead compounds are changed into other forms of lead by sunlight, air and water. However, elemental lead cannot be broken down.

Lead is dispersed throughout the environment primarily as a result of anthropogenic activities. In the air, lead is in the form of particles and is removed by rain or gravitational settling. The solubility of lead compounds in water is a function of pH, hardness, salinity, and the presence of humic material. Solubility is highest in soft, acidic water. The sink for lead is the soil and sediment.

Of the known aquatic releases of lead, the largest ones are from the steel and iron industries and lead production and processing operations. Urban runoff and atmospheric deposition are significant indirect source of lead found in the aquatic environment. Lead reaching surface waters is sorbed to suspended solids and sediments (EPA, 1982 cited in ATSDR, 2007). Although aquatic releases of lead from industrial facilities are expected to be small with respect to emissions to land and air, lead may be present in significant levels in drinking water. In areas receiving acid rain the acidity of drinking water may increase; this increases the corrosivity of the water which may increase leaching of lead from old water systems.

The concentration of lead in surface water is highly variable depending upon source of pollution, lead content of sediments, and characteristics of the system (pH, temperature, etc.). Levels of lead in surface waters and groundwaters throughout the U.S. typically range between 5 and 30 µg/L, although levels as high as 890 µg/L have been measured (EPA, 1986 cited in ATSDR, 2007). Mean levels of lead in surface waters measured at 50,000 surface water stations throughout the U.S. are 3.9 µg/L (Eckel and Jacob, 1988 cited in ATSDR, 2007). The median lead level in natural river water is 5 µg/L, with a range of 0.6 to 120 µg/L (Bowen, 1966 cited in ASTDR, 2007). Lead levels in seawater are estimated at 0.005 µg/L (EPA, 1982 cited in ATDSR, 2007).

Sediments contain considerably higher levels of lead than corresponding surface waters. Concentrations of lead in river sediments have been estimated at about 23 mg/kg, and concentrations of lead in coastal sediments range from 1 to 912 mg/kg with a mean value of 87 mg/kg (EPA, 1982 as cited in ASTDR, 2007).

All sediment samples in the present survey contained <10 ppm (detection limit is 10 ppm) of lead showing that the sediments were unaffected from major sources of lead such as leaching of lead from the native rocks and anthropogenic lead deposition.

5.7.4 Nickel

Pure nickel is a hard, silvery-white metal, which has properties that make it desirable for combining with other metals to form mixtures called alloys. Some of the metals that nickel can be alloyed with are iron, copper, chromium, and zinc. These alloys are used in making metal coins and jewelry and in industry for making items such as valves and heat exchangers. Most nickel is used to make stainless steel. There are also compounds consisting of nickel combined with many other elements, including chlorine, sulphur, and oxygen. Nickel Toronto Nickel Mining Project Chapter V-36 compounds are also used for nickel plating, to color ceramics, to make some batteries, and as substances known as catalysts to increase rate of chemical reactions.

Many of these nickel compounds are water-soluble (dissolve fairly easily in water) and have a characteristic green color. Nickel combined with other elements occurs naturally in earth’s crust. It is found in all soil and also emitted from volcanoes. It is the 24th most abundant element. In the environment, it is primarily found combined with oxygen or sulphur as oxides or sulfides. Nickel is released into the atmosphere during nickel mining and by industries that make or use nickel, nickel alloys, or nickel compounds. These industries also might discharge nickel in waste water. Nickel is also released into the atmosphere by oil-burning power plants, coal-burning power plants, and trash incinerators.

Nickel may be released to the environment from the stacks of large furnaces used to make alloys or from power plants and trash incinerators. The nickel that comes out of the stack attaches to small particles of dust that settle to the ground or are taken out of air by rain. It usually takes many days for nickel to be removed from air, especially if nickel attaches to very small particles. Nickel can also be released in industrial waste water. A lot of nickel released into the environment ends up in soil or sediment where it strongly attaches to particles containing iron or manganese. Under acidic conditions, nickel is more mobile in soil and might seep into groundwater. Nickel does not appear to concentrate in fish but studies show that some plants can take up and accumulate nickel.

Nickel and its compounds are naturally present in earth’s crust, and releases to the atmosphere occur from natural discharges such as windblown dust and volcanic eruptions, as well as from anthropogenic sources. Anthropogenic activities account for 5 times of the releases as compared to natural sources.

Uncontaminated freshwater and seawater generally contain about 0.3 µg/L of nickel (Barceloux, 1999 as cited in ATSDR, 2005). Concentrations of nickel in drinking water commonly range from 0.55 to 25 g/L and average between 2 and 43 µg/L. Nickel is a natural constituent of soil. Levels vary depending on local geology and anthropogenic input. The typical concentrations of nickel reported in soil range from 4 to 80 ppm. Nickel may be transported into streams and waterways from natural weathering of soil as well as anthropogenic discharges and runoff. This nickel accumulates in sediments. Nickel levels in surface waters are low. Median nickel concentrations in rivers and lakes range from 0.5 to 6 µg/L. Levels in groundwater appear to be similar to those in surface water. Levels in seawater are typically 0.1 to 0.5 µg/L.

The speciation and physicochemical state of nickel is important in considering its behaviour in the environment and availability to biota. For example, the nickel incorporated in some mineral lattices may be inert and have no ecological significance. Most analytical methods for nickel do not distinguish the form of nickel. The total amount is reported but the nature of the nickel compounds and whether they are adsorbed to other material is not known. This information, which is critical in determining its availability, is site specific. Therefore, it is impossible to predict nickel’s environmental behaviour on a general basis (ATSDR, 2005).

Sediment is an important sink for nickel in water. The reported nickel concentrations of sediments in the present survey range from 1,752 ppm (Coastal water I) to 3,654 ppm (Pinagduguan River). Mean nickel levels in pristine sediments from 5 sites off the northern coast of Alaska ranged from 25-31 ppm (Sweeney and Naidu, 1989 cites in ATSDR, 2005). Toronto Nickel Mining Project Chapter V-37

Nickel was most highly associated with silt and clay. In sediment cores from open water of Lake St. Clair, reported values range from 8.5 to 21.1 ppm with mean concentrations of 13.6 and 17.6 ppm in sand and silty clay sediment, respectively (Rossmann, 1988 cited ATSDR, 2005). Nickel concentrations in sediments from Clark Ford – Pend Oreille and Spokane River Basins in regions adjoined by states of Washington, Idaho and Montana in 1988 range from 12 to 27 ppm dry weight (USGS, 2000 as cited in ATSDR, 2005).

By comparison, the values such as the ones detected in the present survey sites are high due to the presence of existing nickel mining activities in the area. However, as stated previously only the total amount of nickel was reported but not the form which has important implications in its availability to organisms. Nickel content in sediments is expected to be high near sources of nickel emissions. For example, nickel carried into creeks and streams from drainage and runoff originating from active or abandoned mining operations in the Black Hills of South Dakota can lead to increased concentrations of this metal in sediments (May et al. 2001 cited ATSDR, 2005). Nickel concentrations varied between 10 and 64 µg/g (or ppm) dry weight depending on proximity to nearby mines. Actually nickel content of soil may depend on local geology. A nickel content of 5% (5000 ppm) is common in podzol soil in southeastern U.S. and nickel concentrations >1000 ppm are not unusual in glacial till in southern Quebec. Both are areas underlaid with ultramafic rock rich in nickel. Nickel concentrations in contaminated soils within 8 km of the large nickel smelter at Sudbury, Ontario, ranged from 80 to 5,100 ppm (Duke, 1980 cited in ATSDR, 2005). Nickel concentrations declined logarithmically with increasing distance form the smelter and that nickel accumulations resulted from atmospheric deposition and soil runoff (Taylor and Crowder, 1983 cited in ATSDR, 2005).

5.7.5 Mercury

Mercury occurs naturally in the environment and exists in several forms. These forms can be organized under three headings: metallic mercury (also known as elemental mercury), inorganic mercury, and organic mercury. Metallic mercury is a shiny, silver-white metal that is liquid at room temperature. Metallic mercury is the elemental or pure form of mercury (i.e. it is not combined with other elements). Metallic mercury metal is the familiar liquid metal used in thermometers and electrical switches.

Inorganic mercury compounds occur when mercury combines with elements such as chlorine, sulphur, or oxygen. These mercury compounds are also called mercury salts. Most inorganic mercury compounds are white powders or crystals, except for mercuric sulphide (also known as cinnabar) which is red and turns black after exposure to light.

When mercury combines with carbon, the compounds formed are called “organic” mercury compounds or organomercurials. There is a potentially large number of organic mercury compounds; however, by far the most common in the environment is methyl mercury (also known as monomethyl mercury). In the past, an organic mercury compound called phenyl mercury was used in some commercial products. Another organic mercury called dimethyl mercury is also used in small amounts as reference standard for some chemical tests. Dimethyl mercury is the only organic mercury that has been identified at hazardous waste sites.

Toronto Nickel Mining Project Chapter V-38

Several forms of mercury occur naturally in the environment. The most common natural forms are metallic mercury, mercuric sulphide (cinnabar ore), mercuric chloride, and methyl mercury. Some microorganisms (bacteria and fungi) and natural processes can change the mercury in the environment from one form to another. The most common organic mercury that microorganisms and natural processes generate from other forms is methyl mercury. Methyl mercury is of particular concern because it can build up in certain freshwater and seawater fish and marine mammals to levels many times greater than levels in surrounding water.

Atmospheric deposition of mercury from both natural and anthropogenic sources has been identified as an indirect source of mercury to soil and sediments. Mercury is released to cultivated soils through the direct application of inorganic and organic fertilizer (e.g. sewage sludge and compost), lime and fungicide containing mercury (Anderson, 1979 cited in ATSDR, 1999). Additional anthropogenic releases to soil are expected as a result of the disposal of industrial and domestic solid waste products (e.g. thermometers, electrical switches and batteries) to landfills.

Mercury may be released to surface waters in effluents from a number of industrial processes, including chloralkali production, mining operations and ore processing, metallurgy and electroplating, chemical manufacturing, ink manufacture, pulp and paper mills, leather tanning, pharmaceutical products and textile manufacture (EPA, 1971 as cited in ATSDR, 1999). Discharges from a regional wastewater treatment facility on the St. Louis River that received primarily municipal wastes contained 0.364 µg/L (ppb) of mercury, resulting in concentrations in the adjacent sediment of up to 5.07 µg/g (ppm) (Glass et al. 1990 cited in ATSDR, 1999). Industrial effluents from a chemical manufacturing plant on the Stauffer Chemical’s Le Moyne, Alabama site contained greater than 10 ppm of mercury. These effluents had contaminated an adjacent swamp and watershed with mercury concentrations in the sediments ranging from 4.3 to 316 ppm (Hayes and Rodenbeck, 1992 cited in ATSDR, 1999). Estuarine and coastal marine sediment samples analyzed for NOAA’s National Status and Trends Program 1984-1987 showed 38 of 175 sites contained mercury in excess of 0.41 ppm (O’Connor and Ehler, 1991 cited in ADFTRS, 1999). In addiotn, 6 of these sites exceeded the NOAA ER-M concentration of 1.3 ppm (dry weight) which is the equivalent of the median for all sites monitored.

Mercury concentrations in sediments in the present survey were below detectable limit of 0.10 ppm (Table 4). This indicates that the sediment is uncontaminated with mercury and that there is no appreciable source of mercury from industrial sources in the area.

Conclusion

Most of the physico-chemical parameters of water samples collected in Narra, Palawan during the course of the survey were within the suitable range set by DENR. Temperature readings ranged from 25.1 to 32.6ºC. These values fall within suitable level (26-32ºC) for the culture of marine organisms. Turbidity, as assessed by secchi disk reading which is a simple method for measuring light penetration, were similar to the water depth readings as the water column was shallow enough to allow light penetration to reach the bottom. Total suspended solids ranged from 3.72 to 20.00 mg/L which are all below the limit of 50 mg/L for class A waters, which has more stringent water quality standards than class C and D waters. Water pH ranged from 7.5 to 8.1 and can be classified as neutral to slightly basic. It is well within Toronto Nickel Mining Project Chapter V-39 the optimum pH range (6.8-8.7) for growth of aquatic organisms and within the range specified for Class AA (Freshwater) and SA (Coastal and Marine) waters. Alkalinity ranged from 110 to 540 ppm CaCO3 which are high indicating high buffering capacity. It connotes high and constant pH and above 20 ppm CaCO3 which is preferred in culturing aquatic organisms. DO levels observed were above the recommended values, especially the DENR standard of at least 5 mg/L for class AA and SA waters. Hardness ranged from 224-344 ppm CaCO3, indicating considerable amounts of calcium and magnesium ions and can be considered hard or very hard water. Salinity ranged from 0 ppt representing rivers to 34 ppt representing coastal waters. Ammonia and nitrite levels were low and undetectable in the survey. Phosphorus ranged from 0.085 to 0.351 mg/L, which were below the 0.4 mg/L limit set by DENR for class C waters.

Stream velocity ranged from 0.368 m/sec or 1.32 km/h (Pinagduguan River Mouth) to 0.592 m/sec or 2.13 km/h (Pinagduguan River). On this basis, the velocity of the streams can be considered moderate.

Microbiological analysis revealed that all water samples were positive for thermo-tolerant fecal coliform organisms.

Sediment arsenic concentrations ranged from <1 ppm to 16 ppm (Balitiin river mouth), with most arsenic concentrations <10 ppm, indicating that the sediments are relatively uncontaminated. Chromium concentrations in sediments were relatively high which ranged from 2,631 ppm (coastal water II) to 16,090 ppm (coastal water I) as compared to U.S. soil and sediments. All sediment samples contained <10 ppm of lead showing that the sediments were unaffected from major sources of lead such as leaching of lead from the native rocks and anthropogenic lead deposition. Nickel concentrations of sediments ranged from 1,752 ppm (Coastal water I) to 3,654 ppm (Pinagduguan River) which were considered high, due to the presence of several nickel mining activities in the area. Mercury concentrations in sediments were below detectable limit of 0.10 ppm. This indicates that the sediment is uncontaminated with mercury and that there is no appreciable source of mercury from industrial sources in the area.

Toronto Nickel Mining Project Chapter V-40

5.8 Pedology and Land Use

5.8.1 Rationale

The proposed nickel mining project in Espanola Palawan falls under the Environmental Critical Project (ECP) as classified by DAO 96-34, requiring the proponent to conduct a thorough environmental investigation on the proposed site .One of the components of the environmental investigation is the soil physico-chemical assessment as parameter needed in describing the physical environment that would have a potential impact on the environment if altered or disturbed. The description of the soil of the study area was conducted and the data verified with the relevant studies from the Bureau of Soils and Water Management. Research partners were hired from the local community to facilitate in the collection of relevant information.

The soil survey on the site of proposed project was conducted in April 21-28, 2007 with the following objectives:

 To identify the location of the primary and secondary impact of the proposed project on the soil environments;  To assess the general condition of the soil productivity and fertility of the study areas  To determine the existing soil chemical and physical properties that may have an effect on the overall production of the various crops in the proposed project site.

5.8.2 Methodology

Sampling Site Identification, Primary and Secondary Impact Areas

Using a topographic map, the sampling site was divided into 2 major categories: Primary Impact Area (PIA) and Secondary Impact Area (SIA). The Primary impact area includes the the immediate vicinity of the mining site, along the whole length of the hauling road, on areas reached by the highest water line of the Parian I and II and Belitien Rivers, as well as the site for the proposed Toronto Nickel Mines pier. The secondary impact area covers the barangays located beyond the primary impact areas but lies within the watershed identified as Barangays Teresa, Calategas, Urduja and Batang-Batang, all in Narra Municipality.

Soil Profile Description

To characterize the soil profile of the study area, a 1m by1.5m pit was dug and exposed the horizons of the soil. Each horizon was examined and samples were taken for laboratory analysis. Data that were gathered was verified with the existing data available from the Bureau of Soils and Water Management (BSWM).

Soil Sampling for Physico-chemical Analysis

Soil samples were taken in a composite manner using a soil auger with a depth of 50- 100 cm depending on the structure of the layers of the soil. Soil description was conducted per horizon and initial physical properties were recorded. 300 kilogram composite samples Toronto Nickel Mining Project Chapter V-41 per sampling site were taken and placed in a plastic bag, sealed with a rubber string and sent to the laboratory for physico-chemical analysis.

Analysis of Soil Physico-Chemical Properties

A. Soil Water Retention

Water content of the soil was determined using a pF meter. The relationship between the soil water content and the soil water suction is a fundamental characterization of the hydraulic properties of the soil. The suction, measured in bars, relevant to soil quality determinations are pF 2.5( 1/3 bar suction), that refers to the field capacity or the maximum water content that the soil will hold following free drainage; pF 4.2 (15 bar suction), that refers to the permanent wilting point or the soil moisture content at which the leaves of plants wilt permanently and do not recover turgor if subsequent placed in saturated atmosphere. The available water is computed by deducting the moisture content at bars 15 from the moisture content at 1/3 bar.

Table 5-10. Criteria for Available Water Capacity

Available Water Capacity Board Class Rating <120 Low Class1 120-180 Medium Class2 >180 High Class3

B. Aggregate Stability

An aggregate is a group of primary particles that cohere to each other more strongly that to other surrounding soil particles. Stability of aggregates is a function of whether the cohesive forces between particles withstand the applied disruptive force. Aggregate stability measurements are done using wet sieving equipment. Calculations of soil aggregate analysis were made to determine the percent of soil retained in each sieve and the mean weight diameter value.

Table 5-11. Criteria for Aggregate Stability

Mean Weight Diameter Aggregate Stability Rating <0.2mm Low Class 3 0.2-0.5mm Medium Class 2 >0.5 mm High Class 1

C. Soil pH

Soil pH determination is a soil/water suspension normally provides adequate information. Measurement of pH was made on a 1:1 soil: water suspension, equilibrated for 1 hour and measured with a glass-and-calamel electrode.

Toronto Nickel Mining Project Chapter V-42

Table 5-12. Criteria for pH of the Soil pH Range Designation General Interpretation Rating >8.5 Very high Alkaline soils; Ca and Mg liable to be unavailable; may be Class 3 high Na; Possible B toxicity 7.0-8.5 High Decreasing availability of P and B to deficiencies at higher Class 2 values. Above 7, increasing liability of deficiency of Co, Cu, Fe, Mn, and Zn. 5.5-7.0 Medium/ Preferred range for most plants, lower end of the range is too Class1 Optimum acidic for some 3.5-5.5 Low Acid soils, possibly Al toxicity and excess Co, Cu, Fe, Mn, Class 2 Zn: deficient in Ca, K, N, Mg, Mo,P S 3.5 Very Low Possibly acid sulfate soils Class 3

D. Total Organic Carbon

Measurement of organic carbon was made to measure the quantity of organic matter in the soil which is a crude measure of fertility status. Organic C determination was made by Walkley-Black dichromate method.

Table 5-13. Criteria for Organic C Organic Content Designation Rating (% soil by weight) >20 Very high Class 1 10-20 High Class 1 4-10 Medium Class1 2-4 Low Class2 <4 Very Low Class3

E. Cation Exchange Capacity

Cation exchange capacity (CEC) was made as part of the overall assessment of the potential fertility of a soil. CEC was derived from the amount of particular cation that soil can hold when leached by a buffered solution containing that cation.

Table 5-14. Criteria for Cation Exchange Capacity

CEC Designation Rating (meq/100 g soil) >40 Very high Class 1 25-40 High Class 1 15-25 Medium Class 2 5-15 Low Class 2 <5 Very Low Class 3

F. Heavy Metal Analysis

The heavy metal concentration on the soil samples was extracted using acid digestion technique that involves strong oxidizing mineral acids. The digested materials were analyzed using Atomic Absorption Spectrometry (AAS) with detection limit of 10ppm for Pb, 1ppm for Arsenic and 0.10ppm for Hg.

Toronto Nickel Mining Project Chapter V-43

Table 5-15. Environmental Quality Standards for Soil Pollution* Substance Target Level of Soil Quality through Leaching and Content Tests Lead (Pb) 0.01 mg/l or less in sample solution Arsenic 0.01 mg/l or less in sample solution, and less than 15 mg/kg in soil for agricultural land (paddy fields only) Total Mercury 0.0005 mg/l or less in sample solution *Based on the Environmental Quality Standard of Ministry of Environment in Japan.

Table 5-16. General Guidelines for the Fertility Rating of Soils (Weighted Averages in Top 50cm) Soil Fertility Factors Adequate (Favorable) Marginal Deficient (Unfavorable) pH H2O (1:1 ratio) 5.5-8.5 5.0-5.5 <5.0 CEC ( meq/100g soil) >20 10-20 <10 Organic Matter (%) 1.8 - <1 Exchangeable K (meq/100g >0.25 0.15-0.25 <0.15 soil) Available P, ppm (Trough >10 6-10 <6.0 Method) >200 6-20 <6.0 (Olsen Method) >10 7-10 <7.0

Exhangeable Mg (meq/100g >0.5 0.25-0.5 <0.25 soil) Cu (DPTA)ppm >0.2 - <0.2 Fe (DPTA) ppm >4.5 2.5-4.5 <2.5 Mn (DPTA) ppm >1.0 - <1.0 Zn (DPTA) ppm >1.5 0.5-1.5 <0.5

Table 5-17. Soil Fertility Rating Following the Numbers and Intensity of Fertility Limiting Factors Soil Fertility Numbers and Intensity of fertility Limiting Factors Very High No factor is at deficient level an none or one factor marginal High No factor is at deficient level and two or three facrtors are marginal, or One factor is at deficient level and none is marginal Moderate One factor is at deficient level and more than three factors are marginal, or One factor at deficient level and one to three factors are marginal, or Two factors are at deficient level and none is marginal Low One factor is at deficient level and more than three factors are marginal, or Two factors at deficient level and one to three factors are marginal, or Three factors are at deficient level and none is marginal. Very low Two factors are at deficient level and more than three are marginal, or Three factors are at deficient level and more than one is marginal, or More than three factors are deficient level.

Toronto Nickel Mining Project Chapter V-44

5.8.3 Sampling Sites

Primary Impact Area

Site 1: Test Pit

GPS Reading: N 09º 13’ 17.0” E 118º 16’ 17.8” Elevation: 458 masl Vegetation Type: Secondary Forest Remarks: Dominated by Malabayabas (Tristaniopsis sp.) associated with Mountain Agoho (Gymnostoma rumphianum) undergrowth of Bikal (Schizostachyum diffusum) and Pandan gubat (Pandanus sp.)

Site 2: Siltation Pond

GPS Reading: N 09º 12’ 13.8” E 118º 15’ 38.6” Elevation: 160 masl Vegetation Type: Secondary Forest to Brushland Remarks: Extremely disturbed, along the creek dominated by Katmon bugtong (Dillenia monantha) associated with Bikal (Schizostachyum diffusum) and Cogon (Imperata cylindrica)

Site 3: Purok #7 San Isidro

GPS Reading: N 09º 12’ 24.7” E 118º 17’59.9 Elevation: 160 masl Vegetation Type: Agricultural area Remarks: Near the road, mostly grasses, shrubs species and Musa sp. found near the selected site

Site 4: PGMC Pier

GPS Reading: N 09º 10’47.6” E 118º 16’58.2” Elevation: 8 masl Vegetation Type: Coconut Plantation Remarks: Undergrowth of brushland species associated with Pterocarpus indicus and Nypha fruticans, located near the creek

Secondary Impact Area

Site 1: Barangay Teresa

GPS Reading: N 09º 11’09.6” E 118º 19’34.4” Elevation: 11 masl Toronto Nickel Mining Project Chapter V-45

Vegetation Type: Community Remarks: Barangay center, approximately 300 to 400 m from the shore and mostly dominated by fruit trees.

Site 2: Sitio Cabuluan, Barangay Calategas

GPS Reading: N 09º 10’38.6” E 118º 14’24.9” Elevation: 18 masl Vegetation Type: Community/Agriculture Remarks: Brushland area associated with fruit trees undergrowth of Imperata cylindrica near the feeder road

Site 3: Barangay Urduja

GPS Reading: N 09º 13’35.5” E 118º 19’23.2” Elevation: 48 masl Vegetation Type: Community Remarks: Dominated by Casuarina sp., associated with Leucaena sp. and Musa sp.

Site 4: Barangay Batang batang

GPS Reading: N 09º 11’52.9” E 118º 20’22.0” Elevation: 16 masl Vegetation Type: Community/Brushland Remarks: Surrounding species of the selected site: Pandanus sp. Duhat (Syzygium sp.), Santol (Sandoricum keotjape), Kakawate (Gliricidia sepium), Bolo (Gigantochloa leavis), Manga (Mangifera indica) and Musa sp. Toronto Nickel Mining Project Chapter V-46

Plate 5-9. Soil Sampling sites

2 3

6 4

SAMPLING SITE

Site Description Coordinates Elevation (masl) 1 Test Pit N 09 13’ 17.0”, E 118 16’ 17.8” 458 2 Siltation Pond N 09 12’ 13.8”, E 118 15’ 38.6” 160 3 Purok 7, San Isidro N 09 12’ 24.7”, E 118 17’ 59.9” 160 4 PGMC Pier N 09 10’ 47.6”, E 118 16’ 58.2” 8 5 Barangay Teresa N 09 11’ 09.6”, E 118 19’ 34.4” 11 6 Sitio Cabuluan, Calategas N 09 10’ 38.6”, E 118 14’ 25.9” 18 7 Barangay Urduja N 09 13’ 35.5”, E 118 19’ 23.2” 48 8 Barangay Batang-Batang N 09 11’ 52.9”, E 118 20’ 22.0” 16

Toronto Nickel Mining Project Chapter V-47

Table 5-18. Physical Analysis of Soil Samples %Particle Size Distrib Elevation Clay Sample Depth Site Total Sand Silt Textural Class masl Less 0.002 .05-2.0 0.05-0.002 S-17 11 0-50 Teresa 15.4 54.8 29.8 Silty clay loam S-18 160 0-50 Siltation pond 75.4 6.8 17.8 Sandy loam S-19 48 0-50 Urduja 81.4 6.8 11.8 Loamy sand S-20 8 0-50 Pier 85.4 2.8 11.8 Loamy sand S-21 160 0-50 Purok 7 37.4 12.8 49.8 Clay S-22 18 0-50 Kablahan 23.4 18.8 57.8 Clay S-23 16 0-50 Batang-batang 69.4 14.8 15.8 Sandy loam S-24 458 0-50 Test pit 3.4 50.8 45.8 Silty clay

Table 5-19. Soil Moisture Retention Capacity Moisture Retention Capacity Elevation Permanent Available Sample Site Water Holding Field Capacity masl wilting pt Moisture Capacity 1/3 Bar 15 bar S-17 11 Teresa 76.2 50.46 26.65 23.81 S-18 160 Siltation pond 51.6 25.34 15.40 9.94 S-19 48 Urduja 34.0 9.83 6.60 3.23 S-20 8 Pier 32.2 8.52 6.23 2.29 S-21 160 Purok 7 77.7 51.54 30.12 21.42 S-22 18 Kablahan 80.7 53.59 31.21 22.38 S-23 16 Batang-batang 50.8 16.64 10.92 5.72 S-24 458 Test pit 73.8 44.24 27.57 16.67

Table 5-20. Soil and Water Analysis Data, Oven-dry basis Sample Elevation Site Depth Copper Zinc Iron (Fe) Manganese masl (cm) (Cu) ppm (Zn) ppm Ppm (Mn) ppm S-17 11 Teresa 0-50 0.96 0.94 49.22 23.65 S-18 160 Siltation pond 0-50 0.46 0.28 37.31 13.04 S-19 48 Urduja 0-50 0.50 0.14 27.95 11.42 S-20 8 Pier 0-50 0.31 0.12 22.54 8.77 S-21 160 Purok 7 0-50 1.60 0.41 83.60 78.92 S-22 18 Kablahan 0-50 2.42 0.50 23.76 21.49 S-23 16 Batang-batang 0-50 0.47 0.12 24.51 10.71 S-24 458 Test pit 0-50 1.38 1.57 36.61 81.12

Table 5-21. Soil Chemical Analysis Data Sample Site Depth pH Olsen P OC OM Total N Elevation CaCl2 Ppm % % % masl 1:2 S-17 11 Teresa 0-50 7.5 11.9 0.39 0.67 0.03 S-18 160 Siltation pond 0-50 8.0 Not detected 0.62 1.07 0.02 S-19 48 Urduja 0-50 7.9 Not detected 0.13 0.22 0.02 S-20 8 Pier 0-50 7.7 Not detected 0.25 0.43 0.03 S-21 160 Purok 7 0-50 7.3 Not detected 1.29 2.22 0.06 S-22 18 Kablahan 0-50 7.5 0.4 0.75 1.29 0.04 S-23 16 Batang-batang 0-50 7.9 Not detected 0.17 0.29 0.01 S-24 458 Test pit 0-50 6.8 Not detected 0.42 0.72 0.04

Toronto Nickel Mining Project Chapter V-48

Table 5-22. Chemical Analysis Data Elevation Exchangeable Bases (milliequivalents/100g soil) Sample Site Depth masl Ca Mg Na K S-17 11 Teresa 0-50 5.9 37.8 0.3 0.2 S-18 160 Siltation pond 0-50 2.6 19.6 0.03 0.04 S-19 48 Urduja 0-50 2.1 10.0 0.04 0.1 S-20 8 Pier 0-50 3.8 7.8 0.04 0.1 S-21 160 Purok 7 0-50 4.2 47.4 0.1 0.1 S-22 18 Kablahan 0-50 30.09 35.5 0.1 0.4 S-23 16 Batang-batang 0-50 2.4 15.0 0.1 0.02 S-24 458 Test pit 0-50 0.3 11.5 0.1 0.05

5.8.4 RESULTS

A. Primary Impact Areas

Location and Extent

The primary impact area includes the immediate vicinity of the mine site, along the whole length of the hauling road, on areas reached by the highest water line of the Parian I and II and Belities Rivers, the stockpile area, as well as the site of the proposed Toronto Nickel Mines Pier. This mine site is described as ultrabasic hills with an elevation of 100 to 450 meters above sea level wherein the soil that developed from the materials consists of shallow to moderately deep well drained soils. The land use and vegetative cover consist of secondary forest with patches of shrubs, coconut and some musa species.

Soil Characteristics and Properties

A.1. Site Observation : Test Pit 1

The soil in this area, silty clay in texture, is located on hilly to steep portions at an elevation of 458 meters above mean sea level. The weathering of ultrabasic materials formed the soils in these areas. Organic carbon is very low; water holding capacity is low; available moisture is medium; and soil pH is high with a class 2 rating. Inherent fertility is moderate to low.

Toronto Nickel Mining Project Chapter V-49

Table 5-23. Soil Chemical and Physical Analysis Percent Particle Size Distribution Laboratory Result Textural Class (mm) USDA Total Sand (0.5 – 2.0) 3.4 Silty clay Total Silt (.05-.002) 50.8 Total Clay (<0.002) 45.8

Moisture Retention Capacity Designation Water Holding Capacity 73.8 Low Field Capacity 1/3 bar 44.24 Permanent wilting point 15 bar 27.57 Available moisture 16.67 Medium pH CaCl (1:2) 6.8 High (neutral) Organic Carbon (%) 0.42 Very low Organic Matter (%) 0.72 Total Nitrogen (%) 0.04 Available P (ppm) Not detected Total Exchangeable Bases ( Ca, Mg, Na, K) meq/100g 11.95 Copper (ppm) 1.38 Zinc (ppm) 1.57 Iron (ppm) 36.61 Manganese (ppm) 81.12

A.2 Site Observation: Siltation Pond

The soil in this area at an elevation of 160 meters above mean sea level is identified under the Tagburos series by Bureau of Soil and Water Management; SAFDZ-CLUP; 2001). The vegetative cover is secondary growth forest with patches of brushland area and cogon. Having a sandy loam texture, waterholding capacity is low with class 1 rating; available moisture is low; soil pH is high; organic carbon is very low; cation exchange capacity is low. The soil in this area is not suitable for crop production due to coarse loamy texture with very low inherent fertility. Analysis indicates that there is no detectable trace of available phosphorus; it is deficient in organic matter and zinc base as described in the FAO guidelines in evaluating soil fertility rating.

Toronto Nickel Mining Project Chapter V-50

Table 5-24. Soil Chemical and Physical Analysis Percent Particle Size Distribution Laboratory Result Textural Class (mm) USDA Total Sand (0.5 – 2.0) 75.4 Sandy loam Total Silt (.05-.002) 6.8 Total Clay (<0.002) 17.8

Moisture Retention Capacity Designation Water Holding Capacity 51.6 Low Field Capacity 1/3 bar 25.34 Permanent wilting point 15 bar 15.40 Available moisture 9.94 Low pH CaCl (1:2) 8.0 High (moderately alkaline Organic Carbon (%) 0.62 Very low Organic Matter (%) 1.07 Total Nitrogen (%) 0.02 Available P (ppm) Not detected Total Exchangeable Bases ( Ca, Mg, Na, K) meq/100g 22.27 Copper (ppm) 0.46 Zinc (ppm) 0.28 Iron (ppm) 37.31 Manganese (ppm) 13.04

A.3 Site Observation: Purok 7, San Isidro, Narra

The soil in this site at an elevation of 160 meters above mean sea level is generally classified under the Busuanga series. The surrounding collo-alluvial fan landform is lying on a nearly level to undulating slope (3-8 percent). The area is a combination of coarse and fine materials characterized by shallow to moderately well to well-drained soil (Survey BSWM- 2001). Soil reaction is neutral with pH 7.3; water holding capacity is low; organic carbon is very low; available phosphorus is not detected on traces; organic matter is adequate; deficient in zinc while iron and manganese is adequate. Inherent fertility is low due to deficient potassium and very low organic carbon. Generally, the soil is poor in terms of nutrient availability but has capacity to increase fertility due to fine clayey texture and its 21.42 available moisture. Toronto Nickel Mining Project Chapter V-51

Table 5-25. Soil Chemical and Physical Analysis Percent Particle Size Distribution Laboratory Result Textural Class (mm) USDA Total Sand (0.5 – 2.0) 37.4 Clay Total Silt (.05-.002) 12.8 Total Clay (<0.002) 49.8

Moisture Retention Capacity Designation Water Holding Capacity 77.7 Low Field Capacity 1/3 bar 51.54 Permanent wilting point 15 bar 30.12 Available moisture 21.42 High pH CaCl (1:2) 7.3 High (neutral) Organic Carbon (%) 1.29 Very low Organic Matter (%) 2.22 Total Nitrogen (%) 0.06 Available P (ppm) Not detected Total Exchangeable Bases ( Ca, Mg, Na, K) meq/100g 51.8 Copper (ppm) 1.60 Zinc (ppm) 0.41 Iron (ppm) 83.60 Manganese (ppm) 78.92

A.4. Site Observation : PGMC – Pier

The soil on the observation site at PGMC – Pier at 8 meters above mean sea level has loamy sand texture. The area, due to its physiographic position which occurs on level to nearly level with 0-3 percent slope and sandy texture, is well drained. The soil is relatively not suitable for agricultural purposes due to its very low ability to hold moisture for crop production and low water holding capacity. Organic carbon is very low, deficient or low phosphorus and organic matter; soil pH is mildly alkaline decreasing the availability phosphorus and zinc. The soil’s inherent fertility is low. To improve the fertility status of this soil, proper soil conservation measures and fertility management are needed. Toronto Nickel Mining Project Chapter V-52

Table 5-26. Soil Chemical and Physical Analysis Percent Particle Size Distribution Laboratory Result Textural Class (mm) USDA Total Sand (0.5 – 2.0) 85.4 Loamy sand Total Silt (.05-.002) 2.8 Total Clay (<0.002) 11.8

Moisture Retention Capacity Designation Water Holding Capacity 32.2 Low Field Capacity 1/3 bar 8.52 Permanent wilting point 15 bar 6.23 Available moisture 2.29 Very low pH CaCl (1:2) 7.7 High(mildly alkaline) Organic Carbon (%) 0.25 Very low Organic Matter (%) 0.43 Total Nitrogen (%) 0.03 Available P (ppm) Not detected Total Exchangeable Bases ( Ca, Mg, Na, K) meq/100g 11.74 Copper (ppm) 0.31 Zinc (ppm) 0.12 Iron (ppm) 22.54 Manganese (ppm) 8.77

B. Secondary Impact Area

The secondary impact areas cover the barangays located beyond the primary areas. These lie within the watershed located at the eastern coast of Barangay Teresa, Calategas and Batang- batang and part of Princess Urduja in Narra, Palawan. The site has an elevation of less than 100 meters above mean sea level with 0-3 percent slope (level to nearly level) and 3-8 percent slope or nearly level to undulating terrain.

B.1 Site Observation: Barangay Teresa

The area near the Barangay and approximately 300 to 400 meters from the shore is composed mainly of fine sediments of sand, silt and clay and sometimes stones, gravel and cobbles characterized by deep to very deep, somewhat poor to very poorly-drained silty clay loam texture. Slope range is from 0-3 percent with level to nearly level physiographic position. Water holding capacity is low; very low organic carbon and low organic matter; and marginal zinc. Soil reaction is mildly alkaline with rating of high pH 7.5. Inherent fertility is moderate due to very high available moisture and adequate available phosphorus content. Toronto Nickel Mining Project Chapter V-53

Table 5-27. Soil Chemical and Physical Anaysis Percent Particle Size Distribution Laboratory Result Textural Class (mm) USDA Total Sand (0.5 – 2.0) 15.4 Silty clay loam Total Silt (.05-.002) 29.8 Total Clay (<0.002) 23.8

Moisture Retention Capacity Designation Water Holding Capacity 76.2 Low Field Capacity 1/3 bar 50.46 Permanent wilting point 15 bar 26.65 Available moisture 23.81 Very high pH CaCl (1:2) 7.5 High(mildly alkaline) Organic Carbon (%) 0.39 Very low Organic Matter (%) 0.67 Total Nitrogen (%) 0.03 Available P (ppm) 11.9 Total Exchangeable Bases ( Ca, Mg, Na, K) meq/100g 44.2 Copper (ppm) 0.96 Zinc (ppm) 0.94 Iron (ppm) 49.22 Manganese (ppm) 23.65

B.2 Site Observation: Sitio Cabuluan, Barangay Calategas

The sampling area is at an elevation of 18 meters above mean sea level with slope range (0-3 percent), occupying a level to nearly level physiographic position with soils formed by recent alluvial deposits. The vegetation cover is brushland associated with patches of fruit trees and grass or cogon (Imperata Cylindrica). Soil is very deep with clay texture. Consistency is sticky, plastic; when moist and firm to hard when dry. Inherent fertility is low to moderate due to available moisture of 22.38 and adequate organic matter content; waterholding capacity is low, with very low organic carbon; and deficient available phosphorus. Toronto Nickel Mining Project Chapter V-54

Table 5-28. Soil Chemical and Physical Analysis Percent Particle Size Distribution Laboratory Result Textural Class (mm) USDA Total Sand (0.5 – 2.0) 23.4 Clay Total Silt (.05-.002) 18.8 Total Clay (<0.002) 57.8

Moisture Retention Capacity Designation Water Holding Capacity 80.7 Low Field Capacity 1/3 bar 53.59 Permanent wilting point 15 bar 31.21 Available moisture 22.38 High pH CaCl (1:2) 7.5 High(mildly alkaline) Organic Carbon (%) 1.29 Very low Organic Matter (%) 0.04 Total Nitrogen (%) 0.4 Available P (ppm) 0.4 Total Exchangeable Bases ( Ca, Mg, Na, K) meq/100g 66.09 Copper (ppm) 2.42 Zinc (ppm) 0.50 Iron (ppm) 23.76 Manganese (ppm) 21.49

B.3 Site Observation Princess Urduja

The area is near the vicinity of Barangay Princess Urduja with at elevation of 48 meters above mean level. Physiographic position is nearly level to gently sloping with slope a range of 3-8 percent. The soil in this area has loamy sand texture with very low to low inherent fertility due to very low organic carbon and low organic matter content; available phosphorus is not detected; available water holding capacity is low; very low available moisture and the soil pH is moderately alkaline. In order to increase fertility level, build up of soil organic matter is needed to improve texture, soil structure and infiltration rate. Toronto Nickel Mining Project Chapter V-55

Table 5-29. Soil Chemical and Physical Analysis Percent Particle Size Distribution Laboratory Result Textural Class (mm) USDA Total Sand (0.5 – 2.0) 81.4 Loamy sand Total Silt (.05-.002) 6.8 Total Clay (<0.002) 11.8

Moisture Retention Capacity Designation Water Holding Capacity 34.0 Low Field Capacity 1/3 bar 9.83 Permanent wilting point 15 bar 6.60 Available moisture 3.23 Very low pH CaCl (1:2) 7.90 High(moderately alkaline) Organic Carbon (%) 0.13 Very low Organic Matter (%) 0.22 Total Nitrogen (%) 0.02 Available P (ppm) Not detected Total Exchangeable Bases ( Ca, Mg, Na, K) meq/100g 12.14 Copper (ppm) 0.50 Zinc (ppm) 0.14 Iron (ppm) 27.95 Manganese (ppm) 11.42

B.4 Site. Observation Barangay Batang-Batang

The sampling area located at Barangay Batang-Batang with soil of sandy loam texture. The slope range is from 0-3 percent with level to nearly level physiography. These areas are mostly vegetated with fruit trees, with some Musa and Pandamus species; soil consistency is non-sticky, non plastic, when wet and friable to loose, when moist. Soil reaction is moderately alkaline; low water holding capacity and available moisture; very low organic carbon; available moisture and organic matter is deficient or low. Infiltration is moderate to rapid due to coarse loamy textural family. Natural fertility is low to very low such that addition of organic matter to improve texture, soil structure and infiltration are needed if the area is to be used for agricultural purposes. Toronto Nickel Mining Project Chapter V-56

Table 5-30. Soil Chemical and Physical Analysis Percent Particle Size Distribution Laboratory Result Textural Class (mm) USDA Total Sand (0.5 – 2.0) 69.4 Sandy loam Total Silt (.05-.002) 14.8 Total Clay (<0.002) 15.8

Moisture Retention Capacity Designation Water Holding Capacity 50.8 Low Field Capacity 1/3 bar 16.64 Permanent wilting point 15 bar 10.92 Available moisture 5.72 Low pH CaCl (1:2) 7.9 High(moderately alkaline) Organic Carbon (%) 0.17 Very low Organic Matter (%) 0.29 Total Nitrogen (%) 0.01 Available P (ppm) Not detected Total Exchangeable Bases ( Ca, Mg, Na, K) meq/100g 17.52 Copper (ppm) 0.47 Zinc (ppm) 0.12 Iron (ppm) 24.51 Manganese (ppm) 10.71 Toronto Nickel Mining Project Chapter V-57

Table 5-31. Results of Laboratory Analysis Observation pH OM Exch K Available P Exch Mg Cu Fe Mn Zn Fertility Rating Site CaCl 1:2 % meq/100g ppm meq/100g ppm ppm ppm ppm Brgy. Teresa 7.5 A 0.67 D 0.20 M 11.9 A 37.8 A 0.96 A 49.22 A 23.65 A 0.94 M Moderate

Siltation Pond 8.0 A 1.07 D 0.04 D ND D 19.6 A 0.46 A 37.31 A 13.04 A 0.28 D Very low

Princess Urduja 7.9 A 0.22 D 0.10 D ND D 10.0 A 0.50 A 27.95 A 11.42 A 0.14 D Low to very low

Pier – PGMC 7.7 A 0.43 D 0.10 D ND D 7.80 A 0.31 A 22.54 A 8.77 A 0.12 D Low

Purok 7, Brgy Sn Isidro 7.3 A 2.22 A 0.10 D ND D 47.4 A 1.60 A 83.60 A 78.92 A 0.41 D Low

Sitio Cabuluan, Brgy Calategas 7.5 A 1.29 A 0.40 M 0.4 D 35.5 A 2.42 A 23.76 A 21.49 A 0.50 M Moderate

Brgy Batang-Batang 7.9 A 0.29 D 0.02 D ND D 15.0 A 0.47 A 24.51 A 10.71 A 0.12 D Low to very low

Test Pit 1 6.8 A 0.72 D 0.05 D ND D 11.5 A 1.38 A 36.61 A 81.12 A 1.57 A Moderate to low

Results of Laboratory Analysis (2007) Note: ND – Not Detected

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5.9 Physical Oceanography (lifted from EIS Report, Palawan Cement Project, Scott Point, Palawan)

The study area for physical oceanography covers the coastal waters of Sulu Sea at the mouth of Punang River at the vicinity of Scott Point. The proposed stockpile and loading area is south of the existing PGMC causeway.

5.9.1 Tides

Tidal height observations recorded at the nearest secondary tide station in Balabac Pier, Palawan describe the tidal patterns at the designated stockpile and loading area of Toronto Mines. The secondary tide station is located at 8E00”N latitude and 117E04’E longitude.

The Balabac tidal station has two types of tides, the diurnal and semidiurnal. Diurnal tide is characterized by one high water and one low water in a lunar day, manifested as a high tide when the moon approaches its maximum declination. The other type of tide is the semi-diurnal, where two high waters and two low waters in a lunar day is observed. This type happens when the moon’s declination approaches zero. Various tidal levels recorded at the Balabac station are the following:

Mean Sea Level (MSL) 0.628 meter Mean Higher High Water (MHHW) 1.308 Mean High Water (MHW) 1.150 Mean Low Water (MLW) 0.129

The benchmark at Balabac (BM3) is at the flagpole in front of the municipal hall, identified by a copper nail permanently set in a drilled hole at the flagpole’s concrete pedestal with inscription “BM-3, 1986 BCGS”. The benchmark is at 4.597 meter elevation mark.

5.9.2 Ocean Currents

Current measurement was done with the use of Sensordata SD-30 current meter. Current speed, direction and seawater temperature were recorded. The results show that the currents in the bay are very weak. During ebb tide, the currents are oriented towards the south with speeds ranging from 0.0 – 6.4 cm/second. During flood tide, the currents were observed to be directed northward with speeds ranging from 0.6 to 7.6 cm/sec. The maximum observed current near Scott Point was only 1.0 cm/sec.

Table 5-32. Sampling Stations Station Location Geographic Coordinates 1 Scott Point 9E01’27.3”N, 118E05’00.4E 2 Labog River 9E02’01.4”N, 118E05’16.3E 3 Ingiaran Point 9E03’11.7”N, 118E06’14.1E 4 Panitian River 9E05’37.5”N, 118E06’39.5E 5 Crawford Hill 9E04’38.2”N, 118E06’45.3E 6 Punang River 9E00’23.0”N, 118E04’14.8E

Table 5-33. Tidal Patterns, Labog Bay, Palawan Station Depth Flood Tide Ebb Tide Local Current Temp Time Current (cm/sec) Temp Toronto Nickel Mining Project Chapter V-59

time 0C 0C Speed Direction Speed Direction 1 Causeway 5 0849 0.0 216 30.20 1412 1.0 203 30.20 2 Labog 5 0904 5.0 337 30.20 1432 1.8 280 30.20 3 Ingiaran Point 5 0929 2.0 352 30.30 1502 0.2 163 30.45 4 Panitian 2 1014 0.0 55 30.20 1532 0.8 165 30.70 5 Crawford Hill 5 0954 6.4 326 30.20 1555 7.6 178 30.45 6 Punang 5 0824 1.4 303 30.05 1645 0.6 65 30.55

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5.10 METEOROLOGY

5.10.1 Rainfall

PAGASA classified the climate of the southeastern portion of Palawan, where the municipality of Narra is located, as Type III (Plate 5-11) of the Modified Coronas’ climate classification. This type of climate has no very pronounced maximum rain period, with a short dry season. From the rainfall normals (1971-2000) of Puerto Princesa (Plate 5-12), maximum rainfall occurred in May to December with highest rainfall values occurring in October and November with 222.3 mm and 205.4 mm respectively. From January to April, months of minimum rainfall, February occurred as the driest month with an average of only 3 rainy days.

5.10.2 Temperature

January is the coldest month with an average minimum temperature of 22.7oC while April is the warmest with an average maximum temperature of 32.7oC (Table 5-33). The maximum daily temperature can be as high as 38 °C as experienced by the team during their visit at the site on April 24, 2007.

5.10.3 Relative Humidity

The relative humidity is the ratio of the amount of actual water vapor to the maximum amount the air can actually hold. Since the site is located near the sea, the air is expected to be as humid as in Puerto Princesa. The monthly average relative humidity ranged from 78% in April to 86% in July and October. Months with higher number of rainy days and rainfall are coupled with high relative humidity.

5.10.4 Wind Speed and Direction

The most frequent wind direction is from the East from November to April, from the West in May, September and October, and from the south from June to August (Table 5-33). From the wind rose diagram based from 1961-1995 (Plate 5-13), the northeast winds, i.e., winds coming from the northeast, are also prevalent from November to April. From May to September, the predominant winds can be from the west, south and southwest. Light winds prevail throughout the year with speeds from 1 to 4 mps. Moderate winds are observed with frequency more than 5% in January and February. Winds stronger than 7 mps occurred only in February, March, October and December. These are most likely linked with occurrence of tropical cyclones.

Winds coming from the northeast from November to February are usually associated with the northeast monsoon although the North Pacific Trades can appear in all seasons attaining its maximum strength in April and May and may reach Palawan in varying directions, i.e., generally from the northeast, east and southeast. Southwesterly winds as early as May until October are associated with the southwest monsoon. Since the site is located along the eastern coast of Palawan, local winds can be dominant in form of sea and land breeze. Sea breeze comes from the east and land breeze from the west. Orography plays a major role by deflecting the wind direction and influence its strength.

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5.10.5 Frequency of Tropical Cyclones

A total of 11 tropical cyclones passed within 1 degree of the site in Narra from 1971 to 2000. This translates to 1 tropical cyclone every 3 years. None of the tropical cylones reached typhoon intensity. Only 2 reached storm stage (winds between 65 and 118 kph near the center) while the rest are tropical depressions (winds between 35 and 64 kph near the center). The two tropical storms occurred in Oct 1996 and November 1985. The distribution of tropical cyclone passage is as follows: 1 in March, 2 in April, 3 in October, 3 in November and 2 in December.

On November 19, 2007, a Tropical Depression named “Lando” (International Name “Hagibis”) was spotted East Southeast of Surigao City. It intensified into a Tropical Storm attaining maximum sustained winds of 105 kph on November 22. It crossed Visayas towards central Palawan and out into the South China Sea but reentered the country on November 26 hitting this time the northern part of the province (Plate 5-14). Public Storm Warning Signal No. 2 (60-100 kph wind) was raised in the whole Province of Palawan. Greatest 24-hr rainfall of 29 mm was recorded in Puerto Princesa on that day which caused several floodings in some parts of the city proper. Fortunately, Municipality of Narra was spared but the rainfall caused muddy roads going up into the mining site.

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PROJECT SITE

Plate 5-11. The Philippine climate classification based on Modified Coronas Classification (from PAGASA). Toronto Nickel Mining Project Chapter V-63

Plate 5-12. Average monthly rainfall (1971-2000) in Puerto Princesa.

Normal Rainfall (1971-2000)

250

200

150

100

Rainfall (mm) Rainfall 50

0 jan feb mar apr may jun jul aug sep oct nov dec

Table 5-33. Climatological Normals (1971-2000) of Puerto Princesa, Palawan (09o45' N, 118 o 44' E, 16.0 m)

RR RD Temperature VP RH Wind Cld Tstm Month Max Min Mean DB WB DP D Spd mm days oC oC oC oC oC oC Mb % mps okt days Jan 29.5 5 30.7 22.7 26.7 26.5 23.9 22.9 27.9 81 E 3 5 1 Feb 23.7 3 30.9 22.8 26.8 26.6 24.0 23.0 28.0 81 E 3 4 1 Mar 32.1 4 31.7 23.2 27.4 27.2 24.4 23.4 28.6 79 E 2 4 1 Apr 42.7 6 32.7 24.2 28.4 28.2 25.2 24.2 30.0 78 E 2 4 5 May 128.1 12 32.6 24.5 28.6 28.2 25.6 24.7 31.0 81 W 2 5 15 Jun 178.6 16 31.5 23.9 27.7 27.3 25.2 24.5 30.6 84 S 1 6 11 Jul 163.9 17 31.2 23.5 27.3 26.8 24.9 24.2 30.2 86 S 1 6 10 Aug 159.8 18 31.1 23.5 27.3 26.9 24.9 24.2 30.1 85 S 2 6 10 Sep 181.8 17 31.2 23.4 27.3 26.8 24.9 24.2 30.2 86 W 1 6 12 Oct 222.3 19 31.1 23.4 27.3 26.8 24.9 24.2 30.2 86 W 1 6 12 Nov 205.4 15 31.0 23.4 27.2 26.9 24.9 24.2 30.1 85 E 2 5 8 Dec 146.1 10 30.6 23.2 26.9 26.7 24.5 23.7 29.2 83 E 3 5 3 Annual 1514 142 31.3 23.5 27.4 27.1 24.8 23.9 29.6 83 E 2 5 87 Note: RR is rainfall, RD is rainy days, DB is dry bulb, WB is wet bulb, DP is dew point, VP is vapor pressure, RH is relative humidty, D is direction, Spd is speed, Cld is cloud in oktas, Tstm is thunderstorm

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Plate 5-13. Monthly wind rose diagrams averaged for 35 years. Toronto Nickel Mining Project Chapter V-65

Plate 5-13 (Cont’d). Monthly wind rose diagrams averaged for 35 years.

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PROJECT SITE

Plate 5-14. Tropical Storm “Lando” (Hagibis) showing its track.

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5.10.6 Discussion of the observed Meteorological parameters during the sampling period at the Narra mining site.

The result of the monitored ambient air temperature and local winds (direction and speed) in the sampling site is shown below.

Table 5-34. Monitored meteorological parameters at or near Mining site, Narra, Palawan.

Stn no. Location Date Time Dir/Speed T (°C) Stn 1 Bgy Pinagduguan Nov. 22, 2007 1759H-1859H NE/1 mps 29.0 Stn 2 Bgy San Isidro Hot Spring Nov. 22, 2007 1928H-2028H NE/1 mps 28.0 Stn 3 Bgy Bato Bato Nov. 23, 2007 0530H-0730H W/2 mps 24.0 Stn 4 Port Area, Narra Nov. 23, 2007 1100H-1200H E/2mps 32.0 (Meteo Stn)

Stations were set up in the western, eastern and southern part of the mining site including the port area for combined meteorology and air pollution monitoring. Another station was set up near Bgy. Bato Bato solely for meteorology purposes only.

The first meteorological observation was taken on November 22 at Bgy. Pinagduguan between 6:00-7:00 PM about 5 km from the coastline. The wind is light at 1 mps coming from the NE with observed temperature of 29.0°C. The next observation was taken at Bgy. San Isidro Hot Spring between 7:28-8:28 PM. The wind is from the NE at 1 mps and recorded temperature of 28.0°C.

On the second day, November 23, the observation was taken near the Bgy. Bato Bato between 0530H-0730H. The average wind of 2 mps was recorded. It can be observed that the wind reverses coming from the West indicating a weak land breeze persisting this late morning of the day. The observed temperature of 24.0°C was the lowest recorded so far.

The next meteorological observation was taken at the Port Area along the coast between 11:00-12:00 NN. The wind blows from the East indicating the presence of the sea breeze with light winds of 2 mps. The observed temperature was 32.0 °C on a cloudless day.

In general, the local winds monitored near the mining site blows from East to Northeast during daytime and reverses during early morning coming from the West. This pattern although needs more observation time characterized the land-sea breeze cycle present near the coastline. These wind breezes are important features in the dispersion of pollutants (i.e. Sox, Nox and TSP) produced from the mining site specifically during the operation phase of the project in which the proponent should be aware of to mitigate its effect from nearby communities.

5.11 Air and Noise Quality Monitoring

To establish the present condition of ambient atmospheric air and the background noise levels in the area, actual on-site air sampling and noise measurements were conducted at five stations near and around the project area. These sampling stations, indicated in Plate 5-10 were selected strategically to account for the wind regimes affecting the area in relation to existing social elements and economic structures. The sampling sites represent key receptors in the area that could be affected by the establishment of the project. 5.11.1 Methodology Toronto Nickel Mining Project Chapter V-69

The sampling method used for sulfur dioxide (SO2) and nitrogen dioxide (NO2) is by bubbling the ambient air through an absorbing solution in glass impingers using the AirChek Gas Sampler. For total suspended particulates (TSP), a Staplex high-volume sampler is used with a filter paper that is weighed prior to and after sampling.

The methods of analysis of air samples are Pararosaniline Method for SO2, Griess-Saltzman Method for NO2, and a gravimetric method for TSP as specified in DENR DAO 14. The sampling was done in conformity with the National Ambient Air Quality Standards (NAAQS) of the Department of Environment and Natural Resources (DENR).

The noise level is also monitored using an Extech Analog Sound Level Meter capable of measuring sound level pressure. Sound level pressure ranges and weighted average ware recorded.

5.11.2 Results

From the overall results of the analyses of the air samples obtained from the vicinity of the project site, the quality of the air in the proposed aread can still be considered generally good. The only exceptions are some stations where the TSP concentrations are relatively high due to frequent vehicular activity on uncemented roads. Specific results of the findings per station are discussed briefly in the succeeding sections.

Baseline air quality measurement was conducted on November 22-24 2007 at four selected sampling stations in Narra, Palawan of Citinickel Mines Development site and surrounding. The air quality parameters considered were Sulfur Dioxide (SO2), Nitrogen Dioxide (NO2), and Total Suspended Particulates (TSP). The location of air quality sampling stations is shown in Plate 5-10. A one hour time average air sampling was conducted at four selected stations with one station was monitored for a 24-hours period to determine the air pollutant concentrations in the project area.

The stations are the following: Site Description Coordinates Elevation (masl) Stn. 1 Brgy. Pinagduguan 9°11'46.12"N, 118°16'44.89"E 22 Stn. 2 Brgy. San Isidro Hot Spring 9°10'56.70"N, 118°15’13.22”E 16 Stn. 3 Brgy. Bato-Bato 9°12'58.00"N, 118°17'22.42"E 91 Stn. 4 Proposed Jetty 9°10'45.43"N, 118°17'0.61"E 0 Stn 5 Brgy San Isidro Dam Site 9° 13’24.50”, 118° 16’58.92E 155

The existing air pollution sources in the area are some agricultural burning and mining operation related emissions from the plant operation and service and heavy hauler trucks.

5.11.2.1 Particulates Air Pollutant

The observed TSP values are relatively low for station inside the landfill area and quite high at entrance to landfill site from municipal road where roadway is unpaved. The hourly TSP values for the two stations ranged from 33.3 to 250.5 g/Ncm for the 1 hr time average sampling and 44.9 g/Ncm for the 24hrs time average sampling at one station (Purok 7, Brgy. San Isidro Dam Site area). The time average limit set by DENR for total suspended particulates (TSP) is 300 g/Ncm for 1 hr average and 230 g/Ncm for 24hrs average sampling. Dust particulate sources in the stations are fugitive dust deposited in the roadways and some soot emitted from an open burning from agricultural and household in the area. Toronto Nickel Mining Project Chapter V-70

Plate 5-10. Air Quality and Noise Monitoring sites

2 4

5.11.2.2 Gaseous Air Pollutants

The observed air quality along the project area is presented in Table 1. The results show that the present ambient ground level concentrations of gaseous air contaminants are within the DENR limit for SO2 and NO2. The concentration levels for the 1hr time average sampling range from 26 to 59 g/Ncm for SO2 and from 15 to 34 g/Ncm for NO2. For the 24 hrs sampling, the SO2 observed concentration is 21 g/Ncm and for NO2 is 17 g/Ncm, that are way below the limit set by DENR standard. These values are typical for a clean atmosphere and are well within 1-hr DENR ambient standards of 340 g/Ncm for SO2 and 260 g/Ncm for NO2. Table 2 shows the DENR ambient standard.

5.11.3 Noise Levels

Table 1 shows the observed average noise level at the four sampling stations. Observed noise sources are domestic related emission and some traffic such as motorcycles and four wheels vehicles at stations away from road networks. The average ambient noise level is relatively low which ranges from 41 to 45 dBA for stations located away and inaccessible to traffic. For stations located adjacent or near the roadways shows a noise level of 55 to 57 dBA. For the four stations, noise level is definitely within the range of a light industrial area set by NPCC rules and regulations. Toronto Nickel Mining Project Chapter V-71

Table 1.Baseline Air Quality Citinickel Mining Development Corporation Project, Narra, Palawan Air Pollutant Concentrations Ave. Noise Station Number Time/Date g/Nm3 dB(A) TSP NO2 SO2 1759-1859 H 1. Brgy Pinagduguan 22Nov07 250.5 34 59 57 1928-2028 H 2. Brgy San Isidro Hot Spring 22Nov07 117.3 25 37 55 1135-1235 H 3. Purok 7, Brgy San Isidro Dam Site 23Nov07 58.2 19 26 45 0130-0230 H 4. Port Area 23Nov07 33.3 15 29 41 0927 H(23Nov07)- 5. Purok 7, Brgy San Isidro Dam Site 0927(24Nov07) 44.9 17 21 44 DENR Standard - 1hr 300 260 340 - - 24hrs 230 150 180 Noise Standards for: C (Light Industrial), Daytime (9AM-6PM) –70dBA, Morning/Evening (5-9AM/6-10PM) – 65dBA, Nighttime (10PM-5AM) –60dBA

5.12 CONCLUSION

The ambient air quality levels measured on November 22-24, 2007 are well within the 1hr and 24 hrs time average standard.

The noise level is also within the noise standard for a light industrial area set by NPCC.

Table 2. National Ambient Air Quality Guidelines/Standards for Selected Air Pollutants

Pollutant Standard Maximum GLC Averaging Time

μg/Ncm ppm 180 0.07 24 hrs

Sulfur Dioxide (SO2) 340 0.13 1 hr 470 0.18 30 min 150 0.08 24 hrs

Nitrogen Dioxide (NO2) 260 0.14 1 hr 375 0.20 30 min 230 --- 24 hrs Total Suspended Particulates (TSP) 300 --- 1 hr

Table 3. Rules and Regulations of the National Pollution Control Commission“ Noise Standards in General Areas” Morning/ Daytime Night Time Category of Evening Area 9AM to 5AM to 9AM 10PM to 6PM /6PM to 10PM 5AM AA - A section or contiguous area that require Quietness such school sites, hospitals, and special 50 dBA 45 dBA 40 dBA homes for the aged B - A section or contiguous area which is primarily use 65 60 55 as a residential purposes C - A section which is primarily reserved as a light 70 65 60 industrial area D - A section which is primarily reserved as a heavy 75 70 65 industrial area

Toronto Nickel Mining Project Chapter V-72

5.12 Biological Environment

5.12.1 Terrestrial Fauna

1.0 Introduction

1.1 Background and Purpose

The study aims to provide an adequate level of fauna information of the area to enable the company to reach better informed decisions and set priorities on the use of resources and long term monitoring and analysis of environmental change in the area. The surveys targeted different fauna groups during the periods when they are most active.

The objectives of the assessment include:

Habitat identification and descriptive correlation of habitats with expected species; assessment of the inputs of the activities on fauna, habitat and environmental features; and, determination of necessary strategies for important mitigating measures.

To obtain the following objectives, the fauna assessment was designed for the following information.

 A list of animal species present (mammals, birds, reptiles, and amphibians),  An impression of the abundances of species, especially to identify, those that are rare and so perhaps in special needs of protection,  Confirmation of the presence of endemic (native only to the Philippines or a more restricted area) animal species, as well as endangered or threatened species possibly needing special protection,  Data on the geographic locations occupied by species, for use in planning and management,  Data on the habitats occupied by species, for use in evaluating the value of the particular sites for protection,  Comparative data on the diversity of the animal species among sites, for use in prioritizing protection of more species-rich sites,  Comparative data on similarity of species composition among sites, for use in evaluating the contribution of particular sites to the overall diversity of fauna,  An understanding of feeding habits of species, in order to determine their function in the food web that supports the whole plant and animal community.

1.2 Limitations of the Study

The present study obtained data for an assessment of fauna diversity and general features of San Isidro, Narra, Palawan. Visual census and species count were undertaken for fauna, focusing more on wildlife vertebrates such as mammals, birds, reptiles and amphibians. Many of the quantitative data for fauna were gathered thru opportunistic observation and Participatory Rapid Biodiversity Assessment and interviews. Fauna trapping and netting were also made. More focused and longer term studies are needed to confirm patterns suggested by the preliminary results given here. Further research is also needed to determine the present status of animal groups not assessed here and to learn more about all Toronto Nickel Mining Project Chapter V-73 the features of the natural history of species needing protection. In-depth studies on animal distribution and abundance, habitat use and ecological roles are necessary.

The conflict between and within the management of the present project and the limited days for assessment/survey are further constraints of the study.

2.0 General Features of the Area

2.1 The Study Area

Barangay San Isidro Catchment is found in the southwest of the Municipality of Narra, Palawan. It is part of the Victoria Ranges and approximately15 kilometers from the town proper of Narra. It is bounded on the northeast by Barangay Princess Urduja, on the southeast by Barangays Batang-batang and Teresa, on the southwest by Barangay Calategas and on the northwest by Barangay Aramaywan, Quezon. The study site (Plates 5-15-16) is defined by the upper areas drains by waters for irrigation of lowlanders of Barangay San Isidro. Areas covered include variety of habitat types, human settlement, agricultural areas and public facilities. Some areas are near coast.

2.2 Vegetation and Forest Cover

The dominant vegetation type is forest over ultramafic soil. This type of vegetation occurs in the area with high concentration of metals in the soils. Commonly, plants are dwarf, stunted and small in diameter, the forest characterized and considered as dead forest since its plants seems like a dead trees or plants. The plants grow close together and tree trunks are hard. Undergrowth is dense with a combination of plants capable of surviving in this type of soil.

On a landscape perspective, forests are found from the footstep to the upper areas of ranges while grassland or brushlands are observed in the lowland to agricultural areas. Patches of scattered trees were also observed.

The study area is characterized by five (5) major types of vegetation. Maps and photo documentation shows the different landscape vegetation. These are the following types of vegetation:

a. Mangrove and Nipa Grove

This forest formation is found in all sheltered river mouths and bays in the area. Bakauan lalake (Rhizophora apiculata), Bakauan bato or Bankau (Rhizophora stylosa), Busain (Bruguierra gymnorrhiza) and Tangal (Ceriops tagal). Mouth and river estuarine is also dominated by the Nipa (Nypa fruticans).

b. Beach Forest

A narrow strip of woodland found in sandy and gravelly shore. The species such as Bani (Pongamia pinnata), Bitaog (Calophyllum inophyllum), Botong (Barringtonia asiatica), Talisai (Terminalia catappa) and Pandan dagat (Pandanus tectorius) are found in the area. Toronto Nickel Mining Project Chapter V-74

Primary Impact Area Line

Flora

Fauna

Plate 5-15. Transect Lines: Fauna and Flora

c. Parang Vegetation

This vegetation is found in the lower slopes behind the mangrove and beach forest. This is generally open grassland dominated by Cogon (Imperata cylindrica), Talahib (Saccharum spontaneum), Tambo (Phragmites vulgaris), and scattered trees (Aniam, Antidesma sp. and Binunga, Macaranga sp.), shrubs (Malatungaw, Melastoma malabathricum and Coronitas, Lantana camara) and clumps of bamboos. The species of Buho (Schizostachyum lumampao), Ulam (Barringtonia currani) and Molawin (Vitex pubescens) are also observed.

Toronto Nickel Mining Project Chapter V-75

Plate 5-15. Geographical Location of the Study Site Transect 1

Transect 2 Project Site

Transect 3

Transect 4

Plate 5-16. Land Cover and Sampling Sites Toronto Nickel Mining Project Chapter V-76

d. Agricultural and Horticultural Areas

Generally cultivated areas during the survey are considered as agricultural vegetation. Types of crops are rice, corns, banana, coconut, and root crops such as cassava, sweet potato and peanut.

In horticulture, this is usually perennial crops (often cash crops). Large areas are fruit plantation such as cashew, coffee and cacao, different plantation is also included

These types of vegetation are near residential and reach up to the lower portion of the area.

e. Forest Over Ultramafic Soil

Large portion of the area were covered by forest of this type. Generally, a low forest with dry and thin litter. Species are Calophyllum pulgarense, Brakenridgea palustris ssp. foxworthyi, Phyllanthus maxvanbalgooyii, and Ceuthostoma palawanense

3.0 METHODOLOGY

3.1 Site Selection

The Fauna Assessment focused on the habitat type of the area. Observation areas were delineated and distributed within the site. Each observation area was located in each type of vegetation/habitat. Locations of the sampling stations were determined by systematic methods and/or by standard random procedure depending on the associated and existing ecosystem. All subsequent findings/data were correlated to the existing vegetation and habitat found along the established sampling stations. Methods were designed to maximize observation rather than to achieve statistical sampling.

3.2 Field Methods

Given the focus of the project and the importance of these values associated with these organisms, we were concentrated the field investigations on four animal groups: Mammals, Birds, Reptiles and Amphibians.

The field methods were designed to determine the presence, habitat associations and abundance of species. Standardized field methods and procedures were used in the conduct of the wildlife survey. Direct transect counts and point counts, and indirect transect counts such as tracks, signs and auditory cues, trapping and mist-netting were used. Field methods included mist-nesting of bats and birds, point counts of birds, trapping of small mammals, searches for reptiles and amphibians, and opportunistic observations. (Mist nets are fine –mesh nets that birds and bats fly into and become tangled; animals are released unharmed.) The fauna survey team was camp in each study area and work during the day and night, to maximize possibilities of recording different species. Observations and interviews with local people were also conducted to verify the presence of wildlife in

Toronto Nickel Mining Project Chapter V-77 their vicinities. Other species of important value to the local communities were likewise noted. The methods and sampling techniques used are discussed in more detail below.

Herpetofauna Sampling

Microhabitat Search – randomized selection of possible microhabitats can also be initiated and investigated. This involve intense sampling for any individuals occupying a chosen microhabitats which includes trees holes, forest floor litter, spaces between buttresses, axils of palms, epiphytes, tree ferns, rocks, fallen and bodies of water, etc. are thoroughly investigated. In the method, the observers are free to work in areas where amphibians and reptiles were occurred. The technique required to monitor specific habitats where searching in prime cover areas favored by herps. The sampling was done for 4 to 5 hours, day and night to observe the diurnal and nocturnal species. This method is used in determining the approximate number of species (species richness), relative abundance and population density.

Avifauna Sampling

The combination of transects and point counts were performed for a minimum of one whole day, and increased when time was possible.

The Strip–Census Method (SCM) for bird was used wherein the observer walks along an established 2-km transect for each sampling station. Only those actually observed by the naked eye, seen through binoculars and those identify by vocalization, tracks, nests, burrows and excreta were recorded as primary data. Other methods of observation included call counts and physical evidences of animal presence like scratches and roadside counts. Distinguishing features of species were observed at a relatively proximal distance were roughly sketched and readily determined using taxonomic keys, pictures and related descriptions in literature. Transects were walked starting at 6:00 to 10:00 in the morning and from 3:00 to 6:00 in the afternoon through established vegetation survey areas.

Direct observations including transect counts and points sampling methods coupled with mist netting were employed for this vertebrate group. Mist nets for birds were the same as those for mammals, positioned on flyways, forest edges, and clearings and inside the forest where nets were laid touching the ground layer when applicable. Nets were opened at 6:30 in the morning and checked regularly every hour. Mist nets utilized to confirm species occurrence and distribution as well as identification of cryptic forest species.

Identification, nomenclature, classification and conservation status were determined based on du Pont (1971), Dickenson, Kennedy and Parkes (1991), Collar, Crosby and Stattersfield (1994), Gonzales (19970, Collar, Mallari and Tabaranza (1999) and Philippine Red Data Book (1997).

Additional methods were employed via the ethno-zoological surveys, key informant interviews, and secondary information in the identification and assessment of the status of wildlife resources.

Mammal Sampling

Trapping method connotes the use of devices in order to live-capture and takes certain species. It is useful in identifying highly mobile and/or retiring animal species that may

Toronto Nickel Mining Project Chapter V-78 have been overlooked or bypassed in the Strip-Census Method. Such eventuality is more likely to occur considering dense forest vegetation of the project area, the size of the animals to be observed, elusiveness, ability to mimic or match the surrounding environment and nocturnal characteristics of some species. Live trapping techniques used were mist net trapping and snare trapping. Said trapping devices were strategically located along possible pathways leading to or from feeding areas within each sampling station.

Mist netting was done for volant or flying species particularly bats. Flyways, open areas across established trails and watercourse, forest edges, openings and forest interior were used.

There were 18 mist-nets (six 2x6m, six 2x12m and six 2x18m) stationed in areas along the 2-km bird transect likely to capture birds (sky net, subcanopy canopy level) in canopy breaks and near fruiting trees. Monitoring was conducted by four people with four hours interval from 6 pm to 2 am.

Nets were manned starting at dusk (6:30 in the afternoon) and closed at 9:00 in afternoon. Live traps, tracks and signs (e.g. droppings, wallowing areas, dens) and direct sighting were used for terrestrial and arboreal, non-volant species. Twenty traps were laid, in 15 to 20 meters distances baited with roasted coconut laced with peanut butter, in each forest and habitat type for a minimum of one day and one night. Traps were checked for any capture at dawn and at dusk. Larger mammal species (e.g. Philippine long-tailed macaque was detected by track and sign identification and direct observation. Sightings along transects were used to estimate general abundance. Tracks, droppings and other marks such as wallowing areas and dens were recorded as an indication of the presence or occurrence of mammal species in the area. The same used to determine population/abundance index. Identification, nomenclature, classification and conservation status were determined based on Heaney et al. (1998), Wilson and Reeder (1993) and Philippine Red Data Book (1997).

3.3 Specimen Handling

All wildlife species, that had been netted or trapped, was immediately release in the area of capture after identification and documentation of the species. There were no collections of voucher specimens.

3.4 Data Management and Entry

All field data generated and observations in the field was entered in the field data sheets specifically designed for each group (i.e. mammals, birds, reptiles, and amphibians). Other observations and information through interview with the local people was also entered in a field logbook. Errant entries in field logbooks and data forms was marked with a single slash and initialled by the fauna expert.

3.5 Data Analysis

Data collected was subjected to mathematical operations in order to determine abundance, frequency, relative values, and their importance value. The following formulas were used in the said computations:

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Abundance (Ab) = total no. of individuals of a species in all sampling sites

Frequency (Fr) = no. of times species occurred in all sites x 100 no. of sampling sites

Relative Abundance (RAb) = Abundance (Ab) x 100 Total Abundance (Ab)

Relative Frequency (RFr) = Frequency (Fr) x 100 Total Frequency (Fr)

Species Importance Value (IV) = RAb + RFr

The obtained abundance values were entered in the BIODAPR (Ecological Diversity and its Measurement 2000) software program to determine the diversity and evenness indices such as the following:

Shannon-Wiener Index (H1) Pielou Evenness Index (E1)

The species diversity index is the ratio between the number of species and importance values that maybe expressed as the number of individuals, biomass productivity, etc. (Odum 1971). A high index value means that there is a large number of rare species – rare in the sense that it is represented by a low number of individuals as opposed to high counts for few common species.

Table 5-42. Biodiversity scale as used by Fernando (1998) Relative Values Species Diversity Evenness Very high 3.50 – 4.00 0.75 – 1.00 High 3.00 – 3.49 0.50 – 0.74 Moderate 2.50 – 2.99 0.25 – 0.49 Low 2.00 – 2.49 0.15 – 0.24 Very low 1.00 – 1.99 0.05 – 0.14

4.0 Results and Discussion

Results of the fauna survey include the following: species totals, site characteristics, importance value and habitat relation, wildlife composition, species diversity, frequent species, endemicity, threatened and endangered species, trophic relations (i.e. feeding guilds) and ethnozoological survey.

4. 1 Wildlife Vertebrates of the Study Area

This section explains the importance value, diversity and endemism of the wildlife vertebrate class.

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4.1a Amphibians

The study covers the amphibian species. Only few species had been collected and identified. There were only four (4) amphibian species recorded but probably there are some other species in the area. Family and genus is obviously small with four families represented by one (1) individual, genera and species per family. One species is considered Vulnerable under IUCN Red list. There were 19 individuals found in the area.

In species importance value, Philippine Toad (Bufo biporcatus) obtained the highest rank as shown in Table 5-50. Habitat of this species is enumerated in the species account section. Diversity Index for amphibians is very low which obtained 1.09 while evenness is very high Table 5-51 while Table 5-52 shows the endemicity of the amphibians. Detailed Importance value, Diversity and Endemicity of the Vertebrates are shown in Appendices 1-3

Table 5-50. Importance values of amphibians in San Isidro, Narra, Site 1-4

Scientific Name SIV Rank Sites Bufo biporcatus 110.84 1 1,2,3,4 Barbaroula busuangensis 44.58 2 1,2 Megophrys ligayae 33.44 3 1 Polypedates macrotis 11.15 4 3,4

Table 5-51. Diversity of amphibians in San Isidro, Narra, Site 1-4 Diversity Index Values H` 1.09 E 0.79 No. of Individuals (N) 19 No. of Species (S) 4

Table 5-52. Endemicity of amphibians in San Isidro, Narra, Site 1-4 Percentage Endemicity Number of Species (%) Philippine Endemics (PE) 0 0 Restricted Range (PE-Pwn) 1 25 Endemic Races (LE) 1 25 Restricted Range Non Endemics (LE-Pwn) 0 0 Non Endemics (NE) 2 50 Total 4 100

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Accounts on Species (4 Species)

The following is a descriptive account encountered species amphibians and their habitat:

Philippine Toad (BUFONIDAE: Bufo biporcatus) 09º13'20.3"; 118º17'15.2" 119masl, 09º12'54.2"; 118º17'37.9" 77masl, 09º12'39.2"; 118º17'50.1" 61masl, 09º12'41.5"; 118º17'47.8" 63masl, 09º11'27.0"; 118º16'00.4" 26masl, 09º11'00.5"; 118º16'52.7" 11masl – a moderately large sized bufonid, with many tubercles on skin, Color in life brownish tan. In Palawan area, it is found commonly in non- forested areas at elevations of 100 m and less.

Philippine Discoglossid Frog (DISCOGLOSSIDAE: Barbaroula busuagensis) 09º13'39.8"; 118º17'23.6" 103masl, 09º13'25.8”; 118º17'00.4" 159masl, 09º13'33.2"; 118º17'23.5" 117masl, 09º12'15.8"; 118º15'39.2" 96masl – a large frog with stout, depressed body, stout limbs and fully webbed hands and feet. A highly aquatic inhabiting clean, cool mountains streams at lower elevations. Adults hide in rocks crevices or under boulders on stream bed during the day, but stay at entrances to these crevices at night.

Palawan Horned Frog (PELOBATIDAE: Megophrys ligayae) 09º13'25.8”; 118º16'50.7" 163masl, 09º13'25.8”; 118º17'00.4" 159masl, 09º13'33.2"’ 118º17'23.5" 117masl – This species can be easily distinguished by the presence of prominent, pointed dental projections on upper eyelids (hence the name, “Horned”). Adults inhabit the forest floor, especially areas near mountain streams.

Brown-stripped Tree Frog (RHACOPHORADAE: Polypedates macrotis) 09º12'13.7" 118º15'39.1" 97masl – a relatively large Polypedates with uniform dorsum or with two vague, broad, dark, longitudinal stripes. A rudimentary web on fingers but extensive webs on the toes. Skin on head ossified with skull, found in low elevations.

4.1b Reptiles

In herpetofauna species, reptiles are more dominant than amphibians. In this study, there are about 19 species that have been identified. These species belong to about seven (7) families and 16 genera. Family of Skinks obtained the highest number of species followed by family of Geckos. Other reptilian families are represented by one or two species and genera. Malayan Fresh water Turtle (Coura amboinensis) is listed in CITES List. Tokay Gecko (Gekko gecko) and Common House Gecko (Hemedactylus frenatus) are dominant species as shown in Table 5-53. Reptiles are moderately diverse in all study sites as shown in Table 5-54. Endemicity is shown in Table 5-55. There were three (3) species are in CITES list. There were 44 individuals found in the area. Detailed Importance value, Diversity and Endemicity of the Vertebrates are shown in Appendices 1-3

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Table 5-53. Importance values of amphibians in San Isidro, Narra, Sites 1-4 Scientific Name SIV Rank Sites Gekko gecko 27.02 1 3,4 Hemedactylus frenatus 24.24 2 2,4 Lygosoma quadrupes 20.20 3 2,3,4 Dendrelaphis pictus 20.20 4 1,3 Mabuya multicarinata 17.42 5 2,3 Lamprolepis smaragdina 15.15 6 1,3 Mabuya multifasciata 10.10 7 4 Cosymbotus platyurus 10.10 8 4 Elaphe erythrura 5.05 9 4 Emoia atracastata 5.05 10 4 Draco volans 5.05 11 1 Varanus salvator 5.05 12 4

Table 5-54. Diversity of reptiles in San Isidro, Narra, Sites 1-4 Diversity Index Values H` 2.65 E 0.9 No. of Individuals (N) 44 No. of Species (S) 19

Table 5-55 Endemicity of reptiles in San Isidro, Narra, Sites 1-4 Percentage Endemicity Number of Species (%) Philippine Endemics (PE) 0 0 Restricted Range (PE-Pwn) 1 5.26 Endemic Races (LE) 3 15.79 Restricted Range Non Endemics (LE-Pwn) 0 0 Non Endemics (NE) 15 78.95 Total 19 100

Herpetofauna Species-Effort Curve and Habitat Distribution

Plate 5-17 shows that in second sampling activity there was an increase in the number of herps and reached its maximum in the fourth sampling. Plate 5-18 shows the distribution of the herpetofauna in their different habitat. Values to construct the species-effort curve are shown in Appendix 4.a and Values to construct habitat distribution of herpetofaunal in Appendix 5

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5 Cumulative no. of Species of no. Cumulative

0 1st 2nd 3rd 4th 5th

Sampling

Plate 5-17. Species effort curve of herpetofauna from November, 2007, San Isidro, Narra

Amphibians Lizard Snakes Turtle Total Species

90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00

Forest

Agricultural Stream/Swamp Human habitation Brushland/Grassland

Plate 5-18. Shows the habitat distribution of herpetofaunal elements of San, Isidro, Narra

4.1c Avifauna

There were fifty-six (56) species of birds belonging to thirty-two (32) families recorded during the survey. The six (6) dominant families of birds are COLUMBIDAE: dove and pigeons (6) followed by ARDEIDAE: herons and egret with (4) and with 3 species for ACCIPITRIDAE: eagles and hawk, CUCULIDAE: cuckoo and malkoha, RALLIDAE: rails and crakes and TIMALIIDAE: babbler.

Recorded species are belonging to fifty-four (54) genera. Chestnut Munia (Lonchura malacca), Eurasian Tree Sparrow (Passer montanus) Pacific Swallow (Hirundo tahitica) are dominant species as shown in Table 5-56. Birds are diverse in overall study sites.

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They obtained a very high diversity and evenness values (Table 5-57). There were 226 individuals found in the area. Endemicity is shown in Table 5-58. Twenty-five (25) species listed in IUCN Red list while six (6) species are in CITES list. More species are observed during the second day of sampling and reached its maximum at fourth sampling as shown in Plate 5-19. The result of trapping using 10 mist-nets recorded five (5) species of birds with fifteen (15) individuals. Detailed Importance value, Diversity and Endemicity of the Vertebrates are shown in Appendices 1-3

Table 5-56. Importance values of avifauna in San Isidro, Narra, Sites 1-4 Scientific Name SIV Rank Sites Lonchura Malacca 12.82 1 2,4 Passer montanus 11.93 2 2,3 Hirundo tahitica 11.42 3 2,3,4 Nectarinia jugularis 10.42 4 1 Bubulcus ibis 9.34 5 2,3,4 Aplonis panayensis 6.44 6 2,4 Pycnonotus atriceps 6.38 7 1,2 Parus amabilis 5.56 8 1,2,3 Chloropsis palawanensis 5.11 9 1,3 Aegithina tiphia 4.67 10 2,3,4 Gorsachius goisagi 4.23 11 1,2,4 Amaurornis phoenicurus 4.23 12 2,4

Table 5-57. Diversity of avifauna in San Isidro, Narra, Sites 1-4 Diversity Index Values H` 3.72 E 0.92 No. of Individuals (N) 226 No. of Species (S) 56

Table 5-58 Endemicity of avifauna in San Isidro, Narra, Sites 1-4 Percentage Endemicity Number of Species (%) Philippine Endemics (PE) 0 0.00 Restricted Range (PE-Pwn) 11 19.64 Endemic Races (LE) 6 10.71 Restricted Range Non Endemics (LE-Pwn) 9 16.07 Non Endemics (NE) 30 53.57 Total 56 100

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Avifauna Species-Effort Curve

Plate 5-19 shows that in second sampling activity there was an increase in the number of birds and reached its maximum in the fourth sampling. Values to construct the species- effort curve are shown in Appendix 4.b

Cumulative no. of Species of no. Cumulative 10

0 1st 2nd 3rd 4th 5th

Sampling

Plate 5-19. Species effort curve of birds from November, 2007, San Isidro, Narra

4.1d Mammalian Fauna

Mammalian species played an important role to the study area’s environment. There were ten (10) species identified and recorded belonging to eight (8) families and nine (9) genera. The most dominant species are Short-nose Fruit Bat (Cynopterus brachyotis) Asian Black Rat (Rattus tanezumi) Dagger-tooth Flower Bat (Macroglossus minimus) and Philippines Lesser Horseshoe Bat (Rhinolophus virgo) (Table 5-59). Mammals obtained the low diversity and evenness value as shown in Table 5-60. There were 51 individuals found in the area. Endemicity is shown in Table 5-61. Two (2) species listed in IUCN Red list while three (3) species are in CITES list. In Plate 5-20, the number of species of mammals is reached on its maximum at the third sampling with 10 species. The result of trapping using 10 mist-nets recorded three (3) species of birds with twenty (20) individuals. Detailed Importance value, Diversity and Endemicity of the Vertebrates are shown in Appendices 1-3

Table 5-59. Importance values of mammals in San Isidro, Narra Sites 1-4 Scientific Name SIV Rank Site Cynopterus brachyotis 46.998 1 1,2,3,4 Rattus tanezumi 29.350 2 1,3,4 Macroglossus minimus 26.225 3 1,2,4 Rhinolophos virgo 26.225 4 1,2,3,4 Rattus tiomanicus 25.429 5 1,2.3 Macaca fascicularis 10.172 6 1,3

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Sundasciurus steerii 10.172 7 1 Amblonyx cinereus 10.172 8 2,4 Sus barbatus ahoenobarbus 10.172 9 1,3 Prionailurus bengalensis 5.086 10 1

Table 5-60. Diversity of mammals in San Isidro, Narra, Sites 1-4 Diversity Index Values H` 1.99 E 0.87 No. of Individuals (N) 51 No. of Species (S) 10

Table 5-61. Endemicity of mammals in San Isidro, Narra, Sites 1-4

Endemicity Number of Species Percentage (%) Philippine Endemics (PE) 1 10.00 Restricted Range (PE-Pwn) 1 10.00 Endemic Races (LE) 0 0.00 Restricted Range Non Endemics (LE-Pwn) 1 10.00 Non Endemics (NE) 7 70.00 Total 10 100

Mammals Species-Effort Curve

Plate 5-20 shows that in second sampling activity there was an increase in the number of mammals and reached its maximum in the third sampling. Values to construct the species- effort curve are shown in Appendix 4.c

Cumulative no. of Species of no. Cumulative 2

0 1st 2nd 3rd 4th 5th

Sampling

Plate 5-20. Species effort curve of mammals from November, 2007, San Isidro, Narra

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4. 2. Comparison of Vertebrates per Sampling Area

4.2. a General Vertebrates Characteristics of the Study Area

In overall study, a total of 107 species of terrestrial wildlife vertebrates were identified from 96 genera and 58 families. The bulk of these species are birds with 64.49% followed by reptiles (18.69%), mammals (13.08%) and amphibians (3.74%). A total of 47 terrestrial wildlife species were recorded as Endemic to the Philippines. The highest endemicity is exhibited by birds with 10 species. Palawan endemics gain 13 species. Table 5-62 summarizes the diversity and pattern of endemism.

Table 5-62. Diversity and pattern of endemism of fauna, San Isidro, Narra No. of No. of No. of Percent No. of Endemicity Class Families Genera Species (%) Endemic (%) Amphibians 4 4 4 3.74 1 7.69 Reptiles 8 17 20 18.69 1 7.69 Birds 36 62 69 64.49 10 76.92 Mammals 10 13 14 13.08 1 7.69 TOTAL 58 96 107 100 13 100

There were 89 species (in all sites combined) in the study area. We recorded 141 species on Site 1, 74 species on Site 2, 83 species on Site 3, and 93 species on Site 4. A breakdown of family, genera, and species numbers for each group is shown in Table 5- 63

Table 5-63. Vertebrate species totals in San Isidro, Narra, Sites 1-4

Site Taxon Mammals Birds Reptiles Amphibians Total

Family 7 20 5 3 35 1 Genera 8 35 6 3 52 Species 9 35 6 3 53 141 Family 4 13 2 1 20 2 Genera 5 18 3 1 27 Species 5 18 3 1 27 74 Family 5 12 3 3 23 3 Genera 5 14 7 3 29 Species 6 14 8 3 31 83 Family 4 14 6 1 25 4 Genera 5 18 10 1 34 Species 5 18 10 1 34 93

In terms of family, genera and species, Site 1 obtained the highest numbers. It means that Site 1 is high in terms of species richness. Among the four vertebrate classes, birds ranked as the highest followed by reptilians, mammals and amphibians. Table 5-64 shows the diversity and pattern of endemism of fauna observed.

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Table 5-64. Diversity and pattern of endemism of fauna, Strip-Census Method, San Isidro, Narra No. of No. of No. of No. of Endemicity Class families Genera Species Endemic (%) Amphibians 4 4 4 1 7.69 Reptiles 7 16 19 1 7.69 Birds 32 52 56 10 76.92 Mammals 8 9 10 1 7.69 TOTAL 52 82 89 13 100

4.2. b Vertebrates Characteristics per Sampling Site

Sampling Site 1: Forest to Brushland Area (northeast of the mining site; 09º13'26.9"; 118º16'37.3" to 09º13'39.8"; 118º17'23.6")

The site elevation ranges from 120-277 meters above sea level (masl). It is represented by the small mountain ranges of Purok 7 of the Barangay. The area is the upper elevation of the Barangay. Large boulders are found near the streams and creeks, those water drains from the upper watershed of the area that sustain agricultural farm in the lower areas. Small dams were established in the areas. The area substrates are rocky with reddish to brownish soils. Areas with lowland vegetations profile in the low areas are generally muddy due to the suspended water from rains. Along the trails are shrubs such as Malatungaw (Melastoma malabathricum), Hagonoi (Chromolaena odorata) and Coronitas (Lantana camara), small trees; Batino (Alstonia macrophylla), Matanghipon (Breynia rhamnoides), Katmon bogtong (Dillenia monantha) and Anagdong (Parasponia rugosa) and vine; Baling uwai (Flagellaria indica), Agpoi (Bauhinia integrifolia), Bikal (Schizostachyum diffusum) while Agoho (Casuarina equisetifolia), Malabayabas (Tristaniopsis sp.), Mankono (Xanthostemon sp.) and Batino (Alstonia macrophylla) are dominant trees. Pioneer vegetation are found in the brushland areas usually dominated by Anagdong (Parasponia rugosa), Batino (Alstonia macrophylla) and grasses such as Cogon (Imperata cylindrica) and Panicum sp.. Birds such as Olive-backed Sunbird (Nectarinia jugularis) and Black-headed Bulbul (Pycnonotus atriceps) are dominant in the area. Transects and observations were established in this site (Plates 5-15-16). Biophysical observation in the area are shown in Appendix 6

A total of 53 species and 124 individuals derived from the sampling stations in Site 1 were recorded. The majority belongs to Class Aves, having 36 recorded species. Three (3) species belongs to Class Amphibia, nine (9) species belongs to Class Mammalia and six (6) species from Class Reptilia. Appendix 4 enumerates the species of animals that are abundant and frequent in the area. Ranked first is the Olive-backed Sunbird (Nectarinia jugularis), having 18 individuals and a high species importance value of 18.63 (These birds are poorly known, nocturnal in forest and second growth including dense tangles of vines and bamboo. Another frequent and abundant species in this sampling site was the Black-headed Bulbul (Pycnonotus atriceps), found in bushes and shrubs in open areas, early second growth, and forest edge singly, but usually in groups or in mixed flocks and sits out on exposed branches. The vegetation of this area is a combination of natural forest to brushland.

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Sampling Site 2: Agricultural to Brushland Area (southeast of the mining site 09º12'30.5"; 118º17'58.8" to 09º13'02.9"; 118º17'22.7")

This area is also covered by Purok 7 of the Barangay. The area is generally flat and open elevation ranges from 9-100 masl. Substrates of the area are rocky and muddy when rains are prominent. The area is devoted for Jatropha curcas plantation of the agricultural crops. Usually planted by Rice (Oryza sativa), Corn (Zea mays), Cassava (Manihot esculenta), Peanut (Arachis hypogaea) and Banana (Musa sp.). Brushlands are dominated by Batino (Alstonia macrophylla) and Anagdong (Parasponia rugosa) and other pioneer species. Birds such as Eurasian Tree Sparrow (Passer montanus) and Pacific Swallow (Hirundo tahitica) are the dominant in the area. Transects and observations were established in this site (Plates 5-15-16). Biophysical observation in the area are shown in Appendix 6

A total of 27 species and 71 individuals derived from sampling stations in Site 2 were recorded. Majority belongs to Class Aves, having 18 recorded species whereas one (1) species belongs to Class Amphibia, five (5) species belongs to Class Mammalia and 3 species belongs to Class Reptilia. Appendix 4 enumerates the species of animals that are abundant and frequent in the area. Eurasian Tree Sparrow (Passer montanus) ranked first, having 6 species and a high species importance value of 15.77. These birds found in association with humans in cities, towns and cultivated areas and occur in small group or in pairs. Another frequent and abundant species in this sampling site were the Philippine Toad (Bufo biporcatus), these amphibians were moderately large sized bufonid, with many tubercles on skin, color in life brownish tan. In Palawan area, it is found commonly in non-forested areas at elevations of 100 m and less, and Pacific Swallows (Hirundo tahitica), this common, non-endemic sallying insectivore is found in coasts and over towns and open areas at lower elevations. This species also functions as a biological control agent of insect population. The vegetation of this area is a combination of natural forest to brushland.

Site 3: Secondary Forest to Human Settlement Area (northwest of the mining area)

The area is covered by Purok 3 of the Barangay. Rocky areas are located near riverine areas of the secondary forest. Changes on substrates into muddy are observe downward to the agricultural and human settlement areas. Elevation ranges from 18-105 masl. Dominant vegetation on the secondary forest are Katmon Bugtong (Dillenia monantha), Pandan gubat (Pandanus luzonensis), Bikal (Schizostachyum diffusum), Tikog (Fimbristylis globulosa) and Hagonoi (Chromolaena odorata). There were abandoned kaingin in the area. Pioneer species were observed. Agricultural areas are mostly abandoned. Near national highway birds such as Eurasian Tree Sparrow (Passer montanus) and Chestnut Munia (Lonchura malacca) are the dominant in the area. Transects and observations were established in this site (Plates 5-15-16). Biophysical observation in the area are shown in Appendix 6

A total of 31 species and 68 individuals derived from the sampling stations were recorded within this ecosystem. Majority belongs to Class Aves, having 14 recorded species whereas three (3) species belongs to Class Amphibia and 6 species belongs to Class Mammalia and eight (8) species of Reptilia. Appendix 4 enumerates the species of animals that are abundant and frequent in the area. The most dominant is the Eurasian Tree Sparrow (Passer montanus), having 8 species and a high species importance value of 20.46. These birds found in association with humans in cities, towns and cultivated areas and occur in small group or in pairs. Another frequent and abundant species in this

Toronto Nickel Mining Project Chapter V-90 sampling site were the Chestnut munia (Lonchura malacca) this species is found in ricefield, grasslands and open country, usually in large tightly gathered flocks. The vegetation of this area is a combination of natural forest to brushland.

Site 4: Agricultural to Coastal Areas (southwest of the mining area)

This site is covered by Purok 2 of the Barangay. This site is generally ricefield with some patches of vegetation such as brushlands and grasslands. Near coastal areas are second growth forest and Beach type. Changes of soil from muddy areas to beach sandy soil were observed. Scattered trees of different kinds were observed including human settlement. The team transect 20 meter away from the port of the mining project. The site is considered are Beach forest and dominated by Talisai (Terminalia catappa), Kalumpang (Sterculia foetida) and Bani (Pongamia pinnata). Mangroves and nipa grooves were also observed. Birds such as Chestnut Munia (Lonchura malacca) and Cattle egret (Bubulcus ibis) are the dominant in the area. Transects and observations were established in this site (Plates 5-15-16). Biophysical observation in the area are shown in Appendix 6

A total of 34 species and 84 individuals derived from the sampling stations were recorded within this site. Majority belongs to Class Aves, having 18 recorded species, 10 species of reptilia, one from Amphibians and 5 species belongs to Class Mammalia. Appendix 4 enumerates the species of animals that are abundant and frequent in the area. First ranked is Chestnut munia (Lonchura malacca), having 7 species and a high species importance value of 16.84. This species is found in ricefield, grasslands and open country, usually in large tightly gathered flocks. Other dominant species were the Cattle egret (Bubulcus ibis) usually found in pastures or ricefields and even in near marshes and lakes. Often associated with large domestic animals like cattle or carabaos which they follow waiting to catch insects. Usually at the backs of large animals, normally in flocks, roosts communally. The vegetation of this area is a combination of natural forest to brushland.

4.3 Vertebrate Species Diversity

In reference to the scale of determining biodiversity (Fernando, 1998), it is apparent all sampling sites have High relative values of diversity. Very High evenness was apparent for all sites. This means that the wildlife vertebrate species are evenly distributed within the ecosystem of the study area. (Table 5-65). Values are shown in Appendix 2

Table 5-65. Relative values of wildlife vertebrate Diversity and Evenness in San Isidro, Narra, Site 1-4 Indices Site Location H’ E1 Forest to Brushland Area 1 3.7 0.9 (northeast of the mining site) Agricultural to Brushland Area 2 3.2 1 (southeast of the mining area) Secondary Forest to Human Settlement Area 3 3.2 0.9 (northwest of the mining area) Agricultural and Coastal Area 4 3.3 1 (southwest of the mining area)

In Plate 5-21, Birds (H’ 3.72; E1 0.92) obtain the highest diversity followed by reptiles (H’ 2.7; E1 0.9), mammals (H’ 1.99; E1 0.87) and amphibians (H’ 3.7; E1 0.79).

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3.5

2.5 H` 2 E 1.5

0.5

Diversity and Evenness Values and Evenness Diversity 0 Amphibians Reptiles Birds Mammals Class

Plate 5-21. Species Class, Diversity and Evenness of the 4 sampling sites in San Isidro, Narra

4.4 Frequent Species

A total of three (3) species of vertebrates occur in all sampling sites (Table 5-66). One (1) is amphibian and two (2) are mammals.

Table 5-66. Vertebrate species occurring in the 4 sites, San Isidro, Narra, Sites 1-4 Number Common Name Scientific Name Family Name 1 Philippine Toad Bufo biporcatus BUFONIDAE 2 Short-nosed Fruit Bat Cynopterus brachyotis PTEROPODIDAE 3 Yellow-faced Horseshoe Bat Rhinolophus virgo RHINOLOHIDAE

4.5 Species Endemism

For the purpose of this report, endemic species are defined as those that are found only in the Philippines. Endemism is measured as the percentage of endemics among all species in an area. Overall, the Philippine Fauna has high endemism. Categories of endemism for Palawan are the following:

 Philippine Endemics (PE) can only be found in the Philippines  Restricted Range Philippine Endemics (PE-Pwn) are Philippine endemics that can only be found in Palawan  Endemic Races (LE) are subspecies found in a certain place or province but that there may be other subspecies found in other countries  Restricted Range Endemic Races are subspecies that are found only in a certain place but that there may be other subspecies found in other provinces or countries (indigenous)  Restricted Range Non Endemics (LE-Pwn) are species or subspecies that are not endemic to the area but can be found only in a certain place (Palawan)

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 Non Endemic Species/Migratory Species (NE) species that are indigenous and is introduced into an area usually by man.

The endemicity of species assessed in San Isidro, Narra is shown in Table 5-67. Non endemics obtained high percentage followed by species of wildlife with restricted range (Appendix 2)

Table 5-67. Endemicity of 82 vertebrate species San Isidro, Narra, Sites 1-4, Percentage Endemicity Number of Species (%) Philippine Endemics (PE) 1 1.12 Restricted Range (PE-Pwn) 14 15.73 Endemic Races (LE) 10 11.24 Restricted Range Non Endemics (LE-Pwn) 10 11.24 Non Endemics (NE) 54 60.67 Total 89 100

4.6 Threatened and Endangered Vertebrate Species

IUCN classifies threatened species into the following levels:

 Critical, species that have 50% chance of going extinct in the next ten years

 Endangered, species that have a 20% chance of going extinct in the next 20 years

 Vulnerable, species that have 10% chance of going extinct in the next 100 years

Critical and Endangered species have a very high chance of going extinct in the near future and have very high priority for conservation action.

International trade of the wildlife are subjected to CITES regulation. This requires that all import, export, re-export and introduction of species listed under CITES must have a licence from the government. Wildlife regulated by CITES are listed in three appendices.

 Appendix I include species threatened with extinction. Trade of these species is permitted only in exceptional cases such as research.

 Appendix II include species not necessarily threatened with extinction but trade must be controlled in order to avoid exploitation that threatened their survival.

 Appendix III contains species that are protected in at least one country which has asked other CITES Parties for assistance in controlling the trade.

Tables 5-68 and 5-69 presents a summary list of the threatened and endangered endemic animal species identified in the assessment. Endemic species of animals assessed in San Isidro, Narra are classified as threatened and endangered species under CITES and IUCN Red List of threatened animals.

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The assessed avian or bird group has 25 species under IUCN, followed by mammals with two (2) and one (1) for amphibians. Recorded reptiles are not in the IUCN list.

Table 5-68. Number of species based on taxon and IUCN categories in San Isidro, Narra, Sites 1-4 IUCN Categories /Number of Species Near Least Taxon Vulnerable Low Risk Total Threatened Concern Mammals 0 0 2 0 2 Birds 2 6 0 17 25 Reptiles 0 0 0 0 0 Amphibians 1 0 0 0 1 Total 3 6 2 17 28

Table 5-69. Number of species based on taxon and CITES categories in San Isidro, Narra, Sites 1-4 CITES Appendix/ Number of Species Taxon I II III Total Mammals 0 3 0 3 Birds 0 4 2 6 Reptiles 0 3 0 3 Amphibians 0 0 0 0 Total 0 10 2 12

The threatened species in San Isidro, Narra are: Blue Paradise-flycatcher (Terpsiphone cyanescens), Dark-throated Oriole (Oriolus xanthonotus), Palawan Scops Owl (Otus fuliginosus) Palawan Striped-Babbler (Stachyris hyogrammica) Palawan Tit (Parus amabilis), Slaty-breasted rail (Gallirallus striatus) Long-tailed Macaque (Macaca fascicularis), Monitor Lizard (Varanus salvator), Palawan Bearded Pig (Sus barbatus ahoenobarbus)

4.7 Trophic Relation

The trophic group or the feeding guilds are groups defined by their shared use or technique of acquiring food resources. For example, all birds of prey capture animal food and thus represent a trophic group consisting of carnivores. The totality of trophic groups (including plants, as well as animals) constitutes a food web. A healthy food web and ecosystem generally contain representatives of several trophic groups, each filling a different function that sustains ecosystem processes. In Table 5-70, the animal species in the study area are categorized into trophic groups. The results indicate a diversity of trophic groups in the area. Site 1 has the highest number of feeding guilds (13 feeding

Toronto Nickel Mining Project Chapter V-94 guilds), followed by Sites 4 (11 feeding guilds), Site 2 (10 feeding guilds) and Site 3 with 6 feeding guilds. List of Species per Trophic Group are enumerated in Appendices 10.a - 10.b.

Table 5-70. Trophic groups of fauna Vertebrates in San Isidro, Narra, Sites 1-4 SITES 1 2 3 4 Trophic Groups/ Feeding Total Number Total Number Total Number Total Number Guilds Trophic Trophic Trophic Trophic Group/Feeding Group/Feeding Group/Feeding Group/Feeding Guilds= 13 Guilds= 10 Guilds= 6 Guilds= 11

No. of No. of No. of No. of Primary Consumers % % % % Species Species Species Species Nectivore (Nc) 2 3.77 1 3.70 0 0 1 2.94 Frugivore (Fr) 8 15.09 4 14.81 3 9.68 3 8.82

No. of No. of No. of No. of Intermediate Consumers % % % % Species Species Species Species Omnivore (Om) 5 9.43 0 0 3 9.68 2 5.88 Folivore-Insectivore (Fo/In) 1 1.89 0 0 0 0 0 0 Insectivore-Frugivore (In/Fr) 4 7.55 3 11.11 0 0 2 5.88 Insectivore-Piscivore (In/Pi) 2 3.77 2 7.41 1 3.23 3 8.82 Graminivore-Frugivore (Gr/Fr) 1 1.89 0 0 0 0 1 2.94 Insectivore-Graminivore 0 0 1 3.70 0 0 0 0 (In/Gr) Pisivore (Pi) 2 3.77 1 3.70 0 0 2 5.88 Vermivore (Vr) 1 1.89 1 3.70 1 3.23 0 0

No. of No. of No. of No. of Secondary Consumers % % % % Species Species Species Species Carnivore (Cr) 2 3.77 0 0 0 0 2 5.88 Raptorial (R) 4 7.55 0 0 0 0 0 0 Insectivore (In) 19 35.85 11 40.74 21 67.74 14 41.18 Carnivore-Faunivore (Cr/Fa) 2 3.77 2 7.41 2 6.45 3 8.82 Piscivore-Insectivore- 0 0 1 3.70 0 0 1 2.94 Faunivore (Pi/In/Af)

Number of Individuals (N) 124 71 68 84 Number of Species(S) 53 27 31 34

The variety of feeding guilds is indicative of a wide variety of food sources. It also determines the ecosystem quality of the study area. Appendix10.a. Shows the trophic guild of each species found in sampling sites. List of Species per Trophic Group are enumerated in Appendix 10. b.

4.8 Ethnozoological Survey

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Ethnozoological Survey is a method which uses focus group discussion and interviews of selected informants to generate information regarding the presence of biodiversity resource, specifically fauna resources (for this study). The information is mainly based on local communities’ own observation in the area. Results of this method are informative since the communities are the ones staying at their place and the ones engaged in daily forest activities. They observe and encounter first-hand the species and their activities are confined to different forest ecosystems. They are more aware of the presence of particular animals.

In this method, we pre-selected and pre-identified the species present in Victoria- Anapahan Ranges (Aborlan, Narra, Puerto Princesa and Quezon) to be the possible species occurring in the study area. Pictures of pre-selected animals are presented to the focus group. Animals that the group will identify will then be recorded and included in the data. The local name, estimated population and the exact place of animal occurrence were also recorded as showed in Appendix 11.

The ethnozoological survey resulted to 64 species of 61 genera belonging to 40 families. The mammalian group has 9 species of 9 genera belonging to 8 families, all of which are endemic to Palawan. A total of mammalian species are classified under the World Conservation Union (IUCN): 2 species are Vulnerable, Palawan Stink Badger (Mydaus marchei) and Palawan Bearded Pig (Sus barbatus ahoenobarbus), 3 species are Near Threatened, 2 species are under Low Risk and 1 species is classified under Least Concern (Table 5-71). A total of 4 species are categorized under the Convention on International Trade of Endangered Species of Wild Fauna and Flora (CITES): 3 species under CITES Appendix II and 1 species under Appendix III. (Table 5-72).

The birds has 33 species of 33 genera belonging to 21 families which include 14 species listed under IUCN, including the Critically Endangered Philippine Cockatoo (Cacatua haematuropygia), 2 species are under Vulnerable and 11 species are classified under Least Concern, and 5 species under the CITES. The amphibian group has 3 species of 3 genera belonging to 3 families including the Philippine Discoglossid Frog (Barbaroula busuangensis) identified as Vulnerable by IUCN. The reptilian has 17 species of 16 genera belonging to 8 families.

The result of the Ethnozoological Survey indicates that the area is diverse in terms of animal species, each filling a different function or role that sustains their ecosystem. A high percentage of the species in the area is threatened and is endemic (Table 5-73).

Table 5-71. Number of species based on taxon and IUCN categories, San Isidro, Narra IUCN Categories /Number of Species Critically Near Low Least Endangere Endangere Vulnerabl Threatene Ris Concer Tota Taxon d d e d k n l Mammals 0 0 2 2 2 1 7 Birds 1 0 2 0 0 11 14 Reptiles 0 0 0 0 0 0 0 Amphibian 0 0 1 0 0 0 1 s Total 1 0 5 2 2 12 22

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Table 5-72. Number of species based on taxon and CITES categories, San Isidro, Narra CITES Appendix/ Number of Species Taxon I II III Total Mammals 0 3 1 4 Birds 1 2 2 5 Reptiles 0 0 4 4 Amphibians 0 0 0 0 Total 1 5 7 13

Table 5-73. Endemicity of species, San Isidro, Narra Percentage Endemicity Number of Species (%) Philippine Endemics (PE) 1 1.56 Restricted Range (PE-Pwn) 10 15.63 Endemic Races (LE) 11 17.19 Restricted Range Non-Endemics (LE-Pwn) 7 10.94 Non Endemics (NE) 35 54.69 Total 64 100.00

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5.12.2 Terrestrial Flora

A botanical survey was conducted from November 10 - 14, 2007 at Block A, Toronto Project, Bato-Bato, Narra and adjacent areas of Barangay San Isidro of the municipality of Narra, province of Palawan. The survey is in preparation for an Environmental Impact Statement (EIS) needed for the mining application of the Citinickel Mining and Development Corporation (CITINICKEL).

Actual field observation, validation of secondary information ocular survey was conducted to obtain baseline information on the plant species present, and to determine the existing vegetation cover of the area. On-site identification of the plant species encountered through gross morphology was performed. This is the type of plant identification that relies heavily on the external features of both vegetative and reproductive parts. Flora guidebooks and other related reference materials were used during the conduct of the study.

Transect walks were conducted within the immediate vicinity of the mining area, site observations noted and plant species listing was done. The survey did not take into account statistical information on these sites, as it simply focused on the inventory and identification of the plant species.

A 100 meter transect was established on a distinct forest type at the project site. The selected site was analyzed by the use of the Point Center Quarter Method (PCQM), to measure abundance, dominance, and diversity of trees. Sampling points are established at 10 meter interval and 4 individual trees ≥10 cm DBH (diameter at breast height) were measured, and distance from sampling point and height of tree species were obtained. Transect walks was also conducted along the transect lines to supplement the plant inventory of the area. Photo documentation was also undertaken.

1.0 Vegetation Cover

There are five types of vegetation cover found in Barangay San Isidro, namely i) lowland evergreen forest; ii) secondary forests; iii) thickets, brushlands and grasslands; iv) mangroves and; beach forest

A large tract of lowland evergreen forests is found along the mountain ranges of the barangay which is part of the Mt. Victoria Ranges. Members from the plant family Dipterocarpaceae, Anacardiaceae and Meliaceae are common species along this vegetation cover. Large portion of the area is a forest over ultramafic soils. Common species found are Calophyllum pulgarense, Brakenridgea palustris ssp. foxworthyi, Phyllanthus maxvanbalgooyii and Ceuthostoma palawanense

The secondary vegetation cover in the area is characterized by a disturbed closed canopy forest. This vegetation cover is found along the fringes of the lower slopes of the primary forest and patches along the lowland plains of the barangay. Species of Macaranga and Mallotus from the family Euphorbiaceae and species from the family Tiliaceae, Sterculiaceae, and Moraceae grows gregariously along the secondary type of vegetation. Exotic tree species plantation is also observed along this vegetation cover. Leguminous trees and shrubs also colonize the open fields. Species of Dillenia, Pandanus, Fimbristylis

Toronto Nickel Mining Project Chapter V-98 and Chromolaena were also noted along the secondary vegetation formation and appears to be degraded converted to settlement area, cultivated lands, or idle kaingin.

Thickets, brushlands and grasslands are found near settled areas and characterized by logged-over open canopy forest, highly degraded forest cover and open fields occupied by pure stands of a single species. Common species in these areas are Imperata spp., and Saccharum spp., Schizostachyum and Dinochloa, and also weeds from the family Compositae, Malvaceae, Verbenaceae and Cyperaceae. Plantations of Jatropha curcas and fruit bearing trees are found in this vegetation cover. Plants in cultivation are Musa spp., Zea mays, Oryza sativa, and Manihot esculenta. Along with cultivated fields, the area is also planted with coconuts.

The mangroves are found along the coastal areas where they are covered by salt or brackish water at high tide. They are also found in broad mud flats along the lower reaches of tidal streams and in estuaries that are more or less protected by heavy wave actions and strong winds. In wide mud flats, Nypa fruticans form a dense, almost impenetrable stands. Members of the family Rhizophoraceae, Verbenaceae and Myrsinaceae are common species found in the mangrove areas. Mangrove forest serves as the buffer zone between the terrestrial and marine environment.

A narrow strip of Beach forests is found along sandy and gravelly shore. Species such as Bani (Pongamia pinnata), Bitaog (Calophyllum inophyllum), Botong (Barringtonia asiatica), Talisai (Terminalia catappa) and Pandan dagat (Pandanus tectorius) are found in the area.

Table 5-71 . Common Plants Found in Open Areas, Thickets, Brushlands and Grasslands FAMILY SCIENTIFIC NAME LOCAL NAME Achyranthes aspera L. AMARANTHACEAE Amaranthus viridis L. Celosia argentea L. APOCYNACEAE Alstonia macrophylla G. Don Batino BORAGINACEAE Heliotropium indicum L. CAPPARIDACEAE Cleome viscosa L. COMMELINACEAE Commelina diffusa Burm. f. Bidens pilosa L. Blumea balsamifera (L.) DC. Sambong Chromolaena odorata (L.) RM. King & H. Rob. Hagonoi COMPOSITAE Crassocephalum crepidioides (Benth.) S. Moore Emilia sonchifolia (L.) DC. ex Wight Tridax procumbens L. Wedelia biflora (L.) DC. CONVOLVULACEAE Ipomoea triloba L. Merremia tridentate (L.) Hallier f. Cyperus compactus Retz. Cyperus iria L. CYPERACEAE Eleocharis philippinensis Suens Frimbristylis globulosa (Retz.) Kunth Tikog Scirpus mucronatus L. DILLENIACEAE Dillenia monantha Merr. Katmon-bugtong Antidesma ghaesembilla Gaertn. Aniam EUPHORBIACEAE Breynia cernua (Poir.) Muell.-Arg. Breynia vitis-idaea (Burm. f.) C.E.C. Fischer Matang-hipon Bridelia glabrifolia (Muell.-Arg.) Merr. Euphorbia heterophylla L. Euphorbia hirta L.

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FLAGELLARIACEAE Flagellaria indica L. Baling uwai Bambusa vulgaris Schrad. ex Wendl. Kawayan-kiling Bambusa merrilliana (Elm.) Rojo & Roxas Pasungan Cenchrus echinatus L. Cephalostachyum mindorense Gamble Bagtok Cynodon dactylon (L.) Pers. Dinochloa palawanensis S. Dransf. Bugto GRAMINAE Dinochloa scandens (Bl. ex Nees) Kuntze Balikawi Echinochloa colona (L.) Link Eleusine indica (L.) Gaertn. Fimbristylis globulosa (Retz.) Kunth Tikog Imperata conferta (J.S. Presl.) Ohwi Imperata cylindrical (L.) Beauv. Paspalum distichum L. Phragmites australis (Cav.) Trin. ex Steud. Tambo Saccharum spontaneum L. Schizostachyum diffusum (Blco.) Merr. Bikal Schizostachyum lima (Blco.) Merr. Buho Schizostachyum lumampao (Blco.) Merr. LABIATAE Hyptis capitata Jacq. Bauhinia integrifolia Roxb. Agpoi LEGUMINOSAE Cassia tora L. Centrosema pubescens Benth. Crotolaria incana L. Desmodium triflorum (L.) DC. Mimosa pudica L. Makahiya LECYTHIDACEAE Barringtonia curranii Merr. Ulam MALVACEAE Sida acuta Burm. f. Urena lobata L. MELASTOMATACEAE Melastoma malabathricum L. Malatungaw PANDANACEAE Pandanus luzonensis Merr. Pandan PASSIFLORACEAE Passiflora foetida L. RUBIACEAE Borreria ocymoides (Burm. f.) DC. Hedyotis biflora (L.) Lam. SOLANACEAE Physalis angulata L. STERCULIACEAE Melochia concatenata L. Pterospermum diversifolium Bl. TILIACEAE Corchorus olitorius L. ULMACEAE Parasponia rugosa Bl. Anagdong VERBENACEAE Lantana camara L. Coronitas Stachytarpheta jamaicensis (L.) Vahl.

2. Sampling Stations

2.1 Transect 1

The sampling station was established on a distinct forest type. The forest has a thin soil, poor nutrient, presence of toxic metals, low moisture and high temperature. The forest has a typical Gymnostoma formation, an essential sub-type of tropical forest over ultramafic soils.

Transect is situated 09˚ 13´ 21.6" North latitude and 118˚ 16´ 28.1" East longitude with a bearing of 40˚ northwest at an elevation of 392 meters above sea level. The soil is reddish brown clay, lateritic. The forest floor is clean and leaf litters from deciduous trees were observed. The trees mostly have small trunk diameter a few palms and dry

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epiphytic plants were seen. Light gaps have been colonized by Schizostachyum and Dinochloa species. The station is situated along Block A of the Toronto mining site.

There are 40 individual trees measured and recorded belonging to 10 species, 9 genera in 8 families. The most represented family is Mytaceae in two genera and 20 individual trees. Species from Myristicaceae and Lauraceae are also frequently encountered.

Xanthostemon verdugunianus has the greatest importance value index of 91.01. An indeterminate MYRISTICACEAE with a relative density of 10 and a relative dominance of 5.61 ranks 3rd followed by Dehaasia incrassata with a relative dominance of 2.91. Gymnostoma rhumphiana ranks 5th and a relative density of 5. The most dominant tree species is Tristaniopsis decorticata with a relative dominance of 38.82 and ranks 2nd with an IVI of 81.04.

Table 5-72. Values for Relative Density, Relative Dominance, Relative Frequency, and Importance Value for Species in Transect 1 Species Relative Relative Relative Importance Rank Density Dominance Frequency Value Index Xanthostemon verdugunianus 30 38.79 22.22 91.01 1 Tristaniopsis decorticata 20 38.82 22.22 81.04 2 Indet. 1 MYRISTICAEAE 10 5.61 11.11 26.72 3 Dehaasia incrassata 10 2.91 11.11 24.02 4 Gymnostoma rumphiana 5 7.39 5.55 17.94 5 Garcinia venulosa 7.5 1.57 8.33 17.35 6 Drypetes subcrenata 5 2.32 5.55 12.87 7 Alstonia macrophylla 5 1.55 5.55 12.09 8 Garcinia binucao. 5 0.74 5.55 11.28 9 Canarium asperum 2.5 0.34 2.77 5.61 10

Table 5-73 Data from Transect with Ten Sampling Sites at Every 10-meter Interval Sampling Quarter DBH Height Distance Scientific Name Point Number (cm) (m) (m) 1 16.5 8 1.5 Xanthostemon verdugunianus 1 2 28.4 12 2.0 Xanthostemon verdugunianus 3 12.1 6 1.0 Garcinia venulosa 4 17.0 9 1.5 Indet. - MYRISTICEAE 1 48.7 15 1.5 Tristaniopsis decorticata 2 2 14.5 9 2.0 Xanthostemon verdugunianus 3 28.4 13 1.5 Gymnostoma rhumpiana 4 57.8 12 1.0 Xanthostemon verdugunianus 1 20.3 9 1.0 Alstonia macrophylla 3 2 16.6 7 2.0 Xanthostemon verdugunianus 3 48.7 4 1.5 Tristaniopsis decorticata 4 25.0 9 2.5 Drypetes subcrenata 1 40.5 16 2.0 Gymnostoma rhumpiana 4 2 10.0 6 1.0 Garcinia binucao 3 16.3 10 1.8 Tristaniopsis decorticata 4 28.4 12 2.0 Xanthostemon verdugunianos 1 10.6 7 1.5 Canarium asperum 5 2 32.7 15 1.0 Tristaniopsis decorticata 3 17.4 6 2.0 Dehaasia incrassata 4 12.0 6 2.0 Drypetes subcrenata 1 49.0 16 1.5 Tristaniopsis decorticata

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6 2 10.0 6 2.0 Garcinia venulosa 3 32.4 14 1.0 Xanthostemon verdugunianus 4 45.1 16 3.0 Xanthostemon verdugunianus 1 24.3 9 2.0 Tristaniopsis decorticata 7 2 24.6 10 1.5 Indet. - MYRISTICACEAE 3 10.4 7 1.5 Dehaasia incrassata 4 10.0 5 2.0 Alstonia macrophylla 1 23.4 14 1.0 Indet. – MYRISTICACEAE 8 2 12.0 9 1.5 Dehaasia incrassata 3 32.3 15 2.0 Xanthostemon verdugunianus 4 30.8 12 1.5 Xanthostemon verdugunianus 1 49.0 17 2.0 Tristaniopsis decorticata 9 2 20.3 10 1.0 Xanthostemon verdugunianus 3 16.1 9 1.5 Garcinia venulosa 4 12.0 7 2.0 Garcinia binucao 1 16.5 13 2.5 Indet. – MYRISTICACEAE 10 2 40.5 16 1.0 Xanthostemon verdugunianos 3 37.1 15 2.5 Tristaniopsis decorticata 4 20.2 10 1.5 Dehaasia incrassata

3 Discussion

The forest of Barangay San Isidro is of lowland evergreen forest type (primary and secondary). The forest is characterized by the presence of trees that shed off their leaves during dry months, mixed with evergreen trees. Ficus species are common component of this forest type and the tree flora is numerous and diverse.

A typical Gymnostoma formation, a sub-type of lowland evergreen forest over ultramafic soils is located within the mine site area. Plant species found in this forest type is adapted to adverse conditions such as very thin soil, poor soil nutrient, presence of toxic materials, low moisture and high temperature. They are composed mostly of woody vegetation but lacks large trees. Gymnostoma and Casuarina are unique element in this vegetation type and its occurrence is limited to his forest type. Plants from the family Apocynaceae and shrubs of Euphorbiaceae are observed. Large area of this forest over ultramafic soils inside the project site has been cleared off timber trees.

FAMILY SCIENTIFIC NAME ACTINIDIACEAE Saurauia longistyla Merr. ANACARDIACEAE Mangifera altissima Blco.. CASUARINACEAE Ceuthostoma palawanense L.A.S. Johnson DILLENIACEAE Dillenia luzoniensis (Vid.) Mart. ex Dur. & Jacks. EBENACEAE Diospyrus pulgarensis (Elm.) Merr. EUPHORBIACEAE Baccaurea tentandra (Baill.) Muell.-Arg. Cyclostemon littoralis C.B. Rob. FLACOURTIACEAE Hydnocarpus unonifolia Elm. GRAMINAE Dinochloa palawanensis S. Dransf. GUTTIFERAE Calophyllum blancoi Fl. & Tr. Garcinia macgregorii Merr. LAURACEAE Beilschmiedia nervosa (Elm.) Merr. Cryptocarya lauriflora (Blco.) Merr. LEGUMINOSAE Parkia harbesonii Elm. MELIACEAE Azadirachta integrifolia Merr. Toona calantas Merr. & Rolfe

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MORACEAE Ficus pseudopalma Blco. Ficus ruficaulis Merr. Ficus ulmifolia Lam. MYRISTICACEAE Horsfieldia confertiflora Merr. MYRTACEAE Syzygium calubcob (C.B. Rob.) Merr. Syzygium macgregorii C.B. Rob. NEPHENTACEAE Nepenthes philippinensis Macfarl. OCHNACEAE Brackenridgea palustris Bart. ssp. foxworthyi (Elm.) Kanis OLEACEAE Jasminum aemulum R. Br. Arenga ambong Becc. PALMAE Calamus merrillii Becc. Caryota cumingii Lodd. ex Mart. Orania paraguanensis Becc. Palaquium bataanense Merr. SAPOTACEAE Sideroxylon duclitan Blco. Sideroxylon pittosporifolium Merr. ZINGIBERACEAE Alpinia haenkei (Pers.) B.L. Bortt. & R.M. Sm. Table 5-74. Forest tree species

Plants along the transect displays a highly specialized adaptation as they displays smaller trunk diameters and shorter in height. The largest measured tree diameter in the transect is Tristaniopsis decorticata. at 49.0 cm dbh while the largest measured individual Xanthostemon verdugunianus is at 45.1 cm dbh and Garcinia spp. And Alstonia macrophylla measuses at 10.0 cm dbh.

The uniqueness of the transect is the presence of Casaurinaceae species which is a characteristic of a forest type found in Zambales and Palawan. Notable among the species found is Nephentes spp. recorded along the exposed areas of the ultramafic forest.

Transect walks is along open fields were cultivated plants are observed and common species of ferns and angiosperms are noted. Most of the species recorded are locally common and non-endemic.

Table . Lists of 33 endemic species recorded during the survey belonging to 21 families.

Table 5-75. Species Lists FAMILY SCIENTIFIC NAME LOCAL NAME ACTINIDIACEAE Saurauia latibracteata Choisy Tagibokbok Buchanania arborescens (Bl.) Bl. Manga-manga Buchanania microphylla Engl. Pasi-pasi Dracontamelon dao (Blco.) Merr. & Rolfe Dao ANACARDIACEAE Mangifera altissima Blco. Pahutan Mangifera indet. Pangi Swintonia foxworthyii Elm. Rimarao ANNONACEAE Artabotrys suaveolens Bl. Alstonia macrophylla G. Don Mahulay Alstonia scholaris (L.) R. Br. Var. scholaris Itang-itang/Bita APOCYNACEAE Asclepias sp. Hoya sp. Willughbeia sarawacensis (Pierre) K. Schum. Tabo Aglaonema spp. ARACEAE Alocasia sp.

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Amorphophallus riviere Durieu Philodendron sp. ARALIACEAE Osmoxylon sp. Polycias nodosa (Bl.) Seem. Malapapaya Canarium asperum Benth. ssp. asperum Sahing BURSERACEAE Canarium hirsutum Willd. ssp. hirsutum Baribidan Casuarina equisetifolia L. Agoho CASUARINACEAE Ceuthostoma palawanense L.A.S. Johnson Agoho Gymnostoma rumphiana (Miq.) LAS Johson CELASTRACEAE Kokoona ochraceae (Elm.) Merr. Repetek Terminalia calamansanai (Blco.) Rolfe Sakot COMBRETACEAE Terminalia catappa L. Talisay Terminalia microcarpa Decne DILLENIACEAE Dillenia luzoniensis (Vid.) Mart. ex Dur. & J Malakatmon Dillenia monantha Merr. DIOSCOREACEAE Dioscorea bulbifera L. Dipterocarpus grandiflorus Blco. Apitong Shorea astylosa Foxw. Yakal DIPTEROCARPACEAE Shorea polysperma (Blco.) Merr. Buyosa Diospyrus discolor Willd. Kamagong EBENACEAE Diospyrus Montana Roxb. var. timorensis Bakh. Tawa Diospyrus whitfordii Merr. Mahulay ELAEOCARPACEAE Elaeocarpus cumingii Turcz. Pasi-pasi Antidesma bunius (L.) Spreng. Antidesma ghaesembilla Gaertn. Bischofia javanica Bl. Tunom Drypetes ellipsoids (Merr.) Pax & K. Hoffm. Putian EUPHORBIACEAE Drypetes littoralis (C.B. Rob.) Pax. & K. Hoffm. Bokbok Homonoia javense (Bl.) Muell.-Arg. Panang Macaranga hispida (Bl.) Muell.-Arg. Bulo bulo Macaranga tanarius (L.) Muell.-Arg. Binunga Mallotus tilifolius (Bl.) Muell.-Arg. Mahulay FLACOURTIACEAE Hydnocarpus cauliflora Merr. Putian Pangium edule Reinw. ex Bl. Pangi FLAGELLARIACEAE Flagellaria indica L. Uwag Calophyllum pulgarense Elm. Calophyllum blancoi Fl. & Tr. Palo maria GUTTIFERAE Garcinia benthamii Pierre Bonog Garcinia binucao (Blco.) Choisy Kandis Kayea paniculata (Blco.) Merr. Mala tabon Beilschmiedia cairocan Vid. Baslayan Endiandra coriacea Merr. Usaw LAURACEAE Litsea perrottettii (Bl.) F.-Vill. Bokyan Litsea philippinensis Merr. Hindang Litsea whitfordii Merr. Bakyan LECYTHIDACEAE Barringtonia acutangula (L.) Gaertn. Combretodendron quadraliatum (Merr.) Merr. Tunom LEEACEAE Leea manillensis Warb. Intsia bijuga (Colebr.) O. Kuntze Ipil Koompassia excelsa (Becc.) Taub. Manggis LEGUMINOSAE Leucaena leucocephala (Lam.) de Wit Ipil-ipil Ormosia calavensis Azaola ex Blco. Bayuso Parkia speciosa Hassk. Mala Malugay Samanea saman (Jacq.) Merr.. Acacia LOGANIACEAE Fagraea fragrans Roxb. Dolo Fagreae racemosa Jack. LYTHRACEAE Lagerstroemia speciosa (L.) Pers. Banaba MARANTACEAE Donax cannaeformis (Forts. f.) K. Schum. Banban MELASTOMATACEAE Melastoma spp. Tongaotongao MELIACEAE Azadirachta excelsa (Jack) Jacobs

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Toona calantas Merr. & Rolfe Tunom Artocarpus altilis (Park.) Fosb. Antipolo Artocarpus anisophyllus Miq. Bukyan Artocarpus nitidus Trec. ssp. nitidus Kubi MORACEAE Artocarpus treculianus Elm. Tagup Ficus pseudopalma Blco. Potat Ficus ruficaulis Merr. Biri Ficus tinctoria Forst. f. ssp. tinctoria Horsfieldia costulata (Miq.) Warb. Hindang MYRISTICACEAE Knema glomerata (Blco.) Merr. Duguan Myristica guatteriaefolia A. DC. Duguan Myristica philippinensis Lam. Duguan MYRSINACEAE Embellia philippinensis A. DC. Malawmaw Myrsine venosa (Elm.) Hosaka Ma. Bakawan Syzygium albayense Merr. Sambulawan Syzygium calubcob (C.B. Rob.) Merr. Lomboylomboy MYRTACEAE Syzygium luzonense (Merr.) Merr. Lomboylomboy Syzygium simile (Merr.) Merr. Sakot Syzygium tula (Merr.) Merr. Makaasim Tristaniopsis decorticata (Merr.) Wils.& Waterh Bolo bayabas NEPENTHACEAE Nephentes philippinensis Macfarl. OCHNACEAE Brackenridgea palustris Bartell OLEACEAE Jasminum Aemulum R. Br. Arenga tremula (Blco.) Becc. Batbat Calamus caessius Bl. Sika Calamus diepenhorstii Miq. var. exulans Becc. Abuhan Calamus javensis Bl. Arorog Calamus merrillii Becc. Palasan PALMAE Calamus ornatus Bl. ex Schult. f. Kalape Calamus subinermis H.A. Wendl. ex Becc. Bugtung Caryota cumingii Lodd. ex Mart. Tapikan Corypha elata Roxb. Buri Daemonorops mollis (Blco.) Merr. Gatasan Daemonorops spp. Yantok Korthalsia robusta Bl. Yasyas Livistonia rotondifolia (Lam.) Mart. Balasbas Oncosperma tigillaria (Jack.) Ridl. Anibong Orania paraguanensis Becc. Banga Plectocomia elongate Mart. ex Bl. Maruwa PANDANACEAE Freycinetia spp. Pandanus spp. Bariw PODOCARPACEAE Podocarpus macrocarpus de Laubenf. Kolokawayan POLYGALACEAE Xanthophyllum flavescens Rosb. Bokbok RHIZOPHORACEAE Carallia bracteata (Lour.) Merr. Bita Guettarda speciosa L. Mala tabon RUBIACEAE Ixora cumingiana Vid. Nauclea orientalis (L.) L. Bangkal Psychotria luzoniensis (Cham.&Schlecht.)F-Vill Dimocarpus longan Lour. ssp. malesianus Leenh Aloyan Ganophyllum falcatum Bl. Siyaar SAPINDACEAE Nephelium lappaceum L. var. lappaceum Usaw Nephelium rambutan-ake (Labill.) Leenh. Rambutan Pometia pinnata J.R. & G. Forst. Bayuso Ganua obovatifolia (Merr.) v. den Assem Sakot Palaquium lanceolatum Blco. Nato SAPOTACEAE Palaquium luzoniense (F.-Vill.) Vid. Nato Pouteria duclitan (Blco.) Baehni Rimaraw Pouteria macranthum (Merr.) Baehni Nato SMILACACEAE Smilax bracteata Bl. Smilax leucophylla Bl. Banag Kleinhovia hospita L. var. hospita Lapnis

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STERCULIACEAE Melochia umbellate (Houtt.) Stapf. Siyapo Pterocymbium tinctorium (Blco.) Merr. Sterculia foetida L. Bobog SYMPLOCACEAE Symplocos cochinchinensis (Lour.) S. Moore THYMELACEAE Gonystylus macrophyllus (Miq.) A. Shaw Bungton Colona serratifolia Cav. Hanagdong TILIACEAE Grewia multiflora Juss. Siyapo Microcos stylocarpa (Warb.) Burr. Moningmoning ULMACEAE Trema orientalis (L.) Bl. Hanagdong VERBENACEAE Clerodendron intermedium Cham. Vitex pubescens Vahl Mulawin VITACEAE Tetrastigma indet. ZINGIBERACEAE Alpinia haenkei (Presl.) B.L. Bortt. & R.M.Sm. Tagbak Alpinia pyramidata Bl. Langkawas

4 Recommendations

Before the start of the operation of the mining project, big diameter native tree species should be marked and identified as a mother tree.

Saplings or wildlings from this mother trees can be collected and tended at nurseries within the project site.

A nursery for this native species is important as native species exhibits a slow growth and need to be tended before introduction to the wild.

Species of Gymnostoma and Casuarina should be given high priority for reforestation as the species are highly adapted to adverse environment and stand as a representative of the vegetation of a forest over ultramafic soil.

The sapling will then be used as the species for the reforestation programme of the mining company.

Exotic tree species for beautification and landscaping should be avoided as this species are more tolerant, easily adapt to the environment and tend to colonize large areas.

Small Casuarinaceae species should be collected from the operation site and transplanted to other areas or be tended in nurseries and further be used for landscaping purposes.

Some slopes colonized by Schizostachyum and Dinochloa should be left undisturbed as it has an aesthetic value aside from being a unique micro habitat.

Exposed slopes and areas can be planted with Nephentes spp. and Ixora spp. and other native plants can be utilized as ornamentals..

Buffer zones can be designated within the presently degraded areas.

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5.13 Marine Biology

5.13.1 Coral Reef

Coral reefs are certainly one of our planet’s greatest natural attractions (Allen and Steene, 2002). They are communities of small animals called polyps which feed on algae and bacteria found in tropical waters. Coral reefs are unique among marine associations or communities in that they are built up entirely by biological activity. The reefs are essentially massive deposites of calcium carbonate produced primarily by corals (phylum Cnidaria, class Anthozoa, order Scleractinia) with lesser additions from calcareous algae and other organisms that secrete calcium carbonate. Although corals are found throughout the oceans of the world in polar and temperate waters as well as in the tropics, it is only in the tropics that reefs achieve their greatest development and diversity. Hermatypic corals or reef building corals are found only in the tropical region. Corals need clear water and energy from the solar radiation to develop such as those found in the Philippines. Coral reefs have the greatest diversity per unit area of any marine ecosystem with respect to higher taxa, and it has been estimated by Karlson (1999) that perhaps 4-5% of all species, or about 91,000 are found in coral refs. Coral reefs are globally significant in that about half the calcium that enters the world’s oceans each year is taken up and bound into coral reefs as calcium carbonate. Since each bound calcium atom requires the incorporation of a molecule of carbon dioxide, reefs also remove about 700 billion kilograms of carbon per year. These facts mean that coral reefs are very significant to the continuing health of the marine environment and the planet (Nybakken, 2001).

Most corals found around Palawan are in shallow water fringing reefs not reaching depth greater than 35 meters. Many are near shore tidal areas with lower visibility than is expected for thriving reefs. Water temperature in coral reefs found in Palawan have been recorded from 25-28oC (PCSD 2002).

Coral reefs are considered the most biologically productive ecosystem in the world and supply the main food source for the Philippine islands. They are economically important because they served as fish habitat, breeding and nursery grounds and as wave breakers to protect inland shores. Corals are also considered a habitat link between mangrove and seagrasses that are highly productive and biologically diverse.

5.13.1.1 METHODOLOGY

Secondary Data Gathering and Validation

Information on past coral cover of Narra, Palawan was collected from the Palawan Council for Sustainable Development (PCSD, 2002, 2005) and was validated.

Manta Tow

A manta tow survey was undertaken to get a general idea of the various types and amounts of habitat types in the coastline beginning from Caguisan to San Isidro, Narra, Palawan. The manta tow method (as described by Uychiaoco et al. 2001) was primarily

Toronto Nickel Mining Project Chapter V-107 used to help in the selection of the best representative sites and number of samples for closer observation. Each tow was 2 minutes along the coast line of the area. Coordinates at the start and end of each tow were taken. Based on the results of the manta tow, 3 areas contained appreciable amounts of coral cover namely: 1 in Caguisan (CAG1) and 2 in San Isidro (SIC1 and SIC2).

Mapping

Coordinates of the manta tow survey were recorded using a GPS device. Area of coral reefs were delineated using a GPS device boarded on a motorized banca. Results were plotted using a mapping software and later overlayed on an aerial photograph map from Google Earth.

Line Intercept Method

The line intercept method was employed in the conduct of coral reef assessment in the representative sites for Caguisan and San Isidro, Narra, Palawan (English et al. 1997; Haribon, 2005). At each sampling site, two replicate 20-meter transect line were laid parallel to the shore at about 3-meter depth.

Data Gathered

Percent Cover

The present coral cover for each coral and life form category were estimated by noting the fractional length in the transect line that was intercepted over the total transect surveyed. total length of benthic lifeform % Cover = ------x 100% total transect surveyed

Coral Identification

Hard corals and other common benthic life forms were identified to the genus level (Allen et al. 2002; Veron, 2000; White, 2001).

Reef Associated Fish

Reef associated fish found along the transects were identified to species level (if possible) using the photographic guide books (Allen et al. 2003; Broad, 2003; Roldan and Muñoz, 2004).

5.13.1.2 RESULTS

Results of the assessment showed that there are 3 identified coral area sites near the proposed project site in Narra, Palawan namely: 1 in Caguisan (CAG1) and 2 in San Isidro (SIC1 and SIC2).

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Caguisan

Caguisan (CAG1) is about 19 km from the proposed CitiNickel Jetty. The site has 57.45% live coral cover and was assessed to be in good condition (50-74.9% live coral cover). Hard coral species observed were Acropora sp., Porites sp., and Fungia sp. Soft corals like Nepthea sp. and algae like Halimeda macroloba were also found in the area. Results also showed that no dead coral and rubbles were encountered.

San Isidro

San Isidro 1 (SIC1) is located at N 9o 10.632’ and E 118o 16.952’ which is about 200 meters at the right side of the proposed CitiNickel Jetty. The bottom is characterized by 30.9% dead coral with algae and 18.40% live coral cover which is considered poor (below 25% coral cover). Hard coral species found were Acropora sp., Porites sp., Favia sp., Favites sp., Pocillopora sp., Montastrea sp. and Fungia sp. Soft corals like Lobophylon sp., Sarcophyton sp. and algae like Halimeda macroloba were also found in the area.

San Isidro 2 (SIC2) is located at the left side of the PGMC Jetty and of the proposed CitiNickel jetty. The bottom is characterized by 100% dead coral with algae which is considered poor (below 25% coral cover). Results indicate that the corals did not die recently and that the corals were colonized heavily by coralline algae. Observations also showed that no rubbles were encountered and that the area was very silty (see Figure 15).

Table 5-76. Percent coral cover of selected representative sites of near the proposed project in Narra, Palawan CATEGORY PERCENT COVER (%) CAG1 SIC1 SIC2 Hard Corals (HC) 54.95 15.25 Soft Corals (SC) 2.50 3.15 Dead Corals (DC) 0.75 Dead Coral w/ Algae(DCA) 30.9 100.00 Coralline Algae 4.00 4.05 Sponge 4.00 4.35 Rubbles 1.8 1.12 Sand 18.50 36.43 Algae 14.25 2.5 Turf Algae 1.5 TOTAL 100.00 100.00 100.00 Remark Good Poor Poor

Reef Associated Fishes

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Caguisan

In Caguisan, a total of 13 fish species were observed. The most conspicuous and dominant were damselfishes and wrasses, particularly the six bar wrasse Thalassoma hardwicke. Fish visual census can be used to estimate the variety of common, easily-seen and easily-identified fishes in areas of good visibility.

Table 5.77 Fish species found in Caguisan Common name Scientific name Family Yellow chromis Chromis analis Pomacentridae Lemon damsel Pomacentrus moluccensis Pomacentridae Unidentified Damselfish Pomacentrus sp. Pomacentridae Six bar wrasse Thalassoma hardwicke Labridae Bluestreak cleaner wrasse Labroides dimidiatus Labridae Bird wrasse Gomphosus varius Labridae Threadfin butterflyfish Chaetodon auriga Chaetodontidae Redfin butterflyfish Chaetodon lunulatus Chaetodontidae Checkered snapper Lutjanus decussatus Lutjanidae Unidentified snapper Lutjanus sp. Lutjanidae Brick soldierfish Myripristis amaena Holocentridae Jewel damsel Plectroglyphidodon lacrymatus Pomacentridae Spotted coral grouper Plectropomus maculatus Serranidae

Right side of Jetty

A total of 14 species of reef fishes were identified at the coral reef located at the right side of the jetty. Among the most conspicuous and abundant are the damselfishes (Pomacentrus tripunctatus, Abudefduf vaigiensis) and wrasses (Thalassoma hardwicke, Halichoeres nigrescens).

Table 5-78. Fish Species, right side of Jetty Common name Scientific name Family Bengal sergeant Abudefduf bengalensis Pomacentridae Twinspot damsel Pomacentrus geminospilus Pomacentridae Three-spot damsel Pomacentrus tripunctatus Pomacentridae Indo-Pacific sergeant Abudefduf vaigiensis Pomacentridae Cosmetic wrasse Halichoeres cosmetus Labridae Greenback wrasse Halichoeres nigrescens Labridae Bluestreak cleaner wrasse Labroides dimidiatus Labridae Six bar wrasse Thalassoma hardwicke Labridae Yellowface wrasse Halichoeres solorensis Labridae Unidentified wrasse Halichoeres sp. Labridae Eight-banded butterflyfish Chaetodon octofasciatus Chaetodontidae Vagabond butterflyfish Chaetodon vagabundus Chaetodontodae Doublebar goatfish Parupeneus crassilabris Mullidae Unidentified snapper Lutjanus sp. Lutjanidae

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Left side of Jetty

A total of 5 species were positively identified during the transect survey of the coral reef located at the left side of the jetty. The coral reef was observed to have poor coral cover as all hard corals were dead or colonized by coralline algae such as Halimeda macroloba. As expected, less numerous fishes were observed in this site.

Table 5-79. Fish species on left side of Jetty Common name Scientific name Family Three-spot damsel Pomacentrus tripunctatus Pomacentridae Twinspot damsel Pomacentrus geminospilus Pomacentridae Greenback wrasse Halichoeres nigrescens Labridae Unidentified surgeonfish Acanthurus sp. Acanthuridae Blacktail snapper Lutjanus fulvus Lutjanidae

Discussion

In Caguisan, the coral area is considered in good condition and is undisturbed by destructive fishing methods (such as dynamite or cyanide) as shown by lack of rubble or dead coral. It is about 19 kilometers away from the project site.

In San Isidro sites, the coral areas are considered to be in poor condition as shown by low live coral cover (22.15%). High percent cover of dead corals with algae indicates that corals have already been dead for sometime as algae were able to colonize the skeleton. Dead corals in area would be attributed to the pollution/dirty water (high suspended solids) coming from human activities in the upland and lowland areas which naturally drain in the Pinagduguan river which finally end up to the coral area. Other reef associated animals are likewise affected as shown by the lesser number of fish species recorded at the left side of the existing jetty as a result of silted area and degraded coral area.

Likewise, results from coral assessment study conducted by PCSD (2005) in Palawan employing Line Intersect Method, Reef Check and Manta Tow manifested a gloomy picture of the Province’s coral reef ecosystem. Assessment of the best sites in terms of benthic life forms in 305 sites covering (19) municipalities showed that only 12 sites or 3.93% were considered in excellent condition (75-100% live coral cover), 135 sites or 44.26% of all the reef sites surveyed were rated to be in fair condition (25-49.9% live coral cover) while those that were assessed to be in good condition (50-74.9%) live coral cover represents 34.43% (105 sites). Coral reefs with poor cover (25% live coral cover) constitute 17.38 percent (53 sites) of the total number.

Earlier results (PCSD, 2002) also revealed that out of 18 survey sites located in Narra, Palawan, ten (10) or 55.56 percent have live coral cover that range from 50-75 percent and therefore are considered in good condition. These sites include: Linda Island, Bangawan Island, Cudil Island, Arena Island, Aramaywan, Tacras, San Isidro and Panacan III. As indicated, Panacan III manifested the highest live coral at 69.98% followed by George Island at 66.62%. The remaining eight (8) sites or 44.44% including Rasa Island were assessed to be in fair condition as they exhibit 25 to 50% percent live coral cover. The site which exhibited the lowest live cover at 38.6 percent was Banking Island. Moreover, data also showed that except for San Isidro and Aramaywan, all of the sites

Toronto Nickel Mining Project Chapter V-111 manifested high percentage of dead corals with algae indicating that corals have already been dead for sometime as algae were able to colonize the skeleton. It was likewise noted that rubbles were minimal and in fact were not encountered in 10 of 19 sites surveyed. This may mean that dynamite fishing has actually declined. The presence of high percentage of soft corals was also observed in seven sites, a strong indication of coral regeneration. Overall, at computed average life coral cover of 53.02 percent, the coral reef condition of Narra based on February 2002 survey is rated as good. Compared with other municipalities of Palawan where the best reef sites are only in the category of fair condition, Narra’s coral reefs are generally in a better state.

In the present coral study in the San Isidro, Narra, Palawan, it shows that the coral condition in the area is declining or becoming worst due to increasing human activities at the upland and lowland areas of the Municipality caused by pollution and probably mechanical damage to the reefs.

Likewise the construction of the proposed jetty could increase siltation which would result to decreased reef productivity and fish populations in the left and right side of the jetty.

Coral reefs are among the most productive systems in the marine environment and have existed on the planet for hundreds of millions of years (Nybakken, 2001). Despite their long history and ability to create the most massive structures built by living organisms, the thin layer of living coral tissue seems particularly sensitive to a number of natural and human-made disturbances that today seem to be converging and challenging their continued survival.

Six major physical factors limit coral reef development: temperature, depth, light, salinity, sedimentation and emergence into air. Hermatypic corals are true marine organisms and are intolerant of salinities deviating significantly from that of normal seawater (32-35 ppt). Wherever inshore waters are subject to continuing influxes of freshwater from river discharge as an offshoot of activities like forest clearing and illegal logging, so that the salinity is lowered, reefs may be affected. Often correlated with freshwater runoff is the factor of sedimentation. Sediment, both in the water and settling out on the coral reefs, has an adverse effect on the corals. Many corals can remove limited amounts of sediment by trapping it in mucus and carrying it off by ciliary action. Most hermatypic corals, however, cannot tolerate heavy sedimentation, which overpowers their ciliary-mucus cleansing mechanism, clogs their feeding structures and smother them (Nybakken, 2001). Sediment in the water (turbidity) also reduces the light necessary for photosynthesis by the zooxanthellae in the coral tissue. As a result, coral reef development is reduced or eliminated in areas of high turbidity. When this sediment is carried by rivers or streams, the combination of reduced salinity and excess sediment is responsible for the degradation of reefs.

References

Allen, G. R. and R. Steene. 2002. Indo-Pacific Coral Reef Field Guide. Tropical Reef Research. Calendar Print Ltd., Singapore.

Toronto Nickel Mining Project Chapter V-112

Allen, G., R. Steene, P. Humann and N. Deloach. 2003. Reef Fish Identification: Tropical Pacific. New World Publications, Inc.

Broad, G. 2003. Fishes of the Philippines: A Guide to Identification of Families. Anvil Publishing, Inc. 510 p.

English, S., C. Wilkinson and V. Baker. 1997. Survey manual for tropical marine resources. Second Edition. Australian Institute of Marine Science, Townsville, Australia.

Haribon Foundation. 2005. Participatory Marine Sanctuary Monitoring: Manwal. Quezon City, Philippines.

Karlson, R.H. 1999. Dynamics of coral communities. Boston: Kluwer Academic Publishers.

Nybakken, J.W. 2001. Marine Biology: An Ecological Approach. Fifth Edition. Benjamin- Cummings, an imprint of Addison Wesley Longman, Inc. 516 p.

PCSD. 2002. Coastal Resources Monitoring. Palawan Council for Sustainable Development. Puerto Princesa City, Palawan, Philippines.

PCSD. 2005. State of the Environment Report 2004: Province of Palawan. Palawan Council for Sustainable Development. Puerto Princesa City, Palawan, Philippines.

Roldan, R.G. and J.C. Muñoz. 2004. A Field Guide on Philippine Coral Reef Fishes. Fisheries Resource Management Project, Bureau of Fisheries and Aquatic Resources, Department of Agriculture, Quezon City. 51 pp.

Uychiaoco, A. J. S. J. Green, M. T. dela Cruz, P. A. Gaite, H.O. Arceo, P. M. Aliño and A. T. White. 2001. Coral Reef Monitoring for Management. University of the Philippines Marine Science Institute. United Nations Development Programme Global Environment Facility-Small Grants Program, Guiuan Development Foundation, Inc., Voluntary Service Overseas, University of the Philippines Center for Integrative and Development Studies, Coastal Resource Management Project and Fisheries Resource Management Project. 110 p.

Veron, J.E.N. 2000. Corals of the World. Australian Institute of Marine Science.

White, A.T. 2001. Philippine coral refs: A natural history guide. Bookmark Inc. and Sulu Fund for Marine Conservation Foundation, Inc. 259 p.

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PROJECT SITE

Plate 5-22. Coral Area and the Proposed Jetty of CitiNickel in Brgy San Isidro, Narra, Palawan

PROJECT SITE

Plate 5-23. Sea bottom map, existing Jetty and the proposed Jetty of CitiNickel in Brgy San Isidro, Narra, Palawan

Toronto Nickel Mining Project Chapter V-114

5.13.2 Seaweeds

Seaweeds are macrobenthic marine algae. They form a conspicuous component of the primary producers in the shallow marine environment. They possess different types of pigments such as chlorophylls, carotenoids, phycobilins, and other accessory pigments which enable them to synthesize organic compounds from simple compounds such as water and carbon dioxide in the presence of light as a source of energy. Except among the blue-green algae, the pigments are contained in organelles called plastids. Chlorophyll a, the primary pigment is present in all groups. However, other chlorophylls and accessory pigments such as the phycobilins, carotenoids may differ among the major groups. The accessory pigments may blend or mask chlorophyll a to produce the diagnostic color of the different groups, thus the names green, brown, blue-green, and red seaweeds.

Most seaweeds are limited in their distribution at the intertidal to the shallow subtidal zone in the marine environment although a few may be found high in the supratidal zone (spray zone). The difference in their distributional patterns is reflective of their ability to adapt to the ambient ecological condition in their habitat. Some species are found only in sheltered bays and coves or on the reef flats while others are distributed only in the rocky wave- exposed areas along the shore or near the reef edge. The presence of a species in a certain habitat is dependent on their ability to adapt to the synergistic effects of the different ecological factors in the environment.

The economic importance of seaweeds lies on their variety of uses as food and as raw material in the production of industrial phycocolloids – agars, carrageenans, and alginates. Many species have medicinal properties.

5.13.2.1 Methodology

Manta Tow

The manta tow was used to get a general idea of the various types and amounts of habitat types in the entire coastline of Caguisan to San Isidro, Narra, Palawan. The manta tow technique as described by Uychiaoco et al. (2001) was used to help in the selection of sites and numbers of samples for closer observation. Each tow was two minutes along the coast line of the area. Based on the results of the manta tow, only 2 areas contained appreciable amounts of seaweeds. These are in rocky shores of Teresa and Balitiin, San Isidro, Narra.

Transect-Quadrat Method

The method developed by Saito and Atobe (1970) for quadrat sampling as discussed by English et al. (1997) is described below. The transect is a calibrated line along which the organisms (seaweeds) are measured. The length and direction to which it was laid depends on the objective of sampling. In this case, it was laid according to the observed nature of the environmental gradient, e.g., from shallow to deep. For the sampling of seaweeds, the appropriate quadrat size so far determined is ¼ of a square meter or 0.25 m2 or 50 X 50 cm. For the method developed by Saito and Atobe (1970), the

Toronto Nickel Mining Project Chapter V-115 quadrat size of 50 cm X 50 cm is subdivided into twenty five 10 cm X 10 cm areas. The number of quadrats to be sampled usually depends on the extent and the heterogeneity of the area to be sampled. In this particular case, quadrats were placed every 5 m along the transect line.

In each station, two parallel transect lines were laid on the shore, the direction of which depends on the objective of the sampling. Since, distribution of seaweeds along a depth gradient was being mapped, the transect was laid perpendicular to the shore in order to determine the zonation pattern of the seaweed community. The quadrat was placed at regular intervals (every 5 m) along the transect. The length of the transect was 50 m. The position of the zero point of the transect was recorded using a GPS. Seaweeds were identified based on descriptions of Trono (1997, 2004).

Data Gathered

When using the quadrat method, data gathered were the following:

1. Frequency (%) F = qn/25 X 100 = qn X 4

where qn is the number of small squares (10 cm X 10 cm areas) within the quadrat in which an algal species occurred/appeared. Therefore, a species which has occurred in all the 10 cm X 10 cm areas (total of 25) will have an F = 100%.

2. Cover (%)

Cover is a more accurate measure of the degree to which a species occur in an area. This represents the estimated percentage area covered by the species in the substrate. For convenience, the index numbers: 5, 4, 3, 2, 1 were used for recording data in the field. These indicate varying degrees of algal cover (see table below).

Table 5-80. Determination of cover value. Indices Degree of algal cover Multiplier (Cn) 5 Covering ½ to 1/1 of substratum surface 3.0 4 Covering ¼ to ½ of substratum surface 1.5 3 Covering 1/8 to ¼ of substratum surface 0.75 2 Covering 1/16 to 1/8 of substratum surface 0.375 1 Covering less than 1/16 of substratum surface 0.1875

To compute for the area in the substrate occupied by the species (% cover), corresponding values of the indices are substituted in the formula below.

C in % = (qn5 X C5) + (qn4 X C4) + (qn3 X C3) + (qn2 X C2) + (qn1 X C1) = (qn5 X 3) + (qn4 X 1.5) + (qn3 X 0.75) + (qn2 X 0.375) + (qn1 X 0.1875)

where qn is the number of small squares in which a species appeared to have the corresponding coverage area described in the above table. The resulting value, C, represents the percentage area covered by the species on the substrate within the 50 cm X 50 cm quadrat.

It should be noted that the multipliers assigned by Saito and Atobe (1970) gives a maximum percentage cover value of 75% for a species having appeared in all 25 small

Toronto Nickel Mining Project Chapter V-116 squares and covered 50-100% of the substrate (C = qn5 X C5 = 25 X 3 = 75%). This assumes that the general morphology (habit) of the majority of seaweed species show frequent unoccupied spaces between the branches or at points of branching, such that the total area covered by the species in the substrate is actually less than 100%.

3. Dominance

To determine which seaweed species dominate in an area, the fraction contributed by each species to the total algal cover is computed. D = % cover of individual species/total % cover of all seaweed species Then, dominance is determined as follows: Dominant species  those species whose cover values constitute 50% or more (could be one or more species) fraction of the total algal cover Subdominant species  those species whose cover values, when added to those of the dominant species, equals 75% or more of the total algal cover

Mapping

GPS coordinates were recorded around the area where seaweeds abound at least every 5 m. A satellite photomap was taken from Google earth. The GPS readings were then plotted using a mapping software (Surfer 8.0, Golden Software) and overlaid on the aerial photomap.

5.13.2.2 Results

Teresa, San Isidro, Narra a. Species composition

Nine species of seaweeds were recorded from Teresa. In transect 1, there were 8 species of algae. Among the algal species, 3 were brown algae (Phaeophyta), 3 were green algae (Chlorophyta) and 2 were red algae (Rhodophyta). In transect 2, only 1 brown alga (Phaeophyta) and 2 green algae (Chlorophyta) were found. Only Neomeris vanbosseae, a green alga and Sargassum sp., a brown alga were common in both transects 1 and 2.

Table 5-81. Seaweed species per transect in Teresa, San Isidro, Narra, Palawan. Seaweed species Transect 1 Transect 2 N 09º10.724’ N 09º10.693’ E 118º18.880’ E 118º18.908’ Rhodophyta Amphiroa fragilissima √ Liagora ceranoides √ Phaeophyta √ Padina minor √ Dictyota dichotoma Sargassum sp. √ √ Chlorophyta

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√ Halimeda macroloba Neomeris vanbosseae √ √ Caulerpa taxifolia* √ Boodlea composita √ √ indicates presence of the species *found outside the transect in deeper portion b. Frequency and Percent Cover

Table 3 shows the frequency of occurrence, percentage cover, and percent contribution per species found in Teresa, San Isidro, Narra, Palawan.

The seaweed community at Teresa, San Isidro, as expected, was represented by only a few species because of limited rocky substrate for attachment. In transect 1, dominant species in the shallow portion were Neomeris vanbosseae, a green algae and Sargassum sp. and Padina minor, both brown algae. N. vanbosseae grows on rocks or dead corals or coral fragments on reef or rocky shores (Trono, 1997). The Sargassum sp. found in the shallow wave-swept area were cut short and difficult to identify but they are usually found growing on coralline rocks in wave-exposed areas from low intertidal to shallow subtidal zone. Padina minor, on the other hand, are usually attached to solid substrates on reef flat or upper subtidal zone, or they can be epiphytic on large macrobenthic algae. In the latter half of the transect, other seaweeds became dominant, with P. minor either being dominant or always present. In transect 2, Neomeris vanbosseae and Boodlea composita, both green algae were dominant in shallow exposed rock areas but in the latter part of the transect, corals became dominant with only few interspersed algae. Boodlea composita is common in the intertidal zone on the inner reef and lagoon areas where it is partially exposed during low tides (Trono, 1997).

Table 5-82. Frequency, percent cover and percent contribution of each species found in Teresa, San Isidro, Narra, Palawan.

Quadrat Substrate Seaweed F Cover Percent Notes Species contribution per species Transect 1 0 m Bedrock None Exposed at low tide 5 m Bedrock Neomeris 56 4.12 100 D Exposed at low vanbosseae tide 10 m Bedrock Padina minor 16 1.50 11.11 Sargassum sp. 16 3.38 25.00 SD Neomeris 96 7.88 59.43 D vanbosseae Amphiroa 8 0.75 5.55 fragilissima TC 17.63 15 m Bedrock Sargassum sp. 100 75.00 100 D TC 75.00 20 m Rock with None Depth = 45 cm sand 25 m Rock with Padina minor 24 3.19 89.48 D Depth = 76 cm sand

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Crustose 8 0.38 10.52 coralline algae TC 3.57 30 m Rocky Padina minor 8 0.75 40.00 D Depth = 81 cm Amphiroa 4 0.75 40.00 D fragilissima Dictyota 4 0.38 20.00 dichotoma TC 1.88 35 m Rocky Padina minor 24 4.50 75.00 D Depth = 78 cm Halimeda 20 1.50 25.00 macroloba Corals TC 6.00 40 m Rocky Liagora 40 12.75 44.44 D Depth = 78 cm ceranoides Padina minor 24 15.00 52.29 D Halimeda 20 0.94 3.27 macroloba TC 28.69 45 m Padina minor 12 6.00 59.26 D Depth = 78 cm Dictoyota 8 3.00 29.63 dichotoma Halimeda 12 1.12 11.11 macroloba TC 10.12 50 m Halimeda 76 10.50 82.35 D Depth = 76 cm macroloba Padina minor 8 0.75 5.88 Amphiroa 16 1.50 11.76 fragilissima TC 12.75 Transect 2 0 m Exposed None Exposed at low bedrock tide 5 m Exposed Neomeris 64 5.06 100 D Exposed at low bedrock vanbosseae tide TC 5.06 10 m Sargassum sp. 8 0.75 12.90 Sargassum are cut short & difficult to identify Neomeris 28 1.31 22.58 vanbosseae Boodlea 40 3.75 64.52 D composita TC 5.81 15 m Rocky Corals Deep D – dominant SD – subdominant F – frequency of occurrence TC – total cover

Percent cover ranged from 0.00-75.00% in transect 1, and from 0.00-5.81% in transect 2. It was observed that not all available rock substrata available were colonized by seaweeds, although seaweeds were more abundant in rocky than sand areas. In summary, the results of the survey suggest that it was the substrate type and availability of substrates which were the most important factors influencing the presence of seaweeds in the area.

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Trono and Saraya (1987) also noted higher diversity and corresponding frequency of seaweeds on rocky substrates flowed by sandy-rocky substrates, and lowest on sandy- muddy substrates. It was also noted that outside transect 1, especially in deeper parts was Caulerpa sertularoides.

Associated fish

Fish species frequently encountered in the seaweed bed include the Twin spot damsel juvenile Pomacentrus geminospilus (Pomacentridae), and two unidentified damsel fishes Pomacentrus sp. (Pomacentridae) and Chrysiptera sp. (Pomacentridae).

Balitiin, San Isidro

Species Composition

In Balitiin, San Isidro, a total of 6 seaweed species were found. In transects 1 and 2, all 6 species of seaweeds were found. Among the algal species, one red (Rhodophyta), three green (Chlorophyta), and two brown (Pheophyta) were found.

Table 5-83. Seaweed species found in Balitiin, San Isidro. Seaweed Species Transect 1 Transect 2 N 09º10.422’ N 09º10.368’ E 118º15.823’ E 118º15.752’ Phaeophyta Padina minor √ √ Sargassum sp. √ √ Rhodophyta Amphiroa fragilissima √ √ √ Chlorophyta Halimeda macroloba √ √ Neomeris vanbosseae √ √ Caulerpa taxifolia √ √ √ indicates presence of the species

Table 5-83 shows the frequency of occurrence, percentage cover, and percent contribution per species found in transects 1 and 2 in Balitiin, San Isidro.

Table 5-84. Frequency, percent cover, and percent contribution of each species found in Balitiin, San Isidro, Narra, Palawan.

Quadrat Substrate Species F Cover Percent Notes contribution per species Transect 1 10 m Exposed None Exposed at bedrock low tide 20 m Sand Neomeris 92 5.81 100 D Exposed at vanbosseae low tide

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TC 5.81 25 m Sand None 30 m Rock with Amphiroa 56 11.81 78.75 D Depth = 30 cm sand fragilissima Padina minor 16 2.44 16.25 Caulerpa racemosa 16 0.75 5.00 TC 15.00 35 m Rock with Sargassum sp. 100 75.00 100 D Depth = 37 m sand TC 75.00 40 m Rock with Halimeda 48 2.44 44.83 D Depth = 38 cm sand macroloba Amphiroa 32 3.00 55.18 D Silty fragilissima TC 5.44 45 m Sand Halimeda 12 0.56 75.00 D Depth = 42 macroloba cm; silty Amphiroa 4 0.19 25.00 fragilissima TC 0.75 50 m Sand None Depth = 50 cm, silty Transect 2 10 m Rocky None Depth = 10 cm 20 m Rock Neomeris 20 1.88 100 D Depth = 15 cm vanbosseae TC 1.88 25 m Rock Halimeda 4 0.75 100 D Depth = 15 cm macroloba TC 0.75 30 m Rock with Sargassum sp. 80 60.00 98.16 D Depth = sand Neomeris 8 0.38 0.61 Depth = 25 cm vanbosseae Caulerpa racemosa 16 0.75 1.23 TC 61.13 35 m Sand Padina minor 8 3.19 41.47 D Depth = 35 cm; silty Caulerpa taxifolia 44 3.19 41.47 D Halimeda 28 1.31 17.07 macroloba TC 7.69 40 m Sand with Halimeda 72 12.94 100 D 42 = cm; silty small rocks macroloba TC 12.94 45 m Sand Halimeda 92 11.25 93.75 D 43 cm; silty macroloba Amphiroa 12 0.75 6.25 fragilissima TC 12.00 50 m Sand Halimeda 76 5.62 81.08 D 45 cm; silty macroloba Amphiroa 20 1.31 18.92 fragilissma TC 6.93 D – dominant SD – subdominant F – frequency of occurrence TC – total cover

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In transect 1, the dominant species were still Neomeris vanbosseae, Sargassum, and Halimeda macroloba, which was similar in community structure with that of the seaweed bed in Teresa. Other seaweed such as the red alga Amphiroa fragilissima was also dominant in some areas at 35-40 m distance from shore. In the present study, it was observed in relatively unexposed portions of the transect. Trono (1997) noted that A. fragilissima, is a species common in shallow protected areas on reef flats and in tide pools. In transect 2, the same species were dominant such as Neomeris vanbosseae, Sargassum, and Halimeda macroloba. A. fragilissima was found only at deeper end of transect 2. The area can be characterized as silty as evidenced by poor visibility in some portions of the transect (Figure 8). Percent cover ranged from 0 to 75% in transect 1 and from 0 to 61.13% in transect 2. High percentage cover only appeared where Sargassum spp. abound. Sargassum is a large brown seaweed which are found growing attached to coralline rocks in wave- exposed, low to shallow subtidal zones (Trono, 1997). They have well-developed holdfast used for attaching to coralline rocks and hence, their distribution is limited by the presence of suitable substrates.

Associated Fishes

The associated and dominant fishes in the seaweed bed observed in Transect 1 are the Twinspot damsel juvenile Pomacentrus geminospilus, Three spot damsel Pomacentrus tripunctatus, Bengal sergeant Abudefduf bengalensis, striped surgeonfish Acanthurus lineatus (Acanthuridae) and the Green back wrasse Halichoeres nigrescens. Some portions of Transect 2 was also silty particularly the deeper portion. Associated fishes in transect 2 were the Twin spot damsel Pomacentrus geminospilus (Pomacentridae) juvenile, and an unidentified damsel Pomacentrus sp.

Discussion

In the present survey, only 9 species of seaweeds were identified in San Isidro, one of the coastal barangays of Narra, Palawan. In contrast, a total of 23 species of seaweeds were recorded by PCSD (2002) during their survey in the whole of Narra. However, the survey sites of PCSD include island sites (Cudel, Banking/Temple, Linda, George, Rasa, Arena, and Taru) as well as mainland representative sites (Caguisan, Gitana, Burirao, Aramaywan, Tacras, and Linamen). These survey areas, except in Caguisan, were far from the impact site in San Isidro, Narra. Hence, those stations were not included in the present survey.

Heavy siltation were also observed in some areas of Narra by the PCSD (PCSD, 2002) and they have attributed it to the rampant conversion of mangroves areas into fishpond, continuous cutting of trees in the forest, agricultural activities and illegal fishing especially the use of trawl within the municipal water limits. Heavily silted sites were often encountered in areas connected to mainland representatives and degraded mangrove forest.

PCSD (2002) identified five species of brown algae (Pheophyta), 12 green (Chlorophyta), and 6 red algae (Rhodophyta) in the whole of Narra. In their 2002 survey, Sargassum was the most widely occurring seaweed species appearing in 11 of 12 sites, followed by Padina appearing in 10 sites. Other species such as Laurencia sp.,

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Hydroclathrus clathratus, Eucheuma sp., Hypnea sp., Amphiroa sp., Caulerpa micorphysa and C. brachypus were noted only once or twice for every site.

In Caguisan, which was adjacent to San Isidro, only Halimeda macroloba was reported (PCSD, 2002). In the present survey in San Isidro, 9 species were identified including H. macroloba.

In an earlier survey, percent cover ratings of seaweed species in 12 sites showed poor condition ratings ranging from 0.1 to 10.07% (PCSD, 2002). Highest computed species diversity index of 1.86 was recorded in Aramaywan and Burirao, both mainland stations and the lowest species diversity rating computed at 0 was registered in Caguisan and Linda Island, implying the presence therein of only one species. Moreover, a much earlier survey revealed no seaweed was found in Caguisan in 1997 (PCSD, 2002). The PCSD reported a percentage cover of only 0.1% in Caguisan in 2002 (PCSD, 2002).

Results of assessment in 195 sites in the entire Palawan where seaweeds were present indicate that only one site (Tagusao in Quezon municipality) or 0.51% was classified as excellent in terms of percent cover. Also 5 sites or 2.57% were classified as good and 14 sites (7.18%) were classified as fair. The remaining 175 sites or 89.14% were classified as poor in cover. A total of 69 species were recorded by PCSD (2005) in 19 municipalities. The highest number of species encountered in one site was 29 at Binolican in Taytay and Siabtabon in Araceli. Two species Halimeda macroloba and H. opuntia were notably present in all of the survey sites. As mentioned previously, Caguisan in Narra was reported to have a low diversity with only one seaweed species encountered. Likewise, all the 12 survey sites in Narra as surveyed by PCSD in 2002 were reported to be in poor condition (PCSD, 2005). In summary, the results of the survey suggest that it was the substrate type and availability of substrates which were the most important factors influencing the presence of seaweeds in the area. Trono and Saraya (1987) also noted higher diversity and corresponding frequency of seaweeds on rocky substrates flowed by sandy-rocky substrates, and lowest on sandy-muddy substrates.

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8 4 1 7 5 3 Jetty Seaweed Area 6 2 Coral Area

Sand and Silt Area

Plate 5-24. Sea Bottom Map showing location of seaweed, seagrass, corals and silt/sand areas in relation to existing and proposed pier facilities.

Site Description Coordinates Elevation (masl) 1 Proposed Jetty 9°10'40.05"N, 118°16'58.74"E 0 2 Seaweed w/ Rocky Bottom 9°10'20.00"N, 118°15'51.72"E 0 3 Seaweed w/ Rocky Bottom 9°10'21.39"N, 118°15'51.97"E 0 4 PGMC Jetty 9°10'43.39"N, 118°17'4.93"E 4 5 Coral Area (S1C1) 9°10'39.93"N, 118°16'57.03"E 0 6 Narra Nickle Jetty 9°10'10.03"N, 118°15'27.39"E 4 7 Coral Area (S1C2) 9°10'48.36"N, 118°17'29.61"E 0 8 Coral Area (CAG1) 9°11'40.31"N, 118°21'52.47"E 0

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5.13.3 Seagrass

Seagrass are flowering plants adapted to living submerged in seawater. These plants sprout from a creeping rhizome, a process not unlike those of many terrestrial grass species. They are seed-producing marine plants that normally thrive in shallow, nearshore, temperate and tropical waters. They are able to reproduce by vegetative spreading and by the annual production and dispersal of seeds. Seagrass rely completely on water for pollen dispersal and have evolved strategies to adjust to the difficulties inherent to this situation.

There are only about 50 species of seagrass in the world. East Asia (where the Philippines belong), with about 20 species of seagrass, has the highest diversity of seagrass flora in the world (Menez et al. 1983; Fortes, 1990). In the Philippines, a total of 13 species has been identified, representing 27% of the total reported species. Although the number of seagrass species is small, they form dense carpets of as many as 4,000 plants per square meter over extensive areas of the sea bottom (Nybakken, 2001). They are one of the most conspicuous and productive communities found in shallow waters. Seagrass beds serve a number of ecological importance. They provide shelter and food for its many associated organisms. It is a major source of primary productivity in the shallow waters around the world and is an important source of food for many organisms, humans included. It stabilizes the soft sea bottom primarily through their dense, matted root system. This stabilization is extremely durable, being able to withstand severe storms. Seagrass beds serve as nursery ground for many species that spend their adult lives in other areas in the sea (e.g., shrimp, crabs, etc.). They act as sediment traps, thus protecting the outlying coral beds. Seagrass leaves also serve as a protective canopy, shielding the inhabitants of the bed from the adverse effects of strong sunlight. Where the beds become intertidal, the leaves cover the bottom substrate at low tide, protecting the inhabitants from desiccation.

5.13.3.1 Methodology

A manta tow survey was undertaken to get a general idea of the various types and amounts of habitat types in the coastline beginning from Caguisan to San Isidro, Narra as described by Uychiaoco et al. (2001). The manta tow was done primarily to help in the selection of sites and numbers of samples for closer observation.

The method used in seagrass survey is similar to that used in the seaweed survey above. The transect-quadrat method is usually used to assess the community structure of seagrass meadows along transects run perpendicular to the shore (Saito and Atobe, 1970; English et al. 1997). The species composition, frequency of occurrence, and percentage cover were measured using quadrats placed at regular intervals along the length of the transect.

5.13.3.2`Results San Isidro, Narra

From the manta tow survey, no seagrass species was identified in San Isidro, Narra, Palawan. Even in the closer observation of seaweeds in Teresa and Balitiin, San Isidro, Narra, no seagrass was observed amongst the seaweeds.

In contrast, a PCSD survey showed 10 species of seagrass from entire Narra, Palawan (PCSD, 2002). There were 13 stations surveyed in 2002 including offshore

Toronto Nickel Mining Project Chapter V-125 islands (Cudel, Banking/Temple, Linda, George, Rasa, Arena, and Taru) and mainland stations (Caguisan, Gitana, Burirao, Aramaywan, Tacras, and Linamen). As per record, Cymodocea rotundata was the most recorded species being noted in all of the survey sites followed by Enhalus acoroides. Least occurring species were Halophila minor, H. becari and Cymodocea serrulata.

It was also concluded that overall, out of the 12 sites surveyed, only one is in good condition, 8 are in fair condition, and the remaining 3 in poor condition (PCSD, 2002). Cudel Island gained the highest rating at 68.55% cover of seagrass and is represented by 6 species. Banking/Temple Island ranked second at 48.66% which was classified as fair condition, represented by 8 species. Lowest percent cover was noted in Arena, Tacras, and Aramaywan at 24.71%, 19.92, and 15.10%, respectively.

In terms of density, Cudel also had the highest rating with H. ovalis at 30.52% of total density of all species recorded in the area (PCSD, 2002). Least dense site was Arena.

In terms of species diversity, the computed Shannon Diversity Index showed that Tacras registering the highest at H’ = 1.74 represented by 8 species, followed by George Island at H’ = 1.67. Caguisan, adjacent to San Isidro, showed 0 rating for it was only represented by Cymodocea rotundata. An earlier survey in 1997 also showed poor condition of Caguisan with 21.73% cover. In 2002, percent cover was 41.23% in Caguisan, considered fair condition but with poor species diversity.

It should be noted that the present study surveyed only the impact site beginning from Caguisan to San Isidro, Narra. Other areas that yielded seagrasses in the PCSD survey were not included. Moreover, in the 2002 survey of PCSD, their seagrass species composition per site in Narra, Palawan, showed that in Caguisan which was adjacent to San Isidro, only Cymodocea rotundata was observed.

Results of the analysis of percent cover using quadrat sampling showed that out of the 216 sites by the PCSD in the entire Palawan (PCSD, 2005), only 6 sites or 2.78% were in excellent condition (76-100% cover), 45 sites or 20.83% were in good condition (51- 75% cover), and 75 sites or 34.72% in fair condition (26-50% cover). The remaining 90 sites or 41.67% are classified as poor condition (0-25% cover). Notwithstanding the general poor condition of the seagrass beds, dugongs are still believed to graze thereon as evidenced by the presence of their feeding trenches in certain sites (PCSD, 2005).

5.13.3.3 Discussion

Seagrass meadows are one of the marine resources of Palawan that is vital to the preservation of the dugong (Dugong dugon), already an endangered species as listed in the IUCN and CITES. Hence, the protection of this important resource is paramount not only to maintain biodiversity but also to sustain fishery production.

The PCSD concluded that based on their survey, the seagrass beds of Narra are currently under stress due to human activities. Encroachment into municipal waters by fishing vessels operating trawl and the use of destructive fishing methods are evidently being practiced in the area resulting to continuous destruction of the seagrass beds as well as the coral reefs of the municipality. Thus, disturbance to seagrass beds whether natural or man-induced should be given enough attention to avoid further destruction in the future.

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5.14 Cultural, Economic and Political Environment

5.14.1 The Social Environment

Social Impact assessment

An essential component of environmental examination covers the study of the social environment of the proposed project to determine its impacts on the social, cultural, religious, political, economic and health aspects of the people and the host community that stands to be affected.

The scope and magnitude of the project may initially cause concern on the probable effects that it might cause. The project’s total area of 80 hectares in the municipality of Narra in Palawan, the presence of indigenous peoples and/or indigenous cultural communities, the construction of a wharf or loading facility, the mining camp sites and the various mining activities are perceived to cause significant changes or impacts on the human environment.

The study of the social impacts will try to establish both positive and negative effects, and recommend mitigating measures to minimize if not prevent the negative impacts and enhance the positive consequences. To ensure effective compliance throughout the life of the project, appropriate monitoring schemes have to be put up in accordance with applicable laws and regulations.

General Methodology

Social impact assessment is basically a prediction of the probable social impacts of a proposed project upon the various stakeholders that may be directly or indirectly affected. Baseline conditions have to be established and the past and present social conditions studied and fully understood. Comparison of the two situations provides an understanding of the existing conditions without the project yet. The study will attempt to forecast what will happen during start-up and full operation. Two scenarios – one without the project and the other with the project – are studied and compared.

The EIS preparer team sourced data and information from the field and from secondary knowledge and information maintained by the municipality, as well as from previous works/studies.

The public consultations conducted in 2007, attended by residents, local officials and representatives of NGOs and indigenous communities and other stakeholders informed the concerned parties about the project. The public freely expressed comments, reactions and identified issues and concerns about the proposed project. The open deliberations resulted in favorable endorsements by the participants.

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Ocular and field investigations were likewise undertaken in 2007 in the project sites to gather firsthand information on the bio-physical as well as socio-biological environments.

5.14.1.1 Baseline Characterization of the Impact Areas

The information contained in this section is lifted from the 2008 Community Based Management System (CBMS) survey of Palawan and the 2009 Socio-Economic Profile of Narra.

In CBMS, data is collected at household level to produce databanks at the barangay, municipal and provincial levels. The aggregation of all CBMS information leads to a repository of data at national level. CBMS provides vital information needed for the preparation of socio-economic profiles, annual investment plans, land-use plans and project proposals. In Palawan, it has been used as basis for the preparation of Human Development Report, resource profiling of environment project sites and Comprehensive Land Use Plan.

CBMS adopts the Core Local Poverty Indicators that include the following:

Area of Concern Indicators

A. Survival

Health 1. Proportion of infant deaths 2. Proportion of child deaths (0-5 years old) Nutrition 3. Proportion of households with malnourished children 4. Proportion of households with access to safe water supply Water, Sanitation and Electricity 5. Proportion of households with access to sanitary toilet facility 6. Proportion of households with access to electricity B. Security

Shelter 7. Proportion of households who are formal settlers 8. Proportion of households not living in makeshift housing Security 9. Households with members who were victims of crime

C. Enabling

Education and Literacy 10. Elementary school participation rate 11. Secondary school participation rate 12. Proportion of children aged 6-16 years old attending school 13. Literacy rate Income 14. Proportion of households with income greater than the poverty threshold 15. Proportion of households with income greater than the food threshold Employment 16. Employment rate 17. Underemployment rate

The generation of CBMS data, which feeds into the SEP, involves validation and community consultation sessions. CBMS processed data is presented to the community for validation. This renders the conduct of a new survey for the EIS report unnecessary.

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COMMUNITY PROFILE

Municipality of Narra Brief History

The town of Narra came into existence because of its wide plains, which provided the site of government’s program for rice and corn as early as 1947. This wide track of lands was converted into Central Palawan Settlement Project by virtue of presidential proclamation issued by then President Elpidio Quirino. A sitio of Barangay Panacan was made the administrative site of the Project, which was later named NARRA. The influx of settlers caused a boom in agricultural activities and earned for sitio Narra the title of Rice Granary of Palawan.

Because of this, then Speaker Ramon Mitra, Jr., the Congressman of the lone district of Palawan sponsored a bill creating the municipality of Narra. The town of Narra was created under Republic Act No. 5642 on June 20, 1970 and was inaugurated with Hon. Ricardo Baldevieso as its first municipal mayor.

There are 22 barangays compromising the municipality. Of these barangays, San Isidro is the largest covering 16.27% of the town’s total area; followed by Malinao, 9.63%; Caguisan, 9.07% and the smallest being Panacan, 0.63%. There are 15 sitios and 107 puroks in the municipality. San Isidro is comprised of 7 Puroks while Teresa, a coastal barangay, is comprised of 3 Puroks

Physical Characteristics

Geographical Location

Narra is located in the middle of Southern Palawan. It is 96 kilometers from Puerto Princesa City in the north, 101 kilometers from Brooke’s Point in the south and 64 kilometers from Quezon in the west. Geographically, Narra is located at 9º05’ to 9º45’ north latitudes and 118º05’ to 118º30’ east longitudes It is bounded in the North by the Municipality of Aborlan, in the East by the Sulu Sea, Municipality of Espanola in the south and in the west Municipality of Quezon.

The eastern part of Narra is a broad coastal plain. It is gently sloping and is devoted to coconut plantations, settlements and open areas. This part of the town comprises roughly 7% of the total land area of Narra. Part of its wide plains is agricultural land with an area of 30,596 hectares or 37% of the total land area. The plain moderately slopes from 4% to 18%, with the steep mountainous areas found at the western portion with slopes ranging from 19% to 50%. This is the forestland of the municipality covering 45,436 hectares or 56% of the town’s total land area of 82,270 hectares.

The agricultural land with a total area of 30,596 hectares consists of 16,856 hectares of A & D and 13,740 hectares of proposed A & D. Some 4,861 hectares are built-up areas while 1,377.00 hectares are open lands that currently occupied by informal settlers.

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Plate 5-26. Geographical Location

PROJECT SITE

a. Topography

The total land area of Narra is 82,270 hectares. It is equivalent to 3.18% of the total land area of the province. The eastern part of Nara is a coastal plain which is about 6,199 hectares or 7% of the total land area of Narra. The agricultural land of the municipality covers 30,596 hectares or 37% of its total land area. The western part is steeply mountainous. This is the forest land covering 45,436 hectares equivalent to 56% of the total land areas.

San Isidro has a total land area of 13,583.34 has. This is about 16.31% of the total municipal area. The total land area of Teresa on the other hand is about 961.83 has. Or 1.16% of the total municipal area.

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Plate 5-27. Municipality of Narra

PROJECT SITE

b. Climate

Narra has a favorable climate for agriculture because of its almost all year-round wet season in contrast to the expected general climate, which is Type III. It has a long rainy season starting on the month of May and continues up to the month of February. The dry season is shorter and covers the months of March to April. This is indicated by the rainfall data in Aborlan, the municipality immediately adjacent to the the northern side. For a 17- year period, the average annual rainfall in Aborlan is 1,467.17mm (Management Plan of Pulot Catchment, Sofronio Española, Palawan) with the wet months starting from May up to December ranging from 101.00 to 208.29 mm. This would be indicative of the rate of precipitation, more or less, in Narra. Temperatures vary depending upon the terrain and vegetation. Typhoons are seldom as it is not within the typhoon belt. However, whenever typhoons occur in the Visayas and cut across through the province of Batangas towards the China Sea, heavy rains occur sometimes resulting in flash floods.

b. Typhoon

Since Narra is not within the typhoon belt, typhoon seldom occurs in Narra. Heavy rains only happen when typhoon passes through Batangas or occurs in the Visayas. However, such heavy rains most often result to flash floods. Flooding usually occurs in Poblacion and Panacan.

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Demography

Most of the Toronto Nickel Mining Project is within Barangay San Isidro. Teresa is the nearest populated barangay but outside the primary impact zone of the project. For this report, information about the two barangays has been lifted from the 2008 CBMS and from the 2009 Socio-Economic Profile of Narra.

The 2008 CBMS surveyed 427 households (HHs) in Barangay San Isidro, while 319 HHs were covered in Barangay Teresa. Table 1 shows population distribution and density from the 2009 SEP, and the households surveyed for the 2008 CBMS. The average HH size in both barangays is 5. The surveyed households in the two barangays represent some 3,328 people. Population density is very low in San Isidro, which has the biggest land area in the province at 135.38 sq. kms., as compared to Teresa with a total land area of only 8.62 sq. kms.

Table A-1. Population and Surveyed Households (HHs) Population No. of Total Total Density Households Barangay Households Population 2009 SEP Surveyed 2009 SEP 2009 SEP (person/sq.km) 2008 CBMS

San Isidro 592 2,798 16.45 427

Teresa 365 1,483 172.06 319

The 2008 CBMS data shows that in San Isidro, the children and youth population (0-16 yrs. old) constitute 30% of the surveyed population, while it is about 26% in Teresa. The highest proportion of population in San Isidro belongs to the of 6-12 age group, followed by 0-5 age group. This is the reverse in Teresa with the 0-5 age group slightly higher than the 6-12 year old group. Some 57% of the surveyed population in San Isidro belongs to the productive age group (15-64 yrs. old) while it is about 61% in Teresa.

CBMS also indicates that the dependency ratio in San Isidro is 46%. This implies for every 100 persons aged 15-64 yrs. old, there are about 46 dependents that belong to the 0- 14 age group and the 65 years and above. The dependency ratio in Teresa is 61%.

Table A-2. Age distribution of population 2008, Total Labor Force in 2009 Total Labor Force 15 yrs and San Isidro Teresa Age group above 2009 SEP 2008 CBMS 2008 CBMS San Isidro Teresa

0 – 5 241 177

6 – 12 246 173

13 – 16 171 121

5 – 14 252 280

15 – 64 1103 845 1,171 1,299

65 yrs old and above 9 56

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Both barangays are also home to indigenous community known as Palaw’an. The Tagbanuas, Cagayanens and the Agutaynen belong to this indigenous community and some of them can be found in the two barangays.

Table A-3. Distribution of Indigenous Peoples in Toronto Mines Impact Areas Number of Number of Number of Barangay persons who are persons who are persons who are Cagayanen Tagbanua Agutaynin

San Isidro 200 10 0

Teresa 150 0 15

*FPIC Census, 2003

III. HEALTH AND NUTRITION a. Health Facilities

There are 9 health stations in the municipality. Each health station covers 2-3 barangays. The Barangay Health Station located in Calategas provides health services to San Isidro. While the Health Station in Princess Urduja serves Teresa. A rural health midwife mans the health station. Both facilities provide health education, immunization, nutrition and family planning.

Narra also has a 15 bed capacity municipal hospital located in Antipuluan. Hospital personnel consist of two medical health officers, 4 public health nurses and 1 dentist. San Isidro and Teresa can access the following services from the hospital: Emergency Services; Health Education; Immunization; Nutrition; Pediatrics; Care units; Urinalysis; Blood Typing and; Family Planning. There are also 4 private medical clinics and 2 private dental clinics in the municipality which can provide general medical/dental services to the residents of Narra. b. Prevalence of Malnutrition

Of the 375 households with children 0-5 years old, 110 households reported that they have malnourished children. This incidence is high in Teresa at 24%, but relatively low at 7% in San Isidro.

Table A-4. Prevalence of Malnutrition, 2008 Number of Number of HHs Total Number of Households with Barangay Households children 0-5 with 0-5 year malnourished 0- Surveyed years old olds 5 year olds

San Isidro 427 214 241 32

Teresa 319 161 177 78

Toronto Nickel Mining Project Chapter V-133 c. Mortality and Morbidity

The Municipal Health Office (MHO) reported that leading causes of morbidity in Narra are parasitism, diarrhea, heart disease, influenza, malaria, skin diseases, pulmonary TB, conjunctivitis and pneumonia.

The leading causes of mortality, on the other hand, are heart disease, pneumonia and old age. Some causes of deaths are undetermined. Pulmonary tuberculosis, accidents, hypoglycemia, malaria, hepatitis, renal failure, pre-maturity, diarrhea disorder and alcoholic encelopathy have caused the death of few people in the municipality.

San Isidro is serviced by the Rural Health Unit in Calategas. The Rural Health Midwife, in her 2009 report, stated that the top five leading causes of morbidity in its service area are acute respiratory infection, influenza, hypertension, intestinal parasitism and diarrhea. The leading causes of mortality are heart disease, pneumonia and old age. There is no health data specific for San Isidro. The same is true for Teresa, which is serviced by the rural health unit in Princesa Urduja.

IV. WATER, SANITATION, AND ELECTRICITY a. Access to safe drinking water

The results of CBMS Survey of 2008 reveal that the number of household with access to safe drinking water (whether own use or shared) in the two barangays is 99%, or 737 of the 746 surveyed households. It is 98% in San Isidro (418 of 427 HHs surveyed) and a 100% in Teresa (319 out of 319 HHs surveyed).

Sources of water in San Isidro and Teresa are the community water system, deep-well, artesian well and dug well, which are all considered as safe sources of water supply. Though 98% of the surveyed households in San Isidro have access to safe drinking water, not all households have their own source of water supply. This also holds true in Teresa. b. Access to sanitary toilet facility

Considered sanitary toilet facilities are water sealed toilets and closed pit toilets. In San Isidro, 78% have access to sanitary facility. In Teresa, all of the 319 HHs surveyed indicate that they have access to sanitary toilet facilities. Some of the households in both barangays share toilet facilities with other households.

Table A-5. Number of household with access to sanitary toilet facility, 2008 No HH with No HH with water sealed No HH with No HH with No HH with water sealed Barangay flush own closed pit open pit no toilet Others flush shared use toilet toilet facility toilet facility facility toilet facility facility

San Isidro 161 71 103 16 44 6

Teresa 231 27 63 0 0 0

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c. Access to electricity and other infrastructure projects

Among the households surveyed in San Isidro, about 57% have access to electricity. In Teresa, the proportion of households with access to electricity is also 57%. Electricity is available 24 hours a day in San Isidro, but only for 9 hours a day in Teresa. Many of the households still depend on kerosene as fuel for lighting.

Plate 3-4 shows the location of the infrastructure utilities in the barangay. The Comprehensive Land Use Plan indicates the need to rehabilitate barangay roads and bridges. There are several telecommunication systems operating in the municipality namely Bayantel, Globe and Smart.

V. SHELTER a. Tenure Status

Looking at the tenure status of households in the barangays, majority of them are formal settlers. Formal settlers are those households occupying own house and lot, renting them from the owners, or occupying rent-free house and/or lots with consent of the owners.

Table A-6. Number and proportion of households who are formal settlers, 2008

Household Number of HH who are Percentage of households Barangay Surveyed formal Settlers who are formal settlers

San Isidro 427 386 90%

Teresa 319 285 89%

b. Makeshift Housing

In San Isidro, in spite of being formal settlers, some 91% (389 HHs) live in makeshift housing. The CBMS data indicate that none of the households surveyed in Teresa live in makeshift housing.

VI. EDUCATION AND LITERACY a. School Facilities

Both San Isidro and Teresa have a day-care center and an elementary school facility. Public secondary school facilities can be found in Princess Urduja, a neighboring barangay of San Isidro and Teresa. A public tertiary school is located in Narra Poblacion. b. Rate of School Participation

The 2008 CBMS data indicate a significant increase in school participation rate in both barangays. San Isidro’s school participation rate is at 60%, while Teresa has a high 95%. This is a far cry from the 10% and 41% respectively for the two barangays in 2002.

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Elementary school participation rate for both barangays is high, with San Isidro exhibiting more than a hundred percent indicating that other students come from outside the barangay. Secondary school participation rate in both barangays is lower than the elementary school participation. San Isidro exhibit 77% secondary participation rate while Teresa has 97%. There is no updated data on tertiary school participation rate.

Table A-7. School participation rate of children ages 3-5 years old, 2008

Children aged 3-5 Children aged 3-5 years Participation Barangay years old old in day care center Rate

San Isidro 175 105 60

Teresa 94 89 95

Table A-8. Elementary school participation rate, 2008 Children aged 6-12 Children aged 6-12 Participation Barangay years old in years old elementary school Rate

San Isidro 246 281 114

Teresa 173 173 100

Table A-9. Secondary School Participation Rate, 2008 Children aged 13-16 Children aged Participation Barangay years old in 13-16 years old Rate elementary school

San Isidro 171 132 77

Teresa 121 117 97

In 2004, Narra reported that the elementary school student teacher ratio is below the standard. The student and teacher ratio is 1:43 which is far from the ideal 1:30. The student and classroom ratio is 1:45. With the increase in participation rate and the increase in student population, but with limited public investments in educational infrastructure, it is expected that the same situation exists. Secondary schools in the municipality are expected to be in the same predicament. More teachers and classrooms are needed to ensure the quality of education of its students.

The literacy rate for both barangays is high. Among the households surveyed in San Isidro, has 98.09% while Teresa has 95.88% literacy rate. But literacy rate of females in San Isidro is a bit lower than the males. This indicates that female members of the family have a higher tendency to drop out of school as they are expected to stay at home, take care of siblings and attend to daily household chores.

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Table A-11. Number of literate persons and literacy rate, 2004 Number of literate Persons aged 10 Barangay members 10 years old Literacy rate years old and above above

San Isidro 1281 1183 92

Teresa 766 766 100

VII. PEACE AND ORDER

There are no reported victims of criminality both in San Isidro and Teresa, indicating that the situation in both barangays is relatively peaceful.

VIII. INCOME, LIVELIHOOD, AND EMPLOYMENT a. Poverty Incidence

Out of the 427 households surveyed in San Isidro, 11 (2.6%) are below the poverty threshold. A different situation is in Teresa where about 178 of the 319 HHs (56%) are poor. The figure from Teresa indicates that more than half of the population does not earn much to meet their basic and non-food basic needs. However, the data from Teresa is an improvement over the 2004 information where more than 59.16% of the population were poor. b. Labor and Employment

The employment rate of barangay San Isidro is at only at 61.57%. In Teresa, the employment rate is higher at 69.82%.

Underemployment rate or the proportion of employed persons still seeking additional time for work is very low at 14.06% in San Isidro but much lower in Teresa which is about 6.73%.

Table A-13. Employment and underemployment, 2008 Number of Population 15 working Labor force Employment Barangay years old and population 15 Population Rate above years old and above

San Isidro 1103 1171 721 61.57

Teresa 845 1299 907 69.82

The main source of income in both barangays comes from agriculture which is comprised of farming, fishing, livestock and poultry raising. It is apparent that farming is the main livelihood of the people in both barangays. Rice, which is grown as a monocrop, is

Toronto Nickel Mining Project Chapter V-137 considered as the most dominant agricultural crop. Few households are engaged in business and trade.

Based on the municipal development plan, there is a need to provide support services to both farmers and fisherfolks in the area. Farmers should be introduced to different agricultural technology including the establishment of post harvest facilities to increase production. There is also a need to link them up with financing institutions and marketing network.

Aside from agriculture, a significant number of San Isidro residents are into mining and quarrying activities, primarily as workers in small and large-scale mining operations in Narra. Several companies are currently engaged in mining nickel ore and other metals providing employment to communities in the barangays.

Table A-14. Number of persons engaged in different income and livelihood activities

San Isidro Teresa Income and livelihood activities Total no of Total no of No. HH No. HH members members engaged engaged engaged engaged Agriculture 150 190

Fishing activity 6 78

Wholesale and retail activities 11 11

Manufacturing activities 2 4

Commercial, social and personal 22 26 activities Transport, storage, commercial 2 6 services Mining and quarrying 237 7

Construction activities 11 29

Electricity/Gas/Water Sector 0 2

Real state business 0 4

Hotel and restaurant 0 1

Financial intermediation 3 1

Public administration and defense 1 12

Education 6 4 Private households with 3 32 employees Extra-territorial 0 10 organizations/bodies Health and social work 2 2 Other community/social/personal 5 3 activities

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Ownership of amenities can be associated with income. Households who have higher income are inclined to buy household amenities. Household consider them as fallback in times of crisis.

In San Isidro, the proportion of households who own a dining set is 66.72%. This is followed by those households who own a sala set at 46.44%, while 27.21% have a radio/stereo. Other households own amenities like car/jeep/ motorcycle, television set, VHS/VCD player, refrigerator/freezer, electric fan, electric iron, gas stove, washing machine and microwave oven..

In Teresa, majority of the household which is about 76.71% owns a radio/stereo. This is followed by households who own sala set (37%), electric fan (17.98%), television set and refrigerator/freezer (15.87%), VHS/VCD player and car/jeep/motorcycle (14.81%). Only 13.22% of the households own washing machines. A small proportion of households own gas stove/gas range, microwave oven and cellular phone.

Table A-15. Number of household owning household amenities, 2002

No. of HH San Amenities No. of HH Teresa Isidro Telephone/Cellular Phone 2 3

Sala Set 157 70

Dining Set 224 20

Car jeep motorcycle 18 28

Radio/Stereo 92 145

Television Set 14 30

VHS/VCD Player 14 28

Refrigerator/Freezer 14 30

Electric Fan 21 34

Electric Iron 12 23

Gas Stove/Gas Range 13 23

Washing Machine 8 25

Microwave 2 5

In both barangays, radio/stereo belongs to the top three household amenities. This is attributed to the available FM radio station in Narra. On the other hand, ownership of gas stove/gas range is at the bottom three of the amenities in both barangays. This is so as majority of the households use wood and charcoal for cooking. In addition, the available amenities are dependent on the households’ access to electricity. Since access to electricity is higher in Teresa than in San Isidro, more households own electric-powered appliances such as refrigerators, television sets etc.

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IX. WASTE MANAGEMENT

There are no sanitary disposal facilities in both barangays. Of the HHs surveyed, almost 99% burn their garbage and trash in San Isidro, while 95% do the same in Teresa. Some 107 households practice composting in Teresa while only 10 HHs do this in San Isidro.There are 137 closed pits in Teresa, but none in San Isidro. Some 92 HHs in Teresa are into recycling.

X. PARTICIPATION AND COMMUNITY DEVELOPMENT

Participation rate of members in community organizations in both barangays is low. The number of persons in community organization is small at 4.69% in San Isidro and 8.4% in Teresa.

Table A-16. Participation Rate of Households on Community Development

Number of persons % of persons in Number of HH with % of HH with Barangay in community community members in members in organizations organizations community org community org

San Isidro 28 4.69 28 23.93

Teresa 88 8.4 64 33.51

XI. DEVELOPMENT INTERVENTIONS

There are 16 development interventions in San Isidro and about 14 in Teresa.. These development interventions are mostly integrated projects on livelihood and enrichment. These include Ecological Security, Cooperative Development, Food Security Program, Training, Technical Assistance, Backyard Goat Raising, Basic Leadership Development Course, Community -LGU Reforestation Project, Nursery Seedlings, Fruit and Vegetable Production, Riverbank Protection

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ASSESSMENT OF PRIORITY NEEDS AND POSIBLE INTERVENTIONS

Based on the results of the survey, the major areas of concern to be addressed in the identified host and neighboring communities are nutrition, access to water and sanitation, access to electricity and other infrastructure, housing, school participation, income and employment.

Table C-1. Summary of Indicators, Narra

Area of Concern San Isidro Teresa

A. Survival

Health 1. Proportion of infant deaths

2. Proportion of child deaths (0-5 years old) 0.0 0.00

3. Proportion of households with Nutrition 7.50 24.45 malnourished children

Water, Sanitation and 4. Proportion of households with access to 98.00 100 Electricity safe water supply

5. Proportion of households with no access 14 0 to sanitary toilet facility

6. Proportion of households with access to 57 57 electricity

B. Security

7. Proportion of households who are formal Shelter 90 89 settlers

8. Proportion of households living in 91 0 makeshift housing

9. Households with members who were Security 0.0 0.0 victims of crime

C. Enabling

Education and Literacy 10. Elementary school participation rate 100 100

11. Secondary school participation rate 77 97

12. Proportion of children aged 6-16 years 100 100 old attending school

13. Literacy rate 92 100

14. Proportion of households with income Income 2.6 56 below the poverty threshold

15. Proportion of households with income 97.4 44 greater than the food threshold

Employment 16. Employment rate 61.57 69.82

17. Underemployment rate

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Water Supply, Sanitation and Health Facility

The proportion of households with unsanitary toilet facilities or no sanitary facilities at all is present in San Isidro. Water and sanitation are interrelated and needed to be addressed altogether since it affects health outcomes. Safe drinking water and basic sanitation help prevent water-related diseases. It also reduces maternal and infant mortality rates. Though there are no reported maternal and infant mortality rates in these barangays, some causes of mortality and morbidity in the municipality are caused by water-born diseases (i.e. diarrhea, malaria, etc.). If households have problems of sanitation and water supply, it is not surprising if public places such as markets and public schools do not have access to such facilities. Further, the current practices on waste disposal of households are another aspect of the sanitation problem that can aggravate health problems. Sanitation involves the adequate management and disposal of different types of wastes with a view to minimizing harmful effects to human health and the environment. It is also important to emphasize that some puroks in Teresa are coastal areas. Indeed, it is important to address the issue for it will cause health problems in the future which could not only decrease productivity but could also pose environmental hazards.

Health facilities available also affect health outcomes. Health facilities are physically accessible in San Isidro and Teresa, although served by health station units in neighboring barangays. Though physically accessible, the quality of services may not be at par with that of the urban health unit. There is a prevalence of malnutrition despite the feeding program being provided by the health facility. In the case of San Isidro and Narra, access might be a problem in certain times of the year due to poor conditions of the roads. Development cannot be achieved or sustained when a high proportion of the population is affected by poor health and inadequate access to health care facilities. To address these problems, possible interventions are:

▪ Strengthening primary health care systems related to the provision of clean water and adequate sanitation in households and public institutions. ▪ Improving household’s access to adequate quantities of safe drinking water and proper sanitation facilities. ▪ Protecting vulnerable groups specifically women and the indigenous groups in Teresa and Pulot Interior.

Access to electricity and other infrastructures

Electrification and poor road conditions are also major concerns in the barangay. Electrification provided by power utilities can only be accessed by those who are living nearby or in town centers. Power lines have yet to reach these barangays. Electrification is critical for broadening access to communication while serviceable roads increase agricultural productivity. Keeping in mind that majority of the households in these barangays derived their income from farming, investments on such facilities is vital.

High costs of developing water resources, telecommunication facilities, power utilities and farm to market roads affects access of communities to these infrastructure services. It might be the underlying reason why very few of the households are connected to community water system or electricity. Providing reliable and affordable access to rural infrastructure services dramatically increases rural people’s access to markets and social

Toronto Nickel Mining Project Chapter V-142 service. It is essential for rural growth and poverty reduction. The following actions are then recommended interventions

▪ Providing initial investment costs in developing infrastructure utilities. ▪ Developing subsidy arrangements for service provision to make them more affordable.

School Participation Rate

There is a need to improve participation of children aged 3-5 years old in day-care, especially those belonging to indigenous groups. Secondary school participation in San Isidro is relatively low.

Quality of education is also a pressing problem. The insufficient number of teachers and classrooms may deter parents from sending their children to school. To improve participation of school possible interventions are:

▪ Extend schooling to communities in very remote and inaccessible areas. ▪ Promote distance learning ▪ Invest in school facilities and hiring of school teachers. ▪ Train local teachers.

Income

High poverty incidence in Teresa is a major area of concern that needs to be addressed. Poverty incidence is highest in Teresa at 56% and lowest in San Isidro at 2.6%. It is an indication that almost half of the households surveyed in Teresa do not meet the minimum requirement for them to sustain their food and non-food basic needs. Although employment rate and unemployment rate seems to be ideal, it also implies that people are satisfied with their work since there are no other opportunities in the communities or opportunities are present but they do not have skills to be gainfully employed.

Agriculture, specifically farming, is the main source of livelihood in the two barangays. But households do not benefit much from farming due to the low access to or lack of modern agricultural equipment and technology specifically. Though, no data available on access to technology or modern agricultural equipment in San Isidro and Teresa is available, it can be assumed that the problem of access exists. Most of the households in both barangays derive their income from farming, livestock and poultry raising. And the income is insufficient as indicated by the high poverty incidence in Teresa. Addressing problems on agriculture consequently address issues on poverty. Possible interventions are:

▪ Increasing agricultural productivity through information and technology ▪ Further developing the existing livelihood activities (fishing, livestock and poultry raising) ▪ Developing rural microfinance

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Plate 5-28. Location of Basic Infrastructures in the Barangays,Narra

PROJECT SITE

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Public Participation

As part of the preparatory requirements of the EIS for the Narra Mining Project, the proponent and the EIS Team, together with the representative of the EMB-DENR and members of the Review Committee, conducted a public consultation meeting with the local stakeholders from the Municipality of Narra. The leaders and residents of the seven puroks in Barangay San Isidro where the mine is located attended the consultations.

The objectives of the public consultation are the following:

 To share information on the current status of Narra Mining Project with leaders and residents of barangay San Isidro, indigenous peoples, and representatives of community-based groups and NGOs of the Municipality of Narra;  To solicit views, comments, and concerns from the leaders and residents of barangay San Isidro and representatives of community-based groups and NGOs, indigenous peoples, and other interest groups as regards the Narra Mining Project.

Some 138 participants from the municipality, led by San Isidro’s Barangay Captain and her barangay council members, came to the consultation. There were also leaders from community-based groups like the farmers’ and fisherfolks’ associations, senior citizens’, women’s and indigenous people’s groups. Other people from nearby barangays such as Poblacion, Teresa, Caguisan, Princess Urduja, and Antipuluan also attended. Representatives of PGMC observed the proceedings and acknowledged by Citinickel. Also in attendance were officials from EMB-DENR Regional Office 4B, from the CENRO of Narra, and the Palawan Council for Sustainable Development (PCSD).

The project and the EIA process were presented to solicit the people’s views, comments, and concerns. The participants were divided into workshop groups according to the organizations they represent. The following is a summary of the outcome of the group outputs. a. The hopes and expectations were centered on livelihood and basic services. (Assistance to agricultural workers and fishermen; educational assistance; livelihood assistance; Cooperatives focused on joint venture projects and water system projects) b. The fears/concerns were generally on the productivity of agricultural lands, and non- absorption of previous workers. c. The recommendations that the people submitted were immediate conflict settlement between the mining companies before project start up; the need for the endorsement from the barangay council; employment preference for former workers of PGMC; replanting of trees in the mined areas; work for senior citizens; and assurance to fisherfolks that marine life will not be affected

After the exchange of information between the proponent and the stakeholders, and clarifications on issues regarding the mining activities’ impact on the environment, the group was asked to express their hopes, fears, concerns and expectations about the project. The group activity focused on soliciting sectoral views revolving the following guide questions:

1) What are your hopes/expectations about the project? 2) What are your concerns/fears about the project? 3) What are your recommendations?

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The hopes and expectations expressed centered on livelihood and basic services, such as assistance to agricultural workers and fishermen; on educational services, and livelihood. The Cooperatives recommended joint venture undertakings, such as on water system development for the residents.

The fears and concerns were generally on the productivity of agricultural lands, and threat of non-hiring of previous workers.

The recommendations dealt with immediate settlement of conflict between the mining companies before project start up; the need for the endorsement from the barangay council; employment preference for former workers of PGMC; replanting of trees in the mined areas; work for senior citizens; and assurance to the fisherfolks that marine life will not be affected.

The following summarizes the responses from the different sectors as to their hopes and expectations from the project, their fears and concerns; as well as their recommendations on how the resumption of operation can benefit the most number of people in the area. These were the written outputs during the workshop and classified by sector.

Table 5-109. Public Consultation responses by sector Suggestions/ Sector/Group Issues and Concerns Expected Benefits Recommendations Barangay Council Ang endorsement ng Barangay Council sa PGMC ay hindi pwedeng gamitin ng Citinickel dahil alam po namin na PGMC ang inindorso ng barangay. Fisherfolks Group Dumumi ang tubig inumin Anong proyekto ang Assurance na hindi masisira Alikabok maitutulong ninyo sa and dagat Mawala ang lamang isda sa dagat mangingisda? Ang basakan kapag naabot ng laterite

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Sector/Group Issues and Concerns Expected Benefits Suggestions/ Recommendations Bato-bato Multi- Ang pangamba po naming ay baka Maibibigay ng Citinickel na Handa ang kooperatiba na purpose maulit na hindi mabigyan ng pansin livelihood sa cooperative maki-transact sa Citinickel Cooperative ang aming kahilingan tulad na na hindi nabigyan ng nakaraang pangako. Hindi po kami pansin ng PGMC tulad ng: humihingi o nagso-solicit , kami po ay -water system ng makikipaghanap-buhay sa inyo barangay (potable water maliban sa pag-eempleyo. level III) to be operated and managed by the Cooperative. -joint venture project ng reforestation and rehabilitation. - food and rice supply for food security of all employees Farmers’ Group Nais po sana namin malaman kung Inaasahan naming na Mabayaran ng tamang halaga ano ang inyong katugunan kung hindi lang yong malapit sa ang kasiraan ng basakan dulot sakaling humina ang ani ng bawat sandok ang mabubusog ng laterite na dumaloy mula sa magsasaka dahil sa epekto ng laterite. (ibig sabihin sana lahat ng mina. taga-rito ay magkaroon ng Baka masira ang palayaan. Tamang solusyon para trabaho na hindi putol- masagot ang kakulangan sa putol ang pagtrabaho patubig sa basakan. Baka magkaroon ng problema kung Ang mga scholars ng Sana magkasundo muna kayo mag-ooperasyon na kayo ayaw namin dating mina pag take-over ng PGMC bago kayo ng gulo dito sa aming barangay. ninyo iya-absorb din po magsimula ng pagmimina. ba ninyo? Baka kung operasyon na kayo baka hindi priority ang mga taga- San Isidro Tulong sa magsasaka sa trabaho. Tulong sa edukasyon Ayusin ang mga irrigation system Magkaroon ng Level III na tubig inumin

Women’s Group Ang PGMC po ay maraming mga Na lahat ng taga-rito sa Palitan ng mga puno ang kabataang pinaaaral, scholarship po, barangay San Isidro ay pinutol at magkaroon ng at nangangamba po kami na baka magkaroon ng trabaho at katuparan ang inyong pangako. hindi na nila maipagpatuloy ang benepisyo ng mga Na sana ang lahat ng mga tao kanilang pag-aaral kung sakaling kayo workers. ditto sa barangay na qualified na ang manunungkulan. Magkaroon ng trabahong ay maaasahan namin na Baka may palakasan system. tuloy tuloy na pwede sa makakapag-avail ng trabaho o mga kababaihan ma-employ ng Citinickel Mines. Ano ang mangyayari sa aming barangay kung sakaling gumuho ang bundok. Baka matabunan dito.

Toronto Nickel Mining Project Chapter V-147

Sector/Group Issues and Concerns Expected Benefits Suggestions/ Recommendations Workers’ Group Malupit na pamumuno Makatulong sa mahihirap Extra job for the students na mamamayan sa pag- (during vacation) Pagkasira ng pinagkukunan ng hanap aaral, sa hanap buhay nh buhay Job for women mga magsasaka at Hindi pagtupad sa mga kasunduan. mangingisda Hindi tamang proseso. Kaunlaran sa barangay Pagtaas o tamang pagbigay ng sahod sa manggagawa. Indigenous Peoples Masira ang kabundukan at wala na Ang aming inaasahan ay Magtanim ng mga native na kaming mapagkukunan ng kabuhayan. magkaroon ng trabaho sa kahoy kagaya ng Pine tree, pagmimina na naaayon sa Almaciga at Ipil tree aming kakayahan.

The activity was closed by the Barangay Chairman of San Isidro, expressing hope that the contending parties for the operation of Toronto Nickel Mining Project settle their differences amicably and avoid any physical confrontation in the area. She expressed apprehension that the misunderstanding might escalate and be detrimental to the residents of her barangay. She appealed to the representatives of PGMC and Citinickel to settle their dispute peacefully so that the residents of San Isidro can benefit once more from the quarrying activities.

Totonto Nickel Mining Project Chapter VI-1

Chapter 6. ENVIRONMENTAL IMPACTS

Approach in Impact Determination

The preparation of an Initial Environmental Examination (IEE) was undertaken as required by the Implementing Rules and Regulations of the Small-Scale Mining Law (PD 1899). The activity identified the potential impacts of the proposed project on the environmental and social conditions of the host communities. A series of public consultations with the different stakeholders clarified issues and outlined how the expressed concerns will be addressed for the needed endorsement.

More detailed field examinations were conducted by Citinickel to address the environmental concerns and issues raised during the 2007 consultations. These results, together with the available data generated by previous studies, were used in the evaluation and assessment of the potential environmental impacts of a large-scale mining in the Toronto Nickel Mines.

The probable impacts of each of proposed activities have been identified. These are initially presented as the environmental scenario without the project followed by a description of the area once the project is started and/or fully operational. The impacts described are on the major items detailed in the baseline data generated.

6.1 Geology

Without the Project, the geology and topographic profile of the area will not change.

6.1.1 Seismic Hazards

Geologically, Palawan is located in a relatively stable structural area of the Philippines. There is an absence of earthquake generators such as active subduction zones or large recent strike-slips faults in the vicinity of Palawan. The province, however, has few major faults although considered as relatively in an inactive seismic zone. Seismic hazards are considered not a major concern for infrastructure development in the province.

6.1.2 Start-up Impacts

Initial Clearing Activities

This will be confined to surface or ordinary earthworks that no significant impact on the topography is expected. Surface clearing activities like access road tracing and stripping of topsoil plus a few drilling for confirmation of resource will be done. Preparatory activities include work to access and remove the laterite. This is expected to produce insignificant impacts other than the clearing of soil cover and limited earthworks associated with the construction of access roads and service facilities. The laterite layer overlie the saprolite horizon.

Totonto Nickel Mining Project Chapter VI-2

Stockyard/Drying Area and LCT Rock Jetty

There will be limited effect on the topography with the development of the stockyard/drying area and wharf. The proposed sites are located in gently undulating terrain with generally low relief. The identified area’s proximity to the coast will require measures to prevent the development of water-logged sections.

6.1.3 Mining Operations

Laterite and saprolite will be mined using hydraulic excavator without resorting to blasting. The mine topography is unremarkable with profile from 350 to 450 meters elevation and moderate relief. The benches will be properly maintained at about 3 to 4 meters high to avoid any significant impact like slope failure. Mining operations will be suspended during periods of high precipitation and/or prolonged rainfall. Weep holes and run-off containment dams along surface water channels for effluent collection will be constructed in strategic places.

Infrastructure Sites

These project components will not impose any significant impact on the geology of the areas during the development and operational phase as careful and deliberate evaluation of the site will be conducted prior to site selection.

6.2 Pedology

Scenario without the Project

Without the proposed project or any similar developments, the conditions of the soil will not change significantly. However, gradual degradation may be expected brought about by the random activities of an increasing population in the area.

6.2.1 Preparation and Start-Up

Mine Sites

 Preparatory activities were undertaken to raise awareness among residents and stakeholders in the project component sites. The public consultations and dialogues with the host community residents, coupled with the hiring of local manpower during exploration stage contributed in raising awareness among the concerned parties. This led to the community’s endorsement of the implementation of the project.

 The suspension of exploration activities over three decades caused the cessation of mining-related activities on site. This resulted accumulation of soil organic matter and the re-establishment of indigenous vegetation that favor natural biological and inorganic actions. The natural re-generation not only provided vegetative cover but improved soil structure, infiltration capacity, and the prevention or reduction of soil erosion as well.

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 Some lowland farms stand to be affected by soil erosion from the proposed mine site. Although preventive measures and appropriate practices will be in place, the disturbance and exposure of material in the mine site may cause erosion and siltation especially during episodes of heavy rainfall. The project will install siltation ponds and check dams to minimize and/or check laterite contamination water channels and low lying areas.

 The proponent will construct new access and mining roads connecting the mine site with the stockpile area and loading wharf. The controlled land clearing and surface stripping activities for the new access road system is expected to result in minimal displacement of surface soil. The expected impact will be addressed by appropriate soil management and engineering interventions, through design and soil stabilization measures, that are usually applied in proper mining operations.

 The impacts on soil stability can be made temporary and short term through proper and deliberate mining operation, similar to Citinickel’s soil loss control measures for the Pulot Mines in Sofronio Espanola. The series of check dams and siltation ponds along water channels will help prevent soil loss and consequent siltation of the waterways.

 The construction of the access road will involve land clearing that may be critical in some areas because of the steep and sloping forested area and shrub lands along the route. The exposure of the soil surface to the high ambient temperature will result in rapid organic degradation that will stabilize after 2 to 3 years. This is expected to prevent further degradation of the accumulated organic matter.

 The negative impacts will be checked and reversed when the company’s agro- forestry and other re-vegetation livelihood programs are implemented. Once in place, the impacts of soil erosion are expected to become short term and reversible. The programmed mining and rehabilitation will lessen the negative impacts of the mining activities. The stripped topsoil, the richest and available source of seeds and plant materials, will be replaced in the mined-out areas while new sections are opened. The company’s assisted natural regeneration program will accelerate vegetative cover recovery and help stabilize the disturbed areas. These areas will be provided sufficient growing-in period to develop a new canopy of planted trees with a mixture of wildlings of various indigenous plants, grasses, and plant litters.

Stockpile/Drying Area/Residential Area

 Development activities in the Stockpile and Drying Areas are expected to have insignificant, short term but irreversible impacts on soils and land use. The conversion of the generally open and idle selected land to semi-industrial use will have minimal impact with respect to loss of arable land in the project site.

 The housing facility will be located in alluvial lands that are currently being used for residential purposes. The sites are within the area allocated for residential activity as identified in the Narra municipal development plan. The impact during construction of the residential units will be insignificant, reversible and short term. There will be no substantial earth moving activities due to the site’s relatively flat to moderate terrain. Totonto Nickel Mining Project Chapter VI-4

Ore Stockpile and LCT Rock Jetty

Minimal impact on soil.

6.2.2 Impacts on Soil During Operation Phase

Laterite and Saprolite Mine

 The cutting and land forming in constructing the benches can accelerate soil erosion and siltation that may clog the natural water channels draining the mining area. Mass slips occur if the vertical slopes are cut too steeply. It is estimated that about 30 to 40 percent of the total volume of displaced surface soils can be carried downstream during the peak rainy months when rainfall lasts for more that 2 days. Fortunately, modern mining design and operation can minimize, if not totally eliminate, this effect. The impact can be prevented by: cutting the vertical slopes less steeply; providing adequate back slope (about 1 to 2 percent slope) in each bench; construction of soil containment barriers; and immediate re-vegetation of exposed soil surfaces.

 Benching makes the landscape more stable and reduces soil erosion significantly. While massive soil erosion can still happen even when benches have been stabilized, this can be mitigated by providing the proper back slope that will contain the runoff to drain safely to the natural drainage way. The lack of adequate back slope can cause surface runoff to move downward through each bench and cause significant loosening and transportation of soil materials.

 Slope stabilization, through the use of benches in steep slopes, is a positive impact of mining. The benches act like terraces that can capture surface runoff efficiently and prevent cascading that erodes the soil during high rainfall months. In the long term, the mined benches with porous materials will play a very significant role in the hydrologic cycle of the watershed catchment area.

A positive impact of the mining method adopted is the improvement of water infiltration by exposing the subsoil consisting of unconsolidated and permeable bedrock. This results in the favorable management and harvesting of surface runoff that would otherwise cause flooding and soil erosion.

 A potential negative impact of mining is reduction in soil fertility in the benches, acidification and alkalinization of soil for agriculture. By setting aside stripped topsoil during clearing to expose and reach the laterite layer, and replacing this on the mined-out areas after exhausting the deposit, the negative impact is mitigated and rendered insignificant.

Soil acidification is a temporary and reversible impact brought about by clearing of the vegetative cover and the rapid degradation of the organic matter. Most deforested areas are immediately colonized by weeds and grasses that eventually leads to lower soil pH level. This acidification process affects the availability of phosphorus and calcium, which later gives way to aluminum toxicity. This impact can be minimized through appropriate construction practices and proper revegetation and species selection. Totonto Nickel Mining Project Chapter VI-5

Other Project Components

 The operation of the stockyard/drying area will not have significant effects on the soil and land use of the surrounding area.

 The development of the housing area will include backyard gardens not only to stabilize soil conditions but provide readily available food for residents. While the area may be less than 10 hectares, the prescribed activities are designed to contribute to soil conservation and protection.

 Other project components and activities will have insignificant impacts during the operations phase. Social development activities will be addressed accordingly in collaboration with the associated LGU, NGO and PO organizations.

6.3 Land Use

Scenario without the Project

Land use in the study area is forecasted to remain predominantly mining in the site, agri- forestry along the access routes and multiple uses zone within the urbanized sector of the livelihood of most local residents. There will also no drastic change in land use in Narra despite the presence of mining for this is temporary in nature.

6.3.1 General Impacts of the Project on Land Use Below Elevation 500 meters

 A special law, the Strategic Environmental Plan (SEP) for Palawan under Republic Act 7611, empowers the Palawan Council for Sustainable Development (PCSD) to adopt rules and regulations pertaining to the use of the environmental and natural resources in the province. As the main strategy of the SEP, the law mandates the establishment of a “graded system of protection and development control” known as Environmentally Critical Areas Network, or ECAN.

 The 1995 Mining Code allows mining companies to enter into agreements with other holders of valid claims over a mining area. The proponent, Citinickel, is the operator of the Toronto and Pulot mining tenements by virtue of an Operating Agreement signed between Citinickel and the Govermment of the Philippines. The agreement was signed on January 3, 2007 and registered with the Mines and Geosciences Bureau of the DENR in MIMAROPA Regional Office IVB.

 Another land use issue that was resolved and which as the subject of a study by a committee created by the DENR Secretary on January 3,1997 is the implication of Presidential (PP) No.219 dated July 2,1967 and amended by PP No.530-B. The proclamation, as amended, declares the entire province of Palawan as national reserve. PP No.530-B, however, does not contain any more the phrase “closed to exploitation and settlement” which was previously provided in PP 219. The proper interpretation of PP 219 is a legal issue and shall be resolved by this committee so created. Since other mining ventures have been given permission to operate from 1967 to the present, the original Proclamation has no force and effect. As a matter of fact, recent DENR ruling on the MPSA application of Central Palawan Mining and Industrial Corporation had stated that “mining is allowed in Palawan.” Totonto Nickel Mining Project Chapter VI-6

 There is no mangrove in the proposed ore stockyard and LCT Rock jetty fronting the Sulu Sea in Narra ( Plate 3.2a) and in Espanola

 Summarizing, the specific impact of the project on the land use is the conversion of some forested and farm areas to mining , industrial and residential uses. These will all be converted from grassland, forest and agricultural uses to mining .The proponent is proposing large areas on both sides of the access road for reforestation. In addition, unused agricultural land will be tapped for agricultural livelihood development farms.

 For a presently agricultural and rural area, the impact on land use change is significant. However, these conversions are minimized when the barren areas in the mine sites are planted to trees together with the reforestation program that is implemented as part of the landscaping and greening of the project sites. Whenever possible, protection of existing trees whenever feasible are observed in the different project components.

 The operation of the stockpile complex will not have any additional significant impact on land use.

 The construction and operation of the project with facilities, expected to stimulate the growth of settlements along the highway. There will develop consequent establishment of different businesses selling goods and services, In time , said communities will likely experience rapid urbanization, bringing with it increase in values and prices of land in the area. The long-term implication is the continuing conversion of agricultural land to residential, commercial and even industrial uses.

6.4 Agriculture

Scenario Without The Project

Unless modern farming system are introduced and operation in the project area, agriculture will remain marginally productive. Considering the topography of thr area, farming is limited to the presently cultivated flatlands on both sides of the main highway. The mine areas are not fit for cultivation because of the slope, consequent erosion, and fertility degradation . In fact, if the “ cultivate and fallow “ type of farming continues, the area will lose it shallow surface soil and will be reduced into a poorly vegetated area in a few years time.

6.4.1 Impacts on Agriculture of the Project

 The mine sites are presently classified as mining zone in the Municipal Land Use Map of Narra and of Espanola, Palawan. In the lowland portion of the access road, perennial as well as annual crops and in some cases, the entire farm can be lost as a consequence of the construction activities . As indicated in the land use module, the estimated area of farms to be affected by the project and its components is rather limited. The assessment based on estimated farm sized in the impacted areas showed that the project will effect the following projects components:

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Mine Sites = 10ha per year Access Road = 10 ha Stockpile/LCT Rock Pier Site = 8 ha Sub-total = 28 ha per year

These losses, if they cannot be avoided, shall be compensated subject to a just and mutually acceptable compensation agreement between the proponent and those affected. Furthermore, a reforestation program equivalent to one hundred (100) trees planted for every tree cut will be programmed for community-based agricultural cooperative farms.

To some farmers, the possible loss of their farms is not total although significant as these are their present source of livelihood. however, there are other areas outside the project areas that are still untitled where they can transfer if they so desire. For the whole of Narra and Espanola, the farms to be lost may be considered relatively minimal and not very significant. There is an expected net farm gain once the development and livelihood component of the mining project is on-stream.

 For the entire period of development, the neighboring farms (within 10 meters away) on all sides of activity area can be affected by siltation during the wet months and by dust during the dry months. The river system and the low lying areas will be most affected, although it was observed that most of the rivers or creeks in the area were not being used to irrigate farms. The upper valleys of the tributaries that catch water for impoundment to grow lowland rice will be slightly affected by siltation from earth moving during the start-up.

The dust generated during the dry season may affect crops as far as 50 -100 meters from the perimeter of the earthmoving sites through reduced photosynthetic surface as well as CO2 absorption because of dust settling on leaves. Annual crops along busy dusty roads may suffer from 15 – 20% loss in photosynthesis surface and a 2 – 5 % loss in yields. The impacts of silt and dust generation are temporary and of short duration and could be mitigated by proper observance of construction protocols like watering the soil surface during the dry months, compacting piled surface soil and planting trees to prevent erosion. The dust accumulated will be washed away slowly by rainfall, while the silt will mix with the root zone soil through continuous cultivation. This impact therefore is not significant as far as farm productivity is concerned.

 For crops that are grown mainly for their succulent parts such as vegetables, dust accumulation is very unlikely, as they are watered or irrigated during the dry season. When grown during the wet season, the leaves are freed from dust due to frequent rains.

 The other impacts of the project on agriculture will stem from other factors like social and economic changes among the population around the project sites. Possibilities are the following:

- The policy of the project management to give local residents preferential treatment treatment in employment will constitute a big amount of farm labor loss affecting agriculture activities and production. The increase in family income Totonto Nickel Mining Project Chapter VI-8

may, however, negate the labor loss, since the family can then buy equipment or hire needed labor for their farms.

- As a result of being employed, the families will earn additional income and should be able to buy farm and equipment and farm inputs like fertilizers. Agricultural activities may, therefore, be benefited and agricultural production improved through the use of fertilizers and pesticides.

- The migration and eventual settlement of people around the project site will necessarily change the landscape of the farming system in the area. As is usual for migrating Filipino families, they first start to build a house, then cultivate the surrounding areas for fast growing vegetables and small grains, then they start to grow fruit trees, until the area is expanded to a formal farming situation.

- The construction and operation of the project will generate increased local purchasing power and increased demand for agricultural products. Such demand will stimulate cash crop production and therefore be good for local agriculture. This may also lead the farmers to organize themselves and request the local and national government and other organizations to provide them technical assistance to improve their farming systems and increase farm yields.

6.5 Forestry

Scenario Without the Project

The logged over forest, particularly the old Neri-Tavera timber concession in Narra, will be subjected to increasing pressures from human activities. In the absence of the major alternative economic opportunities, more and more of the population will resort to the sustenance offered by the forest resources. The Palawan indigenous people will continue to practice “slash and burn” agriculture in their area and will cause further forest disturbances. Hence, there will be a gradual but continuing deterioration of the forest in the area.

6.5.1 General Impacts of the Project

The impact areas of the proposed laterite and saprolite mine project and its component are as follows: a) the remnant and patches of forested areas, shrub land and grassland areas in the proposed quarries; b) the forest shrub land and grassland where the access road will traverse; c) the areas where the stockyard/drying area will be set-up; d) residential areas; e) the area where the LCT Rock jetty will be established.

The expected impacts will be the disturbance of the forest composition and structure, vegetation, density, genetic diversity, forest succession and on the protective and regenerative function of the forest. On the other hand, it is expected that agro forestry farms and plantation forests both in the uplands and the coastal areas will be set up as immediate consequence of this project. The latter shall more than cover for the minimal amount of forest that will be disturbed as a result of construction and operation of the project. There will be several hectares of green buffer zones around the various component site and on both sides of the natural river banks, several hectares of land to be reforested from the mine areas to the national road and Totonto Nickel Mining Project Chapter VI-9 landscaping of the residential site and ore loading site areas. It is anticipated that with the project, the overall vegetation in the project areas will be enhanced.

6.5.2 Impacts During Construction

Access Road

 The opening of areas for the rehabilitation and construction of any service roads will be possibly remove the existing vegetation. The removal of vegetation will not occur in just one place and therefore the impact of such removal will not be significant, ecologically. Besides, much of the areas for the road system are shrub land and grasslands.

 The impact on grasses and shrubs is minimal because most species encountered are commonly distributed and many are weeds and therefore are of no economic or ecological importance.

Small-Scale Mining Below Elevation 500 Meters

 The destruction of the logged over forest is minimal and will not be significant to create serious ecological disturbance in the project site. Such loss although permanent can be replaced by planting similar trees or fast growing species in other open area or adjacent areas and in due time these will grow into a new forest cover. However, the loss of even a few endangered species has to be prevented.

 The immediate impact of mining on indigenous forest species will occur during the clearing and grubbing of areas where all ground cover will be removed. This will result in permanent loss of the indigenous species, adding to the loss genetic diversity.

The trees in the forest areas of Palawan include among others – apitong, mancono, sakot, aguho/casuarian, amugis, and ipil, all indigenous species. Fortunately, limited forest areas exists within the mine sites and loss will not happen since the proponent is committed to save as much of these trees as possible. Hence, it is expected that only a minimal number will be lost due mostly to those that are apart from the forested section of the areas.

Outside the logged over forest area, the vegetation is mostly grassland, shrub land cultivated or kaingin areas and therefore no forestry vegetation will be affected. In the development of the final mining plan, these forested areas shall be segregated and excluded from mining. Important forest species shall be given special attention for their protection and preservation.

 It should be noted however, that only about 20 hectares of land will be used per year for mining and therefore the impact of the project on the forest is gradual and minimal, if at all. This phasing of the mining operations will enable the proponent to collect wildlings and seeds of indigenous species for planting in other areas. Mining preparation can, and shall be done, in such a way that important and specially threatened and endangered species can be spare or, if necessary, replanted in some other place before the tree is cut.

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Ore Stockyard/LCT Rock Jetty

 There are no mangrove at the proposed ore loading site.

 The construction of the houses within the present urbanized area of Narra will not affect any existing forest cover. The impact on vegetation existing from developing the residential site will be short term and reversible and, to some extent, can be avoided.

6.5.3 Impacts of Operation

 There will be no other impact caused by the operation that is not present during the development/construction phase.

6.6 Wildlife

Scenario Without the Project

Without the project, wildlife in the area will continue to be affected by increasing human activities. This will result mainly through habitat destruction coincident with forest loss. The fauna will increasingly be represented by those species that adapted to humans.

6.6.1 Environmental Impacts During Start-Up Phase

 Increased human activity in the various project areas has potential implications for any wildlife due to presence and noise. However, these activities will not result in the death or extinction of any wildlife species and will be temporary.

 The wildlife studies done for Palawan indicated that several important species of endemic wildlife have been recorded and even observed in the forest areas. These are: Palawan Balck Shama (Copsychus neger), Green Imperial Pigeon (Ducula aenea), and the Palawan Stink Badger – “Pantot” (Mydaus marchei). These species, however, have not been sighted in the area lately although well distributed throughout, from the northern islands of the Calamianes to the southern islands of Balabac and Bugsuk and the main island of Palawan.

These species are usually foreign forms but will also thrive in a secondary forest and abandoned kaingin. Compared to the whole province and biogeographic zone of Palawan, the areas to be quarried are small and insignificant. At the start of any disturbing activities in the area, the affected wildlife species will just move and seek shelter in the nearby forest areas outside the mine site.

 Full implementation of the proponent’s environmental proposals could enhance conditions for wildlife by planting fruit trees particularly berries to offset the present and continued decline in habitats observed in the area.

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Access Road and Small-Scale Mining

 The rehabilitation of the existing 8-9 kilometers access road to the mine site from the highway will cause limited disturbance to wildlife. The disturbance will be mainly in the form of noise and human activities such as surveying, marking, clearing, and rehabilitation of the road. These activities will remove vegetation cover in an area affected by the rehabilitation work. The road traversed disturbed habitats such as shrub land, grassland, and agricultural areas. There are no ecologically important species that will be affected in these habitats except the common, non-endemic birds and small mammals.

 The proponent plans to enhance the area alongside the access road thru reforestation including planting of fruit trees and establishment of a buffer zone. These mitigating measures will not only provide vegetation diversity to the area but will also enhance the survival of wildlife with added shelter of a “green-belt” and at the same time provide a means of dispersal into other habitats.

Stockyard/Drying Area

 Setting up the stockyard and drying area will cause disturbance to any coastal wildlife due to site preparation and noise and removal of vegetation cover of the site. The surveying, marking and other human activities during site preparation will disturb resident wildlife species and those within the vicinity. Once the areas have been properly laid out, bulldozers, diggers, and other heavy machineries will create substantial noise in removing vegetation and leveling of the ground.

 In spite of the noise to be generated, its effect on wildlife is insignificant. There are no important species of wildlife recorded in the site, as the existing habitat is mainly grassland with occasional buri palms, coconut trees, and few fruit-bearing trees. Most of the birds observed are common resident species that are also found throughout the Philippines. There will be no endemic or endangered Palawan species that will be affected.

 In addition, construction activities are short term. With proper mitigating measures such as fencing and planting of trees around the site, the noise that will be created will be screened out and dissipated effectively by the fence and trees. The result will be negligible impact on resident wildlife.

Ore Stockyard/ LCT Rock Jetty

 The road toward the ore stockyard and LCT rock jetty cuts across the farmland from the highway to the shoreline. The removal of trees may be no longer necessary since the road already exists. When necessary for road expansion or rerouting, such removal will be very minimal as there are already existing cleared areas. The construction of the jetty will start by the filling up of rocks, gravel and sand as necessary foundation. This will be followed by the staking of cement piles, cementing of roads and the making of the jetty. All these activities will generate a lot of noise and other construction related disturbances. However, these activities are for short time duration and no endemic and endangered species will be affected in the area.

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Other Infrastructures

 The Residential site will require an access road to bring in materials and equipment needed it is constructing and, later on, for its maintenance. It will traverse mostly existing roads, open areas of grasslands, secondary shrubs, and agricultural lands. The road construction and site preparation will cause some disturbance of wildlife. The bulldozing activities will generate loose topsoil, which will eventually cause dust generation during dry season. Noise during the construction will also cause some stress to resident wildlife species. This situation is only a short-term impact to which wildlife can easily adjust.

 The only significant species observed in the area is the Serpent Eagle (Spilornis cheela). This species, however, was observed to be soaring over small patch of secondary forest outside of Narra Central. This common raptor will not be affected directly any activity in the construction of staff houses. It may, in fact, be given an advantage of catching prey such as rodents and snakes that may be disturbed within the town site and in their movement toward less disturbed areas, these prey species may be exposed to predation.

6.6.2 Impacts During Operations

Laterite and Saprolite Mine Areas

 Mining activities will require heavy equipment to remove the laterite and saprolite for transport to the stockyard/drying area. The noise and ground vibration may disturb the wildlife in the vicinity. These impacts are long term, because mining will continue until the end of the life of the operation. Wildlife in the area is minimal, as these animals shall have been driven away from the site during the exploration, site preparation and construction phase of the mine. As the mining project will be in continuous operation, the noise and ground vibration will become an ordinary occurrence in the area, and as long as these impacts will not cause direct injury, any remnant wildlife will learn to adjust to and ignore such occurrences. There will be no wildlife species that will be endangered or become extinct as a result of mining operation.

Ore Loading

 Possible impacts include accidents such as oil spills during loading, minor leaks, and accidental spills of the laterite and saprolite during loading on barges and LCTs. Sometimes, garbage and trash are dumped when barges and LCTs dock at the jetty. People also will just throw away plastic containers, especially mineral water plastic bottles, plastic bags, and other trash into the sea. Plastic and oil pollute the feeding grounds of shore birds and herons.

 Shore birds and herons that feed on invertebrates and fishes along the shore and in the inter-tidal zone will most likely be affected. However, these species and migratory and are not endemic or endangered species of Palawan. These birds may bypass this area and feed somewhere else.

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 This possible impact will be long term as long as the jettysite will be utilized. However, proper routine procedures, strict sanitation, and regular clean up, as part of the proponent’s protocol will eliminate this impact easily.

 The impacts of the housing site on wildlife will be positive and beneficial. The landscaping of the area will enhance foraging areas of wildlife. With so many fruit trees, ornamental plants, vegetables, and other plants, the diversity of insects, fruits and flowers available in the town site will provide benefits to common wildlife species. Presence of wildlife also provides a wholesome environment to the inhabitants of urban Narra and Espanola towns.

 Even with all these possible environmental impacts, no wildlife species either resident or endemic species of Palawan will be placed in jeopardy or become instinct as a result of the project activities. In addition, the total area concern is very small compared to the whole island f Palawan.

6.7 Hydrology

Scenario Without the Project

The river system in the area are expected to continue being degraded gradually even without a development project like mining and its allied activities. River flows will continue to decrease and siltation will become more serious with time. This will be brought about by an increase in economic and social activities of a growing population.

6.7.1 Impacts During Construction

Laterite and Saprolite Mining

Surface Water

 The disturbance of the ground surface and removal of vegetation during the preparation of the mine and the direct alteration of surface runoff will potentially affect the hydrology of the gullies, streams/tributaries and rivers. These changes can result in local flooding, increased flash flooding in the downstream areas, increased soil erosion and changes in water quality.

 The preparation of the mine will last for about six months, covering the whole dry season. This is the right time to do mining preparation in order to reduce the impact of the activities on runoff and soil erosion. The mining areas can affect directly only small water courses and small streams. Moreover, the areas affected in both watershed/catchment are very small and the impact on water hydrology is expected to be insignificant. These types of impact shall be managed through adequate control measures, utilizing sound engineering design and construction methods and practices so that the overall net effects to the local government will be low and acceptable.

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Groundwater

 The impact of the preparation of the mining area on groundwater will not be detectable since the area at this time is not very compact yet and the area affected is very small compared to the total watershed area where they are located. Besides, the watershed area is located in the highest elevation where groundwater seeps very deeply into the ground and appears as springs far below the mining area.

Stockyard and Drying Area

Surface Water

 The area is located near the sea about 5-30 meters above sea level. The construction of the facility will cause disturbance of the ground surface and removal of any vegetation and these direct alterations of surface runoff will affect the hydrology of the area. The construction will cause compacting of the area including the construction of the roads leading to the site. These changes may lead to increased local runoff , increased soil erosion and changes in water quality.

 During construction, soil erosion, sedimentation of the coastal areas will be hastened and the area will be compacted reducing the amount of water penetrating to the ground. However, the impact on water quantity is expected to be insignificant since the area is small as compared to its upland watersheds.

Groundwater

 The impact of the construction of the facility on groundwater will be significant since the area will all be heavily compacted although localized. Water infiltration in the area will be reduced significantly and rainwater will run off directly to the canals and to the sea. However, the area affected is very small compared to its watershed. The loss of recharge in the local area and vicinity is compensated for by the recharged from the upland watersheds.

LCT Rock Jetty

 The impact on hydrology arising from the construction of the causeway and the road leading to this facility is very insignificant. While the construction of the road will contribute to sedimentation and compacting and, therefore, reduce water infiltration, the area to be affected is very small.

Housing Site

Surface Water

 The residential site will be located within the existing residential zone of the Municipality of Narra. The disturbance of the ground surface and removal of vegetation during the construction of the housing units will be minimal as this was already considered in the zoning of the town.

Totonto Nickel Mining Project Chapter VI-15

 The preparation of the site, the impact on water quantity is expected to be insignificant.

Groundwater

The construction of the site will have an insignificant effect on the water table.

6.7.2 Impacts During Operation

Laterite and Saprolite Mine

Groundwater

 The impact of the mining operation on groundwater is the reduction of water that will infiltrate through the ground surface. This will be due to the compacting of the ground so that most of rainwater will flow downstream readily as runoff. Improving the vegetation in nearby non-productive areas, thereby increasing water infiltration shall compensate this effect. The operation will affect the hydrology of the gullies, streams/tributaries and rivers. The areas affected are very small compared to the watershed where they are situated and the impact on water quantity is expected to be insignificant.

Access Road

Surface Water

 The impact in surface water is insignificant since at this time, the disturbed are may have already covered. In fact, the presence of the proponent in the area covered may discourage illegal forest activities and may result in improvement of the vegetation.

Groundwater

 The access road will not change the impact on the groundwater as during the development phase. As cited above, it shall have recovered by this time and will have positive impact to the groundwater resource.

Stockpile/Drying area

Surface Water

 The Stockpile/Drying Area development slightly changes the topography and the hydrology of the area permanently. The construction of the facility, together with the rehabilitation of the road network will cause compacting of the area. These changes may result in increased local runoff, increased soil erosion and changes in water quality. On the other hand, the operation of the stockpile and drying will have no impact on hydrology.

Groundwater

Totonto Nickel Mining Project Chapter VI-16

 The operation of the stockpile and drying facility will have no impact on the hydrology of the area. The water that will be used will come from groundwater and shall be recycled so that the actual consumption will only be as make-up water to replace losses. Water extraction shall be within 15% of available water recharge and the effect on the water table will be insignificant.

LCT Rock Jetty

 The operation at the jetty will have insignificant impact on hydrology.

Housing Site

Surface Water

 The occupancy of the residential site will alter surface runoff permanently and will affect the hydrology of streams/tributaries and rivers. These impacts on the overall hydrology of the area are, however, small since the area affected is small.

Groundwater

 The impact of the occupancy of the town site on groundwater will not be significant since the Narra area has a good aquifer system. Which is fed, by upland watersheds. The occupancy will affect the water table since there will be increased usage of groundwater but this will be compensated by the recharge from the watersheds above the town site. The water usage of the project, which includes the housing area, is less than 10% of the available groundwater.

6.8 Water Quality

Scenario Without the Project

Most of the river systems within the project are already in some level of degradation due to excessive pressure from agricultural runoff and domestic wastes. Runoff from farms, which use fertilizers and pesticides, are carried inevitably into the river systems there by increasing nutrient levels (nitrates and phosphates). Direct use of the river for sewage disposal and animal bathing mat have been the cause of increased total coliform levels detected in downstream portions of some of these rivers. Washing of motorized equipment and vehicles plus indiscriminate disposal of domestic wastewater may have been the cause of excessive oil and grease.

 A more serious threat to water quality of the rivers is the increasing rate of siltation resulting from deforestation on the watersheds. Existing watersheds are already vegetated sparsely and the condition may be worsened further as more people seek agricultural land and consequently turn to the forests. In load will be exacerbated. The impact on water quality would be to increase turbidity and total slides level that may impair its present uses.

 The extent of degradation of the river systems within the project area is expected to worsen unless measures are undertaken to correct the situation. Such corrective Totonto Nickel Mining Project Chapter VI-17

measures are reforestation of the watersheds, proper domestic wastewater disposal and the regulated use of fertilizers/pesticides.

 The scenario will hold for most of the rivers. Already, encroachment of kaingin farming has been observed near the headwater area. Without protection of the watershed area, it may not be long before this river becomes degraded like the rest.

6.8.1 Impacts during Construction

Laterite and Saprolite Mining

 Development of new mining areas will require permanent clearing of existing vegetation. This activity produces pronounced changes in runoff levels and consequently will affect water quality of existing streams and tributaries. Turbidity and total solids will increase as a result of increased silt load in streams and rivers. This could, however, be minimized through engineering measures as discussed above in the section on pedology.

 The same access roads will become the haul road during mining operation; the removal of vegetation along this road will be permanent. During heavy rains, runoff into the river will tend to generate siltation. In addition, dust will be generated as a consequence of increased vehicular activity in the area. Increased silt load will generate higher turbidity and total solids level.

 The potential effect of increased erosion on the river system shall be controlled by runoff management, which will be undertaken during this period. The construction of runoff containment checks dams and watercourses to direct the runoff to areas where it can be collected and thereby reduce the potential silt load in the river. Wherever the access roads would cross the river or any of its tributaries, bridges shall be constructed so as not to obstruct the natural flow of the streams. Stockpiling of overburden material from clearing and grading operations shall done properly. The overburden can also be used for ground leveling and other construction activities.

 Waste oil from construction equipment and vehicles shall be collected and sent later to the motor pool for use. Any possible spills such as that coming from fuel transport shall be handled through emergency remediation actions to prevent contamination of both surface and sub-surface water. These measures are intended to reduce the incidence of contamination of the waterways by oil and grease.

 Overall, if the above measures are implemented, the impact on eater quality will not be significant. This assumes that runoff containment check dams are maintained properly to assure their silt retention capacities. A maintenance program shall be included in the project plan and the proper monitoring body shall check its implementation periodically.

 With the above measures in place, the magnitude of impacts on water quality will be minimal. The existing uses of the above rivers will not be altered significantly as a result of mining operation.

Totonto Nickel Mining Project Chapter VI-18

Housing Site

 The site sits on groundwater deposit, which is being tapped currently by residents. However, this distance between the river and the proposed town site is sufficient to minimize any potential silt loading of the river. Additional measures such as proper management of overburden waterways construction and protection of river banks will further reduce any potential impacts.

 Solid waste generated by construction personnel shall be collected and disposed of properly. Sewage shall also be treated before disposal. Monitoring of these discharges shall be done. The construction will not affect the existing function of the river for irrigation and domestic uses.

6.8.2 Impacts During Operation

Mining Site

 The stripping of overburden, extraction of laterite and saprolite deposit will potentially increase silt load in nearby rivers and creeks. Stockpiling of overburden, which is a regular mining practice, generates a pile of barren earth exposed to rainfall and water runoff. Parameters that may be affected include mainly turbidity and total solids.

 These impacts shall be avoided by adopting mitigative measures. The measures include construction of run-off containment dams and the careful design of benches and watercourses to direct the run-off to areas where it can be collected for treatment. Mining operations shall also include oil and chemical spill management.

 These measures are deemed sufficient to contain impacts to a minimum level. Its effect on existing water quality will be insignificant.

Housing Site

 The proposed site will house most of the employees and families of senior staff. This people will generate domestic waste, both sewage and soil waste.

 At a per capita generation rate of 0.76 cubic meters per day, total sewage will be around 228

 Cubic meters per day. A sewage treatment plant and settling pond will be constructed at a distance of 100 meters from the river. This sewage treatment plant will guarantee that discharges are within prescribed limit. At the above rate, regular discharge will be round 2.63 liters per second. The outfall of the treatment plant shall be located at a point downstream at a section where the flow is directed regularly towards the sea.

 Proper management of sewage treatment facilities shall be ensured. Sudden surges in discharge rates shall be avoided by constructing containment facilities designed to anticipate this scenario. Regular de-sludging of the treatment plant shall be carried out. Totonto Nickel Mining Project Chapter VI-19

6.9 Freshwater Biology

Scenario Without Project

Without the project, continuous population growth, use of fertilizers and pesticides and the discharge of wastes into the local rivers will result in the continued pollution causing the decline in the numbers and diversity of the freshwater flora and fauna. The species composition of the rivers will change, as conditions will favor the growth of certain species that can adapt to low oxygen levels and polluted conditions.

The practice of kaingin will continue and probably intensify due to the immigration of more people. The watershed area will continue to be stripped of vegetation cover thereby affecting the recharging capacity of rivers. There will be an associated decline in freshwater flora and fauna.

6.9.1 Impacts of the Project During Construction

Mining

 The preparation of the mining areas and access roads will result in some erosion that may affect rivers, their flora and fauna. The rivers potentially affected by these activities are the dry headwaters of the tributaries of Pinagduguan and Baliti-en Creeks in Narra and Tag-Usao River and Pasi River tributaries of Pulot River in Espanola.

 Because the start-up activities are of relatively short duration and given that the proponent has committed to extensive erosion control measures, the magnitude of the impact on aquatic biota will not be great . In view of the present low biodiversity, the absence of rare or endangered species and aquaculture practices, the impact of the mining on aquatic life will not be significant.

Ore Stockyard/LCT Rock Jetty

 There are no streams in the vicinity of the jetty. Consequently, the construction of these facilities will have no impact on fresh water biota.

Housing Sites

 The residential site and Project offices will be located in a flat area in the various existing residential communities of Narra municipality. The impact on the environment during the construction period is not expected, as proper mitigating measures will be employed.

6.9.2 Project Impacts During Operation

Mining

 During the operational phase, mining may result in siltation of nearby surface water, which may potentially affect the aquatic organisms found in the rivers. Prolonged and heavy siltation would affect the photosynthetic activities of phytoplankton, thereby reducing food sources for larger organisms. Increase in Totonto Nickel Mining Project Chapter VI-20

the nutrient content of water from eroded soil may promote algal blooms. Heavy deposition of silt on the riverbed would smother benthic organisms and may cause stagnation of water flow affecting the aquatic organisms.

 The impact of mining can also be mitigated or minimized. The proponent has committed to utilize sound engineering measures to ensure the protection of rivers and their organisms. Permanent structures like good drainage, settling ponds and soil stabilization measures, which are standard engineering strategies will be constructed to filter silt from surface run-off. In addition, the reforestation program to be undertaken by the proponent will help to minimize the project’s impact on soil erosion.

 Also no rare or endangered freshwater species were found and no aquaculture practices were observed that would make the impact socially and economically significant.

Housing Site

 Domestic solid and liquid waste generation is expected from the operation of the residential houses and offices may potentially affect the existing biota of the Biliti-en Creek. To minimize the effect of this impact , a Sewage Treatment Plant (STP) and a solid waste disposal system will be established with the Local Government Unit to ensure that the effluent will be within the DENR Standards thus protecting the aquatic organisms found in the river.

 Also, since no rare and endangered aquatic organisms were observed in the river and no aquaculture practices are present in the area, no economic and social impact will ensue.

 For all the project components, the use of the appropriate mitigating measures and the reforestation activities will ensure the water flow of rivers and that the biota will not be affected.

6.10 Marine Ecosystem

Scenario Without the Project

Without the project, the pressure on the coastal environment will come mainly from fishing activities. At present, fishing in the area is largely for sustenance and small-scale commercial activity, although this may change over a ten-year period to answer market demands. Fishing that use the present gears (spear, gill net) will not cause depletion and over-exploitation of the resources. Hence, if dynamite and cyanide fishing are eliminated normal fishing activity in the area will not be a threat to the coastal biological communities.

At present, coliform, BOD, oil and grease and the other parameters are within the strictest DENR standard (Class SA). Within the next 10 years, even without the project, the costal environmental is expected to be degraded slowly as the population continues to grow naturally and the living conditions of the people remains at almost the same level of development. Totonto Nickel Mining Project Chapter VI-21

6.10.1 Impacts During Start-up and Operatoin

 Earth-moving activities during the preparation of the mine will cause loosening and exposure of erodable materials that may find their way to tributaries and stream, particularly during the rainy season .The silt load will be deposited ultimately in the coastal environment ,near the river mouths. Considering that the mouths of the rivers are within coves, it is possible that sediments carried by the water will be deposited only locally and not distributed widespread into the sea.

 Sediments entering a coastal environment is always a major concern because corals are smothered directly by these particulates. Indirectly ,this will result in low water transparency ,which becomes limiting to the photosynthetic algae that lives symbiotically within the coralline tissue. However, since the local river mouths are naturally sandy, silty and muddy ,there will be no drastic impact on the marine system.

 To reduce sediment load of surface run-off ,initial activities will be scheduled during the dry, cool months (minimal rainfall) and Silt-traps shall be constructed.

 The project will use on a priority basis any of the ore loading facilities .Beach loading is usual system for ship-side–loading of ocean going vessels. Based on the previous studies conducted in the vicinity, biotic cover at the shallow end is about 24%, the lowest observed among the sites studies, although a high biotic cover,60%, is observed in the deep end. Since posts will be used as support structures instead of the usual earth-rock filled foundation, a relatively smaller area will be changed permanently. In fact, the posts will serve as new sites that can be colonized by invertebrates. With growth of these benthic organisms, fish may aggregate near these structures.

 Impact of start-up and construction activities , however, may not be limited to this narrow corridor. With construction comes increase in human movement and delivery of materials and equipment for the start-up and construction work. This may, in fact, cause more damage than the construction of the jetty itself. Anchors cause significant damage to coral reefs. Proper measures shall be coordinated with the LGU to prevent this unnecessary damage to marine life.

 To minimize unnecessary destruction of the coastal biological communities, the proposed project site shall be cordoned-off and buoys installed where boats can tie instead of anchoring. To go to the swallow end, ordinary motorboats can be used with the provision that anchors will not be thrown indiscriminately. All employees and subcontractors shall be given leaflets to inform them on the importance of these coastal biological communities and to increase environmental awareness among them.

 A distributed coastal area can recover and be recolonized when conditions are appropriate. To ensure that these conditions exist, the proponent shall oversee and protect nearby equivalent coastal area in exchange for the area that will be destroyed during start-up and development

 Oil spills occur mostly because of accidents (i.e tanker collisions) although prevention is still the most effective measure; an in-house standard protocol on Totonto Nickel Mining Project Chapter VI-22

how to handle oil spills shall be instituted. It is however; best to choose a fuel supplier that has a track record for efficient fuel handling and has the capability to contain and clean-up oil spills. Arrangements shall be made so that oil spill containment capability shall be made available within a few hours in cases of emergency.

6.11 Oceanography

Scenario Without the Project

Without the project, there are no expected changes in the physical oceanography aspects of the existing environment. Gradual siltation of the estuaries will continue due to natural erosion from watersheds. However, if the presently planned nickel mining at the headwaters of the tributaries of the Pinagduguan River will be realized, increased siltation rates in its estuary is expected if this is not properly mitigated.

6.11.1 Project Impacts During Start-up

 The start-up phase of the proposed project will not have any significant impact on physical oceanography in spite of a small temporary increase in siltation of the estuary, which is already heavily silted.

 During the start-up period, the activities that may affect the bay by erosion and siltation are clearing and grubbing and stockpiling; grading and leveling; laying of base materials; and excavations of foundations and ditches. These activities are associated with the preparation and construction of the mine, rehabilitate the access roads from the mine to the jetty facility.

 Clearing and grubbing will open about 93 hectares of land by bulldozers and scrapers. Stripping and stockpiling of topsoil will involve about 200,000m3.

6.11.2 Project Impacts During Operation

 The potential amount of silt that may find its way to the bay eventually may be estimated from the volume of earthworks and the method of controlling the transport of sediments from civil work areas to the river systems. With sufficient drainage systems and sedimentation basins, 1% of the volume of earthwork may be a conservative assumption for the amount of spoils that may contribute to the siltation rates in the estuary. Most of this silt will accumulate near the river mouths and will be spread gradually in the entire estuary by currents. While this is not significant in itself it is to be superimposed on the natural siltation rates due to sediment yield of the watersheds of the two rivers discharging into the bay.

 The amount of sediment that can be carried by the river systems can easily be dispersed and will not have a significant effect on physical oceanography.

Totonto Nickel Mining Project Chapter VI-23

6.12 Air Quality

Scenario without the project

Without the project, the air quality in the study are will remain good and within standard for a typical rural environment.

6.12.1 Air Quality During Start-up and Operation

 The major environmental impacts during the start-up phase of the proposed project are increase in airborne dust concentration and noise level. These negative impacts are short-term and would affect only the immediate vicinity of the project site.

 Generation of dust is expected during site preparation for all the construction work. Specifically, this is expected to happen during the leveling and compacting of the land where structures are to be built. Good construction practice such as regular sprinkling of water on the ground during ground preparation can minimize further the amount of dust that is airborne.

 It is expected that the operation of the mine will generate dusts. However, this will be confined within the working area, which is at least 1.5 kms away from any upland settlement. Hence, the impact to local residents will be insignificant. Nevertheless, regular water sprinkling shall be carried out using water lorry permanently assigned in the mining area.

 The operation of the mine has no other impact on air quality.

6.12.2 Noise During Start-up and Operation

 During the operation of the different construction equipment generates noise that varies in intensity from 44 to 73 dB (A) at a distance of 240 meters from the source. These noise levels are below the DENR’s maximum noise level of 75 dB (A) during daytime (0800-1800H). Similar Findings are true in the preparation of the mine sites.

 Noise generated by the heavy equipment is intermittent to be experienced for about a year. It occurs only during daytime, as there are no activities expected at nighttime. Construction noise is not expected to inconvenience nearby residents since the nearest residential house to the site is more than 500 meters away. At this distance, the level of noise from the project site is way below the 75 dB (A) DENR standard and will not cause inconvenience to people.

 Generation of dust is expected during site preparation for all the infrastructure work. Specifically, this is expected to happen during the leveling and compacting of the land. Good practice such as regular sprinkling of water on the ground during preparation can minimize the amount of dust that is airborne. Limiting the cruising speed of service vehicles, trucks and motorized construction equipment to under 20 kph can also lower airborne dusts.

Totonto Nickel Mining Project Chapter VI-24

 Noise associated with the user of mining equipment is expected but this will be within the allowable limits set by DENR.

 The practice of kaingin will continue and probably intensify due to the in- migration of more people. The watershed area will continue o be stripped of vegetarian cover thereby affecting the recharging capacity of rivers. There will be an associated decline in freshwater flora and fauna.

 Because the start-up activities are of relatively short duration and given that the proponent has committed to extensive erosion control measures, the magnitude of the impact on aquatic biota will not be great. In view of the present low biodiversity, the absence of rare or endangered species and aquaculture practices, the impact of the construction of the quarries on aquatic biota will not be significant.

6.13 Contamination by Fuel and Oil Lubricants During Operation

Large-scale mining utilizes motorized vehicles and equipment such as drilling machines, backhoes, dumptrucks, etc., that use fossil fuel, an acknowledged contaminant. Operation and maintenance of these motorized machines provide possibilities for contamination of its immediate surroundings and influence areas. To ensure that the environmental impact of any contamination will be minimized, if not eliminated, the company will exercise due diligence in making sure that the heavy equipment and other motorized vehicles are well maintained.

In unavoidable instances when these machines indeed leak fuel and other contaminants, clean-up crews will collect and contain the fuel and/or lubricants and kept in a secured place prior to processing.

Various methods of cleaning the contaminants will be tested. One of these is phytoremediation, or the process of mitigating pollutant concentrations in contaminated soils, water or air with plants that are able to contain, degrade or eliminate metals, pesticides, solvents, explosives, crude oil and its derivatives, and other contaminants from the media that contain them. Some plant species are recognized to achieve this feat and will be used during operation.

Another approach is through bioremediation, or through the use of microorganisms such as fungi, green plants or their enzymes to return the natural environment altered by contaminants to its original condition. Bioremediation is used for specific soil contaminants, such as in the cleanup of oil spills by the addition of nitrate and/or sulfate fertilisers to facilitate the de Launch Internet Explorer Browser.lnk composition of crude oil by indigenous or exogenous bacteria.

The practice will not only protect the environment but will provide new knowledge and skills to those who will be directly involved in the process. This approach is expected to sit well with the monitoring team who will be tasked to ensure that the adverse impacts of the operation will be properly addressed. Toronto EIS Chapter VIII-1

Chapter 8. RECOMMENDATIONS

Strategies for a Successful Livelihood Program

A livelihood program is needed for the Palawan Nickel Project because it is a very effective way of establishing good corporate relations with the host communities. A further benefit would be that the host residents would not be overly dependent on the project proponents or developing the “dole-out mentality”. The livelihood programs stress hard work and equitable compensation and the dignity of labor. The program suggested is similar to other projects of proportional magnitude to this project. These programs are initiated to fulfill a variety of objectives and have been used by many corporate and governmental organizations over the years. These programs have been tried in past mining operations of the Proponent and are applicable to this project.

8.1 Objectives of the Livelihood Program

The livelihood program is intended to provide the community with the basic essentials for developing alternative livelihoods through a comprehensive process that involves community participation, situation analysis, problem solving, planning, decision-making, and monitoring evaluation.

8.2 Strategies

The following strategies can be adopted:

 Develop an information based on livelihood displacement caused by the projects as well as on alternative placement options

 Undertake community-organizing activities focused on alternative livelihood generation.

 Analyze infrastructure development requirements for the proposed livelihoods.

 Set-up a multi-purpose cooperative for financial and resources generation and management and the establishment of a revolving fund concept.

 Introduce small-scale livelihood and handicraft industries.

 Conduct training programs and skills development workshops/seminars

 Evolve cooperative agriculture development within the framework of the Agriculture and Fishery Modernization Act.

8.2.1 Activities

Some of the preparatory and infrastructure-building activities that must be undertaken are:

Toronto EIS Chapter VIII-2

 LIVELIHOOD DISPLACEMENT SURVEY – this should be conducted to determine the demographic, socio-economic and cultural profile of the people whose livelihood will be displaced, their preferred job placement as well as the available skills that will be needed in a “with project” scenario in mind.

 COMMUNITY ORGANIZING – this should be done in order to empower the communities in dealing with alternative livelihood concerns in a collective and cooperative manner. The primary components of community organizing include group consultations and discussions, identification of leaders, formation of special associations and groups, values formation and team building, training in conflict resolution and organization and management.

 INFRASTRUCTURE SUPPORT – as the community starts to package its alternative livelihood program, there will be some requirements for infrastructure support. One concrete example is the need to construct road networks to assure efficient delivery of market produce as well as irrigation and small water impounding requirements for agriculture based activities. The project proponent is expected to contribute to the funding for construction of some of these infrastructure requirements.

 COOPERATIVES ESTABLISHMENT – as the community becomes more organized, it becomes necessary that it be officially registered as a cooperative. With a cooperative, the community can start availing additional funds and resources that need not be provided by the proponent. The cooperative can negotiate supplemental development fund support from financing institutions such as the Land Bank and other institutions.

Cooperatives establishment requires the following procedures:

 Introduction of the community to the concept of cooperativism.

 Identification of key persons who can form the core group

 Election of officers

 Setting working arrangements

 Inviting and selecting members

 Training in cooperative management specifically in financial and management systems

 Setting goals relevant to alternative livelihood concerns

Toronto EIS Chapter VIII-3

8.3 Promotion of Small-Scale Industries

In general, the small-scale alternative livelihood enterprises are relatively easy to promote and implement in rural areas in collaboration with DOST, TLRC and TESDA. However, there may be other enterprises that would fit the capabilities and varying situations in the project site that can be validated and discussed with the community. Some of the potential sources of livelihood when the project is implemented or which the proponent shall considered are:

 Construction work during project start-up  Regular employment in the mining project once it is in operation: this would range from semi-skilled to highly skilled level of staffing requirements  Food processing, food catering and restaurant business  Agriculture and agro-forestry based enterprises  Buri, rattan and other minor forest products marketing and native handicraft- making

It is necessary that each enterprise should be tested for viability and sustainability; that the skills required are or will be available; and, that the alternative livelihoods will be tied in with existing markets and business establishments in the area,

8.4 Training Programs

In conjunction with other government agencies training programs that may be available in the area, the proponent may provide training assistance to members of the community. The proponent may hire a local competent NGO or training institution to develop a training program in cooperation with the LGU concerned. Training should also focus on relevant skills development and on increasing the capacity of the trainees to either land jobs for themselves or be able to set up their own enterprises.

 MONITORING AND EVALUATION- it is necessary for the project proponent to monitor and evaluate the success of this alternative livelihood generation program as it has a bearing on the conditionality set forth in the ECC. Monitoring and evaluation would provide the proponent as well as the DENR feedback that helps in determining program adjustments if needed as well as in knowing the effects of the program to all concerned.

 INSTITUTIONAL ARRANGEMENTS – There will be a Multi-Sectoral Environmental Monitoring Committee (MEMC) that is in charge of monitoring the operation of the project. Thus it is advisable that this livelihood generation component also be included as part of the tasks of the MEMC.

8.5 The GEOS, Inc. Agro-Forestry Development Program

The proponents have engaged the GEOS, Inc. to an Initial Assessment of the Critical Environment Issues and Impact Evaluation of the agro-forestry program of the project (See Annex B for additional information). Among the relevant sections of the report was an Agricultural Development Strategy that included a study on growing basic staple crops, vegetables, other plants and orchards in the site. The basic staple crops identified Toronto EIS Chapter VIII-4 were banana, cassava, corn, rice and camote. Vegetables include beans (sitao, mongo, soybeans), cucumbits (upo, patola, calabasa, ampalaya), crucifers (pechay, cabbage) and solanacious (talong, camatis, sili and okra). Herbal and fodder plants and ornamental plants as well as fruit tree and bamboo orchards were also prescribed alternative agro- forestry options.

GEOS, Inc. has also recommended that representatives of the host communities be invited to visit demonstration farm in other areas of Palawan and the country as part of the Municipal “Lakbay Aral” program. Among the highlights of the general profile of the agro-forestry farm projects are the following:

 Fodder crops – steep areas of over 40% slope should be planted to a range of fodder grasses and legumes known to be suitable to include Napier grass, and others.  Fruit trees – other steep areas could be planted to contour planted fruit-trees planted on planting platforms (jackfruit, mango, soup sop, sugar apples and guava).  Forestry – cogon infested land would be initially strip weeded and devoted to forestry including fast growing trees in order to create a micro climate within which indigenous species can be developed.  Bamboo and land stabilization – landslip areas could be stabilized by bamboos which also have a value for making fish cages, bamboo floors for housing and poultry houses. Land stabilization grasses could also be grown.  Hedgerow intercropping – lower slopes on fertile land are devoted to intensive crop production using contour planting strips. The legume trees have good alternative uses for mulch, animal feed, poles, firewood, fencing and human food. Intercropping of corn and green beans as well as sorghum for chicken feed could be planted. On high fertility areas other cash crops including asparagus, tomato, black pepper, leeks, onion, garlic, eggplant could be grown.  Livestock housing – could be done near water sources where native or exotic pigs and improved native chicken could be raised.  Organic fertilizer production from chicken and pig manure, including composting of bio-gradable materials.  Cash crops – may include Robusta coffee planted under coconuts with pepper, cashew and essential oil crops.

8.6 Environmental Monitoring Plan

Baseline data generated now form the basis in determining the changes that can be attributed to the proposed project. These changes will be measured through scientific instruments, when necessary, and performed by independent parties. The monitoring activities will focus, among others on: water resources, water quality, drainage and erosion control, noise level and ambient air quality.

Monitoring of specific elements in the environment necessitate observations of parameters as provided for in DENR guidelines. For instance, monitoring of water quality means looking at values on pH, color, total suspended solids, care and maintenance of settling ponds and silt dams.

Toronto EIS Chapter VIII-5

The DENR is still working on the classification of Pulot River. However, Section 4.1.3 describes the water quality characteristics of the river and is used for agriculture, irrigation, livestock, as well as for industrial water supply. In the absence of an official classification, monitoring of water quality can be based on its current use in the area.

The following table outlines the monitoring activities.

Table 8-1. Monitoring Activities Sources of Parameters Purpose Standard Methods Location Frequency impacts  Mine dimensions To monitor and mitigate  Bench height significant impacts To maintain mine  Berm Mine site Mining stability Visual inspection  Mine slope Access roads Weekly infrastructures To maintain access and surveying  Settling pond Haul roads  Access roads hauling road  Waste dumps  Color To monitor and mitigate Effluent sampling  TSS/TDS significant impacts Water quality  pH using Wells and clear Pulot river monthly  Pb, Cr, Hg, Ni, DENR standards water quality Fe monitoring To monitor and mitigate Mine site To be Noise Noise level significant impacts Noise meter Access road determined Haul road To monitor and mitigate Mine site To be Air quality Suspended PM significant impacts Air sampler Access road determined Haul road Buffer zone, To be Flora Species in the To monitor effects on Transect method undisturbed areas determined inventory existing flora within mine site To monitor effects on Visual/ auditory Species in the wildlife observations for Buffer zone, To be Fauna inventory birds; undisturbed areas determined Trapping for within mine site mammals

Monitoring activities should cover both operation and post operation phases of mining. During operation phase, monitoring should focus on the documentation of the changes on the vegetation coverage area as site stripping and excavation continue. The changes should be indicated on maps for a graphical representation the activities’ impact on flora. When referred to the company’s mine development plan, the monitoring output becomes an accomplishment report that is useful not only for management but for the community as well.

In post operation, monitoring should include faunal recovery patterns with the same methodologies used in establishing baseline data prior to operations. For instance, visual and auditory observations can be done for birds, while trapping, sightings and key informant interviews can be utilized for mammals, reptiles and amphibians.. Toronto EIS Chapter VIII-6

References

Aguilar, R.O. and G.A. Gonzales. 2001. Aquatic Ecosystems. University of the Philippines - Open University. 438 p.

Alcala, Angel C. and Brown, Walter C. 1998. Amphibians An Illustrated Field Guide. Bookmark Inc. Makati City, Philippines.

Allen, G., R. Steene, P. Humann and D. Deloach. 2003. Reef Fish Identification: Tropical Pacific. New World Publications, Inc.

ATSDR. 2000. Toxicological Profile for Chromium. Agency for Toxic Substances and Disease Registry, Division of Toxicology and Environmental Medicine, Department of Health and Human Services.

ATSDR. 2007. Toxicological Profile for Arsenic. Agency for Toxic Substances and Disease Registry, Department of Health and Human Services.

ATSDR. 2007. Toxicological Profile for Lead. Agency for Toxic Substances and Disease Registry, Department of Health and Human Services.

ATSDR. 2005. Toxicological Profile for Nickel. Agency for Toxic Substances and Disease Registry, Department of Health and Human Services.

ATSDR. 1999. Toxicological Profile for Mercury. Agency for Toxic Substances and Disease Registry, Department of Health and Human Services.

Boyd, C.E. 1982. Water quality management for pond fish culture. Elsevier Science Publishing Company, Inc. 318 pp.

Birdlife International 2003. Threatened Birds of Asia. International Red Data Book. Cambridge, UK: Birdlife International.

______1991. Bountiful Palawan.. Published by Aurora Publications Inc. Printed in the Philippines Compiled Articles for Palawan.

Chiu, Y.N. 1988. Water quality management for intensive prawn ponds. In: Y.N. Chiu, L.M. Santos and R.O. Juliano (Eds.), Technical Considerations for the Management and Operation of Intensive Prawn Farms. U.P. Aquaculture Society, Iloilo City, Philippines. pp. 102-128.

Convention on International Trade in Endangered Species of Wild Fauna and Flora, 2006 CITES-Listed Species Database, United Nation on Environmental Protection- WCMC, 3 October, 2006.

DENR. 1990. Department of Environment and Natural Resources Administrative Order No. 34 Series of 1990.

Toronto EIS Chapter VIII-7

Dickinson E.C, Kennedy R.S., and Parkes K.C, 1991 Birds of the Philippines BOU Checklist No. 12 British Ornithologist Union Cambridge UK. 507 p.

English, S., C. Wilkinson, and V. Baker. 1997. Survey manual for tropical marine resources. Australian Institute of Marine Science, Townsville, Australia.

Espiritu-Afuang, L.M. and J.C Gonzalez with contributions from A.T.L. Dans .1995. A Manual in Wildlife 101. Introduction to Philippine Wildlife. Wildlife Biology Laboratory, IBS, CAS UPLB

Esselstyn, J.A., P. Widmann, and L.R. Heaney. 2004. The mammals of Palawan Island, Philippines. Proceedings of the Biological Society of Washington 117:271-302.

Fernandez, Jose, Fe Fernandez, Edna /Imelda 2002. Palawan Flora and Fauna PTFPPPCSDS – EU p.75

Fernando, E. S. 1998, Inventory of Forest Plants in Subic Bay Metropolitan Authority, Philippines

Fortes, M.D. 1990. Seagrasses: A Resource Unknown in the ASEAN Region. Association of Southeast Asian Nations/United States Coastal Resources Management Project Education Series 6. 45 pp.

Gonzalez, J.C.T. 1997. A Pictorial Guide to Philippine Endemic Forest Birds of Mount Makiling, Luzon Island, Philippines. Part 1, UPLB Museum of Natural History, UPLB, College, Laguna.

Gonzalez, J.C.T. 1997.A Guide to the Birds of El Nido Northern Palawan, Philippines, Ten Knots Development Corporation.

Heaney, L.R., D.S Balete, M.M.L. Dolar, A.C. Alcala, A.T.L. Dans, P.C. Gonzalez, N.R. Ingle, M.V. Lepiten, W.L.R Oliver, P.S. Ong, E.A. Rickart, B.R. Tabarnza Jr., and R.C.B. Utzurrum. 1998. A Synopsis of the Mammalian Fauna of the Philippine Islands, Fieldiana (zool.) 88:61p.

Infante, C.R., R.M. Brown, A.C. Diesmos, G.V. Gee and J. Dimalibot. 2002. The search for the lost treasure of Palawan: The Philippines flat-headed frog. Haring Ibon 1st Q 2002: 12-15.

Krebs, C.J. 1989. Ecological Methodology. Harper Collins Publishers. p. 293 – 327

Kennedy R.S., P.C. Gonzales, E.C. Dickinson, H.C. Miranda and T.H. Fisher 2001. A Guide to the Birds of the Philippines Oxford University Press. p. 369.

Lutgens, F.K. and E.J. Tarbuck. 1986. Essentials of Geology. Second Edition. Bell and Howard Company. 346 p.

Magurran, A.E. 1988. Ecological Diversity and Its Measurements. Princeton University Press. p. 179

Toronto EIS Chapter VIII-8

Mallari N.A.D, Tabaranza B.R, and M.J Corby; with contribution for M.V Lepiten-Tabao and G.V.A Gee; in collaboration with the Department of Environment and Natural Resources and Bookmark, Inc. (2001). Key Conservation Sites in the Philippines: a Haribon Foundation and Birdlife International directory and important bird areas. Makati City Bookmark Inc.

Menez, E.G., R.C. Philipps and H.P. Calumpong. 1983. Seagrasses from the Philippines. Smithsonian University Press. 39 pp.

Nybakken, J.W. 2001. Marine Biology: An Ecological Approach. Fifth Edition. Benjamin Cummings, an imprint of Addison Wesley Longman, Inc. 516 pp.

Odum E. P. 1971. Fundamentals of Ecology. 3rd ed. Reprint, JMC Press Inc., Quezon City. p. 547.

PAWB – DENR. 2000. Statistics on Philippine Protected Areas and Wildlife Resources

PCSD. 2002. Coastal Resources Monitoring. Municipality of Narra, Palawan. Philippine Council for Sustainable Development, Puerto Princesa City, Palawan, Philippines.

PCSD, 2004. Brochure: Calauit Game Preserve and Wildlife Sanctuary. Palawan Council for Sustainable Development.

PCSD. 2005. The State of the Environment 2004. Province of Palawan, Philippines. Palawan Council for Sustainable Development, Puerto Princesa City, Philippines.

PHRDC. 1984. Manual on Environmental Survey Techniques. Prepared by the Environmental Survey Division, Philippine Human Resources Development Center, Bonuan-Binloc, Dagupan City, Pangasinan.

Rabor, Dioscoro R.,. 1977. Philippine Birds and Mammals. UP Science Education Center UP Press Quezon City p. 284

R.A. 9147. 2001, An Act adopting for the Conservation and Protection of Wildlife Resources and their Habitats, appropriating funds therefore and for other purposes. Philippine Congress

R.A 7611. 1992. An Act adopting the Strategic Environmental Plan for Palawan, creating the administrative machinery to its implementation converting the Palawan Integrated Area Development Project Office to its supports staff, providing funds therefore, and for other purposes. Philippine Congress

R.A. 7586. 1992. An Act for the establishment and management of National Integrated Protected Areas System, Defining its scope and coverage, and for other purposes. Philippine Congress

Saito, Y. and S. Atobe. 1970. Phytosociological study of intertidal marine algae. I. Usujiri Benten-Jima, Hokkaido. Bulletin of the Faculty of Fisheries, Hokkaido University 21:37-69.

Toronto EIS Chapter VIII-9

Spotte, S. 1979. Fish and Invertebrate Culture: Water Management in Closed Systems. Second Edition. John Wiley and Sons, Inc. 179 p.

Stickney, R.R. 1979. Principles of warm water aquaculture. John Wiley and Sons, New York. 375 p.

Trono, G.C. Jr. 1997. Field Guide and Atlas of the Seaweed Resources of the Philippines. Bookmark, Inc. Makati City, Philippines. 306 pp.

Trono, G.C. Jr. 2004. Field Guide and Atlas of the Seaweed Resources of the Philippines. Volume 2. Bureau of Agricultural Research, Department of Agriculture, Quezon City and Marine Environment and Resources Foundation, Inc., Marine Science Institute, University of the Philippines. 261 pp.

Trono, G.C. Jr. and A. Saraya. 1987. The structure and distribution of macrobenthic algal communities on the reef of Santiago Island, Bolinao, Pangasinan. Philippine Journal of Science 63-81.

Wetzel, R.G. 1983. Limnology. W.B. Saunders Co. Publishing, New York. 767 p.

Wildlife Conservation Society of the Philippines. 1997. Philippine Red Data Book: Red List of Threatened Animals, Makati City Bookmark, Inc.

World Conservation Union or International Union for the Conservation of Nature and Natural Resources (IUCN), List of Endangered Species 2001-2005, Latest version

10.0 Contingent Liability and Rehabilitation Fund (CLRF) Proposal

Table 10-1. Summary of Projected Income and Expenditur annual 10yrs total 10 yrs total average US$ PhP total production Toronto and Pulot, 13 yrs wet metric tons 14,580,000 Average annual production Toronto and Pulot WMT 1,121,538 ave production cost, at $20.80/ton 23,328,000 233,280,000 10,730,880,000 total revenues, 13 yrs toronto & pulot, ave selling price $31/WMT 762,845,850 ave annual gross sales toronto and pulot 58,680,450 ave annual gross sales Toronto only 29,340,225 293,402,250 13,496,503,500 excise tax 2% of annual gross 586,805 5,868,045 269,930,070 LGU 40% of 2% 234,722 2,347,218 107,972,028 annual operating cost 60% of gross sales 17,604,135 176,041,350 8,097,902,100 bus multiplier effect 5% of annual operating cost 880,207 8,802,068 404,895,105 ave mining milling cost $5.65/ton 6,336,692 63,366,923 2,914,878,463 annual epep 5% of direct mining/milling costs 316,835 3,168,346 145,743,925 annual dev of host community, camp 1% of milling/mining costs 63,367 633,669 29,148,783 royalty for host n neighboting ICCs/IPs 1% of gross sales 293,402 2,934,023 134,965,035 total net profit, 10 years 108,558,833 4,993,706,295

From Table 9-1 lifted from the feasibility study conducted for the project, the company stands to earn around US$10M a year. The revenues that can be realized will facilitate the establishment of the Contingent Liability and Rehabilitation Fund (CLRF)to ensure availability of resources for rehabilitating mine sites so new land uses, like forestry, can be introduced. The company will submit to the Mines and Geosciences Bureau (MGB) plans covering establishment of final mine rehabilitation and decommissioning funds (FMRDFs).The fund will ensure that rehabilitation or restoration of the mined areas will indeed happen.

Once the EPEP and SDMP are completed, the budget allocation for the CLRF will be established.

(insert projected income-expenditures table)

Toronto Nickel Mining Project Chapter XI-1

11.0 Commitments and Agreements

To address the findings of the Social Development Plan, the company will consider incorporating into the mining \development plan and activities, commitments of support on the following:

Table 11-1. Summary of Income and Expenditure Projections annual 10yrs total 10 yrs total average US$ PhP total production Toronto and Pulot, 13 yrs wet metric tons 14,580,000 Average annual production Toronto and Pulot WMT 1,121,538 ave production cost, at $20.80/ton 23,328,000 233,280,000 10,730,880,000 total revenues, 13 yrs toronto & pulot, ave selling price $31/WMT 762,845,850 ave annual gross sales toronto and pulot 58,680,450 ave annual gross sales pulot only 29,340,225 293,402,250 13,496,503,500 excise tax 2% of annual gross 586,805 5,868,045 269,930,070 LGU 40% of 2% 234,722 2,347,218 107,972,028 annual operating cost 60% of gross sales 17,604,135 176,041,350 8,097,902,100 bus multiplier effect 5% of annual operating cost 880,207 8,802,068 404,895,105

Possible interventions in agriculture are:

Recommendations for electricity and access improvements:

▪ Providing initial investment costs in developing infrastructure utilities. ▪ Developing subsidy arrangements for service provision to make them more affordable.

To address health and access problems, possible interventions are:

To improve participation of school possible interventions are:

▪ Extend schooling to communities in very remote and inaccessible areas. ▪ Promote distance learning ▪ Invest in school facilities and hiring of school teachers. ▪ Train local teachers.

Toronto Nickel Mining Project Chapter XI-2

Company Commitments

Community Relations Office

The company shall strengthen its community relations through constant communications and dialogues between the host community and the company. Main point of consideration shall be the social and economic concerns of the community. A CRO shall handle the communications between the company and the local residents, to keep them informed of any plans and programs of the company which have any bearing on their lives. The office of the CRO shall serve as an active arm of the company in empowering the members of the community.

The CRO shall involve in livelihood project to address specific concerns which can promote the social and well being of each member of the community. This will include some social affairs to foster camaraderie among the workers, residents, elders, local officials and officers of the company.

Church and Religious Involvement

The company shall actively participate in church and religious activities to promote respect, religiosity and preserve morality among members of the community. As the Church is perceived by many of the residents of Espanola as the communities’ source of spiritual guidance, the company shall endeavor to seek fruitful collaboration with the religious institution and its leadership to help facilitate the conceptualization, formulation and implementation of realistic, doable and responsive interventions designed to address rural poverty conditions.

Sports and Cultural Activities

The company shall sponsor sports competition and activities to foster closer relationship not only among the workers, but also the residents themselves. The activity will encourage the youth to go into active sports during vacation and school breaks, and hopefully be weaned away from undesirable elements and activities that eventually will result in problems not only for the concerned household but the community as well.

The company shall keep its door open and will support initiatives toward the betterment of community quality of life, preserve its lifestyle and maintenance of its values. Towards this end, the company will allocate resources, in collaboration with other stakeholders and the local government unit, for activities that will result in improvements in the living conditions of affected communities and beneficiaries.

Local Employment

The project will provide employment to the local populace who will directly be employed in the project’s operation. In addition, it has been established that involvement of people in development activities like mining, road construction, erosion control, ore crushing, etc., allow transfer of life-long skills and technology that the recipients can use productively in other endeavors even after their involvement in such activities have long ceased. Studies prove that learning Toronto Nickel Mining Project Chapter XI-3 through hands-on skills-transfer is more effective and results are immediately realized.

Taxes

The government will directly benefit from the revenues from the mining operation and sale of mine produce in the forms of sales tax, excise tax, occupation fees, income tax, value added tax, sale or purchase of lands, lease of pier, licenses, permits, regulatory fees and other dues from the operator, permittee, landowners, contractors and employees.

Share from Gross Sales

The government share from the Gross Sales is equal to the Excise Tax mandated by law.

Increase Per Capita Income

The mining project will help alleviate the livelihood of host locality particularly the primary and secondary impact areas.

Spur Economic Activity

The project will generate business opportunities to the locality as the congregation of an increased number of people in a common area requires additional services like transport, food, clothing and other basic needs. This phenomenon provides opportunities for enterprising residents to take advantage of acquire an alternative source of livelihood.

Sustainable Development of Natural Resources

This project will promote responsible development and utilisation of our country’s natural resources. The company is a strong proponent of responsible mining, as manifested in its letter to the DENR because of alarming information regarding the continued environmental degradation at the Toronto Mines in Narra. The company considers highly this responsibility that it plans, as its initial activities in both Pulot and Toronto Mines under its single MPSA awarded by the DENR, to assess the state of degradation in both mine sites and immediately institute corrective measures. This is an expression of its sincerity to implement responsible mining that will not only seriously consider protection and conservation as part of its interventions, but also to ensure that the benefits of the activity are shared equitably with the affected communities and local government units.

Local and Foreign Capital Inducement

Local and foreign capital, once activities are started within the framework provided by law, will be encouraged to come in and pump prime the Philippine nickel mining industry. Foreign investments will boost the country’s development and help establish the country as a sound investment opportunity in the region. This will make the Philippines a significant player in the development Toronto Nickel Mining Project Chapter XI-4

arena as provider of raw materials needed by industrialized countries. This initial setup may evolve into a value-adding scheme once safe and sound ore processing technology is developed and adapted in the country.

Human and Community Development

Admittedly, a major component in any human and community development is resources. The company will participate in supporting developments in education, health, safe water sources, rural infrastructure, micro-financing, and other services to communities. It will also extend a hand in indigenous farming and handicrafts, affordable technologies to agri- and aqua-farming, support to spiritual development and moral protection, by bringing in new knowledge and technology and effectively linking the communities with the consumers and potential markets. Livelihood opportunities are enhanced by the provision of current information on market prices, raw materials, new trends and patterns, and evolving interests both in the local and world markets. The company can help in accessing information and make this available to local producers and entrepreneurs as part of its commitment to the host communities and local governments.

This intervention will encourage entry of private entities to directly participate and collaborate with the communities and with the local government in extending support as a corporate example of sound investment.

Save Government Funds

The mining activity will help the country save limited resources in its poverty alleviation programming and implementation. The company will endeavor to partner with national and local governments to seek a common path that will benefit directly the affected communities and bring them to the mainstream of development. This can be attained by breaking their relative isolation and improving access to information, to technology, basic services, and opportunities for a better future.

 Bibliography

Catibog-Sinha, C.S. and L. R. Heaney. 2006. Philippine biodiversity: Principles and Practice. Quezon City: Haribon Foundation for the Conservation of Natural Resources, Inc. 495pp.

Cranfield, Peter. "The Nickel Industry - long time drivers of supply and demand." International Nickel Study Group. 02 October 2006. 13 Jun 2007 .

DAVID PIMENTEL, LORI LACH, RODOLFO ZUNIGA, AND DOUG MORRISON. 2000. Environmental and Economic Costs of Nonindigenous Species in the United States Vol. 50 No. 1 . BioScience

Toronto Nickel Mining Project Chapter XI-5

Dickinson, E.C, R.S. Kennedy, and K.S. Parkes 1991. The Birds of the Philippines: An Anotated Check-list. B.O.U. checklist No. 12. British Ornithologists Union , United Kingdom. 507 pp.

GAIA South, Inc., Palawan Cement Project, EIS, Vol.1, 1997

Gonzalez, J.C.T. and A.T.L. Dans 1998. Birds and Mammals of the Fragmented Forest along Anahavin River, int. Iglit-Baco National Park, Mindoro Is. , Philippines. Sylvatrop Tech. J. of Philippine Ecosystems and National Reservation 8 (1 and 2): 43-61.

Hand, Scott. "Participate in the New Mining Super Major." Inco Investor Center. 24 July 2006. Inco. 13 Jun 2007 http://www.inco.com/investorinfo/presentations/July24.2006.pdf

Heaney, L. R. 1979. A new species of tree squirrel (Sundasciurus) from Palawan Island, Philippines (Mammalia: Sciuridae).—Proceedings of the Biological Society of Washington 92:280–286.

Ibanez, J.C., D.S. Afan, G.A. Balaguit, G.L.L. Buser and K.M. Gatil. Nates on the Bird Species Diversity of the highlands of Davao Orriental and Davao Provinces, Mindanao. Sylvatrop Tech. J. of Philippine Ecosystems and National Reservation 8 (1 and 2)

IUCN 2004. 2004 IUCN Red List of Threatened Species. . Downloaded on 15 May 2007.

Kennedy , R.S. , P.C. Gonzales, E.C. Dickinson, H.C. Miranda, Jr. and T.H Fisher. 2000. A guide to the Birds of the Philippines. Oxford University Press, Oxford 369 pp.

National Water Resources Council, Palawan Island Basins, 1983

National Water Resources Council, Rapid Assessment of Water Supply Sources, Province of Palawan, 1982

Narra Nickel Mining and Development Corporation, Environmental Protection and Enhancement Program

Nybakken, James. 1997. Marine Biology: An Ecological Approach. 4th ed. Menlo Park, CA: Addison Wesley. PCSD. 2001.

Project Description, Pulot Nickel Mining Project, Citinickel Mines and Development Corporation, 2007

Pulvinar, Vicente T., Project Feasibility Study, Citinickel Mines and Development Corporation, Pulot and Toronto Mines, Palawan, June 2007

RNCOS. "China's Hunger for Nickel Growing, Imported 3.78 Million Tons of Nickel Ore in 2006 ." Toronto Nickel Mining Project Chapter XI-6

RNCOS. 01 March 2007.

RNCOS. 11 June 2007 .

Stattersfield, A. J., M. J. Crosby, A.J. Long, and D. C. Wege. 1998. Endemic Bird Areas of the World: Priorities for Biodiversity Conservation. Cambridge, UK: Birdlife International.

Travis Q. Lyday, "The Mineral Industry of the Philippines." U.S. Geological Survey Minerals Yearbook (2000): 21.1-21.4.

The Philippine Minerals Sector. Quezon City: Mines and Geosciences Bureau, 2004.

Transcripts of Scoping Meeting and Consultations, Pulot Nickel Mining Project, Citinickel Mines and Development Corporation, 2007

Watson, J.W., K.R. McAllister, D. J. Pierce, and A. Alvarado. 2000. Ecology of a remnant population of Oregon spotted frogs (Rana pretiosa) in Thurston County, Washington. Final Report. Washington Department of Fish and Wildlife, Olympia, Washington, USA.

Young, B. E., S. N. Stuart, J. S. Chanson, N. A. Cox, and T. M. Boucher. 2004. Disappearing Jewels: The Status of NewWorld Amphibians. NatureServe, Arlington, Virginia. http://www.tiem.utk.edu/~gross/bioed/bealsmodules/shannonDI.html http://www.tiem.utk.edu/~gross/bioed/bealsmodules/simpsonDI.html

Toronto Nickel Mining Project Chapter XII-1

12.0 Commitment to the Indigenous Communities

The indigenous communities within the influence area of the Toronto Nickel Mining Project entered into a Memorandum of Agreement (MOA) with Citinickel signed on June 13, 2008. The document outlines the commitments and obligations of the Palawano and Tagbanua ICCs/IPs and Citinickel throughout the project life. The document is signed by community representatives from the affected barangays Narra.

The National Commission on Indigenous Peoples (NCIP), a government agency mandated to provide guidance and assistance to indigenous peoples, acts as the Third Party in the agreement.

The MOA outlines the terms and conditions for the implementation of the mining project, defines the limitations of the consent granted to Citinickel, and lists the additional benefits for the affected ICCs/IPs. The document describes the commitments and obligations of the agreeing parties in ensuring adverse impacts on the environment will be properly and appropriately addressed and acted upon.

The document is an endorsement of the IPs/ICCs of the proposed mining project and an expression of their free and voluntary consent for Citinickel to undertake the activity within their lands.

For its part, Citinickel commits to the following:

 Adopt and assume the obligations and responsibilities of PGMC, foremost of which is to provide specific measures for the conservation/ protection of the Ancestral Domain of the Palawano and Tagbanua ICCs/IPs such as the following:  Protect from damages all agricultural crops and fields within the impact barangays of the Toronto Mining Area  Post an environmental guarantee bond  Avoid the use of toxic or poisonous chemicals in the implementation of the project  Establish a nursery project employing trained and qualified IPs/ICCs to reforest denuded and mined-out areas and river banks.  Build a series of siltation ponds and protective dikes around the mining area  Provide free seeds, fertilizers, pesticides and other farm inputs to the IPs/ICCs

Citinickel also agrees to respect the IPs’ cultural traits, traditions and practices, including their inherent rights to their ancestral domain, their burial grounds and the right to practice their traditional land ownership system. The document enumerates that Citinickel shall:

 Respect the rights of the IPs/ICCs to preserve and develop their culture, customary laws, traditions, practices and institutions. Toronto Nickel Mining Project Chapter XII-2

 Provide justifiable compensation for land use, destruction of crops and properties  Provide support to the annual cultural festivities of the IPs/ICCs  Give preference to qualified IP members for possible job placement  Pay royalty equivalent to 1% of the gross revenues  Provide assistance and provisions to be funded from the social development fund on: education, health, livelihood, infrastructure, potable water supply, etc., that will enhance the prestige and well-being of the IPs/ICCs  Provide funds and assist the ICCs/IPs in their application for Certificate of Ancestral Domain Title (CADT)  Commit to comply with the Environmental Impact Statement and the Environmental Compliance Certificate or mitigate the negative effects of mining on the environment.

Citinickel also commits to grant the following specific benefits to the IPs/ICCs:

 Respect the property rights of all members of the community including those who stood against the project  Absorb the IPs/ICCs employed by PGMC  Provide the budget to cover environmental and social development programs such as reforestation, waste management and education  Rehabilitate the 16 km road from the mine site to the national highway  Provide educational assistance to deserving students from Narra  Provide priority employment opportunities exclusively to the IPs/ICCs  Provide other benefits such as: free medical and dental services; employment opportunities to qualified IPs in the project; provide allowances to qualified IPs pupils; replace trees to protect waterways and river systems;deposit a surety bond with the NCIP trust account; backfill test pits; prohibit cutting of trees in the project site; prevent soil erosion that may result from the mining activities; conduct regular consultations with the IPs/ICCs; respect sacred grounds of the IPs/ICCs; furnish the IPs and the NCIP a copy of the project results done in the ancestral domain

The NCIP agrees to monitor the parties’ compliance with the terms and conditions of the MOA and other associated responsibilities. The agency commits to conduct financial audit, regular inspections, be part of the Monitoring Team and submit reports.

The agreement provides Citinickel a list of development assistance commitments to the IPs/ICCs, which will be part of the Social Development and Management Plan.

The Memorandum of Agreement between the IPs/ICCs, NCIP and Citinickel is Annex 4.