1.0 TABLE OF CONTENTS Chapter Page 1.0 Table of Contents 2.0 Executive Summary 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.