PHILEX MINING COMPANY CASE

Philippine Mining manifesting responsible and ethical business projects and activities We do our best to institutionalize and be proactive in our environmental management. The company believes that in the event of a disaster, the mine will not only be the one affected but, more importantly, the countless communities and residents who have sustained and supported us over the years. We owe it to them. Victor Francisco, Manager of the Environment and Community Development, Technical Services Group, Philex Mining Company Philex Mining is a mining company found in the southern tip of Baguio City subjugating the Municipalities of Tuba and Itogon in Benguet which is the home of more or less four indigenous communities namely, Ibaloi, Kalanguya, Kankanoy, and Ilocano. Mines and Geosciences Bureau of the Department of Environment and Natural Resources have identified Philex Mining Company as one example of a mining company striving to exercise corporate social responsibility not only with their internal shareholders but with their external stakeholders as well. Company Vision as regards CSR In order to practice Corporate Social Responsibility at its best, Philex Mining Company has identified key elements of their policies and have compartmentalized these policies under environment, social, governance, and economic. Environment: The Company is incorporating environmental considerations, may it be exploration, development, construction, extraction, and or processing in their project planning phase. The company is also following standards in environmental law to minimize environmental risks and destructions. Lastly, Philex Mining is also coordinating with their people and business partners to ensure safe and productive transfer of resources and materials for bright results not just to the company per se but for the external shareholders as well. Social: The Company is promoting awareness in the communities proximate to the mining area by informing people in the community/mining area of the Companys local mining plans. Likewise, The Company is providing their employees with trainings and awareness programs regarding policies and skills. Governance: The Company is encouraging their shareholders to contribute to nation-building. Economic

The Company is supporting research works to enhance performance and to incorporate new technologies to improve productivity of Company. Actions and Approaches So far, the company is practicing Environment and Community Relations through coordinating, formulating, implementing, and recommending changes in policies, procedures and trainings related to environment and community development. Philex Mining also has its Environmental Committee under the Environment and Community Relations Department which conducts regular community inspections. Their basic objectives are to address and educate the public perceptions regarding supposed environmental damages caused by mining. In addition to that, they wish to provide 2,500 full-time mining jobs to locale employees. The Company also wish to help the children of miners to finish their elementary and secondary education. Philex Mining has already engaged in successful projects such as construction of school buildings, initiating livelihood programs, training out of school youth, and has established information, education, and communication program for communities there. They have upgraded the agricultural and resource based industries and has constructed irrigation systems in terms of industry-based projects. They have provided free medical and dental services to employees and nearby communities in terms of social-based projects. Philex Mining has complied with ISO 14001 series: Environment Management System Certified. They have reforestation projects, ecological waste management, and has drafted a post-mining development plan to minimize dislocations in terms of environmental projects. DEAR EM STUDENTS, Your Individual Research Assignment covers two parts: Part One. IDENTIFY PHILEX MININGS IMPACTS ON STAKEHOLDERS (matrix form) Part Two. PROVIDE AN UPDATE ON PHILEX MININGS CSR FRAMEWORK (research on any development as regards their corporate social responsibility initiatives)

Your research work may be submitted thru erik_sy@yahoo.com; or you may direct it to hsangabriel@uap.edu.ph and/or you may print your answers and drop it at miss dangs pigeon hole at the CSR office, ACB, 7th floor, UA&P. deadline of submission is December 18, 2009; 8PM. Thank you, Ms. Dang Felipe San Gabriel, CSR Faculty

December 15, 2009