The Project is located within the industrial facility of Rio Tuba Nickel Mining Corporation (RTNMC) in Brgy. Rio Tuba, Bataraza, Palawan. Since 1977, RTNMC has been mining saprolitic nickel ores selling them to ferro-nickel smelters abroad. In more than 25 years of operation, it also generated mine wastes of about 25 million tonnes. Called low grade limonitic mine wastes, these are stockpiled around the mine area. CBNC will process these stockpiles using the technology called HPAL or high pressure acid leach.

1. Update of
Sumitomo Metal Mining Co., Ltd.’s
Hydrometallurgical Processing Plants
For Low Grade Nickel Ores
In the Philippines

2. SUMITOMO HPAL PROJECTS
54% 100%
2

3. HPAL Technology adds value to materials
previously considered as mine wastes
From low-grade limonitic laterites NiO - 0.8 to 1.5 % Ni
stockpiled as
“mine wastes” by RTNMC’s and TMC’s CoO – 0.1 to 0.2 % Co
saprolite mining operations,
NiS - 55 to 57 % Ni
CoS – 4 to 5 % Co
The HPAL process creates valuable
intermediate products
in the form of
Mixed Ni and Co Sulfides.

4. Palawan HPAL Project
Hydrometallurgical Processing Plant (HPP)
Coral Bay Nickel Corporation (CBNC)
The Project is located within the
industrial facility of Rio Tuba Nickel
Mining Corporation (RTNMC) in Brgy.
Rio Tuba, Bataraza, Palawan.
Since 1977, RTNMC has been mining
saprolitic nickel ores selling them to
ferro-nickel smelters abroad. In more Coral Bay Nickel Corporation
than 25 years of operation, it also
generated mine wastes of about 25
million tonnes. Called low grade
limonitic mine wastes, these are
stockpiled around the mine area.
Rio Tuba Nickel Mining Corp
CBNC will process these stockpiles
using the technology called HPAL or
high pressure acid leach.

5. HPP LINE 1 (ECC granted July 10, 2002)
PERFORMANCE AFTER 4 YEARS
(April 2005 – April 2009)
July, 2002 to August, 2004 – Construction
August, 2004 to March, 2005 – Commissioning
April, 2005 – Start of Commercial Operation Ore Processed – 3,487,000 DMT
Ore Grade – 1.26 % Ni, .089 % Co
Annual Production Production – 37,700 DMT Ni & 2,800 DMT Co
10,000 MT Nickel, 750 MT Cobalt Metal Recoveries – 87.2 %Ni, 84.9 % Co
Employed – 2,125 (7.5% Female, 71.3 % Locals)
Capital Investment – US$ 200 Million Taxes Paid – Php 993 Million

6. Tailings Dam
#2
HPP LINE 2 (ECC granted Feb. 1, 2007) COMBINED PRODUCTION CAPACITY
June, 2006 to Jan. 2009 – Construction
Designed:
Feb. 2009 to May, 2009 – Commissioning
Annual Nickel Production – 20,000 DMT/yr
June, 2009 – Start of Commercial Operation
Annual Cobalt Production – 1,500 DMT/yr
Annual Production
Upgraded:
10,000 MT Nickel, 750 MT Cobalt
Annual Nickel Production – 24,000 DMT/yr
Annual Cobalt Production – 1,860 DMT/yr
Capital Investment – US$ 308 Million

7.  Environmental Protection and Enhancement Program
(EPEP)
 Social Development and Management Program
(SDMP)
 Final Mine Rehabilitation and Development Program
(FMR/DP)

8. Particulars Requirements Compliance
1. CAPEX on Pollution 10 % of Project CAPEX Php 3.5B or 14% of CAPEX
Control Facilities
2. OPEX on Pollution 3-5% of Operating Costs Php 2B/yr or 18-20% of OPEX
Control Facilities
ELECTROSTATIC
PRECIPITATOR STACK
STACK STACK STACK
BOILER
SCRUBBERS
FLASH TANKS SCRUBBER
GENERATOR
AUTOCLAVE

9. Particulars Requirements Compliance
3. CLRF – Contingent Php 5.25 M Deposited in 2003 at the
Liability and Development Bank of the
Rehabilitation Fund Philippines
4. MRFC – Mines 9 Members 10 Members (Plus one rep of
Rehabilitation Fund the Environmental Research
Committee and Development Section)
5. MMT – Multi-partite 10 Members 19 (Plus additional reps from
Monitoring Team MGB, EMB, PCSD, LGU and
the Church + 4 samplers)
6. MEPEO – Mine 1 Office (MEPEO) 1 Office called EMO plus 10
Environmental Protection staffs of environmental
and Enhancement Office scientists, forester, marine
biologist and 15 IPs for
reforestation and industrial
wastes handling

10. Particulars Parameters Standards Actual
1. Effluent Siltation pH @ 6.5 – 9.0 8.0 – 8.5
Qualities pond TSS < 70 mg/L < 10
effluent Temperature < 3 deg C rise < 1 deg C
Oil and grease < 5 mg/L <1
Cr +6 < .1 mg/L < .1
Pb < .3 mg/L < .05
Tailings dam pH @ 6.0 – 9.0 8.0 – 8.5
supernatant TSS < 150 mg/L < 10
Temperature < 3 deg C rise < 1 deg C
Oil and grease < 10 mg/L <1
Cr +6 < .2 mg/L < .1
Pb < .5 mg/L < .05
Notes:
a) Quality of water from the pond and dam are well within the standards.
b) As, Hg and Cd contents are also analyzed and are below detection levels.

11. Particulars Parameters Standards Actual
2. Air Plant CO < 500 mg/Ncm 60-100
Qualities Emissions NOx < 1,000 mg/Ncm 60-100
SOx < 700 mg/Ncm 60-80
Opacity < 20 Percent 10-15
H2S < 7 mg/Ncm <1
Acid mist < .3 mg/Ncm <.07
Ambient Air TSP, at plant < 300 ug/Ncm 50-250
TSP, at houses < 230 ug/Ncm 10-150
Noise, at plant < 85 Decibels 60-75
Noise, at houses < 60 Decibels 45-50
Notes:
a) Actual air quality considerably lower than maximum allowable levels.
b) Monitoring done in plant site (for source specific standards) and populated
areas (for ambient air quality standards).

12. Environmental Monitoring
Monthly In-house, by EMO Quarterly Visit, by MMT
Environmental Assessment
Fauna Coastal
Flora
Resources

13. Plant effluents and emissions to be
“beyond compliance” with DENR standards,
and had no adverse effect on the environment.

14. Particulars Requirements Compliance Commitment Remarks
1. Financial > 1 % of Direct 1. 02%, or P149 M 1. 00%, or P439 M 2.9 times
Allocations Mineral for SDMP 1 for SDMP 2 higher
Processing Cost (2004-2008) (2009-2013)
Free medical services Subsidized schooling for 1,000 houses to the IPs
to all IPs and non-dependents, up to through the
indigent non-IPs high school Gawad Kalinga concept

15. EDUCATIONAL ASSISTANCE
SDMP scholars during a team building seminar. Out of 600 scholars,
77 graduated from college.
Some of the 7 school buildings, 14 classrooms constructed.

16. COMMUNITY SERVICES

17. OTHER COMMUNITY SERVICES

18. INFRASTRUCTURE PROJECTS

19. LIVELIHOOD PROJECTS

20. Particulars Requirements Compliance Commitment Remarks
2. Community Com-Rel Section Com-Rel Section To monitor
Organization Relations Office
Requirement Rio Tuba Nickel Rio Tuba Nickel To implement
Foundation Inc. Foundation Inc.
3. Coverage 5 Host and 5 5 Host and 6 5 Host and 6 Additional brgy
Neighboring Neighboring Neighboring of MNLF rebel
Barangays Barangays Barangays returnees
Interested ICCs Twelve (12 ) ICCs Twenty four (24) Doubled
ICCs

21. Particulars Requirements Compliance Remarks
1. Financial Php 106 Million To implement Approved by
Budget within 10 years after MGB on Dec.
closure. 14, 2009
2. Coordination Must align with their After MGB LGU still
with LGU CLUP approval. preparing their
CLUP
3. Fund To be deposited in a To comply. MGB
Allocation gov’t-assigned bank requirement
for 7 years, from 2012
to 2019

22. HPP Project Area End-of-Project Land
Site (ha) Use
HPP Complex 35 Forestland
Tailings Dam 1
&2
Impoundment 187 Industrial tree plantation
area
Embankments 29 Reconstructed shrubland
Water storage 28 Aquaculture
Sanitary Landfill 4 Sports ground or public
open space
Port area 36 Coconut land
including
causeway

23. Taganito HPAL Project
Hydrometallurgical Processing Plant (HPP)
Taganito HPAL Nickel Corp (THPAL)
The Project is located adjacent to the
mine site of Taganito Mining
Corporation (TMC) located in
Barangay Taganito, Claver, Surigao
Del Norte.
Since 1987, TMC has been mining Taganito HPAL Nickel Corporation
saprolitic nickel ores selling them to
ferro-nickel smelters abroad. In more
than 20 years of operation, it also
generated mine wastes of about 18
million tonnes.
Taganito Mining Corporation
THPAL will process these stockpiles,
as well as in-situ limonites of TMC,
using the technology called HPAL or
high pressure acid leach.

24. Ore Requirement: Approx. 4.9M WMT
Nature of Project: Nickel Oxide Ore of low grade nickel oxide ore
Processing utilizing Hydrometallurgical (limonite) from TMC
Process
Estimated Operating Life: 30 years
Project Operator: Taganito HPAL Nickel
Manpower Requirement:
Corporation (THPAL)
Construction ~ 4,000
Operation ~ 1,000
Project Location: Barangays Taganito,
Project Schedule:
Urbiztondo, Hayanggabon and Cagdianao,
Claver, Surigao del Norte Construction – March 2010
Commissioning – April 2013
Commercial Production –Aug. 2013
Product/Annual Production Capacity:
Nickel-Cobalt mixed sulfide (30,000 tons
of Ni and 2,600 tons of Co) Capital Cost: US$ 1.3 Billion

25. Project Components Site Development Plan
Wharf
Ore Yard
Desalination
Plant
HPAL Plant
Complex
Dormitory
Materials Storage
Facilities
Tailings Storage
Facility

26. Project Update Government Certificates
NCIP’s CERTIFICATE
ECC 0804-012-3721 OF PRECONDITION
granted on Sept. 3, granted on November
2008 by EMB-DENR 19, 2009
PEZA Certificate of
ECC AMENDMENT Registration as
granted on Sept 3, 2009 ECOZONE EXPORT
by EMB-DENR ENTERPRISE granted
on January 7, 2010

27. Project Update On-going Construction Activities

28. Project Update On-going Construction Activities
CONSTRUCTION PROGRESS
Activity Equivalent
Item Progress as of
Description Contractor Percent Percent
# Aug. 20, 2010
Weight Weight
Site Grading & Road
1 SMCC 5 60 3.0
Construction
2 Wharf SMCC 4 71 2.8
3 Tailings Dam SMCC 7 3.4 0.2
4 Dormitory Complex SMCC 3 13 0.4
5 Power Station Plant FHI 10 0 0.0
HPAL Plant (Main Equipt,
6 TJCP/SMCC 71 0 0.0
Road, Bldg.,Piping, and etc.)
Total (%) 100 6.5

29. Environmental Protection &
Community Development Activities
CSR
Activities
IEC and
Consultations