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Rapu Rapu copper minePhilippines

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Profile by:
BankTrack
Contact:

Johan Frijns, BankTrack, the Netherlands

Last update: 2015-11-01 14:53:10
Photo: Johan Frijns

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Profile by:
BankTrack
Contact:

Johan Frijns, BankTrack, the Netherlands

Last update: 2015-11-01 14:53:10
Why this profile?

What must happen

The mine constitutes a threat to both local peoples' livelihood and the islands 'fragile ecosystem. It lacks a social license to operate, as it continues to be widely opposed by the local communities.
About
Sectors Mining
Location
Status
Planning
Design
Agreement
Construction
Operation
Closure
Decommission
This project has been identified as an Equator Project

The Rapu Rapu Polymetallic Project on Rapu Rapu island in the South East of the Philippines is a open pit mine with a estimated annual production of approximately 11,000 tonnes of copper in concentrates, 13,000 tonnes of zinc in concentrates, as well as amounts of gold and silver. It is fully operating since early 2007 after an initial aborted operation in 2005 due to two cyanide spills. The mining company has exploration leases that cover over 80 percent of the island surface.

The island of Rapu Rapu (population 10.000) is home to agricultural and fishing communities reliant on natural resources for their livelihoods. The fragile but relatively intact island ecosystem hosts several bird and mammal species severely threatened elsewhere in the Philippines while the waters surrounding the island teems with fish and marine mammals. Whales, dolphins, whale sharks, turtles egrets and purple herons are frequently sighted.

Impacts

Other impacts

Ever since its inception, the project has met with fierce resistance from the local communities, supported by a coalition of NGOs, church groups, fisher folks, local government bodies and international campaign groups. Concerns have focused on:
  1. Inadequacy of environmental and social impact assessment process
  2. exposure to typhones, as situated right in the Typhone belt, with three typhones hitting the island in second half of 2006 causing extensive damage to the mine site
  3. Serious toxic spills in past and related findings of negligence and breaches of basic industry practices
  4. Unresolved community impacts and questionable social acceptability as reflected in widespread opposition to the mine
  5. Direct and long term environmental impact of the mine, through Acid Rock Drainage, toxic discharges, long term solidity of tailing dam design, direct impact on island and aquatic biodiversity
  6. Effect on emerging ecotourism industry based on whale shark watching
  7. Undue pressure on government structures and militarisation of island, associated human rights issues 
  8. Tax and revenue issues
Financiers
Institution type
Finance type
Year
Companies

Korea Resource Corporation (KORES)

Korea, Republic of
Website

Lafayette Mining LG

Australia
Website

LG International

Korea, Republic of
Website

Malaysia Smelting Corporation

Malaysia
Website
No companies
Governance
Norms & standards
Other regulations

Applicable norms and standards

Equator Principles
The lender group that was involved in the mine until April 2008 had declared the Equator Principles applicable to this project. ABN AMRO sector policy on mining should also have been applied to this operation.
News
Resources
Documents
Images
Videos
Links

Rapu Rapu island, Philippines - demonstrations

2006-11-30

Rapu Rapu island, Philippines; affected communities

2006-11-30
Binosawan bay Waterfall underneath fence of mine area school of binosawan damaged by typhoon barangay binosawan pristine beaches and reefs right underneath the mine site; foregone tourist potential fisherman at work relocation site for people moved by lafayette barangay St Barbara, still recovering from Typhone small hydro project providing electricity to Binosawan Binosawan creek, life stream of the community Bonosawan schoolchildren sbinosawan school damaged by typhone settlement next to mine site peaceful Rapu Rapu
these pictures show several villages -'barangays'- and areas situated right next to the mine site -pictures made during field trip BankTrack-

Rapu Rapu island, Philippines; Lafayette mine site

2006-11-22
armed guards Lafayette Loading station Lafayette mine loading station lafayette, mine on top of hill mine looming over Binosawan settlement next to tailings dam settlement next to tailing dam anti erosion measures, planting of grasses anti sediment dams .. but brackish water in creek broken sediment sheet access road with lone forest giant standing malobago village next to loading station detoxification units for emergency spills treatment ongoing work, 24h per day tailing dam tailing dam access road with erosion due to typhone wiring company boat in legaspi port mine site seen from the ocean erosion and mitigation measures loading station seen from above
Pictures made during the field visit of BankTrack to the Lafayette mine site at Rapu Rapu island, Philippines. November 21-23

Rapu Rapu island, Philippines; resistance

2006-11-22
anti mining prayer on church wall sagip isla office -protect the island- anti lafayette txt near church anti lafayette banner slogans against mine in poblacion graffiti against lafayette 03 July 11 2006 rally in Penaranda Park Legazpi City 03 July 11 2006 rally in Penaranda Park Legazpi City 03 July 11 2006 rally in Penaranda Park Legazpi City 03 July 11 2006 rally in Penaranda Park Legazpi City 03 July 11 2006 rally in Penaranda Park Legazpi City July 18 2006 rally in Rapu-Rapu July 18 2006 rally in Rapu-Rapu July 18 2006 rally in Rapu-Rapu July 18 2006 rally in Rapu-Rapu July 18 2006 rally in Rapu-Rapu July 18 2006 rally in Rapu-Rapu August 23 2006 local people joining Greenpeace in protest August 23 2006 local people joining Greenpeace in protest August 23 2006 local people joining Greenpeace in protest August 23 2006 local people joining Greenpeace in protest August 23 2006 local people joining Greenpeace in protest July 11 2006 church speaks out against mine July 11 2006 church speaks out against mine July 11 2006 church speaks out against mine July 11 2006 church speaks out against mine July 11 2006 church speaks out against mine July 11 2006 church speaks out against mine June 15 2006 Grand Prayer Rally June 15 2006 Grand Prayer Rally June 15 2006 Grand Prayer Rally June 15 2006 Grand Prayer Rally June 15 2006 Grand Prayer Rally Ateneo de Naga University Aug 14 2006 declaration of stand Ateneo de Naga University Aug 14 2006 declaration of stand
Contrary to what is claimed by Lafayette, there is widespread opposition on the island and in the region against the mine -picture courtesy of Mr Perdigon, Aquinas university, Legazpi city-

Video response to "Lafayette mine, Rapu Rapu island" (Pt.2)

Filmed in October 2007, this video documentary focused on the social implications of mining in Rapu-Rapu Island and the struggle of its people against foreign mining giant, Lafayette Corporation
2009-09-03 16:04:47

Video response to "Lafayette mine, Rapu Rapu island" (Pt.1)

Filmed in October 2007, this video documentary focused on the social implications of mining in Rapu-Rapu Island and the struggle of its people against foreign mining.
2009-09-03 16:01:57
Updates

2008

2008-10-24 00:00:00 | Latest update

The mine has been in operation since February 2007 after a prolonged shut down due to a operating ban as a result of two spills that lead to fish kills. The mining operation has been repeatedly interrupted by breakdown of equipment, damage caused by typhoon in early 2007 but first shipments have been made.

Since mid 2007 Lafayette was actively seeking ways to expand the current operation and extend the life time of the mine. Airial and surface explorations -blasting- efforts are underway and Lafayette believes it is able to expand current pit. The extension plans are squarely opposed by local communities.

Early October 2007, Lafayette announced a major restructuring and recapitalisation of the project, which essentially is a buy out of the bank lending group by a new 'Special Purpose Vehicle' (SPV) jointly owned by Cornerstone Investors and SEASAF. The deal was not finalised and Lafayette went into voluntary administration, which was effectively a near bankruptcy.

In April 2008, Kores and LG increased their ownership stake to 70 percent and added Malaysian smelting corporation merhad as third co-owner of the mine, after a full buyout of Lafayette mining of Australia. On 24 October 2008, Korea Resources Inc (KORES) and LG International Corp were allowed to resume operations at the Rapu Rapu copper and zinc mine (Reuters).