Mine profile: ADNAMA Mining Resources Inc.

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QUICK FACTS

Name of mining firm: ADNAMA Mining Resources Inc.
Location: Claver, Surigao del Norte
Mining area: 7,017.71 hectares
Metals extracted/mine products: Nickel
Nickel production (2020): 462,385 dry metric tons (direct shipping ore) valued at P713,682,006
Mining permit period: 2007-2032

OWNERSHIP

Incorporation date: May 26, 2006

Stockholders:
Borja, Ferdinand S.
Borja, Beatriz Amanda L.
Lorenzana, Carmen O.
Tuyac, Ulfredo A.
Power Hill International Ltd., BVI

Chairperson of the Board: Borja, Ferdinand S.

MINING REVENUE 

Current assets: P1.78 billion (2019)
Current liabilities: P351.59 million (2019)
Total revenue: P687.01 million (2019)
Net income: P68.86 million (2019)

MINE AUDIT FINDINGS

According to the Notice of Issuance of an Order sent to Adnama, an order was given to the firm on Feb. 8, 2017 pertaining to operations under MPSA 259-2007-XIII (SMR).

The order states that result of the audit showed that the company had committed violations of mining and environmental laws, such as: “non-compliance with DENR Administrative Order (DAO) No. 2015-07 on the ISO 14001 requirement; siltation of the coastal waters due to heavily damaged and improperly maintained causeway and the lack (of) permit for the land reclamation for the causeway, among others.”

Further field validation of the DENR has likewise determined that the mining operations of Adnama have impaired the functions of the watershed in the area.

According to the DENR order, Adnama had violated certain provisions of the following laws, rules and regulations:

• PD 1586 or “Establishing an Environmental Impact Statement System, including Environmental Management-related Measures and for other Purposes”;

• DAO 2003-30 or the IRR of the Philippine Environmental Impact Statement System;

• RA 9275, otherwise known as the Clean Water Act of 2004; and

• DAO 2010-21 or the Revised IRR of RA 7942.  

The full report and/or copy of the DENR order may be viewed here.

STATUS OF RECOMMENDATIONS / COMPANY RESPONSE (AS OF MARCH 2022)

In its March 8, 2022 response to PCIJ, Adnama pointed out, among others, that its MPSA area is “not located in a proclaimed or critical watershed forest reserve where mining is prohibited.”

The company likewise stated that its operations are regularly monitored and supervised by MGB and EMB officials and personnel. Specifically, the operations are inspected every three months by the Multi-Partite Monitoring Team (MMT), which is authorized to recommend appropriate sanctions and penalties to any violation committed by the company.

Adnma said it had “performed its contractual obligations as agreed in its MPSA and ECC” and had “implemented the findings and recommendations of the MMT.”

Adnama also gave detailed responses to DENR’s mine audit findings referring to (1) non-compliance with DAO 2015-07 on ISO 14001 requirement; (2) siltation of the seawater due to heavily damaged and improperly maintained causeway; and (3) no reclamation permit shown for the causeway.

Adnama’s explanation may be seen in full here.

STATUS OF OPERATIONS

In February 2017, former Environment Secretary Gina Lopez ordered the closure of 23 mines, including ADNAMA Mining Resources Inc. No update on the status of the mining operations could be found. The results of the Mineral Industry Coordinating Council review have yet to be released as well as of writing.

COMMUNITY PROFILE

Municipality class of mining location: Claver, Surigao del Norte (2nd class)
Population: 32,773 (2015)
Poverty incidence rate: 34.28% (2015)
Human Development Index: 0.51 (2012, provincial)
Indigenous peoples in the area living near the mining area: Mamanwa

IN THE NEWS

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Gov’t suspends miner’s operations in Surigao

Sources:

General Information Sheet, 2020
Financial Statement, 2019
List of existing Mineral Production Sharing Agreements, Mining and Geosciences Bureau
Philippine Metallic Mineral Production, Mines and Geosciences Bureau
Poverty and socioeconomic indicators, Philippines Statistics Authority

Copy of full Mine Audit Reports by company, 2016
Copy of Notices of Issuance of an Order, 2017
Copy of Orders of Cancellation and/or Suspension, 2017

Acronyms used:

RA (Republic Act)
IRR (Implementing Rules and Regulations)
PD (Presidential Decree)
DAO (Department Administrative Order)
MPSA (Mineral Production Sharing Agreement)
SDMP (Social Development and Management Plan)

Disclaimer: The mine audit was conducted in 2016 after Regina “Gina” Paz Lopez assumed the post of environment secretary. The findings in the reports, which authorities sent to the mining firms in 2016, were likely addressed in the succeeding years following a review conducted by the Mining Industry Coordinating Council after the audit led by Lopez, who died in 2019. PCIJ has verified the reports and reached out to each company for comment. We suggest you also confirm findings included in the reports as some information may have changed over time.

The reports come from files that PCIJ has received in connection with various environmental investigations. We are releasing them in full, recognizing the public value of the files to mining communities, miners, policymakers, civil society, and researchers.

Note: The Human Development Index is a measure of how well a country has performed, not only in terms of real income growth, but also in terms of social indicators that measure people's ability to lead a long and healthy life, acquire knowledge and skills, and have access to the resources needed to afford a decent standard of living. An HDI value below 0.550 is considered low and below 0.399 is very low. The national average for the Philippines is 0.718 as of 2020.

This article was produced with the support of Internews' Earth Journalism Network.