Coral Bay Update on the Palwan HPAL Project Coral Bay Nickel Corporation’s Hydrometallurgical Processing Plant For Low Grade Nickel Ores

1. Update of
Coral Bay Nickel Corporation’s
Hydrometallurgical Processing Plant
For Low Grade Nickel Ores

2. 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.

3. HPP SIMPLIFIED FLOWSHEET
Flash Demin
H2 O
Tanks
Scrubber
H2SO4
Low grade nickel ore AUTOCLAVE
1.26 % Ni, 0.15 % Co
HPAL
245oC, 4 Mpa Leached Slurry
High Pressure Acid Leaching
(HYDROMETALLURGICAL)
Steam
H2S CCD
NiSO4,CoSO4
Limestone
Lime
Reactor
Tails Dam
Fe2O3,CaSO4, Cr2O3
NaOH Scrubber Other Solid Oxides
And Hydroxides
NiS,CoS
Effluent
56 % Ni, 4.5 % Co

4. 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 Ore Processed – 3,487,000 DMT
April, 2005 – Start of Commercial Operation Ore Grade – 1.26 % Ni, .089 % Co
Production – 37,700 DMT Ni & 2,800 DMT Co
Annual Production Metal Recoveries – 87.2 %Ni, 84.9 % Co
Employed – 2,125 (7.5% Female, 71.3 % Locals)
10,000 MT Nickel, 750 MT Cobalt Taxes Paid – Php 993 Million

5. 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:
Annual Nickel Production – 24,000 DMT/yr
10,000 MT Nickel, 750 MT Cobalt Annual Cobalt Production – 1,860 DMT/yr

6. Million US Dollars
Line 1 Line 2
Total Investment 200 308
Environmental Protection
Wastewater Treatment Facilities
9 10
Air Pollution Control Facilities
6 15
Tailings Dam Construction
5 26
Total Million US $ (Percent)
20 (10) 51 (16)

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 Remarks
1. CLRF Php 5.25 M Now > Php 6 M At DBP in 2004
2. CAPEX on 10 % of Project 16% or Php 3.5B, Installed
Pollution Control CAPEX of Php 25 B CAPEX modern
Facilities facilities
3. OPEX on 3-5% of Operating 18-20% or Php 1.2 - Used top
Pollution Control Costs 1.4 B/yr, of OPEX quality
Facilities materials
4. MRFC 9 Members 10 Members Plus ERDS rep
5. MMT 10 Members 16 (+ 4 samplers) Plus add’l
1MGB,1EMB,1
PCSD,2LGU
and Church
6. EMO 1 Officer (MEPEO) 1 Office of EMO Provided staff
plus 10 staffs for all areas

9. Tailings Storage Facility
Water Treatment

10. Pier Site Facilities
Rio Tuba River
Macadam Road
RTN Townsite
Airstrip

11. ELECTROSTATIC
STACK PRECIPITATOR BOILER
GENERATOR
STACK STACK STACK
HEATERS
SCRUBBERS
FLASH TANKS SCRUBBER
AUTOCLAVE

12. 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 < 1.0
Cr +6 < .2 mg/L < .15
Pb < .3 mg/L < .05
Tailings pH @ 6.0 – 9.0 8.0 – 8.5
dam TSS < 150 mg/L < 10
supernatant Temperature < 3 deg C rise < 1 deg C
Oil and grease < 5 mg/L < 1.0
Cr +6 < .2 mg/L < .15
Pb < .3 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.

13. 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 < 7mg/Ncm <1
Acid mist < .3 mg/Ncm <.07
Ambient Air TSP, at plant < 300ug/Ncm 50-250
TSP, at houses < 230ug/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).

14. Continuous Monitoring Systems
D
C
S
CEMS CEMS pH,
H2S Detectors H2S
CO, Nox, SOx, Opacity Temp

16. Marine Waters 24 HR TSP
sampler
Inland Waters NO2, SO2 Acid
sampler mist
sampler

17. Annual Coastal
Resources Assessment
Findings:
A healthy marine ecosystem was
maintained at the primary impact zone
of CBNC’s coastal operations.
Regular patrol prevented illegal
fishing practices and kept the area as a
de-facto sanctuary.

18. Trestle pile with soft corals
Trestle area teeming with fishes

19. The results of the study showed that
the flora and vegetation within the
project site and its vicinities are still
intact. Generally the type of vegetation
is secondary forest in a large extent,
grassland and a disturbance is
somewhat minimal and considered as
insignificant considering the
parameters used by the monitoring and
assessing team. Generally the type of
vegetation is secondary forest in a large
extent, grassland and brushland
formation which is dominated by the
pioneer species. In some observations
agricultural areas and agroforest were
observed including old follow or
abandoned kaingin.
The dominant plant form around the
area is trees followed by herbs, vines
and shrubs.

23. pH?
ppm?
mg/L?
Biodiversity?
We just want to
know if the fish,
the birds, the bees,
the animals, and
people will not
die!

24. Bees as Air Quality Bio-Indicators

25. Fish (Fresh and Salt Water) as Water Bio-Indicators

26. For TESTING........
For TASTING........

28. TREE BUFFER
PLANTING ZONE
CBNC Personnel
And
Contractors

29. Mangrove Planting at Nagoya Beach Area
Eastern side of causeway
Western side of causeway

31. Vermi-
composting
project to
produce
organic
fertilizer

34. By: BMP Environment and Community Care, Inc.
June 16-19, 2006 Site Visit

35. bmp E NVIRONMENT & COMMUNITY CARE, INC.
“The Environmental Audit highlighted
the HPP Project’s REMARKABLE
the HPP Project’s remarkable
COMPLIANCE with conditions of the
compliance with the the conditions of
the Environmental Compliance
Environmental Compliance Certificate.
Certificate. Of the 33 major and 8 sub-
Of the 33 major conditions conditions
and 8 sub-conditions, 40 conditions had
conditions, only 4 major
Full Compliance (98 % Performance).
Partial Compliance and the rest had Full
Compliance.”

36. Particulars Requirements Compliance Commitment Remarks
1. Financial > 1 % of Direct 1. 02%, or P149 M 1. 00%, or P439 M 2.9 times higher
Allocations Processing Cost for SDMP 1 for SDMP 2
(for CBNC) (2004-2008) (2009-2013)
> 1 % of Gross 1.12 %, or P103 M 1.68 %, or P177 M 1.7 times higher
Rev./Direct for SDMP 1 for SDMP 2
Mining Cost (2004-2008) (2009-2013)
(for RTNMC)
2. Community Com-Rel Sections Com-Rel Sections Compliance
Organizational Relations Office created to monitor created to monitor
Requirement
Rio Tuba Nickel Rio Tuba Nickel Implementor
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) Double pro-
ICCs mining group

37. SDMP COVERAGE OR IMPACT AREAS

38. SDMP COVERAGE OR IMPACT AREAS
Non- IP Communities : 11
IP Communities : 24

39. SOCIAL DEVELOPMENT AND MANAGEMENT PROGRAM
SDMP I Expenses vs SDMP II Budget
COMBINED CBNC/RTNMC
SDMP I SDMP II
2004-2008 2009-2013
ITEM PARTICULARS Expenses Share Budget Share
Million Php Percent Million Php Percent
A Legal obligation (>1% of DMMC) 238.16 1.00 544.38 1.00
D Total Social Development Program 251.83 1.06 615.91 1.13

40. SOCIAL DEVELOPMENT AND MANAGEMENT PROGRAM
SDMP I Expenses vs SDMP II Budget
COMBINED CBNC/RTNMC
SDMP I SDMP II
2004-2008 2009-2013
ITEM PARTICULARS Expenses Share Budget Share
Million Php Percent Million Php Percent
A Legal obligation (>1% of DMMC) 238.16 1.00 544.38 1.00
B Social Development Expenses/Budgets
1 RTNFI Hospital Services for Non-dependents 57.38 0.24 70.00 0.13
2 LSVMS School Subsidies for Non-dependents 48.62 0.20 60.00 0.11
3 Community Relations Assistance 14.00 0.06 70.00 0.13
4 Gawad Kalinga Housing 10.00 0.04 50.00 0.09
5 Indigenous Learning System 6.00 0.02 30.00 0.06
C SDMP Proper
6.1 SDMP I - Community Development (Todate) 95.43 0.40
6.2 SDMP II - Community Development (New) 289.72 0.53
7 SDMP II -Training and IEC 20.40 0.09 46.19 0.08
D Total Social Development Program 251.83 1.06 615.91 1.13

41. SOCIAL DEVELOPMENT AND MANAGEMENT PROGRAM
SDMP I Expenses vs SDMP II Expenses
COMBINED CBNC/RTNMC
SDMP I SDMP II
2004-2008 1st Year - 2009
ITEM PARTICULARS Expenses Share Expenses Share
Million Php Percent Million Php Percent
A Legal obligation (>1% of DMMC) 238.16 1.00 78.47 1.00
B Social Development Expenses/Budgets
1 RTNFI Hospital Services for Non-dependents 57.38 0.24 22.28 0.28
2 LSVMS School Subsidies for Non-dependents 48.62 0.20 14.60 0.19
3 Community Relations Assistance 14.00 0.06 15.23 0.19
4 Gawad Kalinga Housing 10.00 0.04 7.11 0.09
5 Indigenous Learning System 6.00 0.02 6.83 0.09
C SDMP Proper
6.1 SDMP I - Community Development (Balance) 95.43 0.40 2.58 0.03
6.2 SDMP II - Community Development (New) 50.01 0.64
7 SDMP II -Training and IEC 20.40 0.09 18.08 0.23
D Total Social Development Program 251.83 1.06 136.70 1.74

42. RTNFOUNDATION, INC.
HOSPITAL
Number of patients
Status : Primary Hospital 40000
38015
31279
Workforce : 38 Staff 30000
Doctors : 9 19228
20000
Nurses : 14
Other Staff: 15 10000
0
2007 2008 2009

43. Leonides S. Virata Memorial School
Status : Private school, supervised by De La Number of Students
Salle University, Bacolod City 1260 1252
1240 1233
Workforce : 52 staff 1220
a. School Principal : 1 1200 1188
b. Primary & Elementary Faculty: 25
1180
c. Secondary : 17
d. Other Staff : 9 1160
1140
SY 07-08 SY 08-09 Sy 09-10

44. Indigenous Learning System (ILS)
 Concept : Arnold Jansen Catholic Enrolment Profile (06-09)
Mission Foundation
09-10
 Implementor: St. Jude’s Parish, SVD Order
08-09 Level 3
 Levels: Level 1: Non-literate Level 2
07-08 Level 1
Level 2: Elementary undergraduate No. of sites
Level 3: Secondary undergraduate 06-07
 Work force: 14 staff 0 100 200 300

45. Gawad Kalinga
 Aim : 1,000 houses in 10 years
 2009 : 100 houses turned over
Established sites
Sites being developed
Site Dev’t. Programs (Sibol, Sagip,
Productivity, Orderliness, Health,
Neighborliness, & Cleanliness)
 Workforce: 5
 Volunteers: 30

46. GK Concept +
The IPs “SWEAT” Equity
CBNC/RTNMC Funding
(At least 1000 manhours)
(Php 100 M = 1000 houses)

47. Gawad Kalinga – Kulantuod
35 Units

48. Gawad Kalinga – Bongkol-Bongkol
48 Units

49. Gawad Kalinga – Ocayan
17 Units

50. SDMP I Accomplishments (2004-2008)
Infrastructure: Social Services:
 16 Day Care Center  20 Medical Outreach
 11 Health Center  1 unit Ambulance
 13 Tribal Hall  1 unit Fire Truck
 30 Road construction and repair  2 units Pick-up
 2 Gymnasium  11 Multi-cab
 3 Public library  14 Motorcycle with sidecar
 3 Irrigation system  19 Generator set
 26 Multi-purpose pavement  62 Petromax
 18 Church & Mosque repair  65 ICOM radio
 13 Other communal building  26 Cellular phone
 2 Water system
 15 Water tank
 115 Jetmatic pump

51. SDMP I Accomplishments (2004-2008)
Livelihood: SUMMARY OF SCHOLARS NON-IP IP TOTAL No. of Grads
2005-2006
 13 Handtractors w/trailers College
High School
82
41
29
66
111
107
 10 Fishing boats Elementary 11 71 82
 37 Carabaos 134 166 300
2006-2007
 17 Cows College 131 48 179 11
 113 Swine High School 74 95 169
33 170 203
 4 Trainings & Seminars Elementary
238 313 551 11
 12 Cooperatives funded 2007-2008
College 153 56 209 27
Education: High School
Elementary
86
36
119
170
205
206
275 345 620 27
2008-2009
 Scholarship Program College 161 37 198 39
 7 School buildings constructed High School 82 123 205
 14 Classrooms constructed Elementary 21
264
167
327
188
591 39
 2 Classrooms repaired
TOTAL NO. OF COLLEGE GRADUATES 77

52. INFRASTRUCTURE PROJECTS

53. LIVELIHOOD PROJECTS

54. COMMUNITY SERVICES

55. OTHER COMMUNITY SERVICES

56. EDUCATIONAL ASSISTANCE
SDMP scholars during a team building seminar. 77 graduated.
Some of the 7 school buildings, 14 classrooms constructed.

57. SDMP II Accomplishments (2009)
Infrastructure:
 1 Road Concreting
 2 Construction of Bridges
 1 Tribal Hall
 7 Road improvements
 2 Bahay Tarukan
 1 Basketball Court
 2 Barangay Hall Improvement
 2 School Bldg. Construction
 1 School Bldg. Repair
 2 School Stage

58. SDMP II Accomplishments (2009)
Social Services:
 4 units Hi-Lux Vehicle
 2 units Ford Everest
 1 unit Ford Ranger
 4 units Sarao Jeepney
 11 Jetmatic pump installed
 8 Grass trimmers ICOM radio
 222 units Cellular phones
 2 units Typewriter
 27 units Mountain Bikes
 27 units Motorcycle (5 TMX; 22 XRM)
 3 sets of Books
 Funding of various activities & celebrations
 26 Churches/Mosque assisted
 70 Families Assisted (Medical/Calamity)
 1 unit Laptop (Lenovo)
 2 units Canon digital camera
 1 set Musical instruments
 2 sets Sound System
 19 units Generator set & electrical materials

59. SDMP II Accomplishments (2009)

60. SDMP II Accomplishments (2009)
Livelihood:
 86 units Spraycan
 3 Fishing boats & accessories
 6 units Hand tractors
 72 heads Carabaos
 15 sacks Urea
 21 quarts Cymbush
 15 sacks 16-20
 70 pieces Shovel
 10 pieces Hoe
 52 units Plough & Harrow

61. SDMP II Accomplishments (2009)
Education:
 2,316 Elem. pupils assisted
 84 Elementary Scholar
 243 High School Scholar
 214 College Scholar
 10 Lakbay-Aral Trips
 8 Annual Convention Attended

62. RTN FOUNDATION, INC.
Garnierite Avenue, RTNMC Town site, Rio Tuba, Bataraza, Palawan 5306
Mobile No.: 09175750135

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

64. 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

65. Environmental Management Office

66. Daghang Salamat, Arigato Guzaimasu, Maraming Salamat Po!