CBNC propels economic growth of the community

When one travels south to Barangay Rio Tuba in Bataraza, it is hard not to notice the development of the place, so different from the other towns of Palawan. The long stretch of the concrete Macadam Road is the first you will see, making you wonder what else is there on the right side going to Buliluyan. That is the Hydrometallurgical Processing Plant being operated by the Coral Bay Nickel Corporation (CBNC), the first of its kind in Asia that processes low-grade nickel ore mined by the Rio Tuba Nickel Mining Corporation (RTNMC). By processing the low-grade ore, there is an added value to the resource because of the benefit of extracting nickel that is used for industrialization. People often misconstrue CBNC as a mining company, but it is not. It does not extract mineral from the ground like nickel as what RTNMC does. Its main product is mixed sulfide of nickel and cobalt that will be in powder form and will be contained in flexible plastic bags for shipment to foreign buyers. Very few people understand the value of its presence in the community of Barangay Rio, Bataraza in the province of Palawan and in the whole country. CBNC plays a very crucial role in today’s industrialization. It adds value to raw materials extracted from the ground through mining. Instead of shipping the low-grade ore or raw soil to other countries, the company processes them in its plant. The processing would then enable the CBNC to produce 55 percent nickel, which is later sent to Japan for another processing to produce 99.9% of ready to use nickel for various materials like aircraft and car spare parts, medical equipment, cellphone, and other technical production needs. 6 oF ioEF on oP iF ontribXtions Aside from the technology that is in CBNC, the company has been contributing significantly to the economic development not only of Rio Tuba but the whole province of Palawan and the country in general. In terms of taxes, including its Social Development & Management Program (SDMP) and Corporate Social Responsibility (CSR) projects, CBNC contributes an average of P782 million per year. In addition, the company also spends an average of P969 million per year in terms of compensation for its employees and contractors. Thus, the overall average contribution of CBNC alone is P1.7Billion per year. Some 59% of CBNC employees and workers are residents of the municipality, 26% from other municipalities of the province, and 15% are from other provinces. The combined number of employees of RTNMC and CBNC, regular and contractual, is 1,239 as of 2017, not including the seasonal, project-based workers, and those provided by manpower agencies and contractors. According to the report of Philippine Extractive Industries Transparency Initiative (PH-EITI), CBNC pays an annual salary of P 221 million for all its employees which are funneled to the local economy of Bataraza and Palawan. EnYironPental ProteFtion anG Rehabilitation Efforts On top of the taxes paid to the government and the employment provided to Palaweños, the CBNC also does environmental rehabilitation. Engineer Briccio Abela, Environmental Management and Quality Control Manager of CBNC, said that their rehabilitation project could be used as a laboratory of students because it is where different species of trees can be found. They grow in the former tailings dam of the company. These tree species, grasses, and shrubs are endemic in the forest but are now growing in numbers in their rehabilitation site. The rehabilitation project costs billions of pesos, nevertheless, the company is committed to bringing back the forest even if more than what it used to be. This effort of CBNC on environmental protection and rehabilitation was recognized during the annual conference organized by the Alberta Geotechnical Centre and Oil Sands Tailings Research Facility last November 5-8, 2017 in Banff, Alberta, Canada. Abela showcased the strategies of the company in revegetating the tailings soil using local and native grasses, shrubs and tree species. The 71-hectare tailings facility was decommissioned in 2010 and was planted with local grasses and shrubs. Hundreds of indigenous people were engaged to do the planting as a livelihood. After two years, the area was totally covered with grasses and shrubs which control siltation, recreated green landscapes, and produced much-needed biomass. In 2013, endemic trees were planted in the tailings facility. Three years after, a total of 94,338 local and native tree species have grown sustainably in the area. The survival rate of those planted has reached 90 percent. “This is very different because in three years the total area was covered with vegetation,” Abela said. According to him, the goal of the company is to restore a functional ecosystem and an area that is productive. Among the trees planted in the restored tailings facility are premium species of trees like Narra, Ipil, Palawan Mangkono, Manggis, and Amugis. Fruit bearing trees are also present such as guyabano, durian, langka, kalamansi, mango, coffee, and star apple, among others. “Planted trees which are two years or older were observed to grow sustainably,” according to Abela’s presentation paper. One notable statement from it is the “positive impact of the conducted rehabilitation works is the employment generated for the IPs and local indigents.” During the peak of grass planting in 2011-2013, more than 100 workers were employed. “The revegetation of tailing soil serves as a ‘poster boy’ that relays a strong message,” Abela said. When you are inside the rehabilitated area of the CBNC, you cannot imagine that it used to be a tailings facility of the company. Yes, the soil is still red which is common as it is highly

mineralized, but so many species of trees, grasses, coconuts, high-value crops and even flowers are now growing well. Birds and other faunal species are also abundant. The environmental protection efforts of CBNC is not only focused on the mine tailings facilities but also in marine and terrestrial ecosystems. CBNC vouched that their compliances are beyond what is required by law. Right now, their efforts are also focused on coastal resource management including mangrove plantations. “Wala na kaming mataniman, kaya sa mangroves kami ngayon naka-focus (We have no more areas to rehabilitate that is why we are now focusing in mangroves planting),” Abela said. The rehabilitation efforts of the company have also garnered so many accolades from different government agencies. CBNC in 2016 bagged the country’s highest mining award under the mineral processing category, marking a three-year consecutive winning streak for the company. The award was given during the 63rd Annual National Mine Safety and Environment Conference held at CAP-John Hay Trade and Cultural Center, Camp John Hay, Baguio City. The Presidential Mineral Industry Environmental Award (PMIEA), the highest award conferred by the Philippine Mine Safety and Environment Association (PMSEA), was established under Executive Order No. 399 on February 03, 1997, in compliance with the policy that mineral exploration and mining operation should be “pro-environment” and “pro-people”. Aside from the PMIEA, CBNC also won for the third time the Best Mining Forest Award and Safest Mine Award. oPP X nit eYeloSPent A major contribution of CBNC in Bataraza and Palawan is its community programs and projects, particularly in its impact barangays. RTNMC and CBNC’s combined fund for Social Development and Management Program amounts to an average P220 million per year. Can you imagine what development this could bring to the community? This amount is far more than the Internal Revenue Allotment (IRA) of a first-class municipality. The company provides free education from allowances to elementary and high school students to scholarship programs to college students. The company also provides scholarships to students who want to become doctors or achieve a masters degree. In fact, when asked how many professionals they have produced, they would humbly say “thousands”. An average of 10,541 scholars per school year is being catered by CBNC and RTNMC according to PH-EITI. Some of these professionals are CBNC as employees. Some are doctors, teachers, engineers, and office staff. It also implements the Indigenous Learning System to indigenous communities. ILS is the first indigenous educational program ever conceptualized in Palawan even before the Alternative Learning System (ALS) of the Department of Education (DepEd). ILS students composed of indigenous peoples (men and women) are being taught reading, writing, and mathematics. Assessment and acceleration tests are given to students to determine their level of knowledge so they can join the regular school. Several ILS students have already graduated from college which raises their aspirations in life. CBNC also gives a majority share in the operation of a hospital that caters to community health needs free of charges. The hospital has state-of-the-art equipment capable of performing surgical operations. Livelihood programs and projects infrastructure projects which are too many to enumerate were implemented. These are just some of the many community development initiatives provided by the company to the people of Bataraza and Palawan. In 2017, CBNC received a Presidential Mineral Industry Environmental Award, the most prestigious award in the Philippines’ mining industry, for the 4th consecutive year. CBNC envisions that people in the community will have a better life after its operation. The company hopes to see a vibrant and selfsustaining community- a legacy that is incomparable and lasting.