ffilhepuhlic of tbe lFbilirpineg

PHILIPPINE MININGDEVELOPlf,ENTCORPORATION

Creatlng Wealth. Enrlchlat: Llves.

AGRO-FORESTRY AND REFORESTATION PROJECTCY 2015 ANNUAL ACCOMPLISHMENT REPORT

Background

PMDC is mandated to explore, develop, operate, manage, or dispose state-owned mining

properties by itself or in partnership with a qualified private party or contractor.

In accordance with this mandate, PMDC's Vision is as follows; "PMDC develops, promotes,

and manages mining projects, and builds productive partnerships with its Partners/Operators

in order to contribute to the revenues of the National Government, generate employment and

enrich lives in mining communities. PMDC adheres to the ideals and standards of responsible

mineral development and adopts the best practices in erwironmental protection and

enhancement."

Pursuant to the said Vision and Mission of PMDC and guided by its motto of"Creating

Wealth, Enriching Lives", PMDC generates employment and enriches lives in communities

within its mining properties through the implementation of its Corporate Social

Responsibility (CSR) Program known as *HERO", which stands for Health,

Education/Environment, Rural Infrastructure, and Opportunities to Earn.

One of the projects implemented by PMDC is the Agro-Forestry and Reforestation Project

in Barangay Upper Ulip, Monkayo, Compostela Valley Province, which is an integratedgreening (environmental) and livelihood Project. It is a livelihood or "Opportunities toEarn" Project since it adopts a cash-for-work program whereby parfrrer beneficiaries receive

corresponding payment for labor accomplished during the Plantation Establishment Stage as

well as the Protection & Maintenance Stage. It is also an "Enyironment" Project since the

Reforestation Project seeks to revive the damaged biodiversity of the community caused by

natural calamities (typhoon) and various man-made activities.

The Agro-Forestry and Reforestation Project in Barangay Upper Ulip, Monkayo, Compostela

Valley (Diwalwal Mineral Reservation Area [DMRA]) consists of rwo (2) Phases, that is, Phase

I & Phase II, with an area of ten (10) hectares each, or a total area of twenty (20) hectares.

Phase I is located at Sitio Depot, Barangay Upper Ulip, while Phase II is located at Dash 3,

Sitio Malinao, Barangay Upper Ulip. Phase I officially started in October 2014 after the various

agreements with the IPs/Tribal Council and with the partner government agencies (CENRO,

NCIP, Barangay LGU, Philippine Army) were signed. Phase II officially started sometime in

December 2014. Both Phases have already completed planting activities and were both

initializing the Protectiono Care, and Maintenance Stage. However, last March 17,2015, a

forest fire destroyed almost thirty (30) hectares of land with vegetation within and in the

vicinity of the Project area, including the l0-hectare area of Phase II. On July 09,2015, the

Board of Directors of PMDC approved the rehabilitation of Phase II. The rehabilitation ofPhase II was implemented (Plantation Establishment) sometime in August 2015.

The Project, as determined by the Management, was established based on the following

objectives:

I.

Unit 30018 Wes, 1o*o, philiFpine Stock Exchange Centre, Exchangc Road, Ortigas Center, Pasig City, Tels .7067630-37 ' info@Pndc.com.Ph

. To uphold the commitment of the Company for environmental management,

preservation, and protection;

o To assist Barangay Upper Ulip in rehabilitating their biodiversity, which was damaged

by Typhoon Pablo in the year 2012 and/or by adverse man-made activities;

o To contribute to the National Greening Program (NGP), which is one of the flagship

programs of the DENR through partnership with the Community Environment and

Natural Resources Offrce (CENRO);

.. To provide additional source of livelihood to the identified beneficiaries in the

communitv

Project partners include the Barangay Tribal Council of Leaders, led by Datu Mauricio Latiban

as the Tribal Chieftain, who does the overall supervision of the Project; the CENRO-Monkayo

who provides technical assistance to the project; the National Commission for Indigenous

People (NCIP) - ComVal who assists PMDC in coordinating and communicating the Project to

the Indigenous People (IPs) in the Project area and in certi$ing that the beneficiaries are actual

occupants in the Project arealDMRA; the Philippine Army (Charlie Co. 25s IB, lOth ID) who

provides security to the Project; and the Barangay LGU of Upper Ulip who provides assistance

to the beneficiaries, as and when needed or requested.

II. Proiect Milestones

PMDC was able to develop twenty (20) hectares Agro-Forestry and Reforestation Project(Phase I and Phase II) and achieve 100% ofthe target hectarage for 201 5.

A. Project Outputs

Aside from achieving the target hectarage, the project also resulted in the achievement of the

following outputs:

Outputs Phase I Phase II TOTAL Remarks

Covered Hectarage l0has. lOhas. 20has.Please refer to the

attached map.

Total No. of Planted

Seedlings8,220 6,352 14,s72

(Based on Planting

Design. Variance in

number of seedlings

planted is due to

difference in terrain as

well as the required

spacing per species ofseedlings).

Survival Rate (as ofSept. 2015)

86% 89% 87o/o

As of Dec. 2015

Total No. of DirectBenefi ciaries (directly

in Contract withPMDC, includingtheir household

members)

30 50 80

Included in the CY 2015

CSR Accomplishment

Report

Other IndirectBeneficiaries(Workers hired by

Direct Beneficiaries)

l8To be

determined

To be

determined

(Pending submission by

the Direct Beneficiaries ofthe List of their hiredworkers)

Included in the CY 2015

CSR Accomplishment

Report)

B. Activitylmplementation

As per implementation of activities, after fifteen (15) months of implementation (started inOctober 2014), Phase I was able to deliver 100% of the expected activities while Phase II afterthirteen (13) months of implementation, which started in December 2014, also delivered 100%

of the expected activities, which encompassed the Plantation Establishment, and Protection,

Care & Maintenance Stages.

C. FinancialUtilization

With regard to the Financial Utilization, around 460/o of the three (3)-year (36 months) Budget

was already spent during the fifteen (15) months of implementation, as summarized in the table

below:

ActivitiesAccomplishment

RemarksPhase I Phase II

PLANTATION ESTABLISHMENTCleariney'Brushine On Phase II -All

activities wereaccomplished onboth the Originaland RehabilitatedArea

StakinsHole-DiseineTransoortinePlanting

Percentage of Accomplishment l00Vo 1000/o

PROTECTTON, CARE, &MAINTENANCE STAGERing Weeding - First Pass (Phase II-

[Original], onFebruary 2015)

Ring Weeding - Second Pass (Phase II-[Rehabilitatedl, onDecember 2015

Ring Weeding - Third Pass N/A (Phase II -fRehabilitated] -Next fung Weedingdue in 2016 vet)

Percentage of Accomplishment 1000 l00YoPROTECTION, CARE, &MAINTENAI{CE STAGEFertilizer Application - First Pass N/APercentase of Accomplishment l00o/o l00o/o

OVERALL PERCENTAGE OFACCOMPLISHMENT

(as per Activitv)

l00Yo 1000

Particulars PhaseI& PhascII Remerks

Total Budget (For &YearProgram: 4t.qtr.2014 to 3d

Qtr-2017)

211501000.00

It should be noted thattheRehabilitation of Phase IIstarted only in August 2015.

Initial Approved Budget 1,850,000.00

Supplementary Budget forPhase II Rehabilitation

300,000.00Board Approved in July 09,

20r5Total pxpenses

(es of December 2015)9E9,474.17

Percentage of Expenditure

@ased on 3-Year Budget460/o

D. Attachment

Please see attached map as reference for the location of the project.

4

Republic of the Phrlipprnes . . i ::,ji.

Depadment of Envrronmeot and Naiural Resources lr: _:-.r*PhrIpprneN4inrngDeveloDmentCort)ofatron Y{fl:

DIWALWAL MINERALRESERVATION AREA

AGRO-FORESTRY ANDREFORESTATION PROJECT

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