Author : Racelis, Elenita L.

Summary : A spreadsheet-based model was developed to determine the carbon fluxes into and
from mining project operations of Philex-Padcal Mine in Benguet Province, Philippines.

Using 2014 as base year, the model was able to track the emissions of the entire
project operations from mine, mill processes and auxiliary activities. Results showed that
the project has a total emission of 267,801.26 t C02e, broken down as follows: Scope 1
(fuel and fugitive emissions): 14,026.49 t; Scope 2 (purchased electricity): 238,400.85 t;
Scope 3 (air travels, LPG for domestic use, power sold or rented and waste disposal):
14,161.43 t; and Scope 4 (biomass loss): 1,212.49 t. The power consumption has the
highest percentage share of emissions due to its source from coal power plant which has a
higher emission factor and GWP. Energy sources from electricity and fuel garnered the
bulk of emissions (94%) of the entire project operation.
A separate accounting was done on the C02 sequestered by the project's mining
forests, which were classified as high, medium and low density stand. It has an average
biomass density of 176.83 t ha-1 with equivalent C and C02 stored of 169.74 t ha-1 and
622.37 t ha-1, respectively. Given the total area of 12,185 ha at a mean biomass annual increment of 6.55 t ha-1 yr-1 with equivalent of2.95 t ha-1 yr-1 C or 10.81 t ha-1 yr-1 C02,
the Padcal mining forests have a total C02 storage of 153,451.87 t yr-1.

Accounting for both the GHG emissions and carbon sequestration potential of the
project resulted to a net emission of 114,349.39 t yr-1. This means that the project is
generally a net carbon emitter. Therefore, there is a need to reduce its emissions, primarily
by shifting its energy source to a low carbon or renewable energy source with zero emission
factor. Reducing Philex-Padcal Mine's power emissions by half will result in the project's
net carbon sequestration. Likewise, it should intensify its energy reduction schemes,
protection and maintenance of existing vegetation and reforestation efforts to add more
carbon sinks that will offset the amount of C02e emitted by the project.

Financial analysis of the study showed that the reforestation project will be
profitable at a carbon price of > US $ 40 (BCR of 1.06) in the carbon trading market with
ROI of PhP 0.06 yr-1 and payback period of about 17 years. The proposed 600-ha
reforestation sites to be established up to 2020 have a projected mean annual sequestration
rate of 10,199.18 t C02 y-1. Further, the project's energy saving measures (PLS and shift
from fluorescent to LED lamp) resulted in total peso savings ofPhP 5,283,799.44 and C02e
removed of 708 t yr-1. Likewise, the shift from fluorescent to LED lamps resulted to a
profitable BCR of 3.6, ROI of PhP 2.56 yr-1 and five (5) months payback period.

Based on the projected net C02 change with the mitigation scenario, the project
will have a net C02 uptake of 15,758.32 t yr-1 contributed by energy saving measures, new
reforestation projects and reduction in half of its electricity emissions by shifting to
renewable energy source.