A Marble Mining Experience By: Annie G. Dee President / General Manager Teresa Marble Corporation

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A Marble Mining ExperienceBy Annie G.
DeePresident / General ManagerTeresa Marble
Corporation
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Location
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Location Binangonan Formation
Puting Bato
Kulasisi
Pamias 1
Pamias 2
Pamias 3
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Geological Studies

• The characteristics of geological formation
  impacts on the prospectivity of its application
• A.Geologic Age hardness of the material
• Binangonan Formation Late Oligocene to Early
  Miocene
• B. Facie Models
• Color Patterns / Contamination/Homogienity of
  stone
• C. Geologic Structures as affected movements of
  fault lines
• Bedding and Bedding Directions
• Lineations/ Fractures/Fissures and Sheared Zones

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Traditional Development of Marble Quarry 70s
and 80s

• Nomadic and potato style of quarrying of massive
  floats, hills and mountainside
• Mining methods include
• Pneumatic Drilling - Regular Drillholes or
  Channel
• Manual Splitting
• Blasting
• Dragging
• A-Frame Lifting

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Traditional Method

• Look for Massive Floats
• Massive Floats are easy to Operate using
  traditional method of marble quarrying

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Start of Quarry Operation
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Drilling Method
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Dragging of Blocks
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Simple to Complex Process

• The absence of a rational development plan would
  eventually lead to, a simple process of block
  production to develop into a very complex one
• As we ran out of massive floats and easy to
  operate mountainside, more severe blasting
  activities were resorted to by block producers

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Big Massing Blasting Operation
Big Mass
Drilled / Channeled Face
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The Beginning

• Advent of diamond wiresaw technology in Europe in
  the early to mid 80s simplified dimensioned
  stone quarry process
• Quarry modernization process started was
  sustained by regular exposures of company
  managers, engineers and key marketing staff to
  European market practices.

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Typical European Operations Late 80s to Early
90s
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European Quarries
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Quarry Modernization

• Government support
• Sustained Global Market Exposure and Product
  Development
• RP EC project in 1993
• Geological Inventory
• Demonstration of modern mining method
• European market exposure and visits
• Common service facility in Guiguinto, Bulacan
• Stable Tenement from 1976 lease contract which
  was converted into an MPSA in 1997 and 1998
  Collaboration with Europeans suppliers and
  Japanese foreign buyers
• Investment on changes included training, new
  technology, additional capacity and
  infrastructure development
• Collaboration with Europeans suppliers and
  Japanese foreign buyers

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Block production methods evolved from a nomadic
potato style to permanent benching with bancatta
system of block production that use wirecutting
instead of the traditional drilling method.
Rational Quarrying Methods
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FROM
TO

• Drilling/Soft Blasting

Wiresaw Cutting
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FROM
TO
Wiresaw Cutting

• Drilling/Soft Blasting

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FROM
TO

• Old Quarry Look

New Quarry Look
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FROM
TO

• Old Handling

New Handling
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Handling
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1997

• Asian Crisis and the resulting downturn of the
  Philippine Construction activity, pushed our
  company to export as much as we could
• This was achieved by year 2004

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Selective mining was undertaken

• We had to abandon mines with very little
  recovery of high-grade materials and transformed
  them to limestone boulder operation .

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Philippine to Regional Asian Market

• Teresa undertook, modernization of factory
  machines coupled with streamlining of process, to
  upgrade quality and increase effective output of
  the company.
• Sustained export marketing programs at key
  targets trade fairs, architects and designers,
  market sector
• The result was a shift from servicing the
  Philippine to the World Market.

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Accessibility to the Regional Market
?
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Quick Response Time to the Regional Demand
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Servicing the Regional Market
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Product Lines

• Improved our market offering to the global end
  user by producing complimentary architectural
  products like mosaic, mouldings, fireplaces and
  chiseled finished.
• Selling of product shifted from only field
  material to lifestyle products
• What is good about this was that, it came from
  our plant waste, rejected tiles, slabs scraps.

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Architectural Products
MOSAIC
MEDALLION
FIREPLACE
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Lifestyle
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Price Competition from 3rd World / Developing
Countries

• The company met head on competitive prices coming
  from the Middle East, China, Indonesia, but
  blended this effort with global marketing and
  distribution relationships

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Global Market
West to East Coasts, USA
Japan
Hongkong
Korea
Guam
Philippines
Malaysia
Dubai
Singapore
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Analogy Between Marble Color and Food

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Sell the Whole Cow Strategy

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Sustainable Mining

• Sustainability Through Modern Technology
• Sustainability Through Oneness with Our
  Communities
• Sustainability Through Oneness with Our Nation

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Highlight of the evolution of tenements
management are

• Conversion of 1976 lease contract to an MPSA in
  1997 and 1998
• Approval of EPEP and SDMP for Teresa Rizal
  operation in 2000 and 2005 respectively.
• Current regular monitoring of MMT group composed
  of representatives from the barangays,
  municipalities, provincial, DENR offices, as well
  as concerned NGOs.

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Community / Social Programs

• Regular Medical and Dental Missions
• Sponsorship of Day Care Center in Pag-Asa
  Resettlement Area Since Mid 80s
• Street Lightings
• Feeding Program

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Taxes Paid (VAT, Excise etc.)TMC Group of
Companies

• 2005 24.6 M
• 2004 18.7 M
• 2003 12.7 M
• 2002 11.2 M

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HR Growth

• 2006 511
• 2005 361
• 2004 323
• 2003 295

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Rate of Extraction in Relation to Other Mining
Operations
Marble Extraction 1 year
Aggregate Extraction 1 month
Metallic Extraction 4 days


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Thank you!!!