Philippines mine

Australian-owned Lafayette Mining's Rapu-Rapu project has been given a 30-day trial period by the Philippines government to prove it can operate within environmental standards.

The trial won't start until the company pays a 10.4 million peso (AU$263,000) fine, extends a surety bond and implements more 'environmental safeguards'.

The 30-day test run will determine the overall environmental soundness of its mining operation in Rapu-Rapu (island) as well as the adequacy of measures it has put in place to prevent a repeat of the two wastewater spills last October. Operations at Rapu-Rapu island, south-east of Manila, have been suspended for seven months following a spill at its mill site on 11 October 2005 and at its tailings dam on 31 October 2005.

Leftist and environmental groups had called for the closure of the mine and a repeal of a 1995 law opening the mining industry to foreign firms. The incident has become a test case of President Gloria Arroyo's commitment to mining investment, as well as enforcement of environmental safeguards.