Policy Statement

We believe that effective management of risk is vital to the continued growth and success of Philex Mining Corp. and its subsidiaries, and the company is committed to manage risk in a proactive and effective manner across the organization. This commitment is embodied in the Philex Group Risk Management Philosophy Statement, as follows:

  • “The PHILEX Group shall undertake a Risk Management Program that will mitigate or eliminate identified physical, socio-ecological and economic risks inherent in its mining business thereby ensuring a productive and profitable operation.
  • Accordingly, the Philex Group employs a comprehensive, integrated risk management program, effected across all levels of the organization, with the goal of identifying, analysing and managing the Group’s risks to an acceptable level, so as to enhance opportunities, reduce threats, and thus sustain competitive advantage. The Group believes that an effective risk management program will contribute to the attainment of objectives of PHILEX and its subsidiaries, thereby creating value for the business and its stakeholders.”

Risk Management Documents and Activities
We have adopted a Risk Management Policy Manual, which encompasses the Enterprise Risk Management (ERM) framework for managing risk at an enterprise-wide level within Philex Mining Corp. and its subsidiaries (or the Philex Group). It contains the guidelines governing the risk management process of the Philex Group, including the roles and responsibilities for its implementation. The policy aims to help the organization integrate risk management into business and strategic planning by enabling operational units to identify significant risks and take appropriate decisions and actions to treat these risks.
The company’s ERM activities is in accordance with internationally recognized frameworks, such as but not limited to COSO, or the Committee of Sponsoring Organizations of the Treadway Commission, I and II.

As needed, the company hires technical consultants related to risk management. In 2013, the company commissioned the following reputable companies for its Padcal operations: (1) January: Hawcroft Consulting International (HCI), of London, to do a risk survey/assessment of the mine site; (2) July: Engaged HCI for a follow-up risk survey after   six months; (3) July: Canadian Emergency + Risk Management (CERM), a Canadian fire specialist, to assess the fire safety procedures and practices; and (4) September: Environmental Resources Management  (ERM)  Limited, of London, to do an Environment, Health & Safety (EHS) report.

Internal Control System

We have in place an internal audit system whereby the internal audit can conduct independent and objective internal-audit activities designed to add value, improve the company’s operations, and help it accomplish its objectives. This shall provide a systematic and disciplined approach in the evaluation and improvement of the effectiveness of risk management, control, and governance processes through which the Board, management, and stockholders shall be provided with reasonable assurance that the company’s key organizational and procedural controls are appropriate, adequate, effective and complied with. For this purpose, pertinent categories include the following: (i) effectiveness and efficiency of operations; (ii) reliability of financial reporting; (iii) compliance with applicable laws and regulations; and (iv) safeguarding of assets.

Review of Risk Management and Internal Control Systems

The review of material controls, including financial, operational, and compliance controls and risk management functions; the identification, evaluation, and management of all material risks related to enterprise risk management (ERM) done twice a year and  is evidenced by the confirmation statements submitted to First Pacific Company Limited based in Hong Kong. This is signed by the chairman of the Audit Committee and the head of Internal Audit Department, the Risk Committee and the Chief Risk Officer.

Joint Report of Audit and Risk Committee to the Board of Directors

Confirmation Statement Risk Management process – July- December 2018
Confirmation Statement (Internal Control) – July- December 2018
Confirmation Statement (Internal Control) Jan to June 2018
Confirmation Statement from BROC (Risk Management) Jan to June 2018

Confirmation Statement from Audit Committee – Internal Control (July – December 2017)
Confirmation Statement from Risk Committee – Risk Management (July – December 2017)
Confirmation Statement from Risk Committee – Risk Management (January – June 2017) 
Confirmation Statement from Audit Committee – Internal Control (January – June 2017) 

Confirmation Statement from Audit Committee – Internal Control (July – December 2016 )
Confirmation Statement from Risk Committee – Risk Management (July – December 2016)
Confirmation Statement from Risk Committee – Risk Management (January – June 2016)
Confirmation Statement from Audit Committee –  Internal Control (January – June 2016)