UPDATE 2-Manila's Philex closes gold mine, sees shipment delays

* Mine closed since Wednesday due to 'accidental discharge'

* Says unlikely to resume shipments in September

* Philex ships Padcal output to Japan, South Korea, China
smelters

* Share price falls as much as 8.1 pct to near 11-mth low

(Recasts, adds comments from company chairman)

By Erik dela Cruz

MANILA, Aug 3 (Reuters) - The Philippines' biggest gold and
copper producer Philex Mining Corp said on Friday it is
unlikely to resume shipments next month after it closed its main
mine north of Manila following leaks in its tailings pond.

The accident at the Padcal mine in Benguet province was
"fairly serious" and the company will not restart operations
until it is satisfied that it has fixed the leaks caused by two
weeks of heavy rain, company chairman Manuel Pangilinan said.

The state regulator ordered Philex to cease operations at
the mine until it ensures the safety of its tailings pond. The
company said the water and sediment leaking out of the pond were
non-toxic and that there were no casualties from the incident.

"We will not commence operation until after we are satisfied
that the tailings pond can hold the deposits. That might involve
several days or weeks because after the pond is fixed we have to
assess the condition of the pond," Pangilinan told reporters.

"It's unlikely we can have shipments in September," he said,
adding that August shipments would not be affected.

Philex shares fell as much as 8.1 percent to a near 11-month
low after the company's announcement. The broader main index
closed 0 . 14 percent lower.

Philex estimates its daily losses from the closed mine at
around 30 to 40 million pesos, or as much as 1 billion pesos a
month ($24 million). It closed Padcal mine, its main source of
revenue and one of the country's oldest, on Wednesday.

"I would say it was fairly serious. We mill about 26,000
tonnes of ore each day. Clearly, we were distressed because it's
an accident that we don't want to happen," said Pangilinan.

Philex, controlled by Hong Kong-listed conglomerate First
Pacific Co Ltd, sells about 60 percent of Padcal's
output to Japan's biggest copper smelter, Pan Pacific Copper,
part of JX Holdings Inc. The rest is sold to smelters
in South Korea and China.

Padcal's gold output of 4,358 kg (4.358 tonnes) last year
accounted for about 15 percent of total gold production in the
Philippines, according to government data. The mine's output
last year was valued at 9.2 billion pesos ($219.8 million).

ENVIRONMENTAL CONCERNS

Pangilinan said the leaks from the pond were flowing into
two rivers, including the chief water source of three major
hydroelectric plants that power the main Luzon island. The last
time a similar leak occurred at the mine was in the early 1990s.

Safety and environment concerns are among the issues
fuelling strong anti-mining sentiment in the Philippines, which
has largely untapped metallic mineral resources estimated to be
worth about $1 trillion.

President Benigno Aquino recently issued a new set of rules
governing mine operations and investments.

Philex is exploring ways to extend production at Padcal
beyond 2020 - the estimated end of its mine life. It expects to
launch commercial production at a new $1-billion mine in
southern Surigao del Norte province by 2016.

Philex posted a 37 percent decline in net profit in the
first half this year to 2.04 billion pesos, with revenue
slipping from last year's record levels due to lower gold grade
and output from Padcal.

($1 = 41.9 Philippine pesos)

(Reporting by Erik dela Cruz; Editing by Rosemarie Francisco
and Miral Fahmy)