1. Discuss the risk confronting West Mining.

The risk confronting West Mining is the approval of the permit for their mining

operation in the North Zinc. This approval can help the company increase up to 10%

of their sales. It could also help the company in sustaining its cash flows until 2020.

However, the company is waiting the approval and trying to meet and even exceed

Department of Environment and National Resources (DENR) regulatory

requirements. One of the action taken by the company to get the approval is by

studying the communities, water quality, vegetation, soil and GIS Ecosystem mapping

and also a consultation with the affected community.

2. Compare the financial performance of the company in the last two (2) quarters.

Two-Tail Test

Lower Critical Value -1.9600

Upper Critical Value 1.9600
p-Value 0.8253

Wilcoxon Test is one of the method used in comparing two paired groups. It is

used to calculate the difference between each set of pairs. It is an alternative to the t-

test when population data does not follow a normal distribution.

Using the two (2) quarter financial performance of West Mining Company,

Wilcoxon Test p-value is equal to 0.8253. This result indicates that the there is no

significant difference between the 3rd and 4th quarter on the financial performance of

West Mining.
3. Recommend steps to reduce or mitigate risk.

West Mining should be active in participating community engagement. Having

a true value in operating in tandem with communities and clear mutual value creation

would be a great help for West Mining to get the approval of the Bureau of Mines.

Since Mining can cause environmental damage, conflict and even death to the

community the following steps would be considered in mitigating the risk:

1. Community Research. West Mining should know or study the community

for the company to understand the situation and come up with strategies that

could help the affected community.

2. Consultation to the community. After studying the community, West

Mining should consult the community and have a deliberation about the

project. Presenting all the pros and cons in the operation of the project and

hear the side of the community.

3. Allocation of Funds. West mining should have an environmental fund since

mining could really affect the environment as well as the community. The

company should allocate fund for this so that in every project that the

company may have there is no problem with funding.

4. Long-Term Plan. West Mining should have a long term plan to the

community for their security.

5. Sustainability. West Mining should maintain its plan to the community.