OceanaGold pushing through with Didipio project

MANILA, Philippines - Australian miner OceanaGold Corp. will likely proceed with the development and operation of its Didipio mine in the province of Nueva Vizcaya despite looming changes to the country’s mining policy, a top company official said.

Mick Wilkes, OceanaGold managing director and chief executive officer, said in a statement earlier this week that he does not expect the Philippine government’s ongoing review of mining rules to affect the progress of the Didipio project.

“I don’t think there will be any detrimental impact on Didipio. We have a contract – recognized by international law – for us to proceed with Didipio and to develop and operate the mine,” he said.

OceanaGold intends to bring the Didipio mine which has 1.68 million ounces in gold reserves and 229,000 metric tons in copper reserves, in production by the end of this year.

Wilkes said the project is on track for commissioning in the fourth quarter this year.

He said he expects the ongoing review of the government to result in changes that will be favorable to the mining firms, in terms of providing clarity in the direction the government wants for the industry.

“We don’t believe that any potential changes the government will make to the laws of the mining industry would be detrimental to mining; in fact I think it will be positive, as it will provide greater certainty for the mining industry to move forward confidently with the government to grow a strong, sustainable and responsible mining industry in the country,” he said.

He said that as miners operating in the country face unique challenges in building projects, OceanaGold has worked very hard on the project at all government levels and has focused on its relationship with the local community.

“We’ve focused our efforts on the local community and specifically working towards creating opportunities for future prosperity across an impact area that well exceeds the immediate mining area - that’s the key,” he said.

Consultations with the different government agencies are being held for a proposed mining policy which seeks to improve environmental standards, optimize government revenues, harmonize national and local policies, and improve governance in the mining sector.

Mines and Geosciences Bureau director Leo Jasareno said earlier this week there is no definite schedule for the release of the new mining policy as the government intends to hold more consultations with stakeholders to ensure that all issues and concerns are addressed.

The Chamber of Mines of the Philippines has said it opposes the government’s plan which forms part of the proposed mining policy, to declare all existing mines as mineral reservations to collect a five percent royalty atop existing taxes and royalties currently being paid, citing that they are already giving their fair share to the government.