OceanaGold faces possible suspension

MANILA, Philippines – Another mining company is in the brink of possible suspension as the Mines and Geosciences Bureau (MGB) ordered a review of Australian-owned OceanaGold Corp. following complaints from the residents of Nueva Vizcaya.

“The exploration area is a rich agricultural area, the citrus capital of Nueva Vizcaya. The local government unit wants to use their land for agro-forestry rather than exploration,” MGB director Leo Jasareno said.

The Philippine unit of OceanaGold Corp. operates the Didipio mine in Nueva Vizcaya, a high grade gold-copper mine located approximately 270 kilometers north of Manila.

It is one of the lowest cost gold mines globally, with nominal production of 100,000 ounces of gold and 14,000 tons of copper.

“If it can be found that the petitioners’ complaints are valid, then the secretary will have to withdraw the permit. We will investigate,” he added.

“The audit is not just technical, it will also look into the social and environmental aspects. Should they fail, we will follow the rule of the land and suspend their operations,” Environment Secretary Gina Lopez said.

Jasareno said there has been a formal request to junk the request for renewal of the company’s exploration permit for five years.

The company’s mining claims cover about 15,000 hectares and around 900 hectares have been explored.

OceanaGold acquired the Didipio project in the Philippines through its 2006 merger with Climax Mining.

The DENR is set to issue a memorandum, stating that any exploration permit will not be issued without the consent of the community.

Nueva Vizcaya Governor Carlos Padilla asserted that mining was not allowed in the province and vowed to implement the environmental code.

“I will exercise the full powers of my office to strictly implement the Environmental Code of Nueva Vizcaya. Our mandate is to protect the environment and the people,” he said.