CA junks OceanaGold’s appeal to continue operations

MANILA, Philippines — The Court of Appeals (CA) has dismissed Australian-Canadian mining firm OceanaGold’s call for an injunction against Nueva Vizcaya’s restraining orders of its mine operations.

The CA decision released last week upheld the decision of the Regional Trial Court of Nueva Vizcaya last July 2019 denying the injunction of OceanaGold Philippines.

The CA cited that “the petitioner failed to establish its clear and unmistakable right to continue its mining operation.”

OceanaGold’s financial and technical assistance agreement (FTAA) expired in June 2019 and it has failed to secure a renewal of its mining contract, and therefore, mine closure was implemented by local authorities.

However, the firm continued operations despite the lack of permit, prompting the local government unit and the local community to set up a people’s barricades to prevent any illegal entry of mining vehicles.

The actions of the community and the LGU led to OceanaGold filing an injunction, which was later denied by the RTC of Nueva Vizcaya in July 2019.

Nueva Vizcaya Governor Carlos Padilla welcomed the CA decision, saying it affirms the province’s position that upon expiration of its FTAA, OceanaGold does not have any more rights to engage in mining activities in Didipio.

“It clearly belies the position taken by the MGB (Mines and Geosciences Bureau) that OceanaGold is permitted to continue its mining operations pending renewal of its FTAA,” Padilla told The STAR.

“In view of such development, we now strongly demand for the complete pull out of OceanaGold from the area,” he said.

Since the expiry in June 2019, President Duterte still has yet to approve the renewal for another 25 years, even with the endorsement from the Department of Environment and Natural Resources and the Mines and Geosciences Bureau.

The President has the final decision on the grant and renewal of FTAA upon the endorsement of the MGB and DENR.

The Office of the President earlier found a deficiency – the first 25 years of OceanaGold were not covered by the Indigenous Peoples’ Right Act and its area was outside the ancestral domain of the Bugkalot tribe.

OceanaGold’s FTAA covers some 10,000 hectares. Out of that, only 975 hectares have an approved environmental compliance certificate and 330 hectares are only being utilized.

An FTAA is entered into between a contractor and the government for the large-scale exploration, development and utilization of gold, copper, nickel, chromite, lead, zinc and other minerals. It is granted to foreign-owned corporations seeking to operate in the Philippines.

OceanaGold Philippines accounts for one-third of the global business of the company. Its other operations are in New Zealand and the United States.