OceanaGold eyes start of underground mining

Australian- owned OceanaGold Corp. is eyeing to start underground mining operations at the Didipio mine by end-next year even as it faces possible suspension amid the ongoing review of its mine.

“Mining of Stage 5 of the open pit was completed during the second quarter, ahead of schedule while development of the underground continues to advance well,” OceanaGold president and CEO Mick Wilkes said.

OceanaGold expects production from the underground operations by the end of next year.

The Didipio mine, located in Nueva Vizcaya, is a high grade gold-copper mine which is approximately 270 kilometers north of Manila.

The MGB ordered a review of OceanaGold’s operations following complaints from the residents of the province.

MGB director Leo Jasareno earlier said there was a formal request to junk the request for renewal of the company’s exploration permit for five years.

But OceanaGold Philippines chairman Joey Leviste said they have yet to receive a copy of the suspension order.

“We can’t comment further because we have a legitimate permit from the government,” he said.

The permit issued by the MGB in March this year authorized the company to conduct exploration activities in the broader region surrounding Didipio in the next five years.

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

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