Crackdown could hit Oceana
Philippines Govt closing mines
OCEANA Gold is facing increasing geopolitical challenges to its operations in the Philippines, as the Government there announces a second mining sector review.
The first review saw 23 of the country’s 41 mining operations ordered closed, plus five suspensions.
In midFebruary, Oceana Gold’s Didipio, copper and gold mine on the northern island of Luzon was served a suspension order by the Department of Environment and Natural Resources over environmental accusations.
However, because Oceana immediately appealed the government department order, directly to the Office of the President, Rodrigo Duterte, that move allowed Didipio to continue operating while the appeal process was under way.
Late last week more Philippines Government news filtered out from Manila, announcing the second review and also a proposal to consider a ban on export of unprocessed minerals.
Philippines Finance Secretary Carlos Dominguez said last Friday the separate review of mines in the country would initially cover 23 mines which were ordered shut by the country’s environment minister, and another five which were suspended, which would include Oceana Gold’s Didipio.
Mr Dominguez told Reuters the review would continue even if the appointment of the environment minister who ordered the closure of over half of the country’s mines was not confirmed by Congress.
‘‘We have come up with the guidelines for the conduct of an objective, sciencebased factfinding review,’’ Mr Dominguez said.
Following Mr Dominguez’s meeting last Friday, Depart ment of Environment and Natural Resource Undersecretary Maria Paz Luna told reporters the Philippines might consider banning exports of unprocessed minerals in an effort to promote value addition in the mining sector, Reuters reported.
‘‘It is one of the options that has to be considered not only by the Department of Environment and Natural Resources but by the entire Government,’’ Ms Luna told reporters.
Oceana management in Sydney and Toronto, including chief executive Mick Wilkes, were contacted for comment but were unable to respond yesterday.
Oceana last updated the market in midFebruary on the situation in the Philippines, after the suspension order was delivered by the Department of Environment and Natural Resource.
Mr Wilkes said at the time there had been allegations of damage to houses because of blasting and potential adverse impacts to the agricultural areas; noting Oceana was given three months to address the issues raised.
He defended Oceana’s Didipio operation, saying there had been no violation or breach of any Philippine laws, rules or regulation and for 27 years Oceana had a ‘‘successful track record’’ of standards on health, safety, environment, community and sustainability across all its operations.
‘‘We strongly believe that the Didipio operation is the template for what President Duterte is seeking in his desire for a responsible mining sector in the Philippines,’’ Mr Wilkes said at the time.
Last month, Oceana posted a 24% boost to annual revenue for the 2016 calendar year, more than doubling its aftertax profit to a record $US136.4 million ($NZ189.2 million) on the back of higher gold prices and increased sales.
simon.hartley@odt.co.nz