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OceanaGold resumes concentrates movement in Philippines

14th March 2013

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – ASX- and TSX-listed OceanaGold said it has resumed transportation of copper/gold concentrate from the Didipio mine site, in the Philippines, to port.

As a result of clarifications on tax exemptions being sought by the company, some of the trucks used for transporting concentrate were being held by local government agencies at the end of February, forcing the company to temporarily suspend concentrate movements.

The Didipio mine in Nueva Vizcaya province, now in the commissioning stage, is the first project to operate in the Philippines under the Financial and Technical Assistance Agreement, or FTAA, structure.

Under an FTAA, when a permit is issued by the Mines and Geosciences Bureau to foreign investors owning 100% of a local venture, the project, with a 25-year term, is allowed a five-year tax holiday.

The Bureau of Internal Revenue in February said miners with FTAAs were not exempt from paying the 2% excise tax even if their permits gave them a five-year period from the start of commercial operations within which to recover pre-operating expenses.

OceanaGold said it had produced about 9 000 t of copper/gold concentrate to date, with one-third of this delivered to the port.

The trucking capacity was being increased to reduce the site stockpiles of concentrate in advance of the first shipment from the port, expected in April.

Edited by Creamer Media Reporter

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