PERTH (miningweekly.com) – Gold/copper miner OceanaGold has moved to allay shareholder fears over the future of the Didipio operations, in the Philippines, with CEO and president Mick Wilkes saying the company is confident that the project will continue to operate without interruption.
Last week, the Philippine government released the results of a nation-wide environmental mine audit, which recommended the suspension of a number of mines, including OceanaGold’s flagship Didipio copper and gold mine.
The Philippines Department of Environment and Natural Resources (DENR) stated that the mine was “beset with social issues”, including a petition of the Nueva Vizcaya province to cancel its financial and technical assistance agreement and claims that blasting has damaged houses. The DENR further cited “perceived dangers of underground mining” and the province’s preference for agriculture and agro-forest over mining as its reasons for the suspension recommendation.
Wilkes said on Tuesday that following the DENR announcement, the company had engaged directly with Environment and Natural Resources Secretary Gina Lopez and other senior government officials to gain clarity on the findings of the report.
He reported that discussions with the officials had been “constructive” and that the company would continue to engage with all stakeholders in order to demonstrate the achievements and attributes of the Didipio operation, as well as the benefits the mine had delivered to the surrounding communities.
“I am highly confident that our Didipio operations will continue to operate without interruption as the Didipio mine sets the benchmark for responsible mining based on international best practices and serves as the template for the type of operations that President Rodrigo Duterte and his administration are seeking for all mining operations in the Philippines as they advance a responsible mining sector.”
The mine currently continues to operate without interruption, and OceanaGold has maintained its production and cost guidance for 2016.
OceanaGold’s stock advanced 5% in Sydney on Tuesday to A$4.21 a share. The company’s stock took a knock last week after the results of the mine audit were announced over uncertainty of the future of the Didipio mine.
In Toronto, OceanaGold closed 2.5% lower at C$3.84 a share on Monday evening.