The Didipio mine, in the Philippines
PERTH (miningweekly.com) – Dual listed gold miner OceanaGold has been given new hope, after the Office of the President of the Philippines instructed the Department of Environment and Natural Resources to engage with the company and the Department of Finance to finalise the renewal of the financial or technical assistance agreement (FTAA).
Operations at OceanGold’s Didipio mine remain suspended, but the company has previously said that the operation was in a state of readiness that would allow for a rapid-restart either through lifting the restrictions imposed on access, or completing a renewal of the FTAA.
The ASX- and TSX-listed miner on Monday said that the order from the Office of the President comes after the recent grant of a certification of non-overlap to the company, which states that the FTAA area is outside of ancestral domain of the Indigenous Cultural Communities, or the Indigenous People.
“The company’s FTAA has the strong endorsement of the residents in the local communities in and around the Didipio mine, including Indigenous Peoples. The company looks forward to the continued engagement with the national government with the goal of finalising the FTAA renewal,” OceanaGold said in a statement.
Under the terms of the FTAA, Didipio’s net revenue (as defined in the FTAA) is shared with the Philippine government. The government’s share, which includes all taxes and royalties paid, is 60% and OceanaGold is entitled to 40%.
The FTAA includes a defined five-year recovery period during which time OceanaGold can recoup the capital investment made to develop and construct the mine. During the recovery period and on an ongoing basis, OceanaGold pays taxes, royalties, and other fees.