Tuesday 18 October 2016 03:40 PM
OceanaGold says Didipio audit report finds miner complies with law, must communicate more
By Jonathan Underhill
Oct. 18 (BusinessDesk) - Oceanagold Corp, the NZX-listed gold miner, says an audit of its Didipio mine by the
Philippines' Department of Environment and Natural Resources (DENR) found it was in compliance with its permits but must
do more to communicate with stakeholders.
Melbourne-based Oceanagold was among 23 mining companies named at a media conference given by DENR secretary Gina Lopez
and head of mining audit Leo Jasareno last month that could have operations suspended because of outstanding social
issues. Since then the company has said it's engaged in "constructive" dialogue after the Philippines government,
including the DENR officials.
"The findings in the audit report relate mostly to a need to further educate a broader group of stakeholders on specific
aspects of the operations," chief executive Mick Wilkes said in a statement. "The vast majority of recommendations
relate to the need to further expand the company’s information, education and communication program." He said concerns
raised at the DENR media conference last month "were not included as findings outlined in the audit report".
The company didn't release the report itself. Among the findings it did cite were "illegal artisanal small scale mining
activities" in the Didipio area "that contribute to the degradation of the immediate environment and waterbodies" and a
recommendation for government agencies to crack down on that.
Wilkes says the company has seven days to address the report's findings and recommendations. "I am very confident that
our responses to the DENR will satisfy all of the findings and recommendations that have been raised," he said.
Lopez was quoted in the Philippines Star in August as saying she would look into complaints of several environmental
groups regarding corrupt officials at DENR. Protesters had come from mining-affected communities including from the
Nueva Vizcaya region where the Didipio Gold and Copper mine is located.
The company operates the Macraes and Reefton mines in the South Island. Last year it acquired the Waihi mine from
Newmont Mining Corp and it is also developing the Haile mine in the US, where commercial production is slated to start
in early 2017.
Shares in Oceanagold rose 7.2 percent to $4.19 and have gained 49 percent this year.
(BusinessDesk)
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