OceanaGold plans PHL exploration program

Australian mining firm OceanaGold Corporation announced Monday that it will begin exploration programs in its tenements in the Philippines. "We look forward to commencing a significant exploration program across our broad portfolio of exploration projects in the Philippines once the renewal of our exploration permits is received," the miner said in a statement Monday. The company's local unit, OceanaGold Philippines, operates the Didipio copper-gold mine in Nueva Vizcaya. Last month, OceanaGold suspended shipments from the mine as it sought clarification from the government about the tax exemption rules of its Financial Technical Assistance Agreement (FTAA). A company with an FTAA had been exempt from paying taxes, fees, royalties and other related payments to the national and local governments before the end of its recovery period. However, the Bureau of Internal Revenue on Feb. 15 issued memorandum circular No. 17-2013, which stated that FTAA holders must pay taxes even within the recovery period. OceanaGold recently resumed the shipment of copper-gold concentrate from the mine after paying excise taxes "under protest" to the BIR. The Didipio Project I is expected to produce 100,000 ounces of gold and 14,000 tons of copper per year on average over an estimated 16-year mine life. During a mining conference in November 2012, Didipio mine general manager Brennan Lang said exploration activities within the tenement of the Didipio mine as well as in the company's other tenements in Surigao, Apayao and Cagayan will be held this year. In its statement, OceanaGold said that proven and probable reserves at Didipio currently stand at 50.1 metric tons (MT) at 1.05 grams per ton of gold and 0.47 percent copper for 1.69 million ounces of gold and 0.24 MT of copper. — BM, GMA News