OceanaGold makes 1st shipment of concentrate from Didipio mine

OceanaGold Corporation has completed the first shipment of concentrate from its Didipio copper-gold mine in Nueva Vizcaya, the Australian mining firm said in a statement Tuesday. The shipment consists of 5,000 dry metric tons of copper-gold concentrate now bound for Hibi, Japan. The company expects the first cash receipt for the shipment mid-April. OceanaGold managing director and CEO Mick Wilkes said that the company has produced “over 15,000 dry tons” of the concentrate, and that the recovery of copper ore is "approaching steady state expectations." “Gold recoveries are also increasing and will be further boosted as the gold head grade increases. As we further optimize the transportation logistics combined with regular outbound shipments to smelters, we expect to be in a position to announce commercial operations during this quarter,” he said. In February, 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). Under the FTAA, contractors may recover their pre-operating expenses, either for a period of five years or until the date of actual recovery, and are only required to start paying all applicable taxes, fees, royalties and other related payments to the national and local governments after the 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. “FTAA contractors are liable to pay the taxes due under the NIRC (National Internal Revenue Code) and existing rules and regulations during and after their recovery period,” it said. OceanaGold Philippines later paid the excise taxes “under protest” to resume shipments. — BM, GMA News