T
Tuolumne
Guest
https://www.bloomberg.com/news/arti...eted-by-duterte-s-philippines-eyes-u-s-growth
OceanaGold says Philippines mining tussle to curb investments
Producer to seek to raise output at its new U.S. gold mine
OceanaGold Corp. is targeting an expansion of its new gold operation in the U.S. as a dispute between mining companies and President Rodrigo Duterte’s government in the Philippines is set to curb further investment in the Southeast Asian nation.
“There has been significant damage done to the reputation of the Philippines as a place to invest, and as a place for foreign investment, and I would put us in that category,” Chief Executive Officer Mick Wilkes said in an interview. “My investors would now prefer that they had less exposure to the Philippines than more exposure to the Philippines.”
Duterte’s Environment Secretary Gina Lopez wants to close 23 of the country’s 41 metal mines, and suspend a further five, including Melbourne-based OceanaGold’s Didipio gold and copper operation. The government’s actions will likely be a deterrent to additional project spending by OceanaGold as well as other foreign miners and businesses, Wilkes said.
The most important market news of the day.
Get our markets daily newsletter.
Enter your email
Sign Up
OceanaGold last month filed an appeal against the suspension order and is continuing production as normal from the site -- among the world’s lowest cost gold mines. It’s committed to retaining Didipio and supporting the nation’s efforts to improve the mining sector, Wilkes said. Lopez, a campaigner-turned-minister, argues the industry damages the nation’s environment and typically fails to do enough to alleviate poverty in local communities.
Philippine lawmakers ended a confirmation hearing Tuesday on Lopez without reaching a decision, prolonging uncertainty over her plans to close mines. A next hearing is likely in May, while a separate government review of mines threatened with closure or suspension could take as long as three months, according to Wilkes.
The dispute in the Philippines is in contrast to the company’s revival of the Haile gold mining site in South Carolina, where the first gold was poured in January and OceanaGold has the backing of key local officials, including Nikki Haley, now U.S. Ambassador to the United Nations and previously the state’s governor.
“It’s certainly an easier place to operate and we have got a strong relationship with the government and the community there, that bodes well for the future,” Wilkes said. OceanaGold expects Haile to produce about 150,000 to 170,000 ounces of gold in 2017 and is targeting an expansion to lift annual output to as much as 250,000 ounces after 2020.
The operation already meets President Donald Trump’s “America first” ambitions, according to Wilkes. “It’s part of our formula -- local hiring, use local businesses, maximize the benefits to the local economy,” he said in the Wednesday interview. About 84 percent of the sites 314 employees are from the mine’s local community, according to filings.
OceanaGold says Philippines mining tussle to curb investments
Producer to seek to raise output at its new U.S. gold mine
OceanaGold Corp. is targeting an expansion of its new gold operation in the U.S. as a dispute between mining companies and President Rodrigo Duterte’s government in the Philippines is set to curb further investment in the Southeast Asian nation.
“There has been significant damage done to the reputation of the Philippines as a place to invest, and as a place for foreign investment, and I would put us in that category,” Chief Executive Officer Mick Wilkes said in an interview. “My investors would now prefer that they had less exposure to the Philippines than more exposure to the Philippines.”
Duterte’s Environment Secretary Gina Lopez wants to close 23 of the country’s 41 metal mines, and suspend a further five, including Melbourne-based OceanaGold’s Didipio gold and copper operation. The government’s actions will likely be a deterrent to additional project spending by OceanaGold as well as other foreign miners and businesses, Wilkes said.
The most important market news of the day.
Get our markets daily newsletter.
Enter your email
Sign Up
OceanaGold last month filed an appeal against the suspension order and is continuing production as normal from the site -- among the world’s lowest cost gold mines. It’s committed to retaining Didipio and supporting the nation’s efforts to improve the mining sector, Wilkes said. Lopez, a campaigner-turned-minister, argues the industry damages the nation’s environment and typically fails to do enough to alleviate poverty in local communities.
Philippine lawmakers ended a confirmation hearing Tuesday on Lopez without reaching a decision, prolonging uncertainty over her plans to close mines. A next hearing is likely in May, while a separate government review of mines threatened with closure or suspension could take as long as three months, according to Wilkes.
The dispute in the Philippines is in contrast to the company’s revival of the Haile gold mining site in South Carolina, where the first gold was poured in January and OceanaGold has the backing of key local officials, including Nikki Haley, now U.S. Ambassador to the United Nations and previously the state’s governor.
“It’s certainly an easier place to operate and we have got a strong relationship with the government and the community there, that bodes well for the future,” Wilkes said. OceanaGold expects Haile to produce about 150,000 to 170,000 ounces of gold in 2017 and is targeting an expansion to lift annual output to as much as 250,000 ounces after 2020.
The operation already meets President Donald Trump’s “America first” ambitions, according to Wilkes. “It’s part of our formula -- local hiring, use local businesses, maximize the benefits to the local economy,” he said in the Wednesday interview. About 84 percent of the sites 314 employees are from the mine’s local community, according to filings.
Upvote
0
