OceanaGold stops trucking at Philippines gold mine after dispute

MELBOURNE/MANILA, July 4 (Reuters) - Australia's OceanaGold
Corp OGC.AX said on Thursday that it had stopped trucking at
its Didipio gold and copper mine in the Philippines after a
dispute with a provincial government over its licence to operate
at the site.
The mid-tier gold miner is waiting for the renewal of its
operating licence for the mine on Luzon island, but in the
meantime, it has authorisation from the Philippines mines bureau
to continue operations, it said in a statement to Australia's
stock exchange.
The governor of Nueva Vizcaya province, however, has
directed local government units to restrain its operations and a
local government unit prevented a large supply truck from
accessing the mine site on July 1, it said.
"Operations continue at the mine, but the company
proactively halted truck movements, including copper
concentrate, to prevent the potential for escalation. This has
not impacted supply of copper concentrate for shipment," it
said.
"Unfortunately, the company has had to file for an
injunction to ensure local government units recognise the
legitimacy of Didipio's continued right to operate and the
national government's legal authority over the operation."
It has filed for an injunction against any restraint to
operations and a hearing date has been set for July 10.
The country's industry regulator, Mines and Geosciences
Bureau (MGB), confirmed OceanaGold can continue mining
operations at Didipio while the renewal of its licence is under
review.
"Until and unless the Office of the President says it's not
renewed because you are not compliant, then this operation of
OceanaGold will continue on a temporary basis," MGB Director
Wilfredo Moncano told Reuters.
The MGB and the Department of Environment and Natural
Resources have endorsed OceanaGold's application for approval by
President Rodrigo Duterte, but the latter's office had sent it
back because it found the application incomplete.
OceanaGold has assets in the Philippines, New Zealand and
the United States. Didipio produced 115,000 ounces of gold and
15,000 tonnes of copper last year.
The miner targets total gold production of 500,000 to
550,000 ounces and 14,000 to 15,000 tonnes of copper this year.
OceanaGold's shares last traded at A$4.00 before a trading
halt on Wednesday. Its shares hit a nine-month low on Tuesday.
Mining is a contentious issue in the Philippines after past
environmental mismanagement by miners.
Duterte has repeatedly warned miners to follow tighter
environmental rules or shut down, and he is strongly against
open pit mining, despite a push by senior officials of his
administration to soften the policy.