OceanaGold remits first payment of PhP1.1B additional government share

OceanaGold (Philippines), Inc. (OGPI) which operates the Didipio Gold-Copper Mine is pleased to announce it has remitted USD20.3 million (PhP1.1 billion[1]) in additional government share for the first time to the Philippine government pursuant to the terms of its Financial or Technical Assistance Agreement (FTAA) on April 23, 2024.

OGPI made the payment at the Department of Environment and Natural Resources in the presence of DENR Secretary Maria Antonia “Toni” Yulo-Loyzaga, Mines and Geosciences Bureau Officer-in-Charge Director Atty. Danilo Uykieng, Quirino Governor Dakila Cua, Nueva Vizcaya Provincial Planning Development Officer Engr. Edgardo Sabado, Kasibu Municipal Councilor Georgette Tucpi-Allaga, and Didipio Barangay Councilor Gideon Mores, among other key local stakeholders.

“This is the first FTAA and the first that has been delivered by a woman CEO. The DENR would like to express our sincere gratitude to OceanaGold for this remarkable contribution. You (OGPI) are not only a trailblazer in terms of leadership, in terms of being FTAA No. 001, you are also in terms of the delivery of these particular returns to the government, to the nation,” DENR Sec. Yulo-Loyzaga said.

“With your [OGPI] commitment to safe and responsible mining practices and the gender balance that is being pursued in the actual operations, OGPI has not only upheld the highest standards but also has been found a beacon of sustainable resource management in the country,” the Secretary added.

Under its FTAA, the Government and OGPI share the net revenue on a 60-40 basis, where the government receives 60% of the net revenue and OGPI receives the remaining 40%. The arrangement is guided by the principle that the government expects a reasonable return in economic value for harnessing its mineral natural resources while OGPI can also expect a reasonable return on its investments taking into consideration the risk of exploration, development, terms and conditions prevailing locally and internationally in the industry, among others. In accordance with the terms of the FTAA, all taxes and fees paid to the government are deducted from the government’s 60% share of net revenue to arrive at any additional government share payable.

Atty. Joan Adaci-Cattiling, OGPI President and General Manager for External Affairs and Social Performance, said that this will be the mining firm’s first payment of additional government share pursuant to the net revenue calculation, and that it will be paid on top of the taxes, duties and fees earlier paid by OGPI to the government. The Company expects to remit additional government share payments annually, going forward subject to metal prices and production performance.[2]

“As the first mining contractor to be a holder of an FTAA, we are proud that we are able to contribute further to the growth of the country and the mining industry. This is a first not only for Didipio Mine but also for the Philippines and we hope that we will be able to continue improving our operations and showcase how the Philippines offers great potential for the mining sector,” Atty. Adaci-Cattiling said.

“While this amount goes to the national treasury, I want to reassure everyone that the DENR will continue to advocate for its utilization towards the environmental, social, and developmental needs of all communities and all local governments that are in fact stakeholders in natural resources development,” DENR Secretary Yulo-Loyzaga said.

OGPI’s Didipio Mine is a gold-copper underground mine in Didipio that straddles the provinces of Nueva Vizcaya and Quirino. OGPI entered into an FTAA with the Republic of the Philippines in June 1994. The Philippine Government confirmed the renewal of the FTAA in July 2021 with the execution of the FTAA Addendum and Renewal Agreement.