Posts Tagged With: didipio mining project

OceanaGold’s Didipio mine cited most environment compliant

 

 

Untitled 1MANILA, Philippines – OceanaGold-operated Didipio mine in Nueva Vizcaya was named as Most Environment Compliant Industry at the celebration  of Environmental Partners Recognition Day by EMB recently.

Didipio operation was cited after it has hurdled all criteria for the award that included 1) complete compliance to applicable effluent/emission standards as required in the Clean Air Act and Clean Water Act; 2) has the required pollution control devices and/or treatment facility;3) Satisfied the requirements for compliance within the timeframe  specified in the IRR of pertinent laws; 4) submitted quarterly self-monitoring report; 5) submitted compliance monitoring report; 6) submitted compliance plan for pollution prevention at reasonable period of time; 7) has no existing and verified complaint on environmental matters; 8) did not obstruct entry of inspection team into its premises; 9) discharge wastes only through authorized outlets/bypass.

Didipio officials said all criteria were met by the operation from 2011 through 2013.

Environmental laws complied with include RA 8749, RA 9275, PD 1586, RA 6969, and RA 9003. The criteria for award selection were based on the National Ecowatch Rating Guidelines and Procedures.

This latest recognition achieved by Didipio adds to other recognitions it has gained in other areas notably its attainment of more than eight million safe man-hours, and outstanding performance of the mine’s emergency response team in the international humanitarian mission to aid victims of Super Typhoon Yolanda and Bohol earthquake.

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Philippine Mining Sector Reform

 

Wednesday, 25 July 2012

 

(MELBOURNE) OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (the “Company”) wishes to provide an update regarding the recently signed Executive Order 79 by President Benigno S. Aquino III of the Philippines in regards to mining sector reform. The Executive Order lays the foundation for the policy framework which will guide stakeholders and the Philippines Government in the implementation of mining laws, rules and regulations for responsible, sustainable and equitable mining. It is a result of consultation from various stakeholders including environmental groups, church groups, Philippines Government agencies, mining and mining services companies.
 

Key factors under Executive Order 79:

 

• The Government shall rationalise the existing revenue sharing schemes. Existing contracts such as OceanaGold’s Financial or Technical Assistance Agreement (“FTAA001”) shall continue to be valid and binding.
• Granting of new mineral agreements has been suspended until the fiscal sharing arrangements between the Government and the Contractor are rationalised and legislated.  We note that the Government has clarified however that this moratorium does not preclude the negotiation of FTAAs for future mining projects.
• Exploration permits may be granted following the release of the Implementing Rules and Regulations (IRR) expected within 60 days of the Executive Order. The Company remains in “drill ready” status for some near mine prospects at the Didipio Project and expect the extension of the exploration period following release of the IRR.
• The Executive Order aims to align national interest with local governments’ interests.
• Measures will be introduced to improve the regulation and control of small scale mining activities for metallic minerals and will be restricted to gold, silver and chromite mining only.
• The Government shall ensure strict enforcement of the environmental standards in mining.
• There will be improved transparency of the mining industry.
 

Implementing rules and regulations will be issued by the Philippines Government in the following weeks which will provide further direction.
 

Mick Wilkes, Managing Director and CEO of OceanaGold said: “The release of this Executive Order is a positive outcome for OceanaGold and the Philippines mining industry. In my recent discussions with senior Government officials I was pleased that the Government remains committed to the FTAA Contract for Didipio and comfortable with the current fiscal sharing arrangements. We are committed to working with the Government to achieve the outcomes of responsible mining and ensure benefits to local communities and Government through the development of our mining projects. OceanaGold’s Didipio Project FTAA001, set to be commissioned in fourth quarter this year, will be the first of its kind to operate under this type of mining contract, and we look forward to helping shape best practice for the mining industry in the Philippines.”

 

- ENDS –

 
For further information please contact:
OceanaGold Corporation
 

Investor Relations – Melbourne
Nova Young or Darren Klinck
Tel: +61(3) 9656 5300    +1 416 915 3123
 

Investor Relations – Toronto
Sam Pazuki
Tel: +1 416 915 3123

 

info@oceanagold.com   |   www.oceanagold.com

 

 

 

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OceanaGold Didipio Update and Corporate Refinancing Initiatives

 

16 July 2012

(MELBOURNE) OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (the “Company”) is pleased to provide a progress report on the Didipio Project as well as the corporate re-financing initiatives previously discussed by the Company.

HIGHLIGHTS
• Received credit approvals from a group of large, multi-national banks for a US$220 million credit facility to be used if necessary, for repayment of convertible bonds maturing in December 2012 & December 2013 and for general working capital purposes.
• Didipio Project in Luzon Philippines is fully financed and on track for commissioning in Q4 2012. Total project capital is now estimated at US$220 million, from US$185 million announced in June 2011.
• Construction is over 70% complete.
• Recruitment for Didipio permanent operations team and operations readiness plans are well advanced.

Corporate Re-Financing Initiative
Subject to final documentation, OceanaGold will enter into agreements with a group of multi-national mining banks to provide a US$220 million credit facility. The arrangement has received credit approval from each of the Banks’ credit committees.  This three year facility will provide additional liquidity should it be required for:
- Repayment of the A$57.8 million convertible bonds maturing December 2012
- Repayment of the A$110 million convertible bonds maturing December 2013
- US$50 million working capital facility
Further details of the facility will be provided upon completion of documentation in the coming weeks.
Mick Wilkes, Managing Director & CEO commented, “I am very pleased with the strong support we’ve received from this group of large, first-class, multi-national banks to restructure and strengthen the balance sheet. It’s a vote of confidence in OceanaGold and allows us to focus on successfully commissioning Didipio and generating strong cash flows from our operations in 2013. We remain committed to creating a mid-tier, low cost, international gold mining company and we look forward to working with our new financial partners to further grow the company.”

Didipio Project Construction Progress
Construction activities at the Didipio Project have progressed well over the past two months. The project is currently at peak construction with more than 1600 workers at site with 98% of these being Filipino nationals.
All design for the process plant and infrastructure is complete. Project procurement is on schedule with the majority of the major process components already installed or in storage on site. Key outstanding deliveries are the seven remaining power generators and the high and low voltage electrical switch rooms. All of the power equipment is expected at site over the next 4-6 weeks.
Construction of the accommodation village and administration buildings is complete. Concrete installation is 95% complete and steel erection at the process plant is 65% complete.  Mill shells and mill ends, flotation tanks and thickeners are installed ready for mechanical and piping installation. All remaining major contracts including mechanical, piping and electrical installation have been awarded and the contractors have commenced work on site.
The Tailings Storage Facility (TSF) is now 50% complete and progressing well. Importantly the critical activity of bringing the embankment foundations for the TSF up out of the ground has been completed prior to the onset of rain. TSF construction can now continue unabated through wet weather. Mining of waste rock from two starter pits continues to ramp up and that has been a key contributor to the solid progress made on the TSF construction which will continue over the next few months and is designed to have ample capacity for start-up.
Mining of the Didipio orebody has commenced on schedule this month in readiness for commissioning in the fourth quarter and to build ore stockpiles for production in 2013.
In advance of commissioning later this year, the Didipio operations team is being recruited with approximately 60% of the required positions already filled. Operations readiness plans are well advanced and most spares and supply items are catalogued and ordered.

Didipio Project Capital Cost Update
As reported earlier this year, the Company has experienced some cost pressure related to construction activities at the Didipio Project. Total Didipio Project capital cost is now expected to be US$220 million, which represents a 19% increase on the US$185 million reported at project commencement in June 2011. The main contributors to the increased capital cost are associated with increases in engineering design and procurement services, TSF and infrastructure construction, and site support costs. Working capital requirements on start-up are expected to be an additional US$27 million.
As at 30 June, US$161 million of the total Project capital cost had been spent, with a further US$24 million committed in contracts. Cash on hand as at 30 June was US$73 million. The Project is currently in peak construction and on track for commissioning in the fourth quarter 2012 and remains fully financed through to commercial production.
Mick Wilkes, Managing Director & CEO commented, “Didipio Project is going extremely well.  We remain on track to achieve our goal set out in June last year to commence commissioning in Q4 this year. Excellent progress has been made over the past few months with construction of the processing plant and the TSF. Mining is ramping up to full capacity and ore mining has commenced on schedule. We are also making good progress with our commissioning and operations readiness plans. The increased capital cost for the project is consistent with industry cost pressures today, particularly for engineering design services. We also made the very deliberate decision to engage with high quality contractors in the Philippines which cost more money to ensure the Project was built to a high standard and on time. With the current cash position, cashflows from New Zealand operations in 2012 and the credit facility, the Company is well positioned to meet its medium term growth objectives.”

The full press release including images is available on our website at:  http://www.oceanagold.com/investors-and-media/news-releases/ogc-didipio-update-and-corporate-refinancing-initiatives/

To view recent construction progress at Didipio, please visit our website at:
http://www.oceanagold.com/investors-and-media/images-and-videos/

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OceanaGold bares environment projects

Oceanagold (Philippines ) Inc. said it has been implementing an environmental management system even before it started the construction of the gold copper project in Barangay Didipio Nueva Vizcaya.

“We are all applying all mitigating measure to avert negative effects on the environment and this is through reviews, audits and risk assessment to optimize and ugment our environmental performance” said Chito Gozar, Oceanagold senior vice president for communications and external affairs.

He said “ for all this to be effective, it needs to be conducted within a structured management system and integradted with overall management activity”

Meanwhile, Francisco de Leoz, Jr., Oceanagold environment manager, said OceanaGold had set up a plan for a EMS, an international management certification.

He said an ems promotes continuous improvement and ensures all envirornmental management procedures are maintained.

“Early this month, OceanaGold will begin with the awareness and training of our employees for them to understand and accept the system on environmental management” De Leoz said.

He said because of early preventive system against risks a company could save substantially from adopting an EMS- ISO 14001.

Inherent of an EMS is compliance with laws, reduction of waste and improvement of profit, demonstration of environmental leadership and improvement of customer and investor satisfaction and marketing edge as well as relations with the local community, regulatory authorities and employees.

Located at the boundaries of Kasibu, Nueva Vizcaya and Cabarroguis Quirino the OceanaGold copper gold project has planted over 190,000 trees to its concession area even before the start of operation.

It has likewise undertaken community projects, including the construction and improvement of school buildings and medical clinics roads and other community projects such as in education and other livelihood facilities.

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Aussie firm registers 1 million man hours with zero lost time


KASIBU, Nueva Vizcaya—The Australian firm operating the Didipio gold-copper project in this mineral-rich town reported it has reached over a million man-hours with zero lost-time incident  (LTI).

LTI represents an injury or illness sustained by an employee resulting in their inability to deliver a full work shift.

“Lost-time cases result when there are no reasonable circumstances under which the injured employee could return to meaningful work. An employee without accumulated sick-leave application will be reported as lost-time incident,” said Oceana Gold Philippines Inc. (OGPI) Vice President for Communications and External Affairs Ramoncito Gozar.

Gozar said OGPI has shown steady progress from the moment it announced it was resuming construction activities in June.

“The project’s above-satisfactory performance on health and safety continues to generate impressive ratings due to the collective efforts of the OGPI work force. We always see to it that everybody goes to work healthy and safe for maximum productivity,” added Gozar.

Basic life support and regular emergency response trainings, including site-safety inspections, have been regularly conducted to keep the  company’s working crew health and safety conscious.

“Safety-first culture has always been the guiding principle in our operation,” said Gozar.

Cagayan Valley (Region 2) Mines and Geosciences Bureau Director Mario Ancheta said his office tightly monitors mine-safety performance of all large-scale mining projects in the region. ( Leonardo Perante II / corresondent)Search Engine PlacementSubmit Express

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Vizcaya town taps agri-mining resources

 

 

Vizcaya town taps agri-mining resources by Brenda Gaudia

Kasibu, Nueva Vizcaya—Mayor Alberto Bomulo Jr. wants to cap his term in 2013 putting Kasibu in the investment map with infrastructure to attract locators in the agriculture, mining and travel sectors.

Succeeding his father, he said in an interview that the townsfolk deserve to benefit from the economic growth of the locality.

“My father opened the roads in Kasibu. It’s my solemn duty to improve the living conditions of my constituents,” he told Manila Standard.Straddling the Caraballo and Sierra Madre range, the municipality hosts Oceana Gold Mining Philippines.

In its disclosure, the firm said a $185-million gold and copper mine would be commissioned in December 2012.

Online statement from Oceana indicated design studies of a payback period of 2.2 years from early 2013 with ore production to ramp up from 2.5 to 3.5 metric tons.

Bomulo said infrastructure was vital to growth of the third-class municipality for expanding production of crops such as rice, banana, corn, fruits and vegetables alongside minerals that also include coal, manganese and silver.

He cited a memorandum of agreement with Oceana in which the firm was expected to help in realizing improvements such as farm-to-market roads, being a partner in growth out of the gold and other mineral resources extracted in Kasibu.

In a media update, Oceana upgraded the water system at its project site with funds coursed to the Didipio Community Development Association Inc., following a community-based planning workshop for the benefit of at least 34 households at Pimmadek 2.

Over the weekend, Bomulo led Arbor Day rites, joined by municipal employees, civic and religious groups, educators, tribal council members, and staff of the Department of Environment and Natural resouirces in the National Greening Program of Malacañang, for about 378,000 seedlings on the rolling hills of Barangay Alloy.

He said the town was a tributary of Casecnan Dam, needing to protect the watershed and maintain the forest cover to preserve the best landscapes of the province.

Bomulo said the town had a hospital, newly erected 3-story police station, eight schools and a nursery.“I want my people educated,” he said, noting better opportunities for residents. “If there are jobs, mountains would be preserved for the next generation.

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OceanaGold upgrades water systems in mine site

http://www.philstar.com/Article.aspx?articleId=699813&publicationSubCategoryId=77

By: Sanny Galvez (The Philippine Star) June 26,2011

MANILA, Philippines – As part of its continuing community development program, OceanaGold Mining (Phils.) has recently upgraded the water systems at its mine site in Barangay Didipio in Kasibu, Nueva Vizcaya, which it has funded through the Didipio Community Development Inc. (DCDAI).

Lucita Exconde, sustainability senior manager of OceanaGold, said there are several domestic water systems within Didipio which her firm has funded through the DCDAI, a community-based group composed of the tribal council, educators, cooperatives, people’s organizations and religious and professionals of Barangay Didipio.

She said the water system that had recently been upgraded was the Pimmadek 2 which involved the replacement of pipe networks and installation of water meters.

“The metering system introduced in the Pemmadek 2 water system is part of the sustainability plans for the water project,” Exconde said.

According to her, the 34 household beneficiaries of the water works project will become actively involved in the maintenance and management of their own water system.

Earlier, OceanaGold conducted a Community Based Participatory Planning (CBPP) workshop among the residents in the said barangay to identify priority projects that will benefit the community, such as the improvement of its water facilities.

“Improving its water facilities is the top priority in our list of other important projects for the community which we hope will be very beneficial to all  and will have a far-reaching impact in the area,” said Chito Gozar, OceanaGold vice president for communications and external affairs.

He said as part of its objective of sustainable development, it will continue to carry out its livelihood, reforestation, environment, health and education and other community programs that will benefit not only the residents in Didipio but also those in the neighboring communities.


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OceanaGold: Project proving more attractive

BY MADELAINE FAYE D. CABRERA

OceanaGold Philippines Inc., a unit of Australia’s OceanaGold Corp., is ramping up work at its Didipio copper-gold site in Nueva Vizcaya to meet its of fourth-quarter 2012 commissioning schedule.The total capital cost for the project is $185 million, with approximately $12 million spent as of May 31 this year, leaving $173 million still to be spent to complete the project.

Construction will take place over the next 15-18 months.

OceanaGold managing director and chief executive Mick Wilkes said: “Over the past six months we have been working hard to unlock significant value through adjustments to the design of the mine, process plant and infrastructure which has seen average annual gold production increase by 45 percent and average annual copper production increase by 69 percent over the life of the mine.”

He said the project will give OceanaGold a significant platform to expand further in the Philippines and throughout Asia Pacific.The new reserve model for the project shows a 70 percent increase in the reserve tonnage to 50.7 million tons, against 29.7 million tons in the earlier design.

This results in a 19 percent increase in gold reserves and a 35 percent increase in copper reserves utilizing a price of $950 per ounce of gold and $2.85 per pound of copper.For the first six years of operations, the Didipio project is expected to produce on average 100,000 ounces of gold and 14,000 tons of copper yearly.

The project shows an internal rate of return of 48 percent at spot metals prices.The mine life has been shortened to 16 years with the open pit operating throughout and the underground operation expected to commence production in 2020.OceanaGold said that with the larger open pit design, total material moved over the life of the mine will be 199 metric tons, of which 44.7 metric tons will be ore, resulting in a life of mine strip ratio of 3.45:1.

Additional inferred resources amounting to 15 million tons fall within the currently designed open pit.These could potentially add 200,000 ounces of gold and 20,000 tons of copper to the mine plan, according to OceanaGold.

The open pit mining at Didipio will be undertaken by a mining contractor and comprise six stages over the next 14 years, taking the open pit to 270 meters below the valley floor, OceanaGold said.”The increased mining rates and larger open pit will allow for quicker access to the higher grade gold than would have been mined via underground methods later in the mine life,” said Wilkes.

“Importantly, the new open pit design allows for high feed rates to the process plant to be sustained as well as greater leverage to strong metal prices by converting more of the resource into reserves,” he added.Wilkes said that underground mining is also expected to take place for at least six years and will run concurrently with the open pit operation.

Earlier, OceanaGold said recent comments by Environment Secretary Ramon Paje that the government would protect mining investments and remove unnecessary interferences were welcome.The mining industry has expressed concern about an increasing number of provincial bans that are stopping approved projects.

The southern province of South Cotabato has imposed a ban on open-pit mining, putting at risk the country’s largest mining project, the $5.9 billion Tampakan copper-gold project run by global miner Xstrata Plc.OceanaGold is a significant Asia Pacific gold producer with projects located on the South Island of New Zealand and in the Philippines.OceanaGold is listed on the Toronto, Australian and New Zealand stock exchanges.

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OceanaGold cuts projected life of Didipio mine to 16 years


MANILA, Philippines – OceanaGold Corp. has decided to cut the projected life of its Didipio copper-gold mine from 20 years to just 16 years even as the company announced that it has started construction activities at the project site in Nueva Vizcaya.

In simultaneous disclosures to the Australian, Toronto and New Zealand Stock Exchanges, OceanaGold said it has commenced and will progressively ramp up in the coming weeks construction activities.

OceanaGold said the project, “shows strong economics with cash costs for the first six years averaging negative $79/oz (net of biproduct credits using $3/lb of copper). Gold and copper reserves have increased significantly along with average annual gold production which is now 100,000 ounces per annum.”

According to OceanaGold, the minilife revealed, has been shortened to 16 years ( from the original projection of 20) with the open pit operating throughout, and the underground operation expected to commence production in 2020.The Australian-listed mining firm said that its board has formally approved the remaining capital expenditure to complete development of the Didipio project.

OceanaGold chief executive Mike Wilkes had said that company would spend $140 million to complete the Didipio project, on top of the $80 million it has already spent for partial construction.

In their disclosure, Wilkes said “we are very pleased to have commenced construction that will see commissioning on schedule in the fourth quarter 2012. Over the past six months we have been working hard to unlock significant value through adjustments to the design of the mine, process plant and infrastructure which has seen average annual gold production increase by 45 percent and average annual copper production increase by 69 percent over the life of the mine.”

Wilkes said, “this robust project will be transformational for OceanaGold and give us a significant platform to expand further into the Philippines and throughout Asia Pacific.”The Didipio project is expected to produce annually an average of 100,000 ounces of gold and 14,000 tons of copper at cash costs of $356/oz gold (net of bi product credits at $3/lb copper).

For the first six years of operations, gold production will be approximately 100,000 ounces per annum.However, with higher annual copper production of 18,000 tons per annum, cash costs will average negative $79/oz (net of bi product credits) over the same period.The project, according to OceanaGold, demonstrates an internal rate of return of 48 percent at spot metals prices.

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OCEANAGOLD ANNOUNCES COMMENCEMENT OF CONSTRUCTION

(MELBOURNE) OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (“the Company”) is pleased to announce construction activities have commenced and will progressively ramp up in the coming weeks on the Didipio Project located in northern Luzon, Philippines. Further pre-development studies have identified opportunities to maximise project returns. The Project shows strong economics with cash costs for the first 6 years averaging negative $79/oz (net of bi product credits using US$3.00/lb Cu). Gold and copper reserves have increased significantly along with average annual gold production which is now 100,000 ounces per annum. The Board has formally approved the remaining capital expenditure to complete development of the Didipio Project.

 In line with Canadian regulatory requirements, the Company will file an updated NI 43-101 compliant technical report relating to the Didipio Project

Highlights of the Didipio Project :

  • Annual production of 100,000 oz Au (+45%) and 14,000 t Cu (+69%) on average over the Life of Mine
  • Increased gold reserves by 19% 1.68M oz
  • Increased copper reserves by 35% to 229Mt
  •  Larger open pit with sustained higher ore supply rates
  • Increased plant throughput rates from 2.5Mtpa ramping up to 3.5Mtpa by end of 2014 to end of mine life
  • Internal Rate of Return (IRR) of 48% at current spot prices (US$1530/oz Au & US$4.05/lb Cu)
  • Payback period of 2.2 years from January 1, 2013
  • Average operating cash flow of $150 million/year over first 3 years (using current spot metals prices) 

                                       Didipio Project Mine Design

Mick Wilkes, Managing Director and CEO commented, “We are very pleased to have commenced construction that will see commissioning on schedule in the fourth quarter 2012. Over the past six months we have been working hard to unlock significant value through adjustments to the design of the mine, process plant and infrastructure which has seen average annual gold production increase by 45% and average annual copper production increase by 69% over the life of the mine.

This robust project will be transformational for OceanaGold and give us a significant platform to expand further into the Philippines and throughout Asia Pacific.”

For Full Details:

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