OceanaGold (Philippines) Inc. (OGPI) has remitted $20.3 million (P1.1 billion) in additional government shares to the government through the Department of Environment and Natural Resources (DENR) yesterday.
The company which operates the Didipio gold-copper mine traversing the provinces of Nueva Vizcaya and Quirino, said the move is pursuant to the terms of its Financial or Technical Assistance Agreement (FTAA) with the government.
Under its FTAA, the government and OGPI share the net revenue on a 60-40 basis, where the government receives 60 percent of the net revenue and OGPI receives the remaining 40 percent.
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 percent share of net revenue to arrive at any additional government share payable oan Adaci-Cattiling, OGPI president and general manager for external affairs and social performance, said tthis 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 the company to the government.
OGPI expects to remit additional government share payments annually, going forward subject to metal prices and production performance.
“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, Cattiling added, in a statement.
DENR Secretary Maria Antonia Yulo-Loyzaga said the amount remitted by OGPI goes to the national treasury but the agency will “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.”
