Metro Manila (CNN Philippines, July 15) — Malacañang on Thursday confirmed President Rodrigo Duterte has approved the renewal of OceanaGold’s contract for its Didipio mine in Nueva Vizcaya, drawing pushback from environmentalists.
Presidential Spokesperson Harry Roque said the mineral production sharing agreement was signed by the Office of the Executive Secretary, allowing for another 25 years the operation of the multinational mining firm in the country.
The renewal is effective beginning June 2019, which was when its license previously expired.
Local communities, Roque said, stand to benefit from the decision to resume operations as it will generate jobs for the people of Nueva Vizcaya and Quirino.
“Itong desisyon pong ito ay pagkilala na kinakailangan magkaroon ng mas marami pang trabaho ang ating kababayan sa panahon ng pandemya [This decision acknowledges the need for more jobs for Filipinos amid the pandemic],” he said in his regular briefing.
In its statement on Wednesday, OceanaGold said its first priority is the hiring and retraining of its Philippine workforce.
Roque also noted that the agreement with the company was modified in favor of the communities where the operations are located.
He said from the original 1.5%, the gross revenue allocated to community development will become 3%. According to the mining company, the additional 1.5% will take the form of “increased contributions to communities in the region and provincial development projects.”
Under the renewal terms, OceanaGold is also required to list on the Philippine Stock Exchange at least 10% of the common shares in OceanaGold Philippines, Inc. (OGPI), or its Philippine operating subsidiary, within the next three years.
“Mas maraming Pilipino ang pwedeng mag may-ari ng kompanyang ito [More Filipinos can buy shares and become part owners of the company],” Roque explained.
The mandatory transfer of OGPI’s principal office to either Nueva Vizcaya or Quirino within the next two years will also mean more profit for the local government due to business taxes, he added.
Environmentalists cry foul
According to OceanaGold, the Didipio gold and copper mine “operates to the highest environmental and social standards and has been recognized as one of the most responsible in the country.”
Environmental activists say otherwise.
The group Kalikasan People’s Network for the Environment called the contract renewal “illegal and destructive,” saying the particular firm has a “bloody history of human rights abuse.”
“With this, Duterte has condemned the people of Nueva Vizcaya to 25 more years of water depletion, agricultural losses, and human rights violations,” it said.
Along with other allied organizations, Kalikasan announced it will challenge the decision in court. The groups are welcome to do this, Roque said, but he added that responsible mining is possible.
“Hindi po natin papayagan na masira ang inang kalikasan natin, kaya po sisiguraduhin ng DENR (Department of Environment and Natural Resources) ang responsableng pagmimina,” he said.
[Translation: We will not allow the degradation of our Mother Nature, that’s why the DENR will ensure that responsible mining will be practiced.]
