The renewal of the Didipio Mine’s financial or technical assistance agreement (FTAA) is effective from 19 June 2019.
The contract has been renewed more than two years after the operations were suspended at the mine due to a dispute between the company and the provincial government over the operating licence. The mine is currently in operational stand-by mode.
OceanaGold said that the renewed agreement replicates the terms and conditions outlined in the original financial agreement.
It also offers additional benefits to the regional communities and provinces hosting the mining operations.
The renewal also comes as the country seeks to revitalise its mining sector in an effort to revive the economy from the Covid-19 pandemic, reported Reuters.
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OceanaGold president and CEO Michael Holmes said: “We are pleased to confirm the renewal of the Didipio Mine’s FTAA and thank the Philippine Government for their endorsement and renewal. We have worked through the renewal process in partnership with the Government and regulatory agencies.
“We look forward to commencing restart activities and continuing to work in partnership with our regulators, communities, employees, and all stakeholders to contribute to the Philippines’ post-Covid-19 economic recovery.”
The Australian miner plans to restart operations at the mine ‘as soon as possible’, initially with the milling of nearly 19Mt of stockpiled ore.
Upon reaching full underground production capacity within 12 months, the mine is expected to produce nearly 10,000 gold ounces and 1,000t of copper a month.