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Gold/Mining/Energy : Mining News of Note

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To: LoneClone who wrote (19361)	5/10/2008 12:58:28 PM
From: LoneClone	Read Replies (1) of 192593

Tax row with LGU snags Oceana gold-copper project manilastandardtoday.com A tax payment dispute between the provincial government of Nueva Vizcaya and Oceana Gold Corp. may delay the company’s plan to go on commercial operations next year. The local government barricaded Wednesday the company’s project site in Didipio after Oceana Gold refused to pay quarrying fees. “She [Gov. Luisa Cuaresma] maybe treading on illegal ground by preventing the entry of a legitimate company that is a partner of the government,” said Secretary Lito Atienza of the Environment and Natural Resources Department. “It looks very much of an arbitrary and capricious act of the local government. They want to exact taxes based on quarrying but the company is not even engaged in quarrying. Being a mining company, it is natural that they engage in earth-moving developments,” said Atienza. He said Oceana Gold was “cautious and at the same time worried considering its responsibilities to stockholders.” “They would like to resolve the problem as soon as possible.” Toronto-listed Oceana Gold is the transferee of the financial and technical assistance agreement of Canberra-based Climax Arimco Mining Corp., which is being implemented with Australasian Philippines Mining Inc. Oceana Gold, thus, is a partner of the national government in developing its project site under the agreement, said Atienza. Under the Philippine Mining Act, an FTAA status allows 100-percent foreign ownership compared with a mineral production sharing agreement that permits only Philippine companies to own a mining venture and enjoy incentives provided by the government. Atienza also expressed concern over the incident’s impact on the world mining market. “That fateful event may impact negatively on Philippine mining. The world mining sector may see weakness in the law and it may drive prospective investors away,” he said. Oceana Gold is rushing digging works in the mine in time for its commissioning by 2009. The company had initially invested about $180 million in the project, said Mines and Geosciences Bureau director Horacio Ramos. Oceana Gold also holds two gold-copper exploration properties in Manag and Claveria and has interest in two areas in Paco and Manhulayan, both in the Surigao Peninsula. The proposed development includes four years of open-cut mining followed by at least 11 years of underground sub-caving operations. The project is capable of producing two million tons of ore per annum

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