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Listed mining firm OceanaGold (Philippines) Inc. (OGP) has remitted ₱466.86 million in additional government shares (AGS) to the national government, as stipulated in the company’s financial or technical assistance agreement (FTAA).
In a statement on Thursday, May 1, OGP said this brings the total of its AGS payments to almost ₱1.6 billion.
OGP, a subsidiary of Australian-Canadian firm OceanaGold Corp., is the operator of Didipio gold and copper mine located between the provinces of Nueva Vizcaya and Quirino.
“We are proud to continue contributing to the Philippine government and support nation-building with our mining operations,” said OGP President Joan Adaci-Cattiling.
“This significant contribution of almost ₱1.6 billion in cumulative AGS payments exemplifies the substantial economic benefits that responsible mining can bring,” she added.
This year’s AGS payment is on top of ₱870 million in excise taxes and ₱512 million in local taxes and fees that were paid last year.
In May last year, OGP became the first publicly listed mining firm on the Philippine Stock Exchange (PSE) in more than a decade. It was also the first miner with an FTAA to be listed in the local bourse.
OGP first entered an FTAA with the government in June 1994, becoming the first 100-percent foreign-owned company to operate large-scale mining explorations in the country.
Under the FTAA, the government and OGP share the net revenue from Didipio gold-copper mine in Luzon on a 60-40 basis, with the former receiving 60 percent of net revenue and the latter taking 40 percent.
The agreement is based on the principle that the government should receive a fair economic return for its mineral natural resources, while OGP is entitled to a reasonable return on its investments.
“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,” OGP said.
The company said it is expecting to continue its remittance of AGS to the government “subject to metal prices, production, and financial performance.”
Department of Environment and Natural Resources (DENR) Assistant Secretary and concurrent Mines and Geosciences Bureau (MGB) Director Michael Cabalda, who formally received the AGS payment, said the consistent remittances from OGP affirm its role as a reliable partner for the government.
“OceanaGold’s significant contribution to the national treasury, demonstrated by this AGS payment, underscores that mining, when done responsibly, becomes a powerful engine for nation-building and ensures that our people benefit meaningfully from the country’s mineral wealth, while creating an environment where responsible investors can thrive,” he said.
In March this year, OGP paid ₱397.7 million in local business tax (LBT) to three municipalities in Nueva Vizcaya and Quirino, as part of the company’s bid to share its success with local communities.
