Professional Documents
Culture Documents
Its chairman of the Board of Directors is Jim Askew, a mining engineer with over 40 years of
experience in various mining, mining finance, and other mining related companies. Its president
and CEO is Mick Wilkes, a mining engineer with 30 years of experience predimoninantly in
precious and base metals across Asia and Australia.
Increasing revenues
In 2016, OceanaGold achieved a record annual revenue of $628.6 million, which was 24%
higher than in the previous year on account of higher gold sales and an 8% increase in the
average gold price received, despite being offset by lower copper sales. It also achieved record
157% increase in anual net profit compared to the previous year. The company’s $250-million
credit facility is financed by a multi-national banking syndicate composed of the following:
Shareholder Information
OceanaGold is listed in the Toronto, Australian, and New
Zealand Stock Exchange. Most of its shareholders, 83%
of which are institutional investors, hail from the United
States, Canada, and Europe.
Figure 2. Regional Shareholder Information.
From the 2016 OceanaGold Fact Book
ENVIRONMENTAL
IMPACTS IN THE
PHILIPPINES
2013 Fact-Finding and Solidarity
Mission
Water assessment was also conducted and resulted to poor water quality and water access.
More than the observed reduction and disappearance of aquatic and amphibian species to
their river, there were also health complaints among community members. Complaints of
diarrhea and skin diseases were reported due to exposure to the polluted water, land, and
air. It can also be observed that there is high volume of soil sediments, and distinct
difference in color, turbidity, and quality of water. The river water was also reported to have
high acidity.
Water access has also been difficult because of the poor quality of the water. The use of
river water for irrigation is now limited since it causes plant diseases and lower crop yield.
Moreover, its domestic use is certainly limited due to the diseases it may cause. These
observations and reports can be strongly attributed to the mine tailings of OceanaGold being
directly disposed to the river.
Furthermore, there have been claims that OceanaGold releases larger amounts of effluents
during heavy rains. Residents observed the river turning brown orange to white and emits
foul odors.
The land assessment was conducted and it showed that there have been vast areas of
forests lost due to construction of the mine tailings dam and open pit mining site. Water level
increase and mine tailings accumulation in the tailings pond caused forest areas located at
lower levels to be submerged. Moreover, wildlife drastically decreased or have actually
disappeared due to loss of their forest habitat.
Based on the assessment of air and noise, there have been massive earth movements
leading to increased air pollutants caused by the non-stop mineral extraction and processing
by the large-scale mining company. The increase of air pollutants or dust caused a high
incidence of respiratory illnesses especially among children and elderly. It is also one of the
factors that caused lower crop yield in farms in barangay Didipio. (9)
Figure 4. Heavy metal presence in sediment and water laboratory testing results. From the Nueva
Vizcaya Environmental Investigation Mission 2014 Technical Report
The river affected by the mining site or the impact area has lower biodiversity compared to
the non-impact area using the Sequential Comparison Index. Results showed there were
lesser number of observed aquatic organisms in the impact area.
Using the Pollution Tolerance Index or the measurement of the degree of sensitivity of
organisms, the impact area was determined to have a moderately polluted environment
as indicated by the presence of many water striders in the area.
The confluence of the impact and non-impact area was very turbid. Its turbidity was
measured to be 657 – 659 NTU which is very high compared to the normal range of 50 –
100 NTU. This can be attributed to the very high velocity of water from the impact area
wherein it may carry more sediment such as mine tailings and heavy metals to the
confluence.
Copper concentrations in the impact area was found to exceed severe-effect level for
benthic organisms which is 110 mg/kg. The copper concentration in sediment samples in
the impact area was at 769.3 – 885.8 mg/kg, 7 – 8.05 times greater than the severe-effect
level. The confluence also had copper concentrations at 509.2 – 924.1 mg/kg, 4.63 – 8.4
times greater than the severe-effect level.
Moreover, copper concentrations in water samples are also high in the impact area and
confluence. For the impact area, the copper concentration was found to be 66.05 – 125.1
μg/L, which exceeds the maximum level for aquatic organism survival, which is 50 μg/L. On
the other hand, the confluence had copper concentration 400.4 – 425.5 μg/L which is twice
the level of water safe for irrigation use, which is 200 μg/L and is also 8 times greater than
the maximum level for aquatic organism survival. The confluence had higher copper
concentrations than the impact area given that the water in the impact area had high
velocity. (3)
In the matrix containing the summary of findings on OceanaGold, the company was advised to
“cease from operation until a doable Action Plan to address the above-cited issues and
concerns are submitted and approved,” referring to the following alongside the company’s
response:
On surface and groundwater studies Surface water study is part of the regular
Conduct study of surface and groundwater, environmental monitoring program of the
particularly on upstream and downstream Didipio Mine which includes upstream,
water midstream, and downstream
Members of MMT, with emphasis on local Each MMT member will be provided with MMT
government units and people’s organization report/Compliance Monitoring and Verification
representatives, should provide truthful Report
information to their members and other
stakeholders concerns relating to company’s
operations
MMT
Need to establish a regular schedule all throughout the year even if MRFC cannot
undergo regular meetings
Not exempted for members who use their position to gather information on how to attack
the company rather on how to resolve conflicts and address complaints from different
stakeholders
Members should be with integrity and capable to resolve conflict and not be the cause of
one
Inclusion of new members should understand their roles and responsibilities and how to
carry their function with the highest ethical standards and professionalism and be able
to:
o Convey results
o Educate constituents
o Explain matters pertaining to the mining operation
IEC campaign
OGPI to revisit and redesign
Should be a continuous activity
Personnel in charge should immerse in the community in order to build trust and to
understand more stakeholders
Mechanism for open communication should be set up by
o establishing issues/concern boxes in barangays and LGUs
o through regular schedule of OGPI ComRel in barangays and LGUs
incorporate environmental awareness in school activities
give emphasis on
o information regarding mining
o tailings storage facility operation
o underground mining
o implementation of SDMP
OGPI profile
Has an area of 14,871 hectares based on FTAA
DMPF area of 975 hectares
13,986 hectares should be programmed for Area Integrated Development under the
jurisdiction of
o Kasibu, Nueva Vizcaya and
o Cabarroguis and
o Nagtipunan in Quirino
o Under the context of co-management, convergence and governance on local
development which includes major activities such as Water Management
Assessment; Forest Land Use Plan; Integration of Comprehensive Land Use
Plan; Biodiversity Assessment; Establishment of Food Forest; Establishment of
Eco/Organic Farming (Biochar Technology); Water Harvesting Facilities;
Establishment of Wildlife Corridors/Highway; Deputation of Natural Resources
And Natural Warriors And Development of Mining Ecotourism Sites
Excise tax
Resolve issues with concerned government agencies
Boundary dispute of two provinces caused delay on who will receive the tax
Government should consider a policy review or possible intervention on how to protect
and sustain the rights and well-being of the stakeholders
Mining operations
Governed by Environmental Management System
ISO 14001:2004 certified
Improvements on
o Operation
o Interrelationship with its host communities and different stakeholders
o Implementation of its SDMP
o forced the community members by intimidation and harassment to provide the mining
company access to or sell their land at prices dictated by the company;
o inappropriately sought to gain approval for the proposed mine from political officials
through misrepresentation and offering material incentives to the officials;
o failed to provide full information and likely impacts of the proposed mine to the
community in a document they understand;
o failed to provide information about proposed relocations;
o sought to avoid established regulatory informed consent requirements that prioritize the
need for the consent of barangay Didipio. The barangay council of Didipio has opposed
the proposed mine project since 2002; and
o misrepresented publicly the level of support to the project and the company attained
from the community.
Consents were not freely given by the community. Residents had reported allegations of
bribes, harassment and intimidation:
o Former and current councilors stated that they are now receiving salaries from
OceanaGold.
o One current councilor who refused the offer said that the company offered him so a
great amount of money that “as long as I was alive I would not be able to consume this
money”.
o Company representatives have unduly pressured the community members to endorse
the project and to allow OceanaGold access to their land.
There have been public misrepresentations that relevant consents have been gained:
o OceanaGold and its officers have stated, without qualification, on several occasions that
the mine project has gained approval from the community and barangay council of
Didipio. This was stated despite significant evidence to the contrary. These
representations may mislead potential investors and may be contrary to Australian
corporate law. (13)
However when the residents, having received the notices through family and friends rather
than directly from the officer as required by law, attended the meeting. They were shocked
to find OceanaGold representatives present. They were told the meeting was to facilitate the
sale of their lands to the company so the criminal cases would not be filed. Needless to say
they left and the matter has been brought to court where the case drags on. As was obvious
from the start the law is being used to legalize a land grab by legal pressure, OceanaGold
representatives and lawyers regularly attend the hearings, and mention it in separate,
related court cases despite the fact, legally it has absolutely nothing to do with them. (6)
Legal Rights and Natural Resources Center executive director Judy Pasimio said for 2009
alone, more than 100 indigenous families in Barangay Didipio had been displaced because
OceanaGold has been fencing off its concession area and installing check points. (5)
The house of Elmer Lawagan, an Ifugao and a resident of Didipio was burned by
unidentified men at 4 AM last October 2, 2009. Lawagan while guarding his house because
of the fear of being demolished saw unidentified men together with others wearing OGPI
uniforms roaming around his other house. When he approached them he was collared by
one of the men and was immediately hit in different parts of the body. He saw the other men
holding a 45 caliber and attaching a silencer on it. Fearing for his life he shouted to seek
help from his neighbor.
The said checkpoint limits the entry and exit of the agricultural products of the IPs. (11)
Investigation by the CHR that year found the PNP guilty of lapses in protocol. (12)
OceanaGold’s claim that El Salvador had unfairly refused to grant it a concession to start
digging at its El Dorado mining project.
El Salvador spent more than $12m on its legal defence and OceanaGold must pay $8m
to the El Salvador government to cover the majority of the country’s legal costs.
The decision resulted to the claimant (OceanaGold) to pay Salvadoran government to pay $8m
to cover part of country’s legal cost.(1)
From ‘Part X: The Tribunal’s Decisions’ of the International Centre for Settlement of
Investment Disputes (ICSID) decision:
“…[T]he Tribunal decides that PRES (Pacific Rim) had no legal entitlement under the [El
Salvador] Mining Law to obtain from the Respondent (El Salvador Gov’t) and the
Respondent no legal obligation to grant to PRES any exploitation concession for its El
Dorado Project, owing to the continuing inadmissibility of PRES’ application of 22
December 2004 under Article 37(2)(b).
In addition, PRES’ exploration licenses for its El Dorado Project expired on 1 January
2005 in accordance with the Mining Law. Accordingly, the Claimant had no legal right to
any concession at El Dorado and no rights of property in any part of its sub-soil or any of
its deposits under Salvadoran law.”
(Article 37(2)(b). FOR THE CONCESSION FOR THE EXPLOITATION OF MINES AND
QUARRIES. b) the ownership deed of the property or the authorization legally granted
by the owner).
“In these circumstances, the Claimant can have no claim for damages as pleaded against the
Respondent under Articles 4, 5, 6, 8 and 13 of the Investment Law (including the Respondent’s
Constitution) as regards the El Dorado Project…Further, for similar reasons, the Claimant’s
claim for damages as pleaded against the Respondent under customary international law (if and
to the extent applicable) fails for want of any relevant legal right or right of property
as…protected under Salvadoran law and international law.”
(Article 4. With the purpose of facilitating the establishment and development of national and
foreign investments, the State shall provide to the investors brief and simple procedures for their
formalization in accordance with the law; in addition, in the case of foreign investments, to be
able to be repatriated by the owners.
Article 5. Foreign investors and the commercial companies in which they participate shall have
the same rights and obligations as national investors and companies, with no other exceptions
save for those set forth by law, and may not be subjected to measures that are unjustified or
discriminatory, which may hinder the establishment, administration, use, usufruct, extension,
sale and liquidation of their investments.
Article 6. Any individual or legal entity, national or foreign, may make investments of any kind in
El Salvador, except for those that are limited by law, and may not be subjected to
discriminations or differences for reasons of nationality, domicile, race, gender or religion.
Article 8. In accordance with the provisions of the Constitution of the Republic, expropriations
shall proceed for reasons of public utility or social interest that have been legally proven,
following payment of fair compensation.
If the expropriation is due to reasons stemming from war, public calamity or if it is required for
supplying water or power, or the construction of housing or public roads, streets or
thoroughfares of any kind, the compensation may or may not be payable in advance.
If the amount of the compensation justifies it, the payment may be made in installments, in
which case the corresponding bank interest shall be paid. Such payment must preferably be
made in cash.
Article 13. According with the provisions of the Constitution of the Republic, the national and
foreign investors are guaranteed protection of their property and the right to freely dispose of
their assets.) (2)
REFERENCES
1. World Bank tribunal dismisses mining firm's $250m claim against El Salvador. Friday 14
October 2016. The Guardian
2. Award Rendered in Case Involving Claims under CAFTA and El Salvador's Investment
Law
3. EIM on the Impacts of Large Scale Mining in Nueva Viscaya, Philippines. September
2014. KPNE and AGHAM
4. CHR Resolution No. A2011-004
5. CHR urged to probe dispersal of Vizcaya anti-mining barricade.15 October 2009.
KASAMA
6. OCEANA GOLD STAY OUT In Didipio! The Continuing Story Of Indigenous Resistance
To Large Scale Mining In The Philippine Highlands. 20 March 2012
7. Press release: MGB explanation for extension of FTAA exploration permit in Nueva
Vizcaya, violation of mining EO sought. 5 April 2016. Alyansa Tigil Mina
8. Another mother, anti-mining activist killed days before Human Rights Day. 8 December
2012. KPNE
9. National Fact-Finding and Solidarity Mission in Nueva Vizcaya. September 19-21, 2013.
ANNVIK, KAMP, DP!A, KPNE
10. Three Reasons Why OceanaGold Thinks Didipio Suspension Is ‘Unjustified’. Feb 3 2017
11. Stop Human Rights Violations in Didipio! Stop Large Scale Mining in the Philippines! 29
October 2009. Task Force Detainees of the Philippines
12. The Endless Loop: Mining, the State and the indigenous peoples of the Philippines
13. Mining Ombudsman case report: Didipio gold and copper mine. September 2007. Oxfam
Australia