The 25-year Financial or Technical Assistance Agreement (FTAA) of OceanaGold Philippines Inc. (OGPI), a unit of Australian miner OceanaGold Corporation, expired earlier this year. However, since the said company filed for a renewal more than nine (9) months ago, it is still permitted to operate under a temporary license. This prompted some environmental groups and residents to set up barricades along the roads to stop mining operations of OGPI. 

In order to hear the sentiments of the host community, the Mines and Geosciences Bureau (MGB) conducted a dialogue with the community leaders of Didipio residents regarding the renewal of OGPI’s FTAA. It was held last July 3, 2019 at the MGB Compound. Through the said dialogue, community leaders raised their concerns on the possible dismissal of OGPI’s operations. They mentioned the progress that OGPI has brought in their community.

MGB Acting Director Wilfredo G.  Moncano gave an update about the status of OGPI’s application of its FTAA renewal.  He said that the application had already been endorsed to the Office of the President when they received complaints about the OGPI. After this, the document was returned to the Department of Environment and Natural Resources (DENR) for reevaluation.

He also emphasized that since OGPI applied for renewal before the expiration of their FTAA, they are still permitted to operate, citing Section 18, Chapter III, Book VII of Executive Order No. 292 which states that “where the licensee has made timely and sufficient application for the renewal of a license with reference to any activity of a continuing nature, the existing license shall not expire until the application shall have been finally determined by the agency.”

Didipio residents are very supportive of the FTAA renewal of OGPI because they claim that the company improved their quality of life. They experienced the progress through improved infrastructures, scholarships offered to the host communities, and increased job opportunities.

The residents are worried about the possible repercussions of the dismissal of OGPI’s operations. They stated that this would leave many residents jobless, which may eventually force them to go back to slash-and-burn (kaingin) activity or leave the country to look for better opportunities abroad. Engr. Manuel M. Binuya of the Mining Tenements Management Division, MGB, and Ms. Nelgie Ann Belisario, a representative from the Office of the Undersecretary for Climate Change and Mining Concerns, DENR, who were present as panelists, assured the residents that as soon as OGPI complies with the National Commission on Indigenous People requirement, the FTAA will be renewed.


Photo 1: MGB Acting Director Wilfredo Moncano during the dialogue.


Photo 2: Engr. Manuel M Binuya and Ms. Nelgie Ann Belisario (center) with the community leaders of Brgy. Didipio.

By: Mineral Economics, Information and Publication Division