BY LEANDER C. DOMINGO
BAYOMBONG, Nueva Vizcaya (July 15)—Gov. Carlos Padilla has called for the pullout of the Australian -owned OceanaGold Philippines Inc. from the province for failure to get a renewal of its license to operate that expired a year ago.
Padilla said the call was because of a recent decision of the Court of Appeals (CA) 16th Division denying OceanaGold’s petition in connection with its claim that it can continue to operate the Didipio mine in Kasibu town, pending renewal of its financial and technical assistance agreement (FTAA).
“In view of such development, we now strongly demand the complete pullout of OceanaGold from the area,” he added.
OceanaGold’s 25-year FTAA became effective on June 20, 1994 and that its initial term expired on June 20, 2019.
But the Mines and Geosciences Bureau (MGB) allowed the firm’s operation pending its FTAA application for renewal with the Office of the President.
An FTAA is a permit issued to a multinational company that will share technology and resources to explore and extract minerals in the Philippines.
The MGB said: “[T]his office has taken its position that OGPI (OceanaGold Philippines Inc.) is permitted to continue its mining operation pending the approval of the renewal of FTAA 001.”
The continuous mining operation was put on hold when Padilla issued an order directing local government units to “restrain any operations” of the company.
The governor said the June 30 decision of the CA 16th Division only proved that the MGB position was not correct.
“It clearly belies the position taken by the MGB [that] OceanaGold is permitted to continue its mining operations pending renewal of its FTAA,” Padilla added.
The CA decision denied OceanaGold’s petition to continue its mining operations at the Didipio mine in Kasibu town, stating that the company’s FTAA had expired and thus the company has no right to continue operating the mine.
“Since the initial term of the FTAA already expired without it being renewed yet, there is no prevailing agreement on which the petitioner can anchor its right to continue its mining operations,” the decision stated.
It was in July 2019 when OGPI applied for an injunction with the Regional Trial Court (RTC) here as a temporary measure to allow interim operations of the Didipio mine while it challenges the legality of the order issued by Padilla to restrain the activities of the company pending renewal of the FTAA.
The RTC denied the firm’s application for injunctive relief, which was upheld by the CA.