Oceana Gold allots $10-$20M for Didipio gold project

MANILA, Philippines - Australian miner OceanaGold Corp. is allocating $10 to $20-million for the Didipio project in Nueva Vizcaya next year, an    official said.       

“We haven’t finalized the budget for next year, but we are looking at spending around $10 to $20-million for Didipio next year,” OceanaGold managing director and chief executive officer Mick Wilkes told reporters at the sidelines of the Mining Philippines 2013 conference    held in Pasay City.       

He said a portion of the funds to be spent next year would be used to  build a power line to be connected to the National Grid Corp. of the Philippines’ (NGCP) grid in Luzon.       

Currently, the firm uses diesel-powered generator sets with a capacity of 16 megawatts in the mining site to support its operations.       

“The long-term plan (is) to replace that by connecting to the grid by  power line.

The grid is the NGCP’s and the power would be at a fairly good price if we connect to the grid,” Wilkes said.       

Investing in the power line, he said, would not only allow the firm to  cut its power costs, but likewise reduce its environmental footprint.       

The firm likewise intends to supply power to the local communities  through the power line to be built.       

The Didipio mine, which reached commercial production in April of this  year, is expected to produce approximately 100,000 ounces of gold and  14,000 ounces of copper in concentrate from an anticipated 16-year mine life.       

Asked about OceanaGold’s other plans here, Wilkes said the firm intends to invest in exploration around the Didipio mine.       

“We are waiting for our exploration permit to be granted by the  government,” he said.       

Depending on the result of the exploration, he said OceanaGold may  have to invest more on the project.       

The firm also intends to undertake exploration in other parts of the country.       

“We are very keen to explore more, but we have been frustrated by the    government not issuing any exploration permit (in) about the last two years,” Wilkes said.       

The firm, he added, plans to list on the Philippine Stock Exchange in the future.