OceanaGold PH remits P467M to govt for 2024

OCEANAGOLD (Philippines) Inc. (OGP) remitted P466.86 million as additional government share (AGS) for fiscal year 2024, bringing its total AGS payments to almost P1.6 billion over the last two years.

The AGS payments are in accordance with the company's Financial or Technical Assistance Agreement (FTAA) with the government, where the net revenue from OGP's Didipio gold-copper mine in Luzon is split between the two parties on a 60-40 basis, with the government taking 60 of the net revenue while OGP gets the remaining 40 percent.

The FTAA is anchored on the idea that the government should receive a fair economic benefit for its mineral natural resources, while the partner company (OGP) has the right to a fair return on its investments.

Under the FTAA, AGS payable is determined by subtracting all taxes and fees paid to the government from its 60-percent net revenue share.

The company's AGS payment was received by Department of Environment and Natural Resources-Mines and Geosciences Bureau Director Michael Cabalda on Wednesday at the MGB Central Office in Quezon City.

"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," the MGB director said.

He added that through OGP's remittances, despite global market and production cycle shifts, the miner proves itself as a reliable partner of the government under the FTAA.

Cabalda also thanked OGP for its compliance and focus on safe and responsible mining operations.

Meanwhile, OGP President Joan Adaci-Cattiling said they take pride in supporting the government through their contributions.

"This significant contribution of almost P1.6 billion in cumulative AGS payments exemplifies the substantial economic benefits that responsible mining can bring," Adaci-Cattiling added.

The company's AGS payment is in addition to its remittances of P870 million in excise taxes and P512 million in local taxes and fees in 2024.

OGP expects to continue its AGS remittances subject to metal prices and its production and financial performance.

Aside from its remittances, the company claims to have made significant investments to its host and neighboring communities through its Social Development and Management Program (SDMP) and other development funds.

It stated that in 2024 alone, the company spent P220 million under its SDMP to support programs for the enhancement of education, health care, livelihood and infrastructure in its host area and neighboring communities.

It also cited that it had invested P203 million and P102 million, respectively, through the Community Development Fund and Provincial Development Fund to support development programs in Nueva Vizcaya and Quirino.

OceanaGold Philippines is part of Toronto-listed OceanaGold, a multinational gold and copper mining company with a portfolio of four operating mines — the Haile Gold Mine in the US, the Didipio Mine in the Philippines, and the Macraes and Waihi operations in New Zealand.

The company's shares on Wednesday dipped by 0.98 percent to close at P16.18 each.