Showing posts with label Philippines. Show all posts
Showing posts with label Philippines. Show all posts

Monday, July 16, 2012

OceanaGold Philippines mine now fully funded

ASX- and TSX-listed OceanaGold has secured a $220-million credit facility to develop its Didipio gold project, in the Philippines.

The miner said on Monday that the project was now fully financed, despite an increase in the initial capital cost from $185-million in June last year, to $220-million.

The $220-million credit facility would be provided by a group of large, multinational banks, with the three-year facility providing OceanaGold with additional liquidity should it be required.

“I am very pleased with the strong support we’ve received from this group of large, multinational banks to restructure and strengthen the balance sheet,” said MD Mick Wilkes.

“It’s a vote of confidence in OceanaGold and allows us to focus on successfully commissioning Didipio and generating strong cash flows from our operation in 2013. We remain committed to creating a midtier, low-cost, international gold mining company and we look forward to working with our new financial partners to further grow the company.”

Wilkes said in a statement that construction activities at the Didipio project had progressed well during the past two months, and construction was now 70% completed, with more than 1 600 workers on site.

Mining of the Didipio orebody started on schedule this month in readiness for commissioning in the fourth quarter, and to build ore stockpiles for production in 2013.

“The Didipio project is going extremely well. We remain on track to achieve our goal set out in June last year to start commissioning in the fourth quarter of this year. Excellent progress has been made over the past few months with construction of the processing plant and the tailings storage facility.”

Wilkes noted that the increase in capital costs for the project was consistent with industry cost pressures, particularly for engineering design services. He noted that the company had also made the deliberate decision to engage with high-quality contractors in the Philippines, which cost more money, to ensure that the project was built to a high standard and on time.

“With the current cash position, cash flows from New Zealand operations in 2012 and the credit facility, the company is well positioned to meet its medium-term growth objectives,” Wilkes said.

The Didipio project was expected to produce some 100 000 oz of gold and 12 000 t of copper a year, over an estimated 16-year life-of-mine. OceanaGold recently signed a heads of agreement with commodity trader Trafigura to sell 100% of the project’s concentrate over at least five years, from the start of production.

Edited by: Mariaan Webb

Wednesday, June 27, 2012

Carmen Copper starts mining higher-grade copper ore

Carmen Copper Company reported on Monday the first production of copper ore from its high-grade ore deposits.

In a disclosure to the Philippine Stock Exchange, the company said the transition of operations is part of its expansion plans, which went two months ahead of schedule, to improve its mining efficiencies and potential.

Carmen Copper vice-president Adrian Ramos said: “As we establish steady production from the Carmen ore body, we will continue to work towards achieving expansion goals through cost reduction measures and process improvements.”

Carmen Copper is wholly owned by Atlas Consolidated Mining and Development Corporation and has been successfully rehabilitated to become the country’s largest copper exporter.

The mine site is located in Toledo City, Cebu Province, at the western slope of a central highland in the middle of the province. It is approximately 17 km from Toledo City and about 45 km from Cebu City.

Thursday, March 22, 2012

Gold Fields secures 40% stake in Philippines project

JOHANNESBURG – The world’s fourth-largest bullion producer, Gold Fields, has exercised its 40% option in the undeveloped gold-copper Far Southeast project in the Philippines, the miner said on Thursday.

The Johannesburg- and New York-listed firm acquired the interest from private holding company Liberty Express Assets, after making a $110-million down payment.

It retained a second option to a further 20%, which it could buy from Philippine-listed Lepanto Consolidated Mining.

In September 2010, Gold Fields entered into two option agreements with Lepanto, 60% owner of Far Southeast, and Liberty, 40% owner of the project, granting the gold producer an option to acquire a 60% interest for a total consideration of $340-million.

The company said it had brought forward its decision to exercise its 40% option in the Far Southeast project, owing to encouraging exploration results and owing to the Philippine authorities being expected to grant the foreign company permission to own a majority stake in the project in the second quarter of this year.

“The positive drilling results have given us the confidence to show our commitment to the project and the Philippines,” CEO Nick Holland said in a statement.

On the Gold Fields website, the company describes the Far Southeast project as one of its “best greenfields growth opportunities”.

The project is located in an existing mining camp and is near two other mines historically operated by Lepanto, one of which is currently in production.

Gold Fields is aiming to produce some 60% of its gold from mines outside South Africa by 2015.

Edited by: Mariaan Webb