Oceana Gold has immediately appealed a Philippine Government department order to suspend operations at its gold and copper mine Didipio, on the northern island of Luzon, in the face of environmental accusations.
Yesterday, the Department of Environment and Natural Resources in the Philippines delivered an order that the Didipio operations be suspended, one of several orders delivered to mining companies this week.
In response, Oceana Gold's chief executive Mick Wilkes said an appeal had been filed directly with the Office of the President, Rodrigo Duterte, which effectively stayed execution of the suspension order, and Didipio would continue to operate through the appeal process.
While Oceana's Macraes mine in East Otago produces the most gold per year, it is Didipio's exceptionally low production costs which underpin Oceana's cashflows and boost spending at its operations in the United States and New Zealand.
Earlier this week a group of miners opposed the appointment of the Philippine environment minister, Regina Lopez, saying her ordered closure of more than half of the country's mines showed an ''undeniable bias'' against the sector, Reuters reported.
Ms Lopez, a former environmental activist appointed by Mr Duterte last June, was among a few cabinet members who have yet to be confirmed by Congress.
Ms Lopez angered the mining sector after ordering the closure of 23 of the Philippines' 41 mines for causing damage to watersheds and siltation of coastal waters and farmlands.
She also ordered the suspension of another five mines.
Mr Wilkes said yesterday the order from the Department of Environment and Natural Resources was a repeat of earlier allegations it had made, including alleged damage to houses during blasting operations and potential adverse impacts to agricultural areas in the province Oceana operates in.
He said Oceana had not violated nor breached any local laws, rules or regulations and a suspension would adversely impact on thousands of Filipinos directly and indirectly.
''We strongly believe that the Didipio operation is the template for what President Duterte is seeking in his desire for a responsible mining sector in the Philippines,'' he said in a market update yesterday.
Ms Lopez told Reuters she does have ''a bias against the operations of companies which cause suffering to our people''.
''I do have a bias in favour of social justice and the environment. I will not cow to big business. My allegiance is to the common good and the Filipino people,'' she said.
The February 2 decision on the closures followed a months-long audit of the mines last year. A Government team which reviewed the audit recommended only suspensions and fines.
Mr Duterte said last Sunday he would not stand in the way of Ms Lopez's decision to close several mines in the southern Philippines, after he saw the environmental damage they had caused.
