OceanaGold dips as tax issue stalls output

ALAN WOOD
Last updated 05:00 26/02/2013

Relevant offers

Industries

Durex owner Reckitt Benckiser barred from buying Johnson & Johnson’s K-Y Sprawling Matamata animal safari for sale Tower Insurance rebuild programme 'at full capacity' Uber increases Auckland fares to attract drivers Top executives at Christchurch firm Mercer Group quit Auckland Port row comes to a head Hamilton Airport's revenue at 'rock bottom' Contractor numbers cut as EQC home repair programme downsizes Tiwai Point profitable despite tough conditions Grants agency and publisher still at loggerheads

Shares in OceanaGold Corp fell more than 4 per cent after the gold miner announced the transportation of copper-gold concentrate at its Didipio mine in the Philippines had been temporarily suspended.

OceanaGold said in the Philippines that it was in discussions with various government departments over interpretations of tax exemptions pertaining to OceanaGold's Financial and Technical Assistance Agreement (FTAA).

Didipio was the first project to be built and start operations in the Philippines under the FTAA.

"Due to these clarifications on tax exemptions being sought, some of the trucks used for transporting concentrate are being held by local government agencies and thus transportation of copper-gold concentrate has been temporarily suspended," OceanaGold said.

"While these discussions take place, mining and processing operations continue."

In late December OceanaGold said it expected to boost its gold production by 25-40 per cent in 2013 as the Didipio operation came on stream. OceanaGold forecasts production of between 285,000 and 325,000 ounces of gold in 2013.

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content