OceanaGold dips as tax issue stalls output
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.