East Otago-based Oceana Gold has rejected allegations that it has fallen foul of the Commission on Human Rights in the Philippines at its development gold and copper mine in the northern part of the island group.
Work started more than two years ago at the mine, but was it was mothballed shortly after, until work resumed recently with the target to be producing gold and copper by early 2013.
Oceana chief executive Mick Wilkes issued a statement yesterday, prompted by media reports in the Philippines this week, saying Oceana "insists it has met, and is committed to continuing to meet, the human rights of the local community" - the indigenous people living adjacent to the Didipio mine site.
The Inquirer newspaper in the Philippines, filed a story online on Tuesday from Manila, which said "An anti-mining network had lauded the Commission on Human Rights for recommending the cancellation of the mining permit", held by Oceana and covering Didipio.
The Inquirer story went on to report claims Oceana had "illegally demolished about 200 houses in the community in 2008 and violated the indigenous people's property rights".
Mr Wilkes yesterday emphasised Oceana had not been formally notified by the Commission on Human Rights, but its "report has been made available to certain interest groups and media outlets in the Philippines".
Oceana was "actively involved" in numerous community and humanitarian programmes in the local communities near Didipio, "with particular efforts in health and medicine, clean water provision, education, reforestation and environment, community development and infrastructure," he said.
Craigs Investment partner, Peter McIntyre, said the news appeared to be a negative for Oceana, and reflected the political risk any mining company exposes itself to "when it begins operations outside of familiar territory".
"This [allegation and recommendation] is an impediment and could be detrimental to Oceana," Mr McIntyre said.
Mr Wilkes said Oceana had maintained its obligations under its leasehold agreement, was operating in accordance with the Philippine Mining Act in partnership with the Philippine Government, and with local community stakeholders.
The Inquirer reported the indigenous people, represented by the Didipio Earth Savers Association, and supported by various sectors, including the local governments, the Catholic Church, human rights groups and academics, have stood firm on their decision to oppose large-scale mining for more than a decade.
This is the third time since mid-2007 that Oceana has become embroiled in claims and counter-claims surrounding Didipio's development, which have surfaced in the Philippines and later Australian media outlets.
Mr Wilkes said: "The company is compliant with all the laws and regulations associated with operating as a foreign company in the Philippines and is committed to ethical, responsible and sustainable mineral development".
