MANILA, Philippines — Mining company OceanaGold Corp. has laid off nearly 500 workers on Wednesday, more than a year after the government held off on the approval of its mining contract in Luzon.
The company said in a statement these workers are predominantly from local communities in Nueva Vizcaya and Quirino, and excludes 400 other workers employed by suppliers who may also be affected.
Moreover, the company said it “may be required to implement a second round of permanent layoffs” next month.
It said it has provided notices to affected workers. Michael Holmes, president and CEO of OceanaGold, said this was because the local government has been blocking the road to their concession and the company’s Financial or Technical Assistance Agreement (FTAA) for the Didipio mine remained unrenewed.
“Today is a sad day for the company and for the many hundreds of workers and their families whose livelihoods have been impacted by the local government blockade of the public road pending the FTAA renewal, which has constrained our ability to continue operations over the past 15 months,” he said.
“The FTAA renewal remains with the Office of the President for decision. We continue to engage with the national government who expressed their support and endorsement of the renewal,” Holmes said.
According to its website, OceanaGold’s FTAA was first granted in 1994. Then, after 25 years, it became renewable again for a 25-year term. The FTAA does not award the company ownership of any mineral resources, rather, OceanaGold is essentially a contractor of the government and the mine a national asset.
“The Didipio operation is a world-class mine that has operated to the highest of responsible mining, environmental and social standards. In my 30 years of mining experience, the Didipio mine stands out as one-of-a-kind,” Holmes said. “With a world-class workforce that is predominantly Filipino, Didipio has had one of the best safety records globally and represents how mining can contribute to skills development, job creation and livelihood opportunities for local communities,” Holmes said.
“We will work as quickly and safely as we can to rehire hundreds of workers and restart operations should the FTAA be renewed or the blockade lifted. The Didipio operation looks forward to contributing to the recovery,” he added.