report back on australian fact finding mission to tamapkan & didipio mines – philippines jan...

Report back on AUSTRALIAN FACT FINDING MISSION TO TAMAPKAN & DIDIPIO MINES – PhilippinesJan 28 to Feb 3, 2015Part 2

APDPACTION FOR PEACE AND DEVELOPMENT IN THE PHILIPPINES

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THE OPEN CUT MINE

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THE MINE AREA (BEFORE)

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THE TAILINGS DAM

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THE TAILINGS DAM

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OUTFLOW FROM THE TAILINGS DAMDIDIPIO RIVER ABOVE SURONG RIVER INFLOW

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DIDIPIO RIVER BELOW SURONG RIVER INFLOW

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WELLS AND PUMPS NOW DRYSprings and underground flow cut off by mine

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INTERVIEWS, DIDIPIO 1-2 FEB 2015

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OCEANGOLD FOUND TO HAVE VIOLATED HUMAN RIGHTS (PCHR)

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HR VIOLATIONS BY OGPI [PCHR]OGPI violated

•the Right to Residence, the Right to Adequate Housing and Property Rights of several residents in Didipio.  •the Right to Freedom of Movement and the Right not to be subjected to arbitrary interference with the Home of the people in Didipio. •the Right to Security of Person of the people in Didipio. •the indigenous community’s Right to Manifest their Culture and Identity.

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DIDIPIO: views of the residents

• Violations continue

• OGPI uses legal and economic power over residents to frustrate realization of rights

• Resident’s additionally suffer from environmental impacts.

• OGPI recently announced expansion of underground mine with limited consultation.

• Residents petition opposing expanded underground mine

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OPTIMISATION STUDY 2014

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OPTIMISATION STUDY 2014

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AVOIDING TAX AND ROYALTIES

Company Tax –

The corporate income tax rate in the Philippines is 30%. However the Philippines Board of Investments has provided a six year income tax holiday for the project which expires on March 31, 2019.

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Avoiding taxunder financial or technical assistance agreement (ftaa)

Pursuant to the terms of the FTAA, OceanaGold has a period of up to five years after the Date of Commencement of Commercial Production (being April 1, 2013) to recover its initial investment.

In the event OceanaGold has not recovered its investment in 5 years, it has a further 3 years in which the remaining amount is amortised as a deduction against net revenue.

The initial investment includes not only the construction and development of the project but also payments to claim owners, land owners, exploration programmes, and maintenance of the exploration tenement, feasibility studies, administration of offices and the net commissioning cost up to commercial production.

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AVOIDING TAXFinancing Costs

Financing costs have been included at 10% on initial $350 million investment costs.

A loan from a subsidiary of OceanaGold Corporation is used to finance the Project is assumed to remain in place for the life of the Project. The assumed applicable interest rate is 10%.

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AVOIDING TAX

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JIM (ASKEW) AND ME!

MELBOURNEAUSTRALIA

OCEANAGOLD HEADQUARTERS

AUGUST 29 2014

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MELBOURNEAUSTRALIA.

OCEANAGOLD HEADQUARTERS

AUGUST 29 2014

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The People’s AlternativePeople’s Mining Bill [No 4315]:

“Policies which seek to reorient the Philippine mining industry towards the wise and sustainable development and judicious use of our mineral resources”.

“Mineral wealth is part of our national patrimony, a resource that has the potential to propel the country towards industrialization and self sufficiency”.

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People’s Mining Bill [No 4315]

If properly regulated and developed, these resources will be a requisite to developing a strong, self-reliant and progressive economy, founded on a healthy balance between agriculture and industrialization and programmed to break the cycle of the country’s underdevelopment.

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