OceanaGold Philippines Inc. (OGPI) is facing legal issues weeks before its upcoming initial public offering (IPO) as a petition has been filed by the Legal Rights and Natural Resources Center (LRC) at the Bayombong Regional Trial Court, claiming that the firm’s mining contract is invalid and was illegally renewed.
Based on The Philippine Star’s recent report, the Financial or Technical Assistance Agreement (FTAA) granted to OGPI is being contested by LRC in the certiorari petition filed on April 22.
According to the LRC, the FTAA’s renewal lacked community consultation and disregarded local government autonomy, constituting what they term a “grave abuse of discretion.”
Ryan Roset, a senior legal fellow at LRC, emphasized the necessity of prior consultations, citing requirements under the Local Government Code for projects of environmental significance.
Roset pointed out that any violations of the FTAA could justify its cancellation under the Mining Act of 1995, including breaches of provincial ordinances against open-pit mining.
Eduardo Ananayo, Vice Chairperson of the Didipio Earth-Savers Multipurpose Association (DESAMA), revealed that OGPI notified them of the FTAA renewal concurrently with initiating consultations, prompting DESAMA’s involvement in the LRC’s legal action.
OGPI’s FTAA, initially expiring in 2019, received a 25-year renewal in 2021.
In response, OGPI asserted its compliance with mining regulations and environmental assessments, including community endorsements, for its Didipio mine operations.
OGPI emphasized its commitment to dialogue and engagement with stakeholders while expressing readiness to address concerns.
Henry Guay, Barangay Captain of Didipio, voiced support for OGPI’s operations, citing resident backing and alleging that challenges originated from outsiders.
Despite the ongoing legal dispute, OGPI remains dedicated to its IPO plans, scheduled for May 13, aiming to raise Php 7.88 billion.
