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Home / Business / Markets / Commodities

OceanaGold threatens legal action against Oxfam

1 Oct, 2007 03:59 PM2 mins to read

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SYDNEY - OceanaGold Corporation has rejected claims made by Oxfam Australia that it pressured Philippine villagers to accept a proposed gold and copper mine, and says it is considering "legal redress".

OceanaGold's New Zealand assets include Macraes gold mine and a new project near Reefton.

OceanaGold said it
had received a copy of Oxfam's report on its proposed Didipio Gold and Copper project in the Philippines on Friday.

"The report is factually incorrect, inaccurate and misleading," said Darren Klinck, OceanaGold vice-president of corporate and investor relations. "The company is disappointed that Oxfam has ignored OceanaGold's multiple detailed responses to earlier questions and allegations from Oxfam.

"OceanaGold has complied with all development conditions and requirements and denies the allegations made by Oxfam. The company will make no further comment on this misleading material and we are reviewing our options as to legal redress."

Oxfam has claimed the Melbourne company refused to accept that many local people did not want a mine in their front yard and the local council, where the mine will be built, had not freely given its consent to the project.

Over the past five years, Oxfam had interviewed villagers from Didipio and found many complained of harassment and intimidation by agents of the Australian-owned mine.

The Oxfam investigation heard allegations that company representatives offered inducements to members of the Didipio Barangay council through money, employment and inflated offers for their land.

Oxfam said its report showed that OceanaGold "may have publicly misrepresented levels of community support for the proposed Didipio mine".

In February, OceanaGold reported a 725 per cent lift in annual net profit to US$8.7 million ($11.4 million).

It achieved its 2006 gold sales target of 180,000 ounces, an increase of 6 per cent over the previous year.

- AAP

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