OGC – Oceana Gold | Aussie Stock Forums

Despite the gold price now at 27 year highs, the OGC SP continues to disappoint!

Most likely related to the issues reported in Oxfam report covered in article below

http://www.oxfam.org.au/campaigns/mining/ombudsman/2003/cases/didipio/

Background

The Didipio case highlights the need for communities that will be affected by mine operations to give their free, prior and informed consent to mining operations – at all stages of mining exploration, operation and rehabilitation.

The case also demonstrates the importance of providing communities with accessible, timely and correct information about the potential social and environmental impacts of mine activities from a social and environmental point of view, and allowing communities to decide if mine operations should go ahead in their community.

It further illustrates how mining can have significant social impacts even before operations begin.

Grievances

The Mining Ombudsman became involved in the Didipio case in 2002 in response to community requests.

Many in the Didipio community state that the proposed mine – which is due to begin production by the beginning of 2009 – is not acceptable to them. They believe it will cause environmental damage, endanger health, displace them from their lands and may destroy sustainable agricultural economic opportunities.

According to both community members and their political representatives, OceanaGold has not gained their free, prior and informed consent. Consent has not been gained on a number of levels, including:

* Community members allege that the company has not presented information about the proposed impacts of the mine in an accessible way or language, including failing to explain technical aspects of the proposed mine in an accessible form.

* Community members allege that they have not been given information about proposed relocations.

* Community members allege that they have not been given adequate and accessible information about the potential environmental impacts of the proposed mine.

Community members report that, although the mine is not yet operational, they are already feeling its impacts. Support for the proposed mine is spilt within the Didipio community, with those who want the mine to go ahead and those who oppose it. This has created tensions within and between communities.

Community members also allege that the company and/or its representatives have:

* Intimidated, harassed or forced community members to give the company access to their land or to sell their land at prices determined by the company

* Sought to gain approval for the proposed mine in inappropriate ways, including by misrepresentation and offering material incentives to political officials

* Sought to circumvent established regulatory consent requirements that prioritise the need for local council (Barangay) consent. The Barangay Council of Didipio has consistently opposed the mine project since 2002

* Publicly misrepresented the level of support that the project and the company have been able to attain

Action taken

The Mining Ombudsman undertook field investigations in September 2002, February/March 2005 and March 2007.

The Mining Ombudsman has attempted to raise community concerns with the company OceanaGold through several letters and discussions, however, the company has not yet substantively responded to any of the community’s grievances or the results of the case investigations. The Mining Ombudsman will continue to try to engage the company on the concerns of the community and raise the profile of this case.

In September 2007, Oxfam Australia released the Mining Ombudsman Case Report: Didipio. This report outlines the results of our investigations and the grievances of the Didipio community who are concerned abut the way OceanaGold has pursued the proposed mine.

2007 Full Case Report

The Mining Ombudsman Case Report shows how OceanaGold has failed to obtain the free, prior and informed consent of the Didipio community

2003 Case Summary

Download the Dipido Case summary as a pdf

2003 Full Case Notes

Local communities in the Philippines allege that Climax Mining officials falsified documents and bribed community leaders in order to manufacture community consent for exploration and mine activities. (pdf 203kb)

2002 Full Case Notes

A preliminary investigation into the grievances raised by local communities in the Philippines against Sydney based mining company, Climax Mining

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http://biz.yahoo.com/ap/071106/gold_miners_sector_snap.html?.v=1

Sector Snap: Gold Miners

Tuesday November 6, 1:41 pm ET

Gold Mining Stocks Gain on Higher Gold Price Amid the Dollar’s Continued Weakness

NEW YORK (AP) — Shares of gold miners climbed Tuesday, as the price of gold struck a 27-year high against the backdrop of the dollar’s continued weakness.

An ounce of December gold added $14.20 to $825 on the New York Mercantile Exchange in midday trading, rising to its highest level since January 1980.

The price of gold has added about 26 percent since the beginning of the year, and gains accelerated within the last couple months as the Federal Reserve cut interest rates twice.

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