Aussie firm suspends mining project in PH
Greenstone Resources Corp. is suspending its mining operations in the Siana gold project in Surigao del Norte despite having passed an audit conducted by the Department of Environment and Natural Resources.
Australian firm Red 5 Ltd. said in a report to the Australian Securities Exchange that its Philippine affiliate, Greenstone, had informed the Mines and Geosciences Bureau of its decision, which would take effect immediately.
Red 5 said the move was a result, first, of “the operational impact which the current uncertainty regarding regulatory and government mining policy in the Philippines has had on the group’s operations.”
Secondly, Red 5 said it had made the decision based on its assessment of the likely resulting changes to open pit operations.
Such changes were expected due to the delay in the approval of the amended environmental compliance certificate for the long-term tailings storage facility (TSF) and “other mining challenges referred to in previous announcements.”
“Notice will be given to the mining contractor to cease operations and demobilize equipment,” Red 5 said.
“During the suspension, [we] will continue to perform core activities including community relations activities, environmental and regulatory compliance and de-watering,” it added.
Similarly, Greenstone will notify the underground mining contractor to stop activities and use of equipment.
“Given the uncertainty surrounding the resumption of open pit mining and cash flow, the decision has been made to suspend underground mine development at Siana,” Red 5 said.
