OceanaGold Announced Massive Layoffs at The Philippines Gold Mine

SEATTLE (Scrap Monster): OceanaGold announced permanent layoff of nearly 500 employees at its Didipio gold and copper mine in the Philippines. In addition to direct employees, the decision is likely to impact nearly 400 contractor employees working in the mine. Furthermore, the company plans to implement a second round of permanent layoffs during the month of November this year.

The layoff decision is mainly driven by the decision by the local government units to block access to and from the mine site. This has constrained the ability of the company to continue mining operations at the site over the past fifteen months, said the company press release. The blockade is pending the Financial or Technical Assistance Agreement (FTAA) renewal, which now remains with the Office of the President for decision.

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Furthermore, the press release assured that the company is committed to rehire hundreds of workers and restart operations at the mine, in case the FTAA is renewed or the blockade is lifted.

Commenting on the development, Michael Holmes, President and CEO of OceanaGold said that a small group of local leaders continue to refuse considering access arrangements. It expects a favourable intervention by the National Government towards FTAA renewal, which in turn will give new life to the world-class mine, he added.