JOHANNESBURG (miningweekly.com) – Shares in Melbourne-headquartered OceanaGold fell 8% on Tuesday before trading was halted, after the Philippine government’s nationwide environmental mine audit recommended the suspension of the company’s flagship Didipio gold and copper mine on the island of Luzon.

The environmental check-up, ordered by President Rodrigo Duterte, has recommended that 20 mines be suspended, in addition to the ten that were previously shuttered. Only 11 of the country’s 41 operating metallic mines have been recommended for continued operation, including Australian junior Red 5’s Siana gold mine.

The Philippines Department of Environment and Natural Resources (DENR) states that OceanaGold’s mine is “beset with social issues”, including a petition of the Nueva Vizcaya province to cancel its financial and technical assistance agreement and claims that blasting has damaged houses. The DENR further cites “perceived dangers of underground mining” and the province’s preference for agriculture and agro-forest over mining as its reasons for the suspension recommendation.

Commenting on the Philippines environmental review, OceanaGold president and CEO Mick Wilkes said in a statement that the company would seek clarification and reconsideration from the DENR to rectify the matter.

“The Didipio mine has a strong social licence to operate. Our achievements since recommencement of construction in 2011 would not have been achieved without our steadfast commitment to the community and most importantly the strong endorsement from the residents of Didipio and the nine other communities in the provinces of Nueva Vizcaya and Quirino.”

Wilkes added that the mine was one of the first in the Philippines to achieve ISO 14001 environmental management certification and OSHAS 18001 certification. He also mentioned some of the environmental, health, safety and social awards that the mine had received.

The Didipio mine employs more than 1 800 people, 98% of whom are Filipino nationals, and has contributed $70-million over the past three-and-a-half years to the country’s economy in taxes and royalties.

Besides the Didipio mine, OceanaGold also operates the Waihi gold mine on the north island of New Zealand and the Macraes and Reefton operations on the south island. The miner is also building the Haile gold mine, in South Carolina, in the US.

The company expects to produce 385 000 oz to 425 000 oz of gold from the combined New Zealand and Didipio operations and 19 000 t to 21 000 t of copper from the Didipio mine, in 2016.

Shares fell by A$0.39 apiece to A$4.35 a share before the trading halt came into effect.

Meanwhile, Red 5 said its Siana gold mine in the Philippines had been cleared to continue operations.

The Siana gold project, located in the Surigao del Norte mining region, resumed operations in January last year, after the redevelopment of tailings storage capacity.