Uncertainty surrounding the mining policy in the Philippines has led Australian-based Red 5 to suspend operations at the Siana gold project.
Red 5, which operates Siana through Philippine-affiliated company Greenstone Resources, was forced to place the site on temporary standby in January due to delays in obtaining regulatory approvals for construction of a tailings storage facility.
The gold miner has now announced the suspension as it believes it is the best way to preserve “the significant inherent value of the large in-situ gold inventory and high-quality infrastructure” at the site.
In an ASX announcement, Red 5 reported the decision was made because of the operational impact “which the current uncertainty regarding regulatory and government mining policy in the Philippines has had on the group’s operations.”
The Perth-based company added, “the group’s assessment of the likely resulting changes to open pit operations after taking into account the delay in the approval of the environmental compliance certificate amendment for the long-term tailings storage facility and other mining challenges” also contributed to the decision.
Greenstone has sufficient funds to maintain the Siana assets in good standing and, if necessary, continue the suspension for at least two years, Red 5 outlined.
During the suspension, the group will continue to perform core activities, including community relations, environmental and regulatory compliance and de-watering.