Red 5 will halt Philippine gold mine operations, citing mining policy uncertainties

In what appears to be another casualty of a lack of certainty in mining policies in the Philippines, Australia-listed gold miner Red 5 has announced that it will suspend mining operations at its Siana gold project in the Philippines.

The decision to suspend operations is due to "the operational impact which the current uncertainty regarding regulatory and government mining policy in the Philippines has had on the group’s operations", Red 5 said on Tuesday April 18. The company also took into account the delay in the approval of an environment compliance certificate (ECC) amendment for its long-term tailings storage facility, as well as "other mining challenges". Red 5 said it is suspending mining operations with immediate effect, and that it has sufficient funds to continue the suspension of operations for at least two years, if necessary. Market watchers have warned that investors are likely to be put off by the uncertainties surrounding the Philippine mining industry since a mining audit spearheaded by environment minister Regina Lopez culminated in the closures and suspensions of...

Published

Vivian Teo

April 20, 2017

11:52 GMT

Singapore