Top US military executive now in Philippines over maritime, security issues

Navy Adm. Samuel J. Locklear III, commander of U.S. Pacific Command, arrives in the Philippines to meet with senior military officials in Manila, Sunday. The United States and the Philippines share a Mutual Defense Treaty, and the two nations work closely together through bi-lateral and multi-lateral training to enhance interoperability. U.S. NAVY PHOTO

The senior United States commander in the Pacific region is in the Philippines and is scheduled to meet with President Benigno S. Aquino and other top defense officials to discuss maritime and security issues.

Navy Admiral Samuel J. Locklear III, commander of US Pacific Command, arrived Sunday (July 15, 2012) "to reaffirm the strength of the U.S.-Philippines Mutual Defense Treaty and to explore how the US can support efforts to boost Philippine military capacity," the US Department of Defense said in a statement.

The pact between the US and the Philippines says that both countries will support each other when attacked by an external party.

"Now, as the security environment changes, many countries recognize that there has got to be more maritime domain awareness [and] more understanding of what is happening around them rather than [just] what is happening internally," Locklear said.

"So what we are looking for is to try to provide [the Philippines] assistance that builds the interoperability of our defense forces over time," he said.

"This is a reaffirmation that the Mutual Defense Treaty is still in place and still strong. And it is an opportunity for us to find places and missions were we can partner and exercise together in a way that will increase our overall security cooperation and increase security in this critical part of the Asia-Pacific."

Locklear's visit came amid tense maritime dispute among Asian countries in the South China Sea (West Philippine Sea).

He made it clear in an earlier statement, however that the United States does not take sides in territorial disputes and encourages peaceful resolution through international legal processes.

Unresolved "excessive maritime claims that cause friction among neighbors," he said, could lead to "miscalculation" that threatens stability.

Locklear, who will also meet with Defense Secretary Voltaire Gazmin and military chief General Jessie Dellosa, said he will "seek ways to expand the U.S.-Philippine military-to-military relationship in ways that promote regional stability and security."

"On the military side, a productive alliance requires us to be able to work together, to have connectivity with each other, to be able to share information, and to be able to bring our military systems together in a meaningful way across all aspects of military power – whether it's humanitarian assistance and disaster relief or a contingency or otherwise," he said.

"I'm looking forward to giving the message to the Filipino military and to the leaders there that the United States is a very reliable ally," he said. "We want the Filipinos to be a reliable ally to us as well."

General Martin Dempsey, chairman of the Joint Chiefs of Staff, also visited the country in June.

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Goldfield operator blows the budget Up $220 Million USD on Philippines Mining project

The Didipio FTAA-001 straddles a mountainous region between the provinces of Nueva Vizcaya and Quirino in Northern Luzon ~270km north of Manila. Approximately 30 gold-copper prospects are known within the FTAA which have had varying levels of exploration over past years.

 

Employment

The company abides by the rules and regulations of the Labour Code as well as those set by Government Regulatory Agencies in the Philippines. Preference is given to local community members for employment opportunities at the project.

Australian and New Zealand Macraes goldfield operator OceanaGold said its Didipio gold and copper project in the Northern Luzon of the Philippines is now estimated to cost US$220 million, US$35 million more than the company announced in June 2011.

OceanaGold also said it has credit approvals from a group of large multi-national banks for a three-year US$220 credit facility, subject to final documentation.

The main reasons for the Didipio cost blow-out are "associated with increases in engineering design and procurement services, the Tailings Storage Facility (TSF) and infrastructure construction and site support costs," OceanaGold said.

"Working capital requirements on start-up are expected to be an additional US$27 million."

At June 30, the company had spent US$161 million on the project with a further US$24 million committed in contracts. Cash on hand was US$73 million.

"The Didipio project is going extremely well. We remain on track to achieve our goal set out in June last year to commence commissioning," in the December quarter 2012, said managing director Mick Wilkes.

"The increased capital cost for the project is consistent with industry cost pressures today, particularly for engineering design services," Wilkes said.

"We also made the very deliberate decision to engage with high-quality contractors in the Philippines which cost more money to ensure the project was built to a high standard and on time."

In June last year, Wilkes said Didipio had a "very robust" capital payback of one to two years, based on the then estimated capital costs of US$185 million.

Now Wilkes said construction at the Didipio project is more than 70% complete and is fully financed.

"Recruitment for Didipio permanent operations team and operations readiness plans are well advanced" with about 60% of the required positions already filled, it said.

Gold bars on display - Source: Reuters

Key outstanding items are the delivery of seven power generators and electrical switch rooms but all power equipment should be at the site over the next four to six weeks.

"Mining of the Didipio orebody has commenced on schedule this month in readiness for commissioning in the fourth quarter and to build ore stockpiles for production in 2013."

The credit facility will provide additional liquidity if necessary to repay the A$57.8 million of OceanaGold's convertible bonds maturing December 2012, repay the A$110 million of convertible bonds maturing December 2013 and provide US$50 million in working capital, Wilkes said.

Securing the facility is "a vote of confidence in OceanaGold and allows us to focus on successfully commissioning Didipio and generating strong cash flows from our operations in 2013," he said.

In June 2011, Wilkes said the December 2012 bonds would be repaid from cash flow.

OceanaGold shares, which are dual-listed on both the ASX and NZX, are up 3 cents at $2.40. While that's up from the year-low at $2.18 in May, the shares have been trending down from $5.20 in December 2010.

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