Gold purchasing agreement expands between OceanaGold Philippines and Bangko Sentral ng Pilipinas
OceanaGold Philippines Inc. (OGP) and the country's central bank, Bangko Sentral ng Pilipinas (BSP), have sealed a three-year extension to their gold-buying agreement, further strengthening their partnership to bolster the Philippine economy's financial stability.
Effective from March 2025 to March 2028, the deal will see OGP offer at least a quarter of its annual gold doré production to the BSP, supporting the central bank's efforts to manage the national economy's reserves. Gold doré is an unrefined gold-silver alloy, commonly utilized in reserve management.
Speaking on the partnership, OGP's President and General Manager for External Affairs and Social Performance, lawyer Joan Adaci-Cattiling, emphasized the company's commitment to economic growth and development. “We’re pleased to extend our commitment to the BSP and their gross international reserves through this renewed agreement. This demonstrates our unwavering dedication to partnering for economic development and maintaining overall growth amidst global uncertainties,” she stated.
Notably, the agreement transcends mere regulatory compliance under the Financial or Technical Assistance Agreement (FTAA) with the Philippine Government, as Adaci-Cattiling noted, “We view this agreement as part of our purpose of mining gold for a better future.”
In 2024 alone, OGP sold 6,628 ounces of gold doré, representing nearly 30% of its total gold doré production, to the BSP. Remarkably, 5,356 of these ounces were sold under the central bank's gold buying guidelines, even after the initial purchase agreement's expiry in May 2024. OGP's previous sales to the BSP included 9,453 and 12,865 ounces in 2022 and 2023 respectively, accounting for 28% and 27% of its total gold doré production for those years.
The extended agreement reaffirms the on-going collaboration between the gold producer and central bank in contributing to the country's financial stability.
Insights
- The agreement extends over a three-year period (March 2025–March 2028).
- OGP has committed to selling at least 25% of its annual gold doré production to the BSP.
- This renewed agreement helps in maintaining the Philippines’ gross international reserves and reinforces OGP as a partner for national economic stability.
- In 2024, OGP sold 5,356 ounces of gold doré to the BSP even after the initial agreement's expiry.
- Previous sales include 9,453 and 12,865 ounces in 2022 and 2023 respectively, representing 28% and 27% of the company’s total gold doré production for those years.
This partnership marks the role of responsible mining practices in fostering economic resilience while adhering to regulatory frameworks.
- OceanaGold Philippines Inc. (OGP) has committed to selling at least a quarter of its annual gold dore production to the Bangko Sentral ng Pilipinas (BSP) as part of a three-year gold-buying agreement extension.
- The Philippine economy's financial stability is expected to be bolstered through this partnership between OGP and the BSP, furthering the purpose of mining gold for a better future.
- In 2024, OGP sold 5,356 ounces of gold dore to the BSP despite the initial agreement's expiry, demonstrating a dedication to partnering for economic development.
- The extended agreement reaffirms the on-going collaboration between the gold producer and the central bank in maintaining the Philippines’ gross international reserves.
- The overall growth of the Philippine industry, particularly finance and business, may be impacted positively due to this partnership and OGP's commitment to economic growth and development.
- As the agreement goes beyond mere regulatory compliance, it signifies OceanaGold's role in adhering to regulatory frameworks while fostering economic resilience through responsible mining practices.
