Oceana Gold Philippines Inc. (OGPI) has been targetting to start open pit production up to the first quarter of 2009.

The Department of Environment and Natural Resources (DENR) has factored in OGPI’s operations this year which should contribute $ 15.94 million to an additional $ 291 million mining value in 2008.

But a 20-day TRO of a Nueva Vizcaya regional trial court against its operations is apparently dragging its target.

OGPI has questioned the TRO claiming it has fully observed surface rights acquisition and expropriation procedures for occupying public and private lands as provided under the Mining Act and its implementing rules.

"They’re saying we didn’t observe due process in dismantling houses. In the first place, we haven’t dismantled any of the houses (of these TRO petitioners)," said a company official.

The Didipio Earth Savers Multipurpose Association (Desama) filed the TRO based on charges of lack of due process on the land acquisition by six to seven Didipio residents.

"But we actually don’t need to dismantle the houses of these six to seven individuals. They are located in a tailings pond area. And that is the least in our order of construction priorities. (Besides), we’re not going to build any structure in most of the houses they’re occupying," said the official.

OGPI has substantially completed purchase of properties in Didipio after having paid residents "over and above the just and fair compensation" set by the local government.

"We are a respected listed company (with the Australian, New Zealand, and Toronto) stock exchanges. We can’t just occupy lands without paying them fairly," he said.

The company has started stripping the mine area as part of the open pit operations and is simultaneously preparing construction of the plant, the contractors’ area, and the tailings dam structure—all in time for its contractor Leighton’s works.

OGPI earlier filed expropriation petition with a panel of arbitrators formed by the DENR after the these six-seven families declared refusal to negotiate with OGPI on their land’s use.

An expropriation procedure is a relief granted by law to mining firms that experience objections to their occupation of lands.