OceanaGold Prepares to Ramp up Didipio as New Sandvik Fleet Starts Arriving

Why It Matters

The equipment upgrade and production ramp lower cost per tonne, extend the mine’s life and boost OceanaGold's cash flow, strengthening its position in the gold‑copper market.

Key Takeaways

• Sandvik delivers new loaders, trucks, and rebuilt unit.
• Production target rises to 2.5 Mt/year by 2029.
• LHOS method enhances mechanisation and ore recovery.
• Western Breccia zone mining slowed for safety and stability.
• Lateral development to reach 8 km annually through 2029.

Pulse Analysis

The arrival of Sandvik’s LH621i loaders and TH663i trucks marks a significant step in OceanaGold’s drive toward higher underground productivity. Modern equipment reduces cycle times, improves fuel efficiency and supports the mechanised long‑hole open stoping (LHOS) method that the Didipio mine relies on. In a sector where equipment reliability directly influences operating cost, the new fleet positions the mine to achieve its 2.5 Mt annual throughput target while maintaining competitive cost per tonne.

Didipio’s technical plan hinges on the flexibility of LHOS, which delivers high selectivity and recovery rates. Recent geotechnical studies in the Western Breccia zone prompted a more cautious, bottom‑up mining approach with smaller stopes to mitigate ground instability. The use of paste backfill and a top‑down sequencing strategy further enhances stope safety and allows for continuous production despite challenging geology. Accelerated lateral development—nearing 8 km per year—will open new stoping fronts, while upgraded dewatering and ventilation infrastructure ensures operational continuity.

From a strategic perspective, the production ramp translates into an estimated 99,000 oz of gold and 10,000 t of copper annually, bolstering OceanaGold’s revenue stream and extending the mine’s life of mine to 2037. Higher throughput combined with lower unit costs improves the company’s margin profile, making it more resilient to commodity price volatility. The move also signals to investors that OceanaGold is leveraging advanced mining technology to unlock value, a trend increasingly important in the capital‑intensive mining sector.