A closure plan for the Omai mines has been agreed to by the relevant parties and the existing infrastructure is to be left at the location rather than the site being restored to its natural state.
This disclosure yesterday, was to have been made at a press briefing but the absence of Prime Minister Samuel Hinds forced the cancelling of the event. However, the Guyana Information Agency (GINA) issued a joint statement from the Government, the Guyana Geology and Mines Commission (GGMC), the Environmental Protection Agency (EPA) and Omai Gold Mines Limited (OGML)/IAMGOLD regarding the agreement.
The statement said that at the request of the Government, the closure plan for the site was changed from the originally contemplated ‘back to nature’ model to an ‘after use’ one. It explained that as a result, infrastructure will be retained at the site including internal roadways, landings, barge, airport/ airstrip and access road, power plant distribution, camp site and mill site facilities including the gyratory crusher and the aggregate plant.
It disclosed that Hinds stated that consistent with pursuing the ‘after use’ options for the Omai site, Guyana is inviting other mining companies to re-evaluate the underground mining possibilities at that location.
Production at the mine had ceased in 2005 and the parties have agreed to the conditions of the Closure Plan conducted by OGML and which covered site reclamation, re-vegetation and physical, biological and chemical stability and which up to this point has been monitored by the EPA and the GGMC. The statement said that the company reported that it has spent some US$6M since production ceased.
According to the statement, the closure plan envisages the completion of all environmental and other activities at the Omai Mine site by the company by the end of September. OGML has given the required notice of its intent to terminate the Mineral Agreement and voluntarily relinquish its mining licence with effect from October this year; the statement said adding that at the hand-over of the property, slated for October 1, a full and complete certificate of compliance will be issued.
The statement noted that the company is pursuing “one …prospect of Eagle Mountain about 75km away and has been reviewing other prospects in Guyana”.
It added that the EPA confirms that generally OGML has complied with the identified limits and other environmental requirements of the Agency and the company’s compliance was consistent with its ISO 14001 certification for environmental management.
Meanwhile, the GGMC acknowledged “the pioneering nature of the operations of OGML and notes that the mining regulations and the historic Mineral Agreement which this development engendered provided a strong framework for the financing and operation of a world-class large gold mining operation in conformity with prevailing international standards”.
Hinds, according to the statement, indicated that the collaboration between the government and Cambior, the parent company of OMGL is “evidence of the welcome and partnership which the Government and the people of Guyana extend to Foreign Direct Investment”.
The statement said that OGML has stated that its operations at Omai were a “roller coaster ride” with highs and lows, with particular low points being the gold price plummeting to a low of US$252 per ounce during its operation and the rupture of its tailings dam in 1995 which saw the declaration of the Essequibo River as a disaster area. It noted that the company considers its greatest success as being able to produce approximately 3.8 million ounces of gold from its surface mining operations before the ore body was exhausted in September 2005.
The site had been explored by Golden Star Resources Limited led by David Fennell and culminated with Cambior Inc establishing OGML in 1991. The mine was opened on March 11, 1993 by the late President, Dr Cheddi Jagan.
