The Government of Guyana yesterday inked a $1B gold mining agreement with Guyana Goldfields Inc through which the company foresees 4,000 to 9,000 jobs being created for its Aurora, Region 7 project.
Earlier this year, the Canadian mining company announced that it was working to set up what was billed as the largest ever underground gold mine here and it forecasted that the operation would bring significant benefits to the industry and the country.
Guyana Goldfields Inc founder and CEO Patrick Sheridan said at a simple ceremony at the Office of the President yesterday that the company has invested over US$120 million to date and according to him, the company has prospected some 5.8 million ounces of gold in the area, a figure which is growing. He said his company has drilled the deepest hole in this part of the world to a depth of 2.2 km and to date some 1,200 holes totalling 300km have been drilled.
Sheridan said the project represents the largest private investment in the country’s history. He explained that over the 18-year forecasted life of the mining operation, approximately US$1 billion will be expended on the project, adding that in the construction phase, approximately 900 men and women will be employed directly with the company, and that figure will rise above 1,000 as time progresses.
“It is widely believed that for every direct job created, there are between three to eight indirect jobs created,” he added, extrapolating that Guyana will benefit significantly, with between 4,000 to 9,000 jobs.
Sheridan said that based on the current gold prices, the project will result in US$1.6 billion in direct returns to the government coffers, via royalties and taxation. He said that figure did not include taxes to be paid by persons who will be employed by the company.
Sheridan said Guyana Goldfields’ drilling exercises in the Aurora area have established that gold in Guyana can have deep roots, a notion which he stated confirms the faith the Guyana Geology and Mines Commission (GGMC) placed in his company.
Being the first major underground mine in the sector here, Sheridan said, the operation will bring new insight and strategies to exploration as well as new skills and technology to the industry, which will drive its development.
The CEO went on to mention that Guyana Goldfields’ significant equity holders include the International Finance Corporation (IFC), the private investment arm of the World Bank, while adding that there is an effort to ensure that as such projects develop, the World Bank’s safety, social, developmental and health guidelines are properly addressed. He added that the Aurora project has met these requirements and they will continue to be honoured by the company as the project eclipses the construction and production phases of its operations.
He said the mine will be built with the highest international standards in mind as well as respect for the environment.
“Guyana needs massive foreign investment. We feel that the Aurora project is the tip of the iceberg in what is to become a very attractive place for foreigners to invest,” Sheridan said.
He expressed appreciation to the government, including Minister with responsibility for the sector, Prime Minister Samuel Hinds, Transport Minister Robeson Benn, the Guyana Geology and Mines Commission and others for “concluding an equitable and fair agreement for all stakeholders.”
Earlier, Hinds noted that gold has been known to be in significant volumes in Aurora area in the Cuyuni.
He said he recalled Guyana Goldfields Inc prospecting in the area for gold since the 1990s, and he had visited the location himself a few years ago. He said he was pleased at the position which has been reached by both parties.
GGMC commissioner Major General (rt’d) Joe Singh said that while he assumed his current post a few months ago, he believed the project’s development to date here would not have been an easy task.
He said while most information on the project remains on paper, it is important to implement the project in an efficient and transparent manner with a high degree of integrity.
The Aurora project is set to begin later this year with actual production slated to begin in 2014.
