Through its acquisition of Guyana Goldfields Inc (GGI), Chinese mining company, Zijin Mining Group Co has promised the Guyana Government that it would retain at least 200 to 300 of its former employees as it prepares for another major expansion next year, according to Minister of Natural Resources Vickram Bharrat.
“The new CEO made a commitment that they will keep about 200 to 300 persons and from a government perspective… that was a positive move,” the minister told Stabroek News on Monday.
“They are also looking for some expansion…but they have to get requisite permits and approvals. Once they go through that and approvals are granted they said they can begin next year,” he added.
He noted that his government was pleased that the two companies entered into an agreement as employment opportunities for locals was a key issue.
Bharrat said that on Monday he had a virtual meeting with the directors of both companies which was facilitated by former US Ambassador and GGI’s Senior Vice-President Perry Holloway, who has been retained by the Chinese company “for the initial transition period…He will be the person we liaise with,” the minister informed.
The company was also told that they will have to comply with environmental and other laws of this country and will be held strictly to their legal commitments. Government will soon complete its analysis of the deal and is expected to grant the necessary regulatory green light.
“They have to meet our laws and the commitments set out. If they had a history, we can’t pronounce on that but if they are coming into our country, we will ensure that what happens here is bound in law and passes our due diligence. When they seek to expand, they know that they have to get the necessary approvals by meeting the set out requirements,” Bharrat assured.
Director of the Corporate Office and Compliance at the Aurora Gold Mine (AGM) Peter Benny, told this newspaper that Zijin Mining Group will have to conduct an assessment of operations here before deciding on the size of its workforce.
AGM is a fully owned subsidiary of Canadian gold miner, GGI.
GGI announced on Tuesday that after much deliberations they had concluded their arrangement where Zijin acquired all of the issued and outstanding common shares of the Region Seven-based company.
And according to Benny, the company is likely to rehire from the pool of employees who were laid-off following the announcement of AGM/GGI exiting the Guyanese mining sector.
“The operatives will have to settle in and make an assessment to determine how to go about to effectively resume operations. Most likely employees will be rehired but this depends on the evaluation on what they need to implement to improve operations,” Benny noted.
He added that they will also have to look at the level and skillsets of employees that will be needed as they move ahead with operations.
Asked if there is a time frame for a possible rehiring period, the company’s director responded in the negative before explaining that the company’s officials only recently arrived and are in quarantine.
“When they are finished with that they will immediately go into the mines and conduct an assessment of the operations there. After they would have done that and able to evaluate what are the priorities they will be able to move forward,” he explained.
He nonetheless noted that several employees remain on the payroll of AGM/GGI.
AGM/GGI at the time of severing workers was preparing to transition from open pit mining to underground mining.
On May 19, 160 of its then 530-member workforce were laid off. In the second phase it was not announced how many other employees were laid off.
While the exact number of workers affected is still not known, sources familiar with the company have estimated the number to be in the hundreds.
“It could be as many as 85 per cent of all employees and we have about 530 employees, most of whom are Guyanese. We do not have the final number, so it could be lower or higher,” Holloway, had told this newspaper.
