Still in its transitional phase, Chinese multi-national mining company Zijin Mining has denied sidelining local operators and says it is currently exploring the possibilities of having cost effective and profitable operations for its newly acquired project, Aurora Gold Mines Inc (AGM).
The company since taking over operations just over a month ago is still in its assessment phase of the operations and has not started production as yet.
Director of Corporate Office, Compliance, and Government Relations, Peter Benny, on Tuesday told Stabroek News the company is focused on evaluating and assessing the cost effective measures that will allow for profitability and sustainability.
His comments were made after being asked whether it is true that new owners have sidelined local contractor Japarts, for its fellow Chinese company operating in Guyana.
Benny explained that while they are in the process of stripping away the overburden to get to the minable ore, they have not engaged any local contractors as he refuted reports of the company sidelining local contractors.
He told Stabroek News that the Japarts contract was terminated under the management of AGM earlier this year when the parent company Guyana Goldfields began to downscale operations.
Local businessman Terry Singh recently complained to the Private Sector Commission that his company has been replaced at the Chinese-owned Aurora Gold Mines (AGM) by a Chinese firm and President Irfaan Ali was written to about this.
Singh’s complaint has now raised concerns as to whether local suppliers and partners will be retained by the company’s new operators and owners.
However, Benny assured that Zijin Mining has plans to improve its local content standing as they develop their operations. He noted too, that the company is likely to scout out competitive options before moving forward with the process of engaging local contractors.
This newspaper understands that Singh’s company was contracted to provide transport and also leased heavy-duty equipment to the company. He had invested $US millions to purchase the equipment.
Since taking over operations, the Director of Corporate Office, Com-pliance and Governance explained that they have rehired several skilled and experienced workers, who worked under Guyana Goldfields Inc. These workers he said have been engaged in the “stripping process” as they make their way to the ore.
Additionally, Benny said that the new company directors have also been engaging in courtesy calls in the corporate and social arena to familiarise themselves with local partners.
He also mentioned that they met with the executive of the National Mines and Workers Union on Tuesday.
Meanwhile, Minister of Natural Resources Vickram Bharrat told this newspaper that it was simply untrue that 200 staff of the Aurora Gold Mines will be laid off and replaced by Chinese nationals and said that he met with the company’s officials last month.
Attending that meeting with the local stakeholders were also new AGM Chief Executive Officer and General Manager Victor Wu, Chief Financial Officer Peter Luo, and Administrative Manager Frank Liu. During their meetings, the AGM executives spoke of the goals and objectives of the company under Zijin. They were accompanied by Benny.
Bharrat pointed to a release that he dispatched on the issue and said that only last week the new AGM Inc administrators met with stakeholders and commenced rehiring operations and these will be based on regulations and best practices.
“Officials of Zijin Mining Group Company Ltd and AGM Inc. (Aurora Gold Mines), recently held introductory meetings with a number of senior government officials of stakeholder agencies in the mining sector to discuss mining related issues. Zijin Mining, a multinational mining company, headquartered in Xiamen, China acquired AGM Inc. in August from its previous owners Guyana Goldfields.
“… During discussions with the Minister of Natural Resources Hon. Vickram Bharrat and Permanent Secretary of the Ministry of Natural Resources, Mr. Joslyn McKenzie several issues were discussed including the need to ensure a balance between mining and sustainable development, environmental programmes, and occupational health and safety. Minister Bharrat also encouraged the Company to include Guyanese in its labour force and to make local development a priority,” the release said.
“Additionally, the Minister emphasized the role of corporate social responsibility and the need to work actively with communities that may be impacted by the mining operations of the company. As such, the company agreed that this is an area of priority and will endeavour to continually engage local communities and relevant regulatory agencies. Further, high on the agenda was the use of local suppliers and local employee engagements to allow for prudent management of the mining operations and stakeholders’ relations.
And as complying with labour laws and occupational health and safety is believed to be integral to the operations, the release said that the team also met with Chief Labour Officer Charles Ogle at the Ministry of Labour and discussions centred on the process of rehiring former employees, as well as union representation of workers.
To date, 220 former employees out of approximately five hundred who were dismissed during the shutdown, have been rehired. Meanwhile, it is expected that additional employees will be rehired as the various units, sections, and departments are reactivated leading to full resumption of operations and production.
