With a focus on kick-starting production, the new owner of Aurora Gold Mine Inc (AGM), Zijin Mining Group Ltd, has contracted fellow Chinese company, Sinohydro, to expedite “stripping works” (the removal of overburden to access the ore) in a bid to accelerate their work programme at the mines.
Director of Corporate Office, Compliance, and Government Relations Peter Benny told Stabroek News that a decision was taken by management to engage Sinohydro to expedite works but stressed that this does not mean the company is sidelining local contractors. He said that in time, local contractors will be engaged as the company ramps up production.
“The company has pushed emphasis early on full resumption of operations. It has not produced any gold since June. The company was looking at production in February/March 2021 but now we are looking to start by the end of this month,” Benny disclosed.
He stated that Sinohydro was engaged at the end of October and is working with the company towards the common goal of accelerating stripping works. The company is currently in the process of stripping away the overburden to get to the minable ore.
Sinohydro, a subsidiary of China’s largest power company, POWERCHINA, is described as state-owned hydropower, engineering, and construction firm. The company has been expanding their services worldwide. An arm of the company is currently executing the construction of the IDB-funded Sheriff Street/Mandela Avenue road project. It is unclear if the same arm has been contracted by AGM Inc.
According to Benny, Sinohydro equipped with its own workers, has merged its workforce with AGM to advance works. With the stripping works advanced, he said that they should enter into production phase by the end of this month, and if they continue operating at this pace, they will be able to hire a work force of over 600.
“We are pushing to have production… that is our focus. The price for gold is excellent and it is what we will like to benefit from,” Benny said.
He noted that his company had hired workers from Guyana Goldfields after the company was sold and will continue hiring persons with the required skill sets as they move up production.
“We have reviewed all former employees’ files and looked at ways in which they can be hired and aid in accelerating our production. We have hired new and former employees,” he stated.
He added that while the union, National Mines and Workers Union, has objected to the number of Chinese expats at the mines, the situation is not so.
“The ratio between expats to locals remains the same as when Guyana Goldfields were in operations. We have probably a few less Chinese nationals on the mine site,” he pointed out before explaining that both companies at the site are following the laws of the country and the Mining Agreement.
Further, Benny explained that every employee working at the mine site under AGM or a contracted company, will execute his or her duties to the standards of Zijin Mining.
He said that contracted companies are required to follow the company’s operational guidelines and work along with the company.
In early October, the company had denied sidelining local operators and said it was exploring the possibilities of having cost effective and profitable operations. Local contractor, Japarts, had its contract terminated under the management of AGM earlier this year when the parent company Guyana Goldfields began to downscale operations.
Japarts, which worked under the management of Guyana Goldfields, had said that it was being sidelined by Zijin Mining in favour of its fellow Chinese company operating in Guyana.
Local businessman Terry Singh recently complained to the Private Sector Commission that his company had 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 raised concerns as to whether local suppliers and partners will be retained by the company’s new operators and owners.
Benny had assured that Zijin Mining has plans to improve its local content standing as they develop their operations.
