Guyana Gold Fields Agreement with PPP administration must be disclosed - Mining advocate

Guyana Gold Fields Agreement with PPP administration must be disclosed – Mining advocate

Jul 27, 2015 News

– as allegations of workers’ exploitation arise
With the recent announcement that the Guyana Gold Fields is slated to begin production at its Aurora Gold project, Mining Advocate Sherwyn Downer has come out in defense of the local mining workforce, alleging that the firm should be scrutinized and its agreement with the past People’s Progressive Party/Civic (PPP/C) government be fully disclosed.
His position comes amidst complaints by the company’s workforce.
Downer, who is the former Press and Public Relations Officer for the Bartica Interim Management Committee has been on a mission to give miners a voice against injustice. Downer attested to workers complaining of “prison-like treatment” and called for the Government to investigate the allegations.

Sherwyn Downer

Guyana Goldfields is gearing up to start production at its Aurora gold project in Guyana in the coming weeks.
The Canadian company, which has been operating in Guyana since 1996, signed a Memorandum of Understanding with the then PPP/C administration for the Aurora Gold Project to get off the ground.
The upcoming Aurora mine, is located 170 km west of the capital Georgetown. It has been projected by the company to be capable of producing a total of 3.29 million oz. gold, averaging 194,000 oz. per year, over an initial 17-year mine life. Estimated operating cash costs are US$527 per oz, with all-in sustaining costs of US$698 per oz. (Both amounts include royalties.)
But according to Downer, the company has begun a process of issuing contracts to workers, who have as much as five years of tenure. This, he said, constituted a denial of workers’ rights and benefits which they are entitled to have.
“There must be a full public discloser of the agreement signed between the former government and Guyana Gold Field to determine if the workers’ rights are being denied or breached in the agreement,” Downer said.
According to Downer, if it is that the workers have been placed at a disadvantage, steps have to be taken to immediately correct such. Downer issued a call for the Ministry of Social Protection, Safety and Health Officers to visit the mining site immediately.
Downer, who has been actively advocating for the rights of Guyana’s gold miners, also called for discussions to be facilitated on the way forward, in light of the many issues plaguing the industry.
“Chapter 65:01 sections 75 to 76 of the Mining Act are clear on the safety, health and welfare of mining workers, mining related issues and concerns, which have been in the headlines for the last year or so or even in the last six months,” the miners advocate stated.

A section of the soon to be operational Aurora gold mines project

“There needs to be a marathon discussion on the way forward for the industry,” Downer reiterated.
Such a course is already in the works with local miners slated to meet with President David Granger in order to discuss the industry’s woes. In addition to rising fuel costs, gold prices on the world market reached US$1097 per ounce on Friday, bringing fresh fears not only in the gold mines, but for locals who are involved in the industry.
Already for the year, it has become clear that miners are cashing out of the industry, with declarations falling by 20 percent for the first half of the year compared with the same period in 2014.
Gold prices had reached a high of US$1,895 four years ago, leading to a rush of investments in the sector which for consecutive years became the country’s biggest contributor to the Gross Domestic Product (GDP).
Friday’s dismal world prices have not been unnoticed by the mining community, which issued a statement, noting the potentially devastating impact it can have on the Guyanese economy.