Goldfields insists local content footprint has met requirements – company steams ahead with US$600M expansion to underground mining

Mar 27, 2018 News

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Canadian-owned Guyana Goldfields Inc./Aurora Gold Mine (AGM) is insisting that it has fulfilled its part of the agreement with the people of Guyana, even surpassing projections of its footprint in Guyana.
Officials of the Region Seven mining company were being grilled by media workers on Sunday during a tour to the area.
Aurora, as it is known locally, started commercial operations in January 2015, with over 95 percent of the 500-plus staffers locals.
Administrative Manager, Peter Benny insisted that local content is very evident with several staffers shadowing expats who number just under 40.
The visit would come at a time when the company, which is traded on the stock market and is the largest mine in Guyana, is preparing to start underground mining in Guyana, the first time it will be done here.
AGM would be heartened, as there are over 2.2 million ounces in the area where the underground mining is being planned. Preparatory workers are underway with local experienced mining company, Japarts, handed a major project to strip and haul the hard rock from the Rory’s Knoll pit which is over 250 feet below sea level.
Rory’s Knoll is where the mother lode was found and where almost US$600M would be sunk into. The operation is a huge one by any accounts.

Since the start of operations, AGM has become the biggest single contributor to the declaration pie of the country’s gold production.
With five years left in open pit mining at Rory’s Knoll, AGM’s Deputy General Manager, Vic Rozon, said that the company’s current estimated operating life, based on what was found, would be around 2033. In the meantime, the company is busy exploring its concessions.
HOME AWAY FROM HOME
With regards to its impact, according to Camp Coordinator, Troy Semple, over 1,770 meals are being prepared daily (four meals daily) for the 528 staffers on site. That is over 53,000 meals being prepared per month.
There are 170 self-contained sleeping quarters for staffers, including hot and cold showers and air-conditioning. In addition, there is a games room, with even a PS4 console, along with a full gym and bar.
Last year, the company purchased a Twin Otter aircraft, flying staff in and out every four weeks.
Locally, the company is purchasing over $60M monthly in food, with training provided to 16 suppliers on how to handle food safely.

Questioned about the need to release contractors who were fetching fuel, chemicals, food and other materials from its Buck Hall, Essequibo River location, Benny explained that the company last year acquired some equipment and was in the process of reviewing of plans. It asked the contractors to stand down.
Japarts still had equipment on site and the company, which had a proven track record, was offered the contract to prepare the pit for underground mining.
There is another major phase that is expected to start later this year.
Japarts is reportedly being asked to partner with Morrison Trucking Services and Machinery Rentals, a company located in the Kaylees Gas Station, Land of Canaan. That company was one told to stand down last year. The company had denied it was owned by embattled cash-smuggling pilot, Khamraj Lall.

With regards to Benny, its agreement with the Government on local content, was to ensure that it purchase as much as possible locally. This is being done with even local beef, once imported, now being purchased from local supermarkets like Bonny’s and Rossignol.
The company has also been contributing to the Linden Technical Institute, the Government Technical Institute, and even the University of Guyana, building capacity in technical areas.
MACORP has also benefited from significant businesses with several of the 100-plus pieces of equipment purchased there.
According to Benny, with airports being used and transportation, the spin-offs of transportation and other spending have been contributing to nearby communities and to the hospitality sector. There is simply no other hotel that produces the amount of food that Aurora does, the official boasted.
LOCAL CONTENT
Questioned with respect to whether the agreement forces AGM to buy locally, the officials said it speaks of workers. However, not buying local would see imported items being taxed.
With regard to checks to ensure what gold is being declared is correct, Benny disclosed that officials of the Guyana Geology and Mines Commission visit monthly, with reports mandated to the Gold Board and other bodies.
GGMC, the Labour Ministry and other audit officials from overseas have also been checking on environment, health and safety issues and other records to ensure compliance.
When it is time to ship, GGMC through the Guyana Gold Board, and the Guyana Revenue Authority, would verify, stamp, tag and accompany it.

Benny made it clear that tight systems exist, including access to the storage vault to ensure that there are no breaches and no questions. There are also cameras monitoring every aspect of the operations.
Rozon said that gold pouring is being recorded and handled manually and witnessed by multiple persons.
The company has also been looking after its staffers with bonus schemes, funeral expenses for family members and even bursaries.
In fact, when it comes to local content, over US$250M is being spent annually for supplies, with US$300M in salaries paid to workers.
Asked if the company has honoured its commitment, the Administrative Manager insisted that his company has done more.
In fact, AGM was not even thinking of expansion when it started two years ago.
Yet, it is now moving rapidly to underground mining.
In addition to local suppliers, there are roads being maintained with eight percent royalty paid on every ounce found.
In addition, the company says it has managed to comply with environmental requirements, with wild animals living near the mine site without any disruptions. The environmental footprint is even smaller than what was agreed to.
Admitting that the company does face labour issues at times, Benny said they are handled.
The company has no issues with any unions coming into the operations, he emphasised.
He also said that in terms of benefits and pay, AGM remains the most competitive of all miners in Guyana.
The local content question would be pertinent, as there is huge debate over what Guyana is getting from ExxonMobil which has discovered oil in massive quantities offshore Guyana.
The weak agreement has raised troubling questions about Guyana’s take on foreign direct investments here.

 

 

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