Aurora slows operations pending EPA approval, warns of downsizing

May 12, 2020 News

Sector union says retrenchment part of a disturbing trend

Just two weeks after announcing a partial acquisition deal with Silvercorp Metals Inc, Aurora Gold Mine (AGM), a Canadian majority-owned large-scale gold mining operation in Guyana, has notified workers of an operational slowdown as well as pending retrenchments.

In a letter to workers yesterday, President and Chief Executive Officer (CEO), Alan Pangbourne said that its transition to underground mining would not take place without an interruption in the Aurora, Cuyuni, Region 7 operations mine site.

The company is the country’s largest gold mining operations but has come under flak for not only shareholders’ troubles but its generous tax concessions, among other things. It began full commercial operations in 2016.

The CEO said that the reduction of the workforce will affect both locals and expatriates.
He gave a range of reasons for the actions taken including “financial conditions, COVID-19 issues, travel restrictions, and pending approval from the EPA on the company’s Revised Environmental and Social Impact Assessment (ESIA) permit for underground mining.”

He said that the reduction in workforce is expected to take place between mid-May 2020 and end of June 2020.

“…the company will,” wrote Pangbourne, “follow the Termination of Employment and Severance Pay Act and will make those positions which are no longer needed redundant. Those of you affected will be paid their statutory notice period and severance entitlements in keeping with the Act. This will include recognition of your years of service with AGM, as applicable. We will ensure that each of you will be treated in a respectful and thoughtful manner.
We will communicate with you again later this week to advise you of the timing and positions impacted.”

The National Mine Workers Union of Guyana (NMWUG) blasted the decision and said the government has done little to stop the decline of the mining industry in Guyana. In a scathing release, President of NMWUG, Sherwin Downer complained that, “The mining industry seems to be collapsing – the largest and second largest mining company is becoming history.”

Downer took several government officials to task for what he called inaction in the wake recent retrenchments by other mining companies including Troy Resources in December of last year and Rusal earlier this year.

“The last five years of the David Granger incompetent-led administration, Guyanese has with the worst employment termination in history while earning the title as ‘anti-working class Coalition Government,” Downer charged.

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