Chinese gold company operating in Guyana records 20% increase in gold production last year

Jan 04, 2024 News

Kaieteur News – Zijin Mining Group Co. Ltd, a Chinese-state owned mining giant operating in Guyana, has declared a remarkable 20% increase in gold production for the year 2023.

This surge marks a significant rise in their output, with the company stating a production of 67 tonnes of gold, compared to the 56 tonnes produced in 2022.

The announcement was released in relation to the Production Volumes of Major Products for the Year 2023. Notably, these production volumes encompass the entire output of subsidiaries and joint ventures, presented on an equity basis. However, Zijin emphasised that the figures provided are based on preliminary calculations, with specific and official data set to be disclosed in the audited 2023 annual report.

Zijin Mining Group’s presence spans across 17 provincial-level regions in China and encompasses operations in 15 countries worldwide, including their ventures in Guyana. Their foothold in Guyana’s mining landscape was solidified in August 2020 when they acquired the largest gold mines operation in the country from Canadian-owned Aurora Gold Mines (AGM) for a substantial sum of US$238 million.

Notably, efforts have been made for the release of mining contracts from the Government of Guyana, particularly large-scale contracts, as per Guyana’s commitment to the Extractive Industries Transparency Initiative (EITI). Despite these requirements, the administration has been slow to disclose these agreements.

The Aurora gold project, originally developed by Guyana Goldfields, operates in the Cuyuni-Mazaruni region as both an open-pit and underground mining operation, sprawling across an extensive area of 12 square kilometers or 2,965 acres. Zijin now possesses full ownership of this project, which is actively operational and characterized by Orogenic gold deposits. It boasts substantial Mineral Resources, inclusive of Mineral Reserves, containing approximately 6 million ounces of gold with a grade of 2.54 grams per tonne.

Notably, the project encountered financial setbacks leading to its temporary closure. However, after Zijin Mining took charge, production resumed, and the venture turned profitable in the same year as its acquisition.

The company shared plans for the project’s expansion, highlighting ongoing technological enhancements and process optimizations. With a current daily throughput of 7,500 tonnes, the project aims to achieve its nameplate capacity, anticipated to surpass an annual gold production of 4 tonnes once fully operational.

However, while Zijin has announced increase in production, Guyana’s annual gold declaration has been on the decline since 2017. The Ministry of Finance Mid-Year-Report for 2023 highlighted that there was a drop in gold declarations for the first 6 months last year. The ministry attributes the decline to low declarations made by small and medium scale miners. It was stated that at the end of June, gold declarations stood at 209,756 ounces, compared with 236,728 ounces during the same period last year, an 11.4% decrease.