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Zijin to fully commence underground gold mining – Min. Singh
Senior Minister within the Office of the President with responsibility for Finance, Dr. Ashni Singh
…equipment, other assets on its way
Kaieteur News – Aurora Gold Mines (AGM), piloted by its Chinese owner, Zijin Mining Inc., is gearing up to initiate comprehensive underground mining operations in Guyana.
The announcement was made during the 2024 Budget presentation made by Senior Minister within the Office of the President with Responsibility for Finance, Dr. Ashni Singh.
Minister Singh underscored the consistent growth in gold production at AGM and revealed that crucial equipment and assets are enroute to facilitate the complete commencement of underground mining operations. Additionally, he highlighted the upcoming development of a 16-megawatt solar farm in 2024, aimed at supporting the mills. However, a specific timeline for these endeavors was not disclosed during the presentation.
“Gold mining operations continue to offer profitable opportunities for both international and domestic investors and prospects for gold remain positive both at the large scale as well as the small and medium scale level,” the minister said.
(File photo) An aerial view of the Aurora Gold Mines operation
According to Dr. Singh, at the large-scale end of the spectrum, exploration activities continue to indicate very strong resource potential. Currently, AGM is the only large-scale gold operation in the production stage. In 2026, Eagle Mountain, Marudi, Oko West and Wenot mining projects (all owned by Canadian mining companies) are expected to start production – all large-scale operations.
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 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 has 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.
Guyana’s annual gold declaration has been on the decline since 2017.
In fact, the gold, diamond and bauxite sectors have recorded a steep decline in declarations for 2023, when compared to the previous year. This was revealed by Senior Minister on Monday.
Dr. Singh reported that the gold sector recorded a decline of 11.2%, on account of lower declarations from small and medium miners. He explained, “Total gold declarations fell to 432,113 ounces last year. The single producing foreign operator recorded an estimated 7.8 percent increase in declarations, with 109,358 ounces declared in 2023. However, this was outweighed by the lower declarations from the small and medium-scale operators, whose output fell by an estimated 16.2 percent to 322,755 ounces.”
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