AGM racked in US$185M from Guyana’s gold project last year

May 21, 2024 News

Aurora mining operation in Guyana (Source: Zijin)

Kaieteur News – Zijin Mining Group Co. Ltd, a Chinese-state owned mining giant operating in Guyana, through its subsidiary Aurora Gold Mine (AGM) has disclosed that the company made some US$185 million from its operations in Guyana in 2023.

Last year, some 3 tonnes (105,821,880 ounces) of gold were produced from the Guyana project. For this year, the company is ramping up production, with a plan to produce 3.7 tonnes (130,515,652 ounces) of gold.

Zijin’s overall earnings for 2023 were about US$4 billion last year. The company reported 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.

Zijin stated that the AGM project has resources of 184 tonnes (5.6 million ounces) of gold. The company also shared plans for the project’s expansion, highlighting ongoing technological enhancements and process optimizations. With a current daily output 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.

The mining company also disclosed that the phase 1 underground mining construction project in Guyana was completed in 2022. It is expected that phase 1 of the underground mining project of the AGM will reach the designated usable stage in July 2026.

The Chinese 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.

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.

Moreover, 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 2023, gold declarations stood at 209,756 ounces, compared with 236,728 ounces during the same period last year, an 11.4% decrease.

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Aurora Gold Mine (AGM), Chinese, Guyana, US$185M, Zijin Mining Group Co. Ltd

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