Latest update April 19th, 2024 12:59 AM
Jun 15, 2015 News
By Jarryl Bryan
Ten years after the preliminary closure of OMAI gold mines, the largest ever gold mine in Guyana, the impending mid-2015 opening of the Guyana Gold Fields’ Aurora mine is promising to dwarf OMAI in size, according to the Guyana Gold and Diamond Mining Association (GGDMA).
The GGDMA attested to being satisfied that work, which is at an estimated 85 percent completion, was proceeding according to International best practices.
The Commission, which visited the mine in August 2014, has also lauded the construction already covered, declaring it as “enormous and astounding.” According to the GGDMA, their visit was in keeping with their oversight of the mining sector and to also serve as a forum to address certain issues of concern.
According to observations by the GGMC, it was observed that renovation works were being conducted at the Aurora Airstrip. In addition, the base camp was relocated in order to accommodate preparation works for protective dikes between the Cuyuni River and the pit mining areas.
It was also observed that rushing, milling, mineral separation and cyanide plant infrastructures were already assembled and the tailings management area was also nearing completion, with the pipelines already in place.
At the time of the visit, the electrical power generation equipment and distribution network were being installed with the supporting fuel storage systems being fabricated on-site.
The visiting delegation was allowed access to every facet of the construction, with explanations and rationale proffered for the various designs and best practices. Guyana Gold fields are on target for the estimated completion of construction of the mine in June 2015 with mining operations commencing in early July 2015.
Projected benefits of Guyana Gold Fields on economy
The Mining sector has continuously contributed to the national economy and the development of Guyana. The development and progress of the mining sector after the closure of OMAI in 2005, was as a direct result of the performance of the small and medium scale gold mining operations which declared a record 438,645 and 481,103 ounces of gold in 2012 and 2013 respectively. Gold declarations have continuously increased from 2003 to 2013 until the low price of gold impacted on the sector.
The Commission has always sought to work in the best interest of all miners and the sector. In this regard, a commitment was made to continue working with GGDMA to assist small miners in the adoption of new technologies to increase gold recoveries while phasing out the use of mercury. According to the GGDMA, these initiatives will be supported by the Commission and a sum of GYD$1 Billion has been earmarked to assist the processes which are even more critical given the low gold recovery rate, high cost of production and current low price of gold.
In this regard, the Chairman of the GGMC has reportedly extended an invitation to the Goldfields to participate in a Mercury Free and Improved Gold Recovery Workshop which the Commission has planned in June, 2015. This would ensure a forum for the dissemination of expertise and knowledge by the Goldfield’s consultants in the area of recovery technologies.
For the large scale mining operations set to come on stream, the Commission has worked in order to foster and promote relationships between Goldfields and entities/Ministries of the Government to ensure that undue delays are not experienced, that could jeopardize the mining project. Interventions were made after requests by Goldfields, who were experiencing lengthy delays which would have impacted on the timeline for completion. The company expressed its appreciation for the intervention of the Commission and the Ministry to avoid and/or minimize such delays.
According to the Commission, the importance of the bringing the Goldfields Aurora mines on stream cannot be overstated since the sector can benefit from the estimated proved reserves of approximately 3.29 million ounces of gold over an estimated mine life of 17 years. They also stated that the gold production and declaration will be a tremendous boost to the mining sector and greatly benefit the nation as a whole. The sector will also benefit from the royalties that will be paid on production, in addition to eligible corporation tax payments. Further, the importance of the transfer of technology and international best practices to Guyanese and other mining operations, the time of construction to operation should not be overlooked and taken for granted. Goldfield’s operations will be processing both saprolite and hard rock material for gold and can do so both simultaneously or separate.
Local Employment
The construction and operation of the Aurora mine has in addition proved to be an added source of employment for the mining sector, according to the GGDMA. At present the construction phase has approximately 1,000 employees of which 70% or 700 are Guyanese nationals and the remaining 30% or 300 comprising 20 other nationalities. The employment of the 30% non-nationals is critical given the technical nature of mine construction.
The operational phase of the mine will see the labour force being reduced to approximately 400 persons, most of which will be Guyanese nationals. Interviews have already commenced for the
Transition from temporary workers involved in construction to permanent workers who will be engaged in the mining operations.
The Canadian based company, which has been in Guyana since 1996, has also projected that their production figures for 2015 will be between 30,000- 50,000 ounces of gold and approximately 120,000 ounces to 140,000 ounces of gold in 2016. The Guyana Gold Fields also has approximately US$44 Million (as of March 31, 2015) of capital expenditure remaining to the projected start up production date.
Where is the BETTER MANAGEMENT/RENEGOTIATION OF THE OIL CONTRACTS you promised Jagdeo?
Apr 19, 2024
SportsMax – West Indies Women’s captain Hayley Matthews delivered a stellar all-round performance to lead her team to a commanding 113-run victory over Pakistan Women in the first One Day...Kaieteur News – For years, the disciples of Bharrat Jagdeo have woven a narrative of economic success during his tenure... more
By Sir Ronald Sanders Waterfalls Magazine – On April 10, the Permanent Council of the Organization of American States... more
Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.
Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]