Aurora Gold Mine aborts locals; hires Canadian airline to fly domestic trips

May 23, 2018 News 0

By Abena Rockcliffe-Campbell

For years, it used to be Air Services Limited (ASL), Wings Aviation, Trans Guyana Limited and Roraima Airways.
All those companies provided Aurora Gold Mine with domestic flying services. However, they are all now replaced by one foreign airline—Canadian Flyers.
Daily, more and more Guyanese entrepreneurs are coming forth with information about how they have been abandoned by Aurora Gold Mine, without reason. Businessmen now believe that the company has schemed to minimize local content.
About six months ago, Aurora let go of the local aviation companies. The cry of the aviation operatives is similar to those of other companies that have been let go by Aurora.
They are all contending that it is not a case where Aurora had complaints of the services that they were providing. “All we knew was that they no longer needed our service.”

The twin Otter used by Aurora Gold Mine

Aurora imported the services of Canadian Flyers that is operating a single Twin Otter. The aircraft now makes about five trips daily for Aurora. Those trips used to be divided among local operators.
However, the operators did not know about the strict terms of Aurora’s contract as regard local content. “If we knew, we would have raised the issue a long time ago. But after seeing (yesterday’s) article about what the contract says, we had to let you guys know what they did to us.”
Businessmen in the aviation industry are not the only ones feeling the squeeze from Aurora’s preference for foreign goods and services.
Just recently, Aurora discontinued its contract with Morrison Trucking and Equipment Rental. At least two other contractors have been told that their contracts are coming to an end and will not be renewed. The company also no longer uses Guyana as its main buying market.
Aurora moved its procurement office from Guyana to Canada. The company claimed that it had to move the office as it was getting a hard time procuring some goods from Guyana.
However, the contract that the company signed with Guyana is strict on local content.
The contract says, “In Guyana, the Company shall use all reasonable efforts to give preference—to the maximum extent compatible with efficient Operations and good mining practices using standards applicable in the international mining industry—to products and services produced and offered in Guyana, provided these are offered at competitive terms and conditions.”
Further, the contract states, “the Company shall give preference to Guyanese construction enterprises and to the use of buildings which can be constructed by using materials and skills available in Guyana, to the employment of Guyanese subcontractors for road construction and transportation and to the purchase of household products and furniture in Guyana.”
The contract also stipulates that within 90 days after the end of each fiscal year, the company must submit a report to the Government “setting forth (i) the relative percentages of foreign-sourced and Guyanese-sourced goods and services used by the Company, (ii) measures taken to enhance the role of Guyanese-sourced goods and services in the Project and (ii) measures to be implemented so as to improve such performance.
“The report will show the performance of the Company in connection with its contribution to the economic development of Guyana over the years. The Company shall constantly use all reasonable efforts to improve such performance.”
Based on this provision, the Ministry of Natural Resources should be armed with relevant information that can tell a clear story of how much local content is being used.
The contract also makes demands on Aurora to enhance steadily its local content. On the contrary, the company seems to be scaling down its local content.
The Aurora Agreement was signed on November 12, 2011 under the People’s Progressive Party/ Civic (PPP/C).