Company with deadly environmental record completes buy-in of Guyana Goldfields

Aug 27, 2020 News

Zijin Mining on Tuesday announced the completion of its acquisition of Guyana Goldfields for C$323 million. In a release, the company boasted of its ownership of Aurora Gold Mines (AGM) Inc. and what that means for Zijin’s gold resource reserve.

The toxic spill by the Zijin Mining Group polluted Ting River, killing 2,000 metric tons of fish (Source AsiaNews.it.)

“The acquisition of Guyana will increase gold resource reserves to over 2,300 tonnes,” it stated.
But with the company’s arrival to Guyana’s shores, comes its deadly, and environmentally unsound past, which threatens the health of Guyana’s natural environment and the safety of its workers.
The company is plagued with several instances of grave and disastrous impact. Here are two of the worst. In 2010, Zijin was forced to approve a payout of US$7.5M to various individuals, after a dam collapsed at a tin mine, owned by its subsidiary, Xinyi Zijin, killing 28 people.
Reuters reported that 523 homes were destroyed in the Guangdong province due to the collapse.
The parent company said that the money was meant to assist “victims” downstream from the mine, in line with the company’s social responsibility, and that it had “deep sorrow and regret” over what happened.
A report by the provincial government had found that Xinyi Zijin was responsible for the July collapse of the dam because of safety and construction violations, which became exacerbated by a typhoon.
Reuters reported in February 2011 that a local Court said 800 lawsuits had been filed against the company for the collapse, with claims likely to amount to 300M yuan. Other reports in late 2011 by ChinaDaily say the lawsuits amounted to as many as 2,499.
The company had to settle with many of the victims of the fatal collapse, in addition to its principals being fined millions in yuan over the incident.
Earlier in the same year of the dam collapse, the company was responsible for a toxic spill at a copper mine, contaminating a river, killing thousands of tonnes of fish, and leaving communities of tens of thousands in despair over their access to clean water.
It was fined $1.4M, according to Reuters, for the toxic waste seeping into the Ting River.
The losses in fish were estimated to amount to 22.2 million yuan. The company was fined 30 million yuan (US$4.5 million) by a court in the Fujian Province for the incident. The company is also reported as saying that several of its managers and other employees were imprisoned for years, in addition to having to pay fines imposed on them.
The company was also made to rectify the damage, including clean-up of the pollution.
Zijin makes quite the show on its public relations, playing up the money it donates to various groups and communities, but its website does not own up to its polluted past in the same way.
Despite the skeletons in its past, well ventilated by this newspaper, Guyana has welcomed Zijin’s acquisition of Guyana Goldfields with open arms.
President Irfaan Ali and his Cabinet have already spoken highly of their commitments to protecting Guyana’s natural environment, the dignity of its workers, and respect for Guyana’s fair share of the exploitation of its natural resources. Guyana has a tainted history with Guyana Goldfields, in this regard, and all eyes are on the new government to see how it will contend with foreign companies like Zijin and their transgressions.

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