More workers laid off by Guyana Goldfields

…as company officially ceases mining operations

In continuing its large-scale layoff of staff, Guyana Goldfields Incorporated on Tuesday commenced its second phase of termination of workers from the Region Seven (Cuyuni-Mazaruni) operation base.
The Canada-based company, which operates local subsidiary Aurora Gold Mine (AGM), had moved to downsize its operations since May after facing constraints from the COVID-19 pandemic coupled with other financial woes. It was also linked to their transition into underground mining.
Employees were informed of the second termination phase via a circular dated June 8. Penned by Director with responsibility for People and Culture, Emma Geist, instruction was given to those who will be laid off to collect their final papers before leaving the mine site.
Their final payments, the company noted, will be deposited before June 19. It contended that these actions are in preparation for the rebound when underground mining commences.
“Following our first phase of workforce reduction, this second phase also marks another day in the history of AGM Inc where this initiative will adversely impact many lives. While these are difficult times, we need to keep our heads up high knowing that this will lead to a brighter future when the underground operations resume at some point in time,” the circular stated.
Added to this, the company sent out a statement on Tuesday in which they announced the cessation of all mining activities and the beginning of a planned care and maintenance period. This means that mining at Rory’s Knoll open pit and all satellite pits has ended.
“As per our previously announced plan, we will continue to process stockpiles until approximately the end of June and thereafter the mine site will go into care and maintenance. The phased reduction of activity and employees is well underway and is expected to be completed over the course of the coming weeks.”
“Full-time security presence will be maintained at site, along with adequate crews to maintain the site, including environmental monitoring and compliance. Infrastructure such as camp, water supply, power supply and other systems will remain operational at a reduced level,” Goldfields said.

Layoffs
In a letter last month, Goldfields Chief Executive Officer, Alan Pangbourne said a reduction in the workforce will take place at all levels including both national and expatriate employees as the company transitioned its mining operation into a state of care and maintenance for an undetermined period.
“The reason our timeline is undetermined is because it depends on multiple variable factors. These factors include financial conditions, COVID-19 issues, travel restrictions, and pending approval from Guyana’s EPA of our Revised Environmental and Social Impact Assessment permit for underground mining,” he was quoted as saying.
According to Pangbourne, these factors include hindrances to mining, the loss of income projected from ore shortage in their open pits and an overall lack of funding to recommence operations in some areas. The pandemic had also forced them to stop underground mining development.
“These reasons have unfortunately made it impossible to ensure business continuity and, therefore, we have reached the point where we need to institute manpower adjustments,” the letter stated, adding that mining operations at the Aurora Mine site will be interrupted and will require some downtime to transition from open pit to underground mining, which is the future of the Aurora Mine.
When it comes to the issue of severance payments, he promised that workers’ rights and local laws would be respected. According to the CEO, these laws include the Termination of Employment and Severance Pay Act.
“The reduction in workforce is expected to take place between mid-May 2020 and end of June 2020. This upcoming timeline is driven by the completion of mining and milling activities, and subsequent preparation requirements for transitioning the Aurora Mine site into care and maintenance status. Some of you will be asked to continue with AGM during the care and maintenance period.”
No mention was made of exactly how many workers would be affected but persons have posited that considering AGM employs over 500 personnel, the number of workers being let go will be significant.
It caps a tumultuous year for the company, which has already made moves to sell its operations off to fellow Canadian mining company Silvercorp. This deal could be in jeopardy, however, as an unnamed new company made a “superior offer” to the one they agreed upon with Silvercorp, leading to Silvercorp being given a deadline of up to today to match the offer or lose the deal.
This unknown company is, in fact, the second company that has tried to get Goldfields to abandon its agreement to sell to Silvercorp. Last month, Gran Colombia Gold Corp had made a pitch to Goldfields by proposing to buy all its issued shares.
Gran Columbia had not hesitated to call it’s offer a superior one to Silvercorp. However, Guyana Goldfields subsequently announced that its Board of Directors after careful consideration and consultation with its financial and legal advisors, had unanimously determined to reject the unsolicited proposal announced by Gran Colombia Gold Corp.