Sale of Guyana Goldfields must conform with law – caretaker Minister

In the wake of a multimillion-dollar deal to sell Guyana Goldfields and by extension, Aurora Goldmines, to another company, the caretaker Government is seeking to assure that workers will be protected.

According to a statement from caretaker Natural Resources Minister Raphael Trotman, while the Government welcomes the transaction, due diligence must be done to ensure Guyana’s laws are upheld.
“Prior to approval being granted, the Government will be carrying out the necessary due diligence exercises as required by the laws of Guyana to ensure that there is legal compliance with the proposed transfer of interests, and that matters pertaining to workers’ rights especially, and other important obligations, are satisfactorily addressed,” the caretaker Minister said.
He added that alongside Troy Resources, Guyana Goldfields has contributed significantly to annual gold declarations and the local economy.

Difficulties
However, he also acknowledged that Goldfields has had its share of internal and other difficulties.
“The agreement for the acquisition was signed on Sunday, April 26, 2020, and will include a loan of up to US$15 million to Guyana Goldfields Inc to support continuation of the Aurora Underground Mining Project in Guyana.”
According to the arrangement, Silvercorp will eventually acquire all issued Guyana Goldfields shares. The deal will be worth Canadian $105 million, but will be subject to a lot of paperwork and a special shareholders meeting scheduled for June.
In the meantime, Silvercorp, which specialised in silver and other metals, will be providing Goldfields with up to US$15 million in interim loans. This money will go to various corporate expenses, as well as the underground mine.
However, President of the National Mine Workers Union (NMWU), Sherwyn Downer has already raised questions about the arrangement and whether workers will be paid their severance. It would not be the first time Guyana Goldfields has had such issues with its workers.
Last year, workers downed tools and initiated strike action over grievances relating to their unionisation and severance payments. Things reached a point where the Government and the Labour Department had to be involved.
The workers had also claimed that they were threatened with having their Wi-Fi cut off, which is vital to ensure communication from their Cuyuni-Mazaruni location to family members on the coast. The company denied this.
Workers eventually returned to their duties in July 2019 and received their second quarterly bonus, as well as commitments that they would get a Union of their choice, compensation and other issues that were raised when the workers initiated strike actions.