signals interest in location
By Wendella Davidson
http://www.guyanachronicle.com
Prime Minister Sam Hinds with overall responsibility for the mining
sector and Mr. Ronald Webster, Chairman of the Guyana Geology and
Mines Commission (GGMC), affix their respective signatures to copies
of the joint press release on the 'Closure Plan' for the Omai mines
site, yesterday. Partly hidden is Commissioner, GGMC, Mr. William
Woolford. (Photo by Carl Croker)
A DECLINE in the price of gold on the global market prompted Omai Gold
Mines Limited to close its operations, a top official of the company
said yesterday.
According to Human Resources Manager of the company, Norman Mc Lean of
the 3.8 million ounces of gold which Omai produced, two million
ounces, representing more than half of the amount, was sold at a price
ranging between US$250 and US$300 per ounce.
He said that scenario where the drop in gold prices on the world
market resulted in the company finding it uneconomical to continue,
was the most significant factor which affected OGML which throughout
its operation had as its thrust "mining with the environment in mind."
The closure plan, as agreed to by the relevant parties, includes that
the site will not be restored to its natural state but left as "after
use" meaning infrastructure such as internal roadways, landings,
barge, airport, airstrip and access road, power plant distribution and
mines site facilities, along with the gyratory crusher and the
aggregate plant, will be retained at the location.
Prime Minister Samuel Hinds, who has responsibility for the mining
sector, said the government will shortly be inviting companies and or
groups in the business of mining to re-evaluate and submit proposals
on the underground mining possibilities at the Omai site.
Hinds made this disclosure yesterday, at a news conference hosted at
the Guyana Geology and Mines Commission (GGMC) office to formally sign
a joint document and announce the closure plan of the mines site.
It is anticipated that the proposals would be submitted by mid-August,
with a further six weeks for the government and the Geology and Mines
Commission to review the decision made on the way forward.
According to the Prime Minister, already an overseas-based Guyanese
has signalled an interest in the location.
He noted too, that during one of those low periods, the company had
even considered placing the operations under "care and maintenance",
which meant "mothballing and kept it going" in the hope of starting
when the price increases.
Under the termination of the Mineral Agreement and relinquishing of
the Mining Licence agreement, OGML which over the 14 years of
existence invested capital US$253M in the project and produced
approximately 3.8 million ounces of gold from its surface At that time
it is expected that a full and complete Certificate of Compliance will
be issued.
The Omai site was likened by the Prime Minister as a significant event
from which many lessons could be adapted with a view to improving
knowledge in mining, adding that the operations also offered the
opportunity for Guyanese labour to be utilised.
Chairman of GGMC, Mr. Ronald Webster in noting that mining requires a
huge financial investment, thanked OGML, for maintaining access which
was critical to the area, adding too, that the company's presence also
aided the quality of life in the area.
Remarking on the enormous potential for mining in Guyana, the GGMC
Chairman said the importance is not that the Closure Plan no longer
includes a "return to nature", which would have meant that the roads,
the airstrip and other things would have been no longer available, but
that it leaves behind an infrastructure for future development.
On this note Mr. Webster warned that GGMC will take very serious steps
against persons who have been entering the property illegally and
cause damage which can affect the reclamation process.
Commissioner of GGMC, Mr. William Woolford, who in association with
OGML began from the negotiation stage described the experience as a
"quite a unique", "fantastic" and "unforgettable" one, as he has seen
OMGL demonstrate that a mine of that magnitude could be built in a
year and a half with proper organisation.
The site had been explored by Golden Star Resources Limited led by
David Fennell and culminated with Cambior Inc establishing OGML in
1991. The mine, the first large-scale cyanide operation in Guyana was
opened on March 11, 1993 by the late President, Dr Cheddi Jagan.
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