GUYANA Goldfields Inc planned underground mining project is a welcome initiative, the government said on Wednesday.

The project is one of the flagship projects in Guyana’s natural resources sector for 2019. The other flagship projects are bauxite mining at Bonasika in Region Three and manganese mining at Matthews Ridge, Region One.

The government, through the Ministry of Natural Resources, the Guyana Geology and Mines Commission and the Environmental Protection Agency, is expertly reviewing the company’s plan to advance the underground exploration to potentially upgrade and expand the current resource and unlock the Aurora deposit’s full potential.

In a statement on Wednesday, the Natural Resources Ministry pointed out that the Aurora Mine has a total gold resource of 6.25 million ounces of gold in the measured and indicated categories, as well as an additional 1.79 million ounces in the inferred category.

It was explained that the prospective underground operations are aimed at extracting more than 2 million ounces. The mine plan has since been approved by the Guyana Geology and Mines Commission; however, the Environmental Protection Agency (EPA) has asked for an updated Environmental Impact Assessment to ensure an underground mining operation of world-class specifications.

“All indications are that this review process is proceeding well,” the Natural Resources Ministry said.

However, it said government has taken note of the internal issues within the company, and is concerned about the negative impact on the company’s production and overall operation.

The government has placed on record its expectation that the internal matters will be resolved soonest and in the best interest of all.
“The government continues to recognise the great role mining plays in our nation’s social and economic development. In this sense, the GoG will continue to promote the sustainable use of our country’s natural resources, noting that it will aid in the creation of jobs and enhance sustainable investments in all aspects of our society,” the ministry said.

The announcement of government’s support for the underground mining project was made at a time when Guyana Goldfields has taken a decision to strengthen its presence here in Guyana and restructure its country office.

To date, over 700 Guyanese are employed within the company with 60 recently promoted to key positions, including to the managerial level.