Omai confirms seven firms interested in gold mine
TOP managers of the Omai Gold Mines Limited (OMGL) yesterday met President Bharrat Jagdeo on the pulling out of its major owner Cambior, and assured him that seven other firms interested in replacing the 30 per cent shareholder are due here in two weeks for talks. Omai Human Resources Manager, Mr Norman McLean told the Chronicle at the Office of the President that the President would have been briefed on some of the problems Cambior has been facing, among other issues. McLean said Omai needed to advise the State, also a shareholder, and as the government of the country where Omai is based. Cambior has 65 per cent shares in Omai; Golden Star Resources 30 per cent and the Government of Guyana five per cent. Stating that Cambior is likely to face a situation where there are new partners, the official reiterated that Omai needed to advise the government accordingly. Additionally, Omai wanted to let the government know what its targets and projections were for this year, especially since the company has upgraded these figures. Previously, the company had advised the Guyana Geology and Mines Commission (GGMC) that it would be producing 303,000 ounces of gold this year, but now this is up to 317,000 ounces. Among others at yesterday's meeting were Prime Minister Sam Hinds; Canadian High Commissioner, Mr Jacques Crete; Omai General Manager, Mr Rejean Gourde and Minister of Works and Communication, Mr Anthony Xavier. The other matter brought to the attention of President Jagdeo yesterday was the need for the company to do some downsizing which was caused by the fact that last year 34 million tons of ore were mined, McLean said. However, this year only 24 million tonnes will be processed although more gold is being mined. In 1999 the company had to do a lot more stripping because of the increased volume of mining planned, McLean said. Consequently, the firm would not be needing some of the haul trucks and other equipment and has done downsizing in this regard which has affected about 80 Guyanese and about 25 expatriates. Also, Omai wanted to give the government an opportunity to talk in confidence with top officials on some of the implications of the hedging crisis which has hit Cambior. He confirmed that about seven companies have expressed an interest in Omai and within the next two or three weeks will be coming to Guyana to look to "satisfy themselves" on the ore reserves and other details of Omai's operations. The firms from South Africa, the United States and Canada will be visiting other mines and assets of Cambior. Cambior is currently trading at just under US$2 a share and the overall debt stands at about US$212M. The banks have indicated that they expect to be paid US$75M by June and the rest by the end of the year, McLean pointed out, adding that that is what has really put the squeeze on Cambior. Stating that the world market price of gold yesterday was US$282 an ounce, he said Omai has to cut costs to survive in the present market. (ROBERT BAZIL)
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