The Canadian multinational IAMGOLD Corporation (IAMGOLD), which last week announced it had entered into a definitive agreement with the Chinese-based Zijin Mining Group Co. Ltd. to sell its 95 percent interest in Rosebel Gold Mines (RGM) in Suriname, says it has been given an assurance that there will be no austerity plans that could affect the job security of employees.
IAMGOLD, which operates mines in Burkina Faso and Canada, said the acquisition by the Chinese firm is for cash consideration of US$360 million and the release of IAMGOLD’s equipment lease liabilities amounting to approximately US $41 million. The sale is expected to be finalized in the first quarter of 2023
RGM general manager, Michiel Fleischeuer, said huge investments are needed in the company.
“The new investor has not yet reached its ultimate goal with the purchase of the company. Quite a bit of capital is needed to continue the RGM operation. Zijin has indicated that they will fund the capital for the acquisition, as well as the investment resources needed for RGM’s progress.”
RGM says it will have an investment of more than US$450 million over the next three years and would require development and maintenance capital to return the mine to a 300,000-ounce a year producer by 2025.
Last weekend, a meeting was held between RGM management and the management team of RGM and the Rosebel Goldmines Employees’ Organization (RGWO) with the employees submitting a number of questions regarding the future of the company and their employment.
“It is to be expected that questions will arise with every change. There is also understandable concern among RGM employees. Unfortunately, not all questions can be answered by RGM, because it concerns information that the new shareholder, Zijin, must provide. We have also submitted this to the trade union within RGM,” says Fleischeuer.
“While we have just reached an agreement with IAMGOLD to acquire its shares in RGM, we understand that there are questions and concerns from current RGM employees regarding how Zijin will lead RGM, and in particular its policies regarding current employees. We fully appreciate these legitimate concerns in light of the ongoing leadership change and would like to take this opportunity to message to all employees,” IAMGOLD said in a press release.
“RGM would like to emphasize that Zijin has stated that she is acquiring the company because she believes in RGM’s potential and has the necessary financial resources to help the operation reach its full potential. It has also expressly expressed the intention to invest in the operation, and that it is counting on the skills of the current employees. New investments in the operation could result in more growth opportunities and stability for RGM employees, “IAMGOLD added.
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