Gran Colombia Gold Hails Strike Settlement; Continental Gold Launches Ag Aid

Toronto, Canada-based Gran Colombia Gold announced September 5 that a violent strike by illegal gold miners in the Antioquian municipalities of Segovia and Remedios is finally over – benefitting more than 2,500 legal miners affiliated with the company.

The 42-days-long strike resulted in several deaths, widespread vandalism and economic suffering for thousands of residents in the area.

“We are pleased to see the civil strike in Segovia and Remedios has been lifted and we can get back on track with our 2017 operating and capital plan,” said Gran Colombia CEO Lombardo Paredes.

“Through our commitment to economic development in Segovia and Remedios, we will incorporate additional small mining collectives into our contract mining model, which will allow continued operation of ancestral mining within our title in accordance with the government’s requirements for health, safety and environmental responsibility.

“Although our production in August [during the strike] was below normal, we continue to expect that we will meet our annual production guidance for 2017 of 150,000 to 160,000 ounces of gold,” Paredes added.

Over the next few months, Gran Colombia “will negotiate specific operating contracts with each of the mining collectives based on general terms agreed to last Friday [September 1] between the Ministry of Mines, the Governor of Antioquia, the Mayors of Segovia and Remedios, the Mesa Minera and the company,” according to the company.

“The monetary compensation under these new operating contracts will be established for each mining collective individually with the company retaining between 10% and 60% of the spot price for each ounce of gold produced. The contracts will also require that all ore is to be processed at the company’s Maria Dama plant,” according to Gran Colombia.

Illegal miners in the strike area have been dumping toxic mercury into the environment as well as invading legal claim areas run by responsible miners (some of which are multinationals). Violent criminal groups also sometimes ally with these illegal miners in return for extorsion payments.

Many illegal miners also objected to new government laws requiring permits and legalization, which will put a stop to mercury dumping. Others claim “ancestral” rights to mining — even when such mining involves irresponsible invasion of legal mining operations that obey all environmental, tax and labor laws.

Continental Gold Launches ‘Future Harvest’

Meanwhile, fellow Toronto-based Continental Gold announced September 5 the launch of a “Future Harvest” program aiming to help mining families in western Antioquia diversify incomes and improve lives.

“Future Harvest is projected to directly benefit the communities of Buriticá, Santa Fe de Antioquia, Giraldo and Cañasgordas, which are all in the company’s direct area of influence,” according to the company.

“Continental Gold intends to contribute approximately US$370,000 of the total program investment of US$518,000,” according to the company.
The program involves 14 private and public entities “to advance the implementation of a self-sufficient sustainability strategy with productive agricultural business,” according to the company.

“The first seven business plans funded under Future Harvest include programs for cultivating coffee, plantains, poultry, garden produce, strawberries, as well as fish farming and fiber production.

“Each business plan was structured with the communities and local and regional institutions, taking into account local productive capacities, soil productivity and quality and other variables, while promoting efficient water resource management and the use of best agricultural practices to balance development with protecting ecosystems.

“Each business plan also features the development of an integrated rural program, ongoing training and the transfer of productive assets, as well as providing access to savings programs and support regarding consumption, which have been proven to result in significant and lasting improvements on the quality of life,” the company added.

Commenting on the program, Buriticá Mayor Humberto Castaño added: “Through responsible, legal and organized mining, we can generate income to transform our land. With Future Harvest, on the day mining operations finish, we can guarantee that there will be sustainable economic activity in the municipality.”