Despite the fact the Boroo Mine is not permitted to resume its heap leach gold process, Centerra Gold CEO Steve Lang said Monday Boroo can still mine, mill and process gold.
A decree by the chairman of the Minerals Resources of Mongolia has annulled an earlier suspension order imposed on Boroo by the Mongolian Government on June 12th.
However, the lifting of the suspension will not affect the Boroo heap leach facility, which is subject to an additional permitting process and remains shut-down. Nevertheless, Lang told Mineweb Monday Boroo can still process gold.
The company is working with Mongolian regulators to obtain final permits that will allow Centerra to resume the heap leach operation.
Boroo has not produced gold since May when workers went on strike demanding higher wages.
In a recent column, retired Mongolian politician, historian and political writer Baabar suggests the Boroo strike was motivated by more than wages. "They get paid four to five times higher than the national average of about US$250 of this poor country," Baabar said. "But they claim compensation on the grounds that Mongolians are working in sweatshop conditions for little pay and Mongolian wealth belongs to Mongolia, not to Canada." Centerra is based in Toronto.
The striking workers are seeking US$10 million in compensation, Baabar claims, while Centerra is prepared to pay US$1.6 million. Meanwhile, Baabar notes Centerra Gold is the second highest taxpayer in the country, after the Mongolian-Russian joint venture Erdemet, one of the largest mining and processing facilities in Asia.
However, Baabar also suggested both Moscow and Beijing are interested in evicting western investments and geopolitical interests from Mongolia, or at least freeze the use of Mongolian natural resources so that nobody can use them if Russia or China cannot benefit from them. He asserts that China and Russia have created a fifth echelon of decision-making within the Mongolian Government, as the country has allowed corruption to grow and develop.
"More than 2,000 foreign incorporated companies have operations in the territory of Mongolia from which 50% is incorporated by Chinese," Baabar said.
"There are 72 countries in the world that export mineral resources," he notes. "Mongolia, along with Zimbabwe and Venezuela, is perceived by investors to pose the highest levels of investment risks anywhere in the world."
‘Western investors have already gotten tired from Mongolia," Baabar asserted, adding that most major western mining companies have left the country or are preparing to leave.
"It is obvious that no good corporate citizen will replace these companies," he concluded.
Mineweb is a web-based international mining publication focusing on mining financial and corporate news and comment.
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