By Damion Mitchell, Staff ReporterAUSJAM MINING Company yesterday closed its gold mining operations in Pennants, north Central Clarendon, citing financial constraints.
However, the United Union of Jamaica (UUJ) which represents the company's workers, has rebutted Ausjam's position, accusing its management of union busting.
Chris Browne, Ausjam's general manager, said in a release that the company's financial woes were caused by low ore grades. He said the "unreasonable demands" by the UUJ also contributed to the decision to close the mine "whilst the company reconsiders its future options."
He was reluctant to provide further information when contacted. "I have been directed by my directors and I am just sticking to what we have in the press release," he said.
He revealed, however, that the management met yesterday with the 18 gold mine workers to inform them of the company's closure and of its efforts to disburse by tomorrow, the workers' fortnightly salaries, which should have been paid last Friday.
'NO TRUTH'
In the meantime, James Francis, UUJ President, said "there is no truth in what the company is saying because the gold mining reserve is being built up ...It is an unfair call". He disclosed that "right now there is a proposed collective agreement prepared by Ausjam on a wage agreement for us to sign".
Mr. Francis said that just last Friday members of the company's management, UUJ representatives and officials of the Ministry of Labour met to discuss an improved wage and fringe benefits package for the workers. The talks, he said were scheduled to continue on Friday.
ALLOWANCES
The UUJ is advocating the restoration of allowances for travelling and housing, which were discontinued more than a year ago and for adjustments in the hourly rates for all categories of workers to compare with those at bauxite companies.
He said that currently, the workers are paid between $135 and $210 per hour.
Ausjam began mining in 2001, on expectations that it would have extracted 35,000 ounces of nine and 15 karat nuggets from Pennants but up to December last year it had only yielded 12,000 ounces, with geologists suggesting that only another 3,000 to 4,000 ounces remain to be extracted.
In March of this year, Commissioner of Mines and Geology, Coy Roache, told The Gleaner that the current mining area should be totally exhausted within three to four months. Attempts to reach him for comments yesterday were unsuccessful.
In two years, Jamaica earned J$7.5 million on the yields representing its 4.25 per cent royalty on gross revenues and based on Jamaica's earnings, Ausjam would have turned over about J$170 million over the life of the mines. The Australians, invested some US$16 million in the mine.
