The Colombian government issued a statement Monday supporting Canadian mining company Medoro’s acquisition of Frontino Gold Mines Ltd
The deal was approved last week by an advisory board composed of workers and pensioners of the mines, and insures pension payments as well as the jobs of the current workforce, according to the statement.
John Hick, CEO of Medoro said: “We are very pleased to have the support of the Colombian Government for our acquisition of Frontino and look forward to completing the transaction and implementing our investment and social programs.”
Colombian mining union, Sintramienenergetica said Monday that it refused to recognize the deal.
“On behalf of the worker’s union, the creditors, and the people of Segovia, who are the legal owners of Frontino Gold Mines – we do not know of any such agreement, nor will we recognize any such agreements,” said Dairo Alberto Rua, president of Sintramienenergetica.
The mines, which are among Colombia’s largest gold producers, are located in the department of Antioquia, between Segovia and Remedios, around 200 kms from department capital Medellin. The mines have been running for over 150 years.
In 2009, Colombia produced 1.57 million ounces of gold and the country’s Geological and Mining Institute predicts that this figure could double in the next two years.