19 April, 2010
Colombian mining union Sintramienergetica are opposing the purchase of one of Colombia’s most valuable gold properties, by Canadian company Medoro Resources Ltd. The three Frontino gold mines were left to the workers by the previous owner, with the decision to sell being taken with no consultation of the union.
Frontino miners are currently owed back dates pension payments, and Medoro has offered to make these payments following the purchase of the mines. This would be insignificant for Sintramienergetica, and local people of the region who say they are the rightful owners.
"A coalition consisting of the workers, owners, and creditors of Frontino Gold Mines, along with the Segovia City Council and the people of the region, strongly and unanimously reject the attempts by Medoro Resources to take what is rightfully and legally ours, and demand that our voices be heard and that the law be respected," said Union leader Dairo Alberto Rua.
A court-appointed liquidator in Colombia agreed to sell the properties to Toronto-based Medoro Resources Ltd. for about US$200-million, a fraction of the value of the mines, according to the union. The Colombian government has declared the sale legal and binding. Hernan Martinez Torres, Colombia’s Minister of Mining publically supports the sale.
Workers are also furious after the union was described by former Medoro board member Serafino Iacono as a guerilla or paramilitary group. Medoro plans to sell half of Frontino to a company controlled by Mr. Iacono.
Earlier this year, Medoro bought the Mineros Nacionales gold mine located in Zona Baja, in Colombia’s Marmato gold district, near Frontino.
The Frontino mines, among Colombia's largest gold producers, are located in the department of Antioquia, around 200kms from department capital Medellin. The mines have been running for over 150 years.
In 2009, Colombia produced 1.57 million ounces of gold with that figure predicted to double over the next year.