Monday, July 14, 2008

Russian Agapov Group reaches agreement with unions to kickstart Isidro and La Camorra gold mines

VHeadline Venezuela News reports:
Correo del Caroni reports from El Callao, southeastern Bolivar State, that agreement has been reached with labor unions on salary increases and an end to arbitrary decisions by management in the implementation of a joint mining company between the Russian Agapov Group and the Venezuelan State.

All parties concerned have agreed to await a further meeting to establish collective agreements at CVG-Minerven's block "B" after a first meeting between representatives for Agapov and Venezuela's new National Mining Company headed by Oscar Rojas. CVG-Minerven president Luis Herrera, Rusorto Agapov general manager Jose Manuel Rodriguez and trade union leaders Edwar Lopez, Ruby Chirinos, Hexaviel Alexander attended the meeting yesterday, Sunday.

Initial agreements will allow a restructuring of the organization and implementation of activities at the Isidora and La Camorra gold mines pending the approval of fundamental agreements by the workers who have postponed some of their claims to allow the new management the opportunity get the economic aspects satisfactorily in order.

Last Thursday an agreement was signed between Venezuela and the Russian mining group Agapov-Rusoro which will now hold a 50 percent stake in the mines previously contracted by USA-Idaho-based Hecla, also including a commitment by Rusoro to correct a series of contentious mistakes that led to Hecla's withdrawal.

A clauses already included in Sunday's final document is the payment of all liabilities to labor at the now defunct Hecla Venezuela and the re-hiring of workers who were unfairly dismissed in the Hecla breakdown ... the development of a number of social projects in El Callao communities and a $5 million investment in CVG-Minerven for technological and social work was also included.

A further meeting will be held on Thursday (July 17) under the proviso that the Isidora and Las Camorra unions will come together to encourage the mine workers to undertake pre-startup operations at the plant while Hecla's closing financial statements ate still being reviewed by auditors representing the new shareholders.

Agapov-Rusoro general manager Jose Manuel Rodriguez told reporters "we will demonstrate to the eyes of the world that we can establish successful joint venture relationships with the Venezuelan government, and perhaps be pioneers in the area of mining ... we understand that we are taking the combining the expertise of private enterprise and State power ... what we see is advantageous from every standpoint, with a much more social focus while at the same time always considering the need to produce and generate profits."

"We pledged to generate two hundred and fifty new jobs over the next three months from the creation of the joint venture ... we have now an average of almost two thousand five hundred workers, and we're just now giving muscle to the whole financial support system to every family in southern Bolivar state, because we are virtually assuming leadership in Venezuelan gold mining, but with a social vision."

Rodriguez emphasized that with regard to social work, his interest is to create a better quality of life to generate efficient and capable employees ... something that the company will continue to demonstrate in the development of several projects in El Callao. As far as he is concerned, former Hecla employees will be hired before the start of Rusoro's operations and in a little less than two weeks the improvements should be seen.

Rusoro Agapov is only part of a cluster of industries that want to come into the El Callao area ... The Agapov Group's Vladimir Agapov is constructing a City of Ceramics at Punta Cuchillo making use of kaolin from the Kilometer 88 area to manufacture tiles, sanitary ware and porcelain using Italian technology at prices cheaper than those sold by China. The factory will generate about 12,000 direct jobs has already been approved as economically feasibility by the CVG in Puerto Ordaz and blows new winds of hope for families throughout the the region.

VHeadline Venezuela News
vheadline@gmail.com


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