Zijin Mining : Illegal Mining Causes Fetal Collapse at the Periphery of Rosebel Gold Mines in Suriname

On November 20, 2023, at approximately 16:00, in Suriname, illegal mining activities resulted in the collapse of a tunnel at the periphery of Rosebel Gold Mines(RGM), a subsidiary of Zijin Mining. Approximately 20 illegal miners are currently trapped in a self-dug, makeshift tunnel. Rescue operations are ongoing, and the exact number of casualties is yet to be confirmed by the government. In the wake of the accident, the Surinamese government immediately launched a rescue operation, and RGM has been assisting in the operation on humanitarian grounds.

The accident did not occur within RGM's mining licenses, and the company currently has no exploration or mining activities in the area where the accident occurred. In late October 2023, the Surinamese military and police conducted joint law enforcement operations in the area under the authorization of the President of Suriname. They closed down multiple illegal mining sites, confiscated some of the equipment used by illegal miners, and sternly warned local organizers of the illegal mining activities.

Despite the tangible results achieved through the operations, the recent collapse accident has revealed the challenges in combating illegal mining activities. It also serves as a reminder of the inherent safety risks and environmental hazards of such activities, as well as the risk of human rights violations involved. And the accident has once again brought the issue of illegal mining to the forefront of the Surinamese government's attention.

In October 2022, Zijin Mining acquired a 95% interest in RGM for $360 million and completed the acquisition by the end of January 2023. The company generated profits and positive cash flow only one month after the acquisition. Notably, it produced 5.66 tonnes of gold from February to September 2023.

According to RGM's management, the accident did not impact the company's production and operations, which are running normally. The company will continue to actively collaborate with the government in both the rescue operation and continued efforts in addressing illegal mining.