Gold Seekers Return To Serra Pelada In Brazil

BRAZIL

Gold seekers return to Serra Pelada

Valor Econômico

5th December 2006

Link: http://www.valor.com.br/

The possible visit of president Luiz Inacio Lula da Silva to the region is the most commented upon news in the Serra Pelada village. All the locals trust that the president himself will deliver to the gold seekers, at last, the document that assures the right to prospect gold again.

The largest open land gold mine ever known in the world, Sera Pelada still encourages the dreams of prosperity in south Pará state. The manual exploration was prohibited almost twenty years ago, and now thousands of ex-gold seekers expect to profit through the concession of the explorations rights to a company interested in investing in machine-based prospecting.

The gold seekers definitively recovered the right to explore Serra Pelada in 2002. Until then, the rights belonged to Vale do Rio Doce Company (CVRD). Only now, are the titles finally about to be conceded. Such documentation is essential for the workers to make firm contracts with any enterprise.

There are at least two companies interested in the contract, the American Phoenix Gems and the Canadian Aura Gold. The Nacional Bank for Economical and Social Development (BNDES) has already given signs that it may finance the re-opening of Serra Pelada in case the workers, on forming a Union, are interested in assuming the exploration.

The first offer, by Phoenix Gems, was given two years ago. It amounted to US$ 300 million, US$200 million out of which was to be divided among the members of the Union, US$20 million to build a village for the workers to live in and US$60 million for equipment.

No business has yet been concluded because the workers haven't been able to meet accomplish several legal requirements. Since 2003, the gold seekers have attempted to straighten out their legal situation, which doesn't seem easy since there are two rival groups fighting for leadership in the negotiations.