By MARCO ANTÔNIO P. COSTA

The future of gold exploration in the municipality of Pedra Branca do Amapari, in the center-west of Amapá, is uncertain.

In a press release, the company specifies that on September 9, the 1st commercial court of the district of Rio de Janeiro granted the request for legal redress by Mina Tucano and his associates.

A similar situation had already occurred a few days earlier, before the Canadian court with Great Panther Mining, of which Mina Tucano is a subsidiary.

The company employs around 500 people in Amapá and the statement does not specify what will be the fate of these workers.

Among the justifications, the company informed that judicial recovery is the most appropriate measure to preserve the activities and social function of Mina Tucano.

“Facilitate the optimization of its capital structure and its adaptation to the operational, financial and economic situation it has faced in recent months, particularly in the face of the geotechnical problems of the Urucum Centro-Sul pit, as well as the situation external which includes pressure in 2022, above normal rains and the delay in the availability and mobilization of equipment by the main suppliers,” reads an excerpt from the note.

From what we understand, therefore, inflation, problems in part of the mine, rains and the delay in the receipt of inputs would then be the causes of the business crisis in Pedra Branca.

…has around 500 workers in Amapá

The note, however, does not specify whether activities are paralyzed and what has happened – or will happen – with the current employees of the mining company, even if at one point the company talks about job creation.

“It is expected that the adjustment of the capital structure will allow the creation of jobs, income and taxes, always reinforcing Mina Tucano’s commitment to local communities, the State of Amapá and local partners,” reads another excerpt from the memo.

In conclusion, the enigmatic press release speaks of a possible sale of the company.

“Mina Tucano and its partners are evaluating the search for additional financial partners (new creditors, equity investors or joint venture partners) to enable the restart of mining operations. (…) as well as the possibility of maximizing the value of Mina Tucano by selling it to a qualified investor”, concludes the press release.

The SelesNafes.com portal asked about the situation of the company’s workers and mining, and asked for more details about the company’s operations. There was no response.

About a week ago, the leaders of Mina Tucano met with the government of Amapá, but the outcome of the talks has also not been disclosed.

Pedra Branca do Amapari, which has experienced nearly a decade of robust economic and population growth, wonders about its immediate and long-term future.

Mina Tucano informed that the judicial recovery is the most appropriate measure to preserve the activities and the social function

See the full statement:

“The Tucano Mine Ltd. (Mina Tucano) informs its employees, business partners and the general public that, on September 9, 2022, the Court of the 1st District of the Commercial Court of the Capital of the State of Rio de Janeiro granted the request to process the judicial reorganization of Mine Toucan and its partners.

The granting of the deposit confirms the understanding of the management of Mina Tucano that the judicial reorganization is the most appropriate measure to preserve the activities and the social function of Mina Tucano, allowing the optimization of its capital structure and its adaptation to the conditions operational, financial and that it has faced in recent months, particularly in the face of the geotechnical problems of the Urucum Centro-Sul pit, as well as the external situation which includes inflationary pressures in 2022, above-normal rainfall and the delay in the availability and mobilization of equipment by the main suppliers.

With this, Mina Tucano also reaffirms its commitment to seek an orderly and coordinated solution with the interests of its employees and business partners, always with the aim of evolving in the progressive reorganization of activities and preserving the social function of Mina Tucano. It is expected that the adjustment of the capital structure will allow the creation of jobs, income and taxes, always reinforcing Mina Tucano’s commitment to local communities, the State of Amapá and the local partners.

At the same time, Mina Tucano Ltda. and its partners will continue to evaluate alternatives allowing them to seek an agreement with all their creditors. Among the possible recovery measures, in addition to the renegotiation of credit, Mina Tucano and its partners are evaluating the search for additional financial partners (new creditors, equity investors or joint venture partners) to allow the restart of mining operations and the development potential of the underground project, as well as the possibility of maximizing the value of Mina Tucano through the sale to an accredited investor.