Gold miners urged to ramp up production

Nov 08, 2024 News

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—as Bank of Guyana report highlights three-year decline in declarations 

Kaieteur News- The Guyana Gold and Diamond Miners Association (GGDMA) has issued a call for gold miners to ramp up production to achieve the 2024 target of 500,000 ounces.

The GGDMA highlighted gold mining as a critical pillar of Guyana’s economy and foreign exchange earnings, urging all stakeholders to intensify efforts for expansion and increased output.

The association criticized recent calls by a partisan group to halt mining activities at Marudi Mountain, calling the proposal “preposterous and nonsensical.” GGDMA argued that such a shutdown would disproportionately harm Amerindian communities in the area who rely on mining for their livelihoods. In Guyana, over 50,000 individuals work in mining, making it one of the largest locally owned and operated sectors in the country.

Acknowledging the inherent risks of mining, GGDMA stated it would continue collaborating with the government and security forces to enhance safety and security within the sector. “The issue of border security is not native to Guyana only, but it is a problem that affects even the much more developed countries of North America and Europe,” the association said.

GGDMA acknowledged that 2024 has been a challenging year, citing prolonged drought and labour shortages as major obstacles. Nonetheless, it remains optimistic about meeting the annual production target.

The association also reminded miners to sell gold exclusively to the Guyana Gold Board (GGB) or authorized buyers. Authorized buyers include licensed dealers or licensed traders as recognized by the GGB and the Guyana Geology and Mines Commission (GGMC). This includes the recently opened GGB office in Lethem, located temporarily at the GGMC compound.

Additionally, miners were urged to ensure that proper documentation and transaction records are kept when selling to licensed dealers. Such records, which must be in alignment with GGB records, are essential for accurate tax payments and accountability. The GGDMA reiterated its support for the government’s ongoing initiatives to address issues within the sector, emphasizing its commitment to responsible and sustainable mining practices in Guyana.

Kaieteur News reported earlier this month that for three consecutive years, gold and diamond declarations have been declining, Bank of Guyana (BoG) 2024 Half-Year Report.

These declines have often been blamed on unfavourable weather conditions, labour shortages and poor access roads to mining sites. This year it was no different. According to the report, at June 2022 gold declarations were 236,728 ounces, followed by 209,756 ounces in 2023. This year, the declarations during the first six months of the year fell further to 188,160 ounces.

A similar decline was observed in diamond declarations. In the first six months of 2022, some 49,016 metric tonnes (mt) of diamond were declared, followed by 38,608 mt during the same period in 2023 and 29,387 mt this year. The BoG 2024 Half Year Report explained that total gold declarations declined by 10.3% to 188,160 troy ounces, reflecting lower declarations by small and medium scale miners. It explained, “the sole foreign company’s declaration grew by 35.3 percent to 68,557 troy ounces, due to continued favourable performance in their underground mining operations.” Meanwhile, Central Bank said small and medium scale miners declarations declined by 24.8 percent to 119,603 troy ounces, resulting from dry weather which affected miners in the first quarter of the year while heavy rainfall stymied operations in the second quarter of the year. It was also explained that shortage of labour has been a challenge within the industry as miners sought better opportunities within the petroleum subsector.

With regard to diamond declarations, the report noted a decline of 23.9 percent to 29,387 carats at end-June 2024. “The outturn resulted from labour shortages, poor access roads to mining sites as well as unfavourable weather conditions in the second quarter of the year,” the report said.  Guyana’s mining industry has faced rampant smuggling, particularly with regard to gold. Following a statistical report by Kaieteur News highlighting a year-on-year decline in gold declarations, the government announced an investigation into reports of smuggling.

It was reported that since 2017, gold declarations have been dwindling. Government says after the report indicated that an investigation was underway as authorities here believe the resources are being smuggled into neighbouring Brazil.

(Gold miners urged to ramp up production)

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• Bank of Guyana, foreign exchange earnings, Gold miners, Guyana’s economy, The Guyana Gold and Diamond Miners Association

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