In wake of recent criticisms highlighting the negative impacts of mining, the Natural Resources and Environment Ministry said increased mining activities in Guyana continue to positively affect the country’s development.
“The growth of the industry has resulted in significant job creation and stimulated economic activity in remote communities and across the country. Increased investment in the sector has resulted in innovative technology being utilised to effect more efficient recovery and production,” the ministry pointed out.
In 2012, gold and bauxite exports represented 50 percent and 10 percent respectively of total export revenues, the ministry posited, noting that gold export earnings totalled US$716.9 million, 38.7 percent higher than the 2011 level.
According to the Natural Resources Ministry, the average export price per ounce of gold increased by six percent to US$1575.4 per ounce in 2012 from US$1486.5 per ounce in 2011.
“Declared gold production of 438,645 ounces was the highest recorded in the entire history of the gold industry (excluding one of the largest producers, Omai), and was 20.8 percent higher in 2012, than 2011.”
Meanwhile, the bauxite industry experienced a 12.5 percent growth, with the production of 2,213, 972 tonnes of cement grade bauxite. In general, the mining and quarrying industry recorded 14.8 percent growth in 2012 over 2011.
Guyana’s capital account also reflected a surplus in 2012, driven by significant growth in Foreign Direct Investment (FDI), linked to investments in the mining and quarrying industries. As a result, FDI grew by 19 percent, accounting for US$293.7 million in 2012. Net domestic credit by the banking system expanded in 2012 with strong contributions from the mining sector, reaching 51.5 percent.
“Mining is an important part of the Guyanese economy, contributing 10.6 percent to the nation’s annual GDP in 2012. Between 2007 and 2012, there was 14 percent growth of the total export value of mining. In 2011, it was estimated that 13,800 people are directly employed in the small and medium scale mining of gold and diamonds, and 19,000 indirectly employed in mining support industries,” the ministry posited.
Based on the ongoing trend, the ministry anticipates that mining will continue to be the key driver in Guyana’s economy.
In an effort to alleviate the negative impacts of mining and promote sustainable development in the industry, the Natural Resources and Environment Ministry said its 2013-2018 Strategic Framework will reduce degradation from the mining sector.
Improving reclamation of mined out areas, and providing initiatives to address impacts on deforestation and forest degradation from mining are among areas to be tackled within the strategic framework.
