In a year of soaring prices matched by downturns in some areas, Guyana’s gold industry exported in excess of 302,000 ounces of gold in 2010, earning the country some US$346.4 million. This is the highest earnings achieved since the closure of Omai Gold Mines back in 2005.
According to the information provided by the Guyana Gold Board, in 2009, gold exports were higher, being more than 311,000 ounces (including output from the previous year), but the earnings were lower, at US$281.6 million. The higher earnings last year were due to the favourable global gold prices. During 2010, the gold trade worldwide saw prices reaching as high as US$1,426 per ounce during the month of December. On Wednesday afternoon, January 5th, the price for gold was US$1,378 per ounce.
Declarations for 2009 were 305,178 ounces; whereas, last year, declarations exceeded 308,000 ounces, which is above the 2010 target. In the meantime, the Guyana Gold and Diamond Miners Association (GGDMA) is also quite pleased with the industry’s performance for last year, despite there being some uncertainty among operators.
The association maintained that this uncertainty, linked to government’s recent responses to issues in the industry, has caused a “standstill” in terms of new investments in the gold and diamond mining sector. Last year, there was a national uproar when miners publicly rejected some new mining regulations proposed by the government, particularly a mandatory six-month notice before mining operations can commence in an area. The authorities subsequently established a Special Land Use Committee, which comprises government officials, miners and other stakeholders, to review operation of the mining industry and prepare practical recommendations in light of current activities and changes within the industry.
Chaired by Transport and Hydraulics Minister Robeson Benn, former Commissioner of the Guyana Geology and Mines Commission (GGMC), that committee has since wrapped up its work and submitted its report with recommendations to President Bharrat Jagdeo. Miners countrywide are now waiting on the head of state to pronounce on the report. On Wednesday, January 5th, Executive Secretary of the GGDMA, Edward Shields, said miners are anticipating Jagdeo’s pronouncement would be forthcoming by this month-end. He said that, although the gold prices are favourable and are attracting operators and investments, miners still do not feel comfortable to operate as freely as they would like.
To date, the association has not yet crafted its work plan and activities for the year, since it is awaiting the response from President Jagdeo, which would chart the way forward for the industry.
At present, GGDMA Vice President Charles Da Silva is guiding the association, following the resignation of former President Frederick McWilfred last month. The association is looking to elect a new president in June at the GGDMA’s upcoming Annual General Meeting.
After serving as the association’s president for some five months, McWilfred resigned because of differing views with other executives of the association. He has since returned to Bartica, seeking to form a new representative body, especially for small miners, since he and others believe that the GGDMA operates only in the interest of medium- to large-scale miners.
When asked about this perception, Shields related that the GGDMA is representative of the “entire industry”, since it is impossible to represent any single miner. He maintained that the association’s activities are geared to benefit all miners across the industry, whether large or small. According to Shields, neither he nor the association is worried about the impact of any new miners’ body.
One of the current issues in the mining industry is the European Union’s imminent 2012 ban on mercury export. Miners use mercury in the recovery of gold; but, according to the GGDMA’s executive secretary, this is not a problem in Guyana; neither is finding an alternative to mercury use. There have been complaints about some mining operations “spiking the pits” with mercury, and Shields noted that this is an illegal activity. He referred to enforcement of the law by the regulatory body, the Guyana Geology and Mines Commission (GGMC).
Although, cyanidation is one of the options available, Shields said, the thought of using cyanide is scary for some miners.
Nevertheless, he assures that the industry is willing and ready to support any suitable alternative to mercury.
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