Local companies aiding illegal mining – Minister Persaud

The prevalence of illegal mining in Guyana is being facilitated by several local companies in Guyana, Natural Resources and Environment Minister Robert Persaud told a media briefing on Tuesday.

Persaud’s comments came at a press briefing held in observance of the 30th anniversary of the Guyana Gold Board. “Persons who have prospecting licences, both medium-scale and large-scale are fully aware that under our laws you cannot mine on those areas; they are there for the purpose of exploration. And yet these individuals would sign a document giving permission to non-nationals, particularly Brazilians, to go and engage in this illegality and these are not fly by night companies. I’m talking about these established companies.”

“The Brazilians are being facilitated by Guyanese,” the minister stated, while noting that Brazilians bring a new style of mining to the country given the technological advancements in the industry.

Nevertheless, he is adamant that all non-nationals must comply with the local laws that govern mining.

“We must recognise another fact, the presence of Brazilians and the technology they have brought have enhanced the manner in which our miners were able to extract in this regard, but it must also be done in a regulated way.”

He said as part of operation El Dorado, his ministry will ensure that there is compliance with local regulations, noting that Brazilians must follow national laws. He said far too long Guyanese miners have been encouraging non-nationals, particularly Brazilians.

“This has been a practice that has been going on forever; we are breaching national laws and more so we are encouraging non-nationals to engage in illegal activities. I don’t want this issue to be one of us versus Brazilians, but rather us ensuring that our laws are followed and whether you are Guyanese or non-Guyanese, you have to adhere to the laws,” Minister Persaud told reporters.

Meanwhile, Guyana Gold Board Chairman Dr Gobind Ganga said the agency has been increasing its role in the industry, given the spiralling of activities giving rise to greater demand for the product. He said, “Specifically, the Guyana Gold Board has been involved in intermediating more than 75 per cent of the gold declaration which increased from an annual average of 276,996 ounces between 2007 and 2010, to 363,083 ounces in 2011.”

As a result, Dr Ganga said the growth and output and intermediation have resulted in “high employment, income, export earnings and government revenues in the form of royalties and taxes that have been beneficial to the economy”. He said export earnings have increased from an annual average of US$ 247.5 million between 2007 and 2010, to US$ 517 million in 2011.

This, he said has aided in offsetting the rising demand for foreign exchange to pay for the escalating cost of fuel and other inputs. Guyana Gold Board has set its target at 370,000 ounces in 2012. Policies will be implemented to enhance the achievements of the gold board, the chairman said.