– earnings reached more than $42 billion last year
If the continual upward trend in gold production evidenced over the past two years persists, production for 2009 could come close to 300,000 ounces for the first time since 2004.
Statistics released on the performance of the sector as part of a report published by the Guyana Geology and Mines Commis-sion (GGMC) indicate that actual gold production over the past two years exceeded budgeted production by 46,199 ounces and 30,387 ounces, respectively. In 2007, budgeted gold production was 200,000 ounces while actual production reached 246,199 ounces. Last year, budgeted production was 230,000 ounces while actual production reached 260,387 ounces. Budgeted gold production for this year is 250,000 ounces.
The GGMC’s assessment of the mining sector indicates that gold production has enjoyed a significant run of success over the past thirteen years, reaching 455.9 thousand ounces, the highest for the thirteen-year period. While production has dipped below 400,000 ounces every year since 2002, high world market prices have meant that gold earnings have, nonetheless, enjoyed a steady climb. Last year’s record earnings of more than $42 billion from the 250.4 thousand-ounce yield compared with earnings of just over $24 billion from gold yield of more than 450,000 ounces in 2001 reflects the significant continuous hike in gold prices in recent years.
Last year the average price of gold was substantially higher than the US$588 per ounce estimated in the 2008 budget. The average export price for Guyana’s gold was US$809.99 per ounce, a 22.7 per cent increase over the previous year.
Sustained increases in gold production over the past two years have been matched by a steady increase in the number of mining claims over the same period. Budgeted mining claims for 2007 totalled 9,900 while actual claims reached 10,563. Last year budgeted mining claims totalled 11,000 while actual claims reached 12,582. A total of 12,250 mining claims have been budgeted for this year.
Last year the small and medium-scale gold and diamond mining sector led the country in its percentage share of overall minerals production amassing 66.2 per cent of total mineral production, 4.7 per cent higher than in 2007.
Small and medium-scale gold and diamond mining employs more than 14,000 of the 15,660 employees in the local minerals industry and close to 100,000 persons are believed to be directly dependent on the mining industry for their livelihood.
Last year diamond declarations reached 168,925 carats, 100,000 carats less than the previous year, reflecting a realization of 56.31 per cent of the target of 300,000 carats. In 2007 diamond production reached 268,925 carats, 59.2 per cent more than 2008.