Graphically highlighted by a skit, the mining industry yesterday expressed profound disagreement with a proposed six-month notice before any mining can commence.
At a well-attended meeting, the sector viewed the plan as a threat to its existence and has since called on the mines commission to reconsider and withdraw the proposal.
At a special meeting hosted by the Guyana Gold and Diamond Miners Association (GGDMA) at its North Road headquarters, miners turned out in their numbers to discuss the issue with the Commissioner of the Guyana Geology and Mines Commission (GGMC) William Woolford. The small and large scale miners noted that the 6-month proposal if implemented will see many miners closing their operations and the loss of numerous jobs. The notice period and several other recent measures have been linked to the government’s pursuit of the Low Carbon Development Strategy (LCDS) and a recent forest protection agreement initialled with the Kingdom of Norway.
Woolford told the gathering, which numbered more than 100 that the proposal is being examined by a committee chaired by Works Minister Robeson Benn, and which includes members of the Guyana Forestry Commission (GFC), the GGDMA and the GGMC. He said the views and concerns expressed by the miners at yesterday’s forum will be presented to the committee and the concerns of the miners will be taken into consideration when the body meets again. He said that the proposal as well as plans to have the GFC play an integral role in the coordination of mining activities is expected to be presented to the authorities next month. Positing that he was not in a position yesterday to speak on behalf of the committee on matters directly related to the issue, Woolford stated that he recognizes the interest the issues would create.
GGDMA Executive Director, Edward Shields related at yesterday’s forum that the body had not been aware of the proposal at its birth, nothing that it was brought to the fore without consultation with the GGDMA. He said that the GFC has invited the GGDMA to be a part of a committee which will discuss the proposal to have the forestry body involved in the determination of mining activities.
Woolford noted that the Prime Minister, who has responsibility for the mining sector has stated that the LCDS will not bring a cessation to mining activities and he echoed this repeatedly at yesterday’s forum. Asserting that mining will continue, Woolford stated that there is the need for engagement between the forestry and mining sectors.
When the floor was opened to questions, the miners levelled a barrage at the mines commissioner, all hinged on the 6-month notice. One miner questioned whether the industry will be regulated out of business, to which Woolford stated that when one anticipates the start-up of a business, he/she is expected to have adequate knowledge of the responsibilities and requirements which would come along with the venture. He noted that the GGMC recognized that stakeholders are calling for certain regulations to be in place, noting that the GGMC has “absolutely” no interest in regulating miners out of business.
Withdrawn
GGDMA President Norman McLean stated that the GGDMA has since written to the authorities to have the proposal withdrawn as well as informing the relevant government agency that for the GFC to have veto power on mining activities is “not necessary”.
A representative of North American Resources Ltd told the gathering yesterday that the 6-month proposal will hurt the country’s economy, adding that many persons will be unemployed and he also called for the industry to be protected. He said that the authorities should look at the needs of Guyana, and not “some foreign European country”, a reference to the recent forest pact signed with Norway. Another miner stated openly that “the people making the decisions do not understand the mining industry”.
Persons attending yesterday’s forum noted that the small operators will feel the brunt of the 6-month proposal, one persons stating openly, “no way on earth can a small miner wait 6 months for a proposal to be processed”. Woolford stated that the GGMC regulations have catered over the years for small miners to operate legally, noting that the commission would want to participate in a study to determine what effects the small miners would face with the implementation of the proposals in this regard. He said that the mining industry is uniquely structured as it caters for everyone, including the small miners.
At yesterday’s forum, miners were in enthusiastic praise of a five-page ad which appeared in last Thursday’s issue of the Stabroek News, and a few miners attending the forum questioned whether the GGMC would in future set aside percentages of mineralized land for mining activities, a request which was advanced in the ad authored by Patrick Pereira, an executive member of the GGDMA
One miner stated that the mines commission was in the best position to state what percentage of the forest is mineralized and according to Woolford the issue is not a matter of “either/or” but rather the GGMC cannot support such a proposal, noting that mining has to take place where the minerals are. The GGDMA has since issued a call to the authorities to set aside some 7-10% of mineralized land, which according to McLean is in accordance with looking at the long term needs of the industry.
Reclamation bond
Other issues raised at the forum yesterday included the implementation of an environmental and reclamation bond by the GGMC which became effective on the 1st of this month. According to the GGMC, all holders of large and medium scale prospecting and mining licences and permit holders must lodge an Environmental Bond in favour of the GGMC. The amount will be determined by the GGMC and lodged in the bank, and if after the mining activity the area is not restored to the satisfaction of the GGMC, the commission will give the miner up to 3 months to restore the environment of the said area failing which part or all of the Environmental Bond will be used to restore the environment. Small scale miners are obligated to post a Reclamation Bond of $25,000.
At yesterday’s meeting, Pereira performed a skit to depict where the proposed regulations will put the industry.
He used a member of the audience to emphasise his point. The first stage of the demonstration saw the actor’s feet being tied with a piece of rope which Pereira noted was the result of the implementation of the requirement for exploration before mining. The man’s hands were then tied with another piece of rope. This Pereira explained was the result of the implementation of the reclamation bond and third, the participant was blind-folded, which according to Pereira, was the ‘Mother of all Weapons’ and the local mining industry’s ‘death warrant’ – the 6-month proposal. At the end of the exercise he stated that the demonstration was a practical insight on where the industry is headed.
Too big to fail
Woolford stated at the opening of yesterday’s meeting that “the mining industry is too big to fail”, noting that the production of 300,000-odd ounces of gold last year is testimony to an industry which is to be recognized.
He said that the economic activity has contributed significantly towards the development of the country’s economy, noting that while the industry has its benefits, there are responsibilities which come with the activity. He said that the GGMC has no doubt that the local mining industry has challenged itself to produce but noted that mining needs to be done in a sustainable and environmentally friendly manner. He said some persons may challenge the GGMC for its interest in environmental management but noted that the item has long been on the commission’s agenda.
He said that there had been engagement as far back as 1993. He also stated that the GGMC plans to have more qualified officers stationed at mining areas across the country.
The recent 6-month proposal before mining can commence as well as plans for the GFC to have veto power over mining decisions are the latest signs, several miners stated recently, that the LCDS and the recent forest protection agreement with Norway will severely affect mining.
Ever since the LCDS came into being the authorities have been taking steps to tighten regulations in the relevant industries and the mining industry has seen increased focus, with miners being told that they would have to radically transform their mindset and operations. President Bharrat Jagdeo had stated that the LCDS would not see a cessation of activities within the forest, and he assured that no rule would be made to shut down the industry. However, several miners openly stated at yesterday’s forum that the exploration proposal and its requirement would see the industry being reduced to 10 to 15 small and medium scale miners.
