– says some miners still not comfortable with the status quo
State revenues accruable from the mining sector could take a hit this year as a result of the recent disruption in the sector arising out of controversies sparked by new state-imposed mining regulations, according to Executive Director of the Guyana Gold and Diamond Miners Association (GGDMA) Edward Shields.
Speaking with Stabroek Business earlier this week Shields said that the recent spat between government and the country’s small miners which he said had resulted from poor communication on the part of government would also impact on the purchase of supplies for the industry. “You don’t wake up one morning and acquire six excavators. These things have got to be ordered many months in advance,” Shields said. The GGDMA official told Stabroek Business that he was also concerned that the recent confrontation in the mining sector may impact on commercial banks’ lending decisions.
Shields said that the ripples in the sector resulting from the recent controversy chiefly over the new regulation which required miners to give six months’ notice of intention to exploit mining claims had created uncertainties that had caused miners to “put a hold” on equipment purchases. This, Shields said, was likely to have an effect on timely access to materials and equipment necessary to pursue mining activities.
Following the massive day-long protest by most of the Bartica community two weeks ago President Jagdeo met miners on February 11 at the International Conference Centre at Turkeyen. At the meeting miners accepted a compromise that allows them to commence mining on a maximum of six and a half acres of new claims, allowing timber harvesters to retrieve trees in the area before full-scale mining commences.
In his address to the miners President Jagdeo had said that government was supportive of an expansion of mining activities though it was equally insistent on a regulatory framework for the sector. Jagdeo told the miners that where there were mining claims that were not affected by logging interests, miners could begin work on these immediately.
Despite the understanding reached at the February 11 meeting, Shields insists that there still existed a residue of uncertainty among miners. According to the GGDMA official, government’s posture up until now had been underpinned by “a lot of talk and rhetoric. Saying something and doing something are two different things. This will only be settled when people on the ground are fully confident that their mines will not be shut down.”
Last year gold production yielded 305,178 ounces of gold valued at US$281.7 million – a return that more than doubled those of rice and sugar.
Meanwhile Shields told Stabroek Business he believes that one consequence of the recent upheaval and the current environment of mistrust and uncertainty is that the volume of gold declaration may be reduced. “I don’t know how much gold has been declared. Until things are completely normal people may be reluctant to declare their gold,” Shields said.
