-gold target slashed by 20%
Miners remain apprehensive about the industry’s future in light of proposed new rules while the Guyana Gold and Diamond Miners Association (GGDMA) has expressed concern that land once available for mining is not being released as normal.
The GGDMA held its bi-monthly meeting at its North Road Headquarters yesterday and Executive Director Edward Shields informed miners that one of the GGDMA’s main concerns is that the regulatory agency, the Guyana Geology and Mines Commission (GGMC) is acquiring quite a lot of property. Shields explained that according to regulations, once rental is not paid or a person gives up their prospecting licence, the land reverts to the GGMC and persons can only re-acquire it through a lottery or auction. He said that each month, this “closed area” is growing and last month it was decided that the areas could be open for claims.
However, to date, this has been held in abeyance for one reason or the other, he said. He pointed out that for this year there was one auction, when normally during the year there are four such exercises. Their concern, he articulated, is that “persons of influence” are making representation to the authorities and then the areas requested by these persons are excised from the closed area. While he pointed out that this is not unlawful, he said it has led to a situation where lots of companies are writing and asking for areas that are closed. This creates a dangerous situation, he said pointing out that some are saying that there is no land available for mining but there are hundreds of acres.
He expressed the view that some “skullduggery” is going on in terms of lots of properties not being made available. He said that the ‘closed’ lands are benefitting no one since rental fees or royalties are not being paid.
Meantime, he said that while it is good that the authorities are sending proposals to miners for review before they are made law, everything that is being recommended is “more or less a back door approach to getting people out of mining.” Currently, the draft report on new mining rules is being considered by the Special Land Use Committee (SLUC), which was set up to look into mining issues after miners raised concerns that the Low Carbon Development Strategy (LCDS) would affect their operations and livelihoods.
Shields said that there are two issues that are non-negotiable and this includes that there be no capping of the amount of mining properties that a miner can hold. Additionally, he said, the Association continues to fight for a percentage of land to be set aside for mining. “They are trying to tell us that this wouldn’t fly,” he said, while adding that President Bharrat Jagdeo has said that if the miners are not satisfied with the recommendations in the report, they can send their concerns directly to him.
Among the issues discussed at the SLUC since meetings began were the allocation of land, an equipment pool for small miners and mercury use and alternatives, among others, President of the GGDMA, Frederick McWilfred said. He said that the draft report is currently being discussed and this time they will ensure that what was discussed will be included. He, however, expressed concern at the position that the extended committee will not re-visit any of the issues covered in the first report. He said while they are happy with the spirit of the discussions, the uncertainties and concerns the miners feel, would only be allayed by how the issues are dealt with, including President Jagdeo’s decision on the recommendations of the report. “We are working in a state of uneasiness,” he said.
Earlier he had said that the Association has re-visited its production target for this year, revising it from 500 000 ounces of gold to 400 000 ounces for the year. He said that this is due largely to the “ongoing uncertainty of the future of our industry.” According to McWilfred, the uncertainty will only be gone when the government gives clear answers. The revised target is also due to the ongoing inclement weather, which has severely affected mining operations, he said.
He had pointed out that they continue to receive draft regulations and are very concerned about proposals for prison terms for some offences in the mining industry. He expressed the view that they are “too punitive” for business activities of any sort.
McWilfred also informed the miners that some amount of re-organization of the GGDMA has to be done. There will be an immediate review of the GGDMA’s constitution in light of the large increase in membership and the new challenges facing the sector, he said. Six members have been elevated to non-voting members of the Management Committee while an administrative coordinator has been hired.
He urged miners to contribute financially to the functioning of the organisation and said that they have to consider new revenue streams. The GGDMA President said too that they continue to receive complaints on the conduct of Mines Officers in the field. Of particular concern is how cease-work orders are being issued, he said. Shields, in adding to this, expressed the view that these officials are only doing “policing work” and have forgotten their other functions.
He also articulated that many persons are now looking to get into the industry. In brief discussions, it was pointed out that miners were “never misinformed” as said by government officials, about the six months notice before mining can commence proposal, as this was included in a US Embassy economic newsletter.
One miner said that the only “real answer” is to get the mining lands exemption. “This is our only salvation. If we don’t get the exemption, we gon all be out in a lil while,” he said to agreement from the other miners.
