Gold recorded its highest level of output in any one year by small and medium scale miners last year at 308,438 ounces but bauxite production contracted 9.8% resulting in the mining and quarrying sector as a whole contracting 6.9%.
Gold declarations increased 2.9% buoyed by lucrative world market conditions and substantial investment in the sector, and exceeded the record set in 2009, Finance Minister, Dr Ashni Singh said as he presented Budget 2011 to the National Assembly yesterday.
Bauxite, on the other hand, ended the year with total production of 1,082,512 tonnes, representing a 9.8% contraction in value added. “This result reflected continued tight external market conditions along with the fact that the industry commenced the year with a substantial accumulation of inventory. As a result, the mining and quarrying sector as a whole contracted by 6.9%,” the minister said.
He noted that two potential large scale gold deposits which could result in huge projects have been identified while discussions are ongoing that could result in a potential US$50 million investment in bauxite.
The economic importance of the gold mining sector continues to be significant in terms of its contribution to production, exports and employment, the minister said. He pointed out that the year has seen an increase in the number of operational dredges in the sector and for the second consecutive year, gold has recorded declarations above 300 000 ounces.
“Going forward, strengthened management of the sector will result in greater emphasis being placed on the improved recovery of gold and fine gold, and improved environmental compliance,” the minister said.
He said that technical assistance will be provided to small and medium-scale miners to improve mining practices and increase levels of recovery. He said while the high prices augur well for the future production by small and medium scale miners, they also act as a strong incentive for sustaining large scale exploration efforts.
Feasibility studies are being undertaken on the two potentially large scale gold deposits, he said. “These large scale projects could result in substantial investments in the future and infusion of new and transformative technology into the industry,” he said.
In relation to bauxite, Singh said production is expected to improve this year. The global market has been showing some improvement, he noted. Domestically, while BOSAI experienced im-proved sales as a result of increased prices, the Bauxite Company of Guyana Inc (BCGI), faced challenging mining conditions which led to reduced production.
BCGI has since invested in additional equipment that is expected to improve the production performance this year while BOSAI expects continued performance; he said adding that the outlook for the industry remains on the upside.
The minister said other investment prospects are on the horizon. These include options in the area of mullite, a lower grade alumina, which is demanded in the refractory market.
This could potentially result in a US$50 million investment and discussions are ongoing, he said.
