– smuggling to Suriname still a problem
Buoyed by high prices, local gold miners are headed for another record production for 2012 despite smuggling to Suriname of what is believed to be a significant percentage of the gold produced here.
With a month to go until the end of the year, the Guyana Gold and Diamond Miners Association (GGDMA) gold production target of 400,000 ounces is close to being achieved with 35,000 ounces needed after 365,000 ounces were declared up to last week.
Administrative Coordin-ator of the GGDMA, Colin Sparman believes that this target will be reached comfortably. “We’re gonna get that target,” he said. “Some miners are just waiting to get the right price.”
Three hundred and sixty thousand ounces of gold was declared last year, an increase over the previous year as the precious mineral cemented its place in the Guyanese economy, surpassing sugar as the main foreign exchange earner. Government and other industry officials believe that production is higher but not all the gold is declared and a large percentage is smuggled to Suriname where the royalty is one percent and the tax is half percent compared to Guyana where the royalty is five percent and tax is two percent.
President Donald Ramotar two weeks ago urged that gold-producing countries agree to a common tax regime to avoid cross-border smuggling of gold after he said that Guyana’s gold is being smuggled to other countries. “We should try to work with countries similar to ours that have similar resources to ours so that we can as far as possible have one standard regime going across the board,” he had said. A market study by the World Wildlife Fund (WWF) – Guianas last year determined that a significant amount of gold is being smuggled from Guyana to Suriname.
Sparman said that he is unaware of any efforts by the two countries to combat gold smuggling but pointed out that this would most likely happen at the level of the security sectors.
Stabroek News was told that approaches were made to the Surinamese to work together to combat gold smuggling and other issues but it is not clear if any agreement was reached. On June 28, Minister of Natural Resources and the Environment, Robert Persaud wrote to Suriname’s Minister of Natural Resources, Jim Hok seeking collaboration to combat the illegal gold trade between Guyana and Suriname. Persaud, in the letter which was obtained by Stabroek News, said that the authorities have been receiving frequent reports of the illegal trading of gold from Guyana to Suriname.
Persaud recommended that both Ministries establish a formal collaborative effort to address the situation. “Thus, one of the initial task would be to share information on the production, declaration and exports of gold,” he wrote. The minister identified the Guyana Geology and Mines Commission and the Guyana Gold Board as the agencies which would assist in the collaborative effort. He also proposed a meeting between the ministries and related agencies “to further develop an effective strategy and implementation plan to eliminate the effects of illegal gold mining and trade across border.”
“I am also open to suggestions that you and your respective agencies may have in dealing with this issue,” Persaud wrote. It is not clear whether there was any meeting or agreement reached.
Sparman acknowledged that there is anecdotal evidence of smuggling but pointed out that the amount of gold smuggled has not been quantified and thus it would be impossible to say how much of local production is smuggled. He also said that it is unlikely that local miners are involved in smuggling. “They could easily sell it on the road,” he said. The GGDMA official said that most likely it would be “middlemen” who are smuggling the precious mineral. “There may be some leakages from the Brazilian end,” he added too but said that this would be Brazilians working here who take the gold back home.
Earlier this year, Suriname’s government had announced that it was preparing a “phased increase” of royalties in Suriname to help combat smuggling from neighbouring countries.
