Guyana’s gold production for 2012 has surpassed 400,000 ounces, amounting to earnings of over US$.5 billion.
“This morning [yesterday] gold declaration passed 403,000 ounces,” Minister of Natural Resources and the Environment Robert Persaud said during a press briefing at his office. This, he said, translated into US$658 million in earnings from gold. The gold produced and declared surpasses targets set by government and the Guyana Gold and Diamond Miners Association (GGDMA) and is an increase over last years’ declaration of 360,000 ounces.
Favourable prices have seen increased mining operations but small and medium scale gold miners – those responsible solely for the high production and declaration – fear the high costs associated with an impending shift away from mercury in gold recovery.
Persaud was accompanied by Anantram Balram, acting General Manager of the Guyana Gold Board; Patrick Harding, President of the GGDMA; Rickford Vieira, acting Commissioner of the Guyana Geology and Mines Commission and Azeem Baksh, Executive Member of the GGDMA.
The minister said that while government had set a target of 373,000 ounces for this year, the miners’ association set a benchmark of 400,000 ounces. He said it is expected that the declared figure will be higher by the end of the year. “We do anticipate that by the end of the year there will be several thousand more ounces declared [since] many operations are still very active,” he said.
“It is a moment that all of us can be proud of and it shows that over time we have seen declaration moving up,” he added.
“At the height of Omai Gold Mines Limited, gold earnings were just within the range of about US$123 million,” Persaud said. He added that the declaration by small and medium scale miners was under US$100 million in export value.
The minister commended the miners and dealers for their hard work in bringing about the results for the year. He implored those in the industry not to resort to unscrupulous methods in disposing of their gold, in an apparent reference to gold smuggling which hit the headlines with the recent heist in Curacao from a Guyana registered boat of 70 bars of gold worth US$11.5 million.
“There are things we can do better,” said Persaud. “We must deal with those not following the regulations and have enhanced monitoring. We want to encourage self regulation,” he said. “We are [also] encouraging miners to look at methods for better recovery,” he said, stating that while present recovery rates are about 50 per cent, they are aiming for recovery rates of 90 per cent.
Meantime, Harding encouraged his members and other miners to sell their gold only to the Guyana Gold Board or to licenced gold dealers. He said miners met with the GGMC to discuss methods of mining and recovery and to ensure that miners have their equipment registered. “Some miners are not legal and we urge them to register and to sell their gold [to the Guyana Gold Board or registered dealers,” said Harding.
On the issue of safer mining, Harding said the association and government have not come up with any definitive solution since it is very costly to invest in alternative equipment. Persaud said the sector will have to engage the commercial banks to sensitise them to the new technologies and the need to finance those in the way they do heavy equipment and machinery.
Some months ago, miners received assurances from President Donald Ramotar that mercury would not be banned. News of an intention to ban the substance led to the miners passing a motion of no confidence against Persaud.
