The extractive industry sector (EIS) can be integrated with Guyana’s Low Carbon Development Strategy (LCDS) but issues remain that need to be tackled, according to a paper produced by Conservation International.
“Notwithstanding the benefits provided by the industry and the use of substantially improved technology, there remain some critical issues to be addressed before the industry can be fully integrated into the LCDS framework and hence take up its rightful place in Guyana’s sustainable green development,” says the paper. The document, ‘Guyana’s Extractive Industry Sector – A synopsis of issues and recommendations for the mining sector as a sustainable element of Guyana’s Low Carbon Development Strategy’, was launched during a stakeholders’ forum at Cara Lodge yesterday.
The major extractive industry in Guyana is gold mining and over the past years, the precious metal has been the major source of foreign exchange. However, it is also the major cause of deforestation.
In his remarks, Executive Director of CI-Guyana Dr. David Singh pointed out that gold is increasingly important to Guyana’s economy. With gold production increasing by 30% in the last five years, it was noted that about 90 412 persons depend on the mining sector for a living with the majority being males employed in the gold fields.
The paper noted that the extractive industry sector has a significant contribution to make to growing Guyana’s economy along a sustainable and responsible path and help the country to address the global threats of climate change. Last year, mining and quarrying was the second largest contributor to Guyana’s gross domestic product after agriculture, forestry and fishery. “In order to understand the ways in which the sector can play such an important role, it is useful to review the EIS and examine how it contributes to growing wealth in Guyana, especially within the context of its relationship and contribution to the country’s Low Carbon Development Strategy,” the document says.
“Drawing from the economic and scientific data, evidence suggests that is possible to further harmonize the EIS with the LCDS and contribute to its success in promoting sustainable growth. However to achieve such alignment, the rational expansion of the industry and the importance of its integration in the LCDS need to be commonly explored, starting from the establishment and follow-through of an evidence-based agenda,” the paper says.
It argues that a sustainable and responsible EIS can drive long-term sustainable development in Guyana if it fosters growth in ‘total wealth’ particularly while mineral prices are high. The paper noted that government and stakeholders have been taking steps to improve management and practices in the industry.
The paper proposes a set of “fundamental principles” as the starting point to develop consensus on how to integrate the EIS into Guyana’s LCDS. It also outlines recommendations to harmonise the EIS with the LCDS inclusive of empowering government to improve their effective supervision and guidance of the sector and empowering miners to voluntarily implement safe and responsible practice.
The paper proposes a multi-stakeholder platform to enable exchange of information, establish common understandings and promote the development of a set of benchmarks for responsible mining practices at all scales. “The extractive industry will continue to occupy a central place in Guyana’s future, especially with the prospect of offshore oil and with elevated commodity prices. However, there is no denying that should business-as-usual persist, Guyana’s prospects of achieving a low-carbon, green economy will be limited. By building a consensus on this topic we will provide the basis for truly integrated LCDS, with the EIS as an important contributor,” the document says.
Meantime, at yesterday’s forum, Minister of Natural Resources and the Environment Robert Persaud said that government is expending a significant amount of resources towards improved natural resource management, including the establishment of the Guyana Mining School. He also pointed to the setting up of agencies to monitor how these extractive industries affect Amerindian communities as well as the intensifying of prospecting incentives.
Chairman of the Private Sector Commission, Ronald Webster said mining plays an important role in the development of Guyana’s economy since most of the money earned in this area remains in the country. He said that though recovery rates are improving, it is still poor and advised that more money should be invested in recovery methods rather than extractive methods. Citing the recent fall in gold prices, Webster said that small scale miners need to put systems in place in order to be more efficient and break even.
