Optimism in the mining sector about the immediate-term fortunes of the gold industry persists despite the imponderables associated with fluctuating gold prices, Administrative Coordinator of the Guyana Gold and Diamond Miners Association (GGDMA) Colin Sparman told Stabroek Business earlier this week.
In recent months, speculation has been rife that falling gold prices on the international market might impact negatively on the mining sector in Guyana. But Sparman said that while local miners were not unmindful of the downward trend in gold prices, the sector continued to be profitable for investors.
Sparman said that while the sector continues to keep a keen on prices, it remains in “a sort of comfort zone” at price levels of about US$1,250-plus an ounce.
And according to Sparman, the newly created Guyana Gold and Diamond Miners Trading Inc (GGDMA Trading Inc) is preparing to commence the importation of fuel for the sector under a concessionary arrangement granted by the Government of Guyana last year. Sparman said the sector had targeted Trinidad and Tobago and Curacao as sources of fuel and the objective of the exercise was “to get fuel to miners at the best prices possible so that the sector can be sustained.”
Sparman disclosed that GGMC Trading Inc had been pursuing discussions with the country’s regular fuel importers aimed at facilitating the receipt of fuel for the mining sector through their terminals.
Political instability in neighbouring Venezuela, has not, up until now, staunched the cross border flow of fuel, Sparman said, though he conceded that in the circumstances that source was likely to be “an area of uncertainty.” The authorities on both sides of the border have traditionally turned a blind eye to what is in effect the illegal movement of fuel into Guyana, and which is believed to be paid for in gold. Fuel from Venezuela imported through the Atlantic customarily finds its way to mining locations like Morawhanna and Mabaruma in the North West District. The fuel that comes across the border at Eteringbang services mining operations in the Cuyuni area among others.
In January the mining sector reported returns in excess of 28,000 ounces though mining sources told Stabroek Business that the volume probably reflected both January and some unsold production from December last year when prices were less favorable.
Sparman said the sector was anticipating returns “possibly in excess of 500,000 ounces” in 2014.
