Gold declarations continue to lag behind last year’s figures and the industry needs to produce just under 200,000 ounces more to meet the revised target.
Gold declarations for this year up to the end of August amounted to 262,649 ounces, President of the Guyana Gold and Diamond Miners Association (GGDMA) Patrick Harding told the organisation’s Annual General Meeting on Thursday. He said that while the figures so far may not look too bright, the GGDMA is hoping that miners during the last quarter of this year, which is always the best quarter, would surmount challenges and strive for the target of 450,000 ounces.
The sector needs to see declarations amounting to 187,351 ounces for the remaining four months of the year to meet the target, which is less than the overall declaration for last year.
Minister of Finance Ashni Singh, in his mid-year report, had said that the decline in gold declarations is likely to continue for the remainder of the year and revised the projected end of year gold declaration downwards to 450,000 ounces. The gold industry achieved total declarations of 481,087 ounces last year, representing the highest level of production in the history of the industry.
The plunge in gold declarations alarmed government as gold receipts have contributed a significant portion of foreign exchange earnings and the authorities released more land.
Chairman of the Guyana Geology and Mines Commission (GGMC) Board of Directors Clinton Williams told the meeting on Thursday that a total of 1,842 medium-scale properties were acquired by miners via an auction and lotteries last month, while the GGMC processed 845 new prospecting permits medium scale (PPMS) up to August representing an increase of 170% over last year. This is in addition to 2,587 renewed PPMS.
In addition, 822 mining permits were processed representing an increase of 210%, while 810 were renewed up to August. Further, 27 prospecting licenses (PLs) were renewed in August and 27 new PLs were approved up to August.
Williams said that another lottery for residents of “depressed” mining communities, like Port Kaituma and Mahdia, will be done.
He said too that concessions for miners will be made official shortly. “By the end of the month those promises made by the president… in January… will be implemented,” he said. Among these are tax waivers for pick-ups as well as for equipment, such as matting.
The GGMC Board Chairman also said that various hinterland roads will be repaired. He said that contracts amounting to $130.2 million for the rehabilitation of the Puruni Road were signed. Miners had long called for this road to be repaired. According to Williams’ presentation, given the urgency of this project, the delays experienced and the onset of the rainy season, the rehabilitation of the road will be revised to include two additional contractors: Baishanlin and ETK.
Williams subsequently told Stabroek News that Bai Shan Lin does not have a contract and was doing the work free of cost. “As part of their social corporate responsibility, they have agreed to chip in to assist with the upkeep of the road, pro bono at no cost,” he said.
He had also told the miners that resulting from a recent Cabinet decision, all future procurement will be done via the Ministry of Finance through the National Procurement and Tender Administration Board.
Further, Williams said that the GGMC will, this month, begin the use of aircraft surveillance using Go Pro cameras and this will be a continuous program. He said that this will be supplemented by the use of unmanned drones and will capture images of illegal activities to support ground operations. The mining laws and regulations are also being reviewed with stakeholders to ensure that stiffer penalties can be applied to persons in contravention.
The push to phase-out mercury as well as introduce environmentally-friendly technologies continues, he said.
Cyanide
Meanwhile, Harding said that the GGMC has to stop experimenting with recovery technology and find solutions for better recovery. He called for “progress to” the cynadisation process, saying that regulations should be put in place for the safe use and pilot plants should be set up.
Harding noted that with the use of cyanide, 99% of the fine gold could be recovered and other countries have done this. Noting the 40% recovery from the sluice boxes, he said that miners cannot survive on this and further pointed out that they cannot look at reclamation projects when 60% of the fine gold is passing through the sluice.
Harding said that unless miners can improve recovery, unless they can improve their system of mining, among other things, “we are going to have problems with our business.”
He also noted that three large-scale mining companies will come on stream shortly and will “overshadow” the smaller miners. “We have to band together and say this industry can’t fail,” Harding said. “You either produce or perish.”
