Gold production continues to decline with production for the first half of the year up to June pegged at 165,976 ounces compared to 198,046 ounces for the same period last year.
In 2013, gold declarations for the same period was 234,498 ounces. It is expected that with less gold being produced and declared, earnings would also drop and this would impact the economy which has been heavily dependent on gold for the past few years. The only month this year for which production was higher than last year was April.
Gold declarations and earnings have been on a downward spiral since last year following a record high in 2013.
In 2009, gold declarations were 305,178 ounces, while in 2010 declarations rose to 308,438 ounces. In 2011, gold declarations amounted to 363,083 ounces increasing to 438,645 ounces in 2012. The following year, 2013, the gold industry achieved total declarations of 481,087 ounces representing the highest level of production in the history of the industry.
However, in 2014, gold declarations dropped by almost 20% compared to the previous year, ending at 387,508 ounces.
For the past few years, gold has been a mainstay of Guyana’s economy and with the precious mineral being the largest earner of foreign exchange, the decline is likely to have a significant impact on the economy.
However, two large scale gold operators –Guyana Goldfields and Troy Resources Limited- are set to begin gold-recovery operations this year and this could likely mitigate the impact of the drop in declarations from small and medium scale producers.
For the past few years, gold has been a mainstay of Guyana’s economy but this year, miners, confronted with a variety of factors including a drop in gold prices, have exited the sector.
The David Granger administration is considering concessions for miners. Last week, Granger and members of his Cabinet met with representatives of the Guyana Gold and Dia-mond Miners Association (GGDMA) and the Guyana Geology and Mines Commission (GGMC).
Following the meeting, GGDMA members said that they have been assured that priority areas affecting the industry will be addressed as the administration has committed to working with the association to tackle these issues. According to a statement from the Ministry of the presidency, President of the GGDMA Patrick Harding, in an invited comment, said that Granger has indicated that he will stand by the commitments he made during the elections campaign.
“He noted our concerns and we are to continue discussions further with the relevant Ministers in the industry. We are going to meet early next week, where we will discuss these concerns further in order to agree on the incentives that…will keep the industry alive,” Harding was quoted as saying.
Some priority areas, which the GGDMA and the Government will be working to address include, exploring possible concessions that can support the reduction of production costs for mining operations. “We are looking at ways to bring down the cost of production and that hopefully will aid miners in coping with the drop in the price of gold,” the GGDMA President said.
“Our main input is the price of fuel, and we are hoping that we will get concessions on the import taxes and duty on fuel which will immediately bring assistance to the industry,” he added.
According to the statement, the GGDMA is also looking forward to the re-constituting of the Board of Directors of the GGMC and was expected to submit two names for membership on the Board.
Another issue raised was the condition of access roads to mining areas. “As you know, we are coming out of the rainy season and we have impassable roads,” Harding was quoted as saying. The GGDMA called for repairs and regular maintenance to those roads so that miners can get back to work.
