Following a decline last year, gold production is expected to improve significantly in 2015/2016 and beyond with two large-scale mines expected to begin production, Minister of Finance Winston Jordan says.
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.
As a result, last year, gold export receipts declined by 27.6 percent, to US$469.8 million, the result of a combination of a 20.1 percent contraction in export volume, to 385,683 ounces, and a 9.4 percent decline in average export prices, to US$1,218 per ounce.
Jordan told the National Assembly in his Budget 2015 presentation on Monday that in spite of the relatively low world market prices, gold production is poised to improve significantly in 2015/2016 and beyond. He pointed out that Canada-based Guyana Goldfields Inc announced production of its first quantity of gold from its Aurora Gold Mine earlier this month. The company expects to produce between 30,000 and 50,000 ounces of gold in 2015 and between 120,000 and 140,000 ounces of gold in 2016.
“Guyana Goldfields Inc has generated permanent employment for a range of skills, including heavy duty machine operators, cooks and suppliers of food items to the complex. At full operation in 2017, and with an expanded mill, about 500 persons will be permanently employed with another 500 temporary jobs created during the construction stages in 2016,” Jordan said.
He told the house that the provision of accommodation and related services by this company to their employees has also generated service related jobs within the sector. “Collections of royalties, taxes on income and insurance payments are expected to enhance revenue collections within the public sector, while increased production will augment the national current account. Environmentally, the company will employ modern technologies to reduce environmental externalities,” he said.
The minister also pointed out that another major investment, Troy Resources Limited’s Karouni Gold Project in Region 7 is also expected to commence work.
He also noted that small and medium scale miners will soon benefit from the waiver of customs duties on certain items to aid in reducing their cost of production and create a more level playing field when compared to large scale miners.
