Gold declarations for 2015 amounted to 451,490 ounces, representing a 16.5% increase over 2014 figures with the two foreign large-scale gold companies that began operations in the latter half of the year being credited for the increase.
In a statement on Thursday, the Ministry of the Presidency said despite a significant drop in gold prices on the world market, and challenges in the mining sector over the past year, the Guyana Gold Board (GGB) recorded 451,490 ounces of declared gold, surpassing the target of 380,000 ounces.
“With the declarations, the GGB has recorded export earnings of approximately US$500 million, making the mineral, once again, the largest earner of foreign currency for Guyana,” the statement said. It noted that the re-introduction of large-scale gold mining in Guyana has contributed to the increased declaration.
Canadian firm Guyana Goldfields and Australian miner Troy Resources began operations this year. The companies have contributed to the country’s total declaration during the last quarter of 2015, increasing gold declaration and contributing to an overall increase of 16.5% when compared to December 2014, the statement said.
With the two mining companies expected to ramp up production this year, it is expected that declarations will rise even more.
Since 2013, gold declarations and earnings have been on a downward spiral and earlier this year, figures were lower when compared to 2014 but this was reversed by the coming on stream of the two foreign gold companies in the last quarter of the year.
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.
The Ministry of the Presidency statement reported Minister of Natural Resources Raphael Trotman as saying that the declaration is a significant achievement in a price-declining market environment and all miners, particularly small and medium-scale miners, must be commended.
“The performance of the gold mining sector was very impressive and very encouraging. With better regulation and more opportunities for miners, we expect to do even better in 2016. We are happy that the good life is coming to fruition,” he was quoted as saying.
The Minister noted that the declaration figures attest to the fact that gold is an important earner in the Guyanese economy and as such, government will continue to support the sector by providing operational concessions to miners and supporting infrastructural works.
The statement recalled that at the start of 2015, gold prices were at around US$1184 but were volatile even declining to a five-year low of below US$1100. As such, the Guyana Gold and Diamond Miners Association (GGDMA) made representation for concessions and incentives.
In October 2015, the government granted fuel and equipment tax concessions to small and medium-scale miners and an agreement was signed by stakeholders, the Ministry of Finance, Guyana Energy Agency and the GGDMA. It was anticipated that despite the volatile gold prices, these concessions would energise production thus ensuring the sector’s viability in 2015 and further into the future, the statement said.
It reported Trotman as saying in 2016, government will continue to review mining concessions to ensure that mining interests conform to the laws and regulations governing the sector while the Anti-Gold Smuggling Task Force will continue with its mandate to tighten loopholes to tackle gold smuggling, which has plagued the sector for some time.
