The gold production target this year has been set at 550,000 ounces, a 22 percent increase over last year’s declaration of 451,490 ounces.
“The mining and quarrying sub-sector is targeted to improve by 16.6 percent. Once again, this growth will be driven by gold, whose output is conservatively estimated to increase by 22 percent to 550,000 ounces,” Minister of Finance Winston Jordan announced in his budget 2016 presentation yesterday.
He said that last year, in spite of the downturn in bauxite (13.4 percent) and quarrying (0.3 percent), the mining and quarrying sector grew by 9 percent thanks to a dominant performance by gold, which grew by 16.4 percent. Though the increase in gold production was attributed to the new entrants – Canadian miner, Guyana Goldfields Inc and Australian miner, Troy Inc. – it was the local miners who accounted for over 90 percent of the 451,490 ounces that were declared, the minister said.
According to Jordan, the significant incentives granted to the sub-sector by the APNU+AFC government, undoubtedly played a major part in the substantial increase in declaration. “But, Mr. Speaker, we remain troubled by disclosures that as many as 15,000 ounces of gold per week are being smuggled out of the country, thereby robbing the country of vital developmental resources. We have begun to address this matter frontally and expect that all stakeholders in the sub-sector will play their part in bringing an end to this illegal practice,” he declared.
Jordan noted that the extractive sector plays a crucial role in underpinning Guyana’s economy and highlighted its potential even as he pointed out that although the extractive industries were hindered by low global prices in 2015, there were many positive developments.
“For instance, the gold industry achieved unprecedented levels of production, spurred by the coming on stream of two large gold operations. Permanent and temporary employment will continue to be generated as these two gold companies continue their expansion within the mining industry. Such bold investments are vital for economic growth and development and will be encouraged by this administration,” Jordan asserted.
He said that many small-scale miners, who received concessions in 2015, were unable to take up these opportunities due to the lack of tax compliance. “This is indeed a cause for concern, as every Guyanese must pay their fair share of taxes. We intend to work closely with the gold mining sector to ensure sensitisation on this issue. Despite these challenges, the valiant efforts of our local miners must be applauded, for it is the gold industry that will continue to drive growth in the economy over the medium term. The Government will continue to work with the extractive sectors to support increased production that is environmentally and socially sustainable,” Jordan said.
