With 327,000 ounces of gold declared at the end of last month, “far in excess of what had been forecast,” according to Minister of Natural Resources and the Environment Raphael Trotman, it is projected that by the end of the year some 600,000 ounces would be declared.
“[This] tells us, one, that there is confidence in the system; two, that our measures to curb smuggling are bearing fruit—but again, we are not going to say that we are completely there—and three, that there is increased production,” the minister told the Parliamentary Sectoral Committee on Natural Resources yesterday.
Last year’s gold declaration was 451,900 ounces, up from 387,508 ounces in 2014. The increase had been attributed to the production by large mining companies, Guyana Goldfields and Troy Resources.
Trotman was accompanied to the meeting in the Committee Room of the Parliament Buildings by Minister within the Ministry of Natural Resources Simona Broomes, other officers and the heads of some the agencies that fall under the ministry.
Pointing out that Minister of Finance Winston Jordan in his budget presentation had projected a gold declaration of 550,000 ounces, Trotman said it was likely to spike beyond 600,000 ounces.
He said that Guyana Goldfields’ Aurora Gold Mine had as at June produced 75,000 ounces of gold and it is projected that it would produce 150,000 ounces by year end.
Trotman said that just before the United Kingdom’s shocking vote to exit the European Union gold was trading at just under $1,200 an ounce; after the vote it went up and has remained at $1,300 an ounce.
In January, Trotman had announced that approximately 15,000 ounces of gold were being smuggled out of Guyana weekly. He had said then that the gold was being moved illegally to Brazil and Suriname then through airports in North America and Europe to locations as far as the Middle East.
The Guyana Gold and Diamond Miners Association (GGDMA) had subsequently dismissed that figure as “ridiculous,” saying that while smuggling is occurring it found it difficult to fathom that the amount cited by the minister was being smuggled out of the country each week.
Meanwhile, the minister said that mines’ safety remains an issue for his ministry, noting that for the year four persons have been killed in mining accidents, which “is four too many…and we have been doing the best we can to reduce the incidents.”
He revealed that diamond production has also exceeded the projected amount with the 61,552 carats declared so far being 28.2% more than what was budgeted.
As regards bauxite, the country has produced 762,000 tonnes with the Bauxite Company of Guyana Inc producing 73% of this amount and Bosai Minerals Group Guyana Inc producing 26%. Guyana observes 100 years in bauxite this year, he said, and as a result a team of experts will be put together to review the industry and report to the government.
The minister also told the committee that because of a decline in construction, there has been a spike in quarry stones mined (226,000 metric tonnes) to 3.5% higher than for the same period last year. He said too that 990,000 metric tonnes of sand have been mined representing a 15.8% improvement from the same period last year.
“So overall sir, in terms of mining, the sector is in a relatively healthy position,” the minister boasted.
Meantime, as per Cabinet direction a land reclamation committee was recently reconstituted and it is expected to meet today.
Forestry
As for the forestry sector, Trotman said that to date 166,000 cubic metres of logs have been harvested compared to 195,000 cubic metres for the same period last year showing a 15% reduction. And so far for this year, just under US$20 million in logs were exported, earning Guyana revenue of $587 million, with the projected budget for the year being $807 million.
He said the government was working on the Voluntary Partnership Agreement (VPA) with the European Union (EU). Government has mandated the committee dealing with the issue to “bring this thing to a completion by the end of this year” and it is expected that the team would be travelling to Belgium to bring the matter to a conclusion, he added.
Early last year, the then government had announced that it would sign the agreement in the latter part of this year as part of its Forest Policy implementation for the prevention of deforestation. That was after it would have formally entered into the negotiation process with the European Union for a VPA in December 2012. The VPA is a key element of the EU’s Forest Law and Enforcement Governance and Trade (FLEGT) Action Plan and a VPA with the EU would facilitate increased market access for Guyana’s timber into the lucrative EU market.
Meanwhile, Trotman said he and Broomes are working to meet the requests of small miners and loggers who have complained of hardships. The small loggers have said that they suffered misfortune as a result of a decline in prices and exports because of a downturn in the Asian economy and the Asian market.
He stated that many have been left with logs and they owe the Guyana Forestry Commission. As such the ministry has started to provide relief to allow them to return to work; in some instances it has waived penalties and in others provided longer terms for payments.
As for small miners the minister reminded that a meeting was held with them in January of this year and since then substantial acreage has been set aside in all of the six mining districts. Come next month, officials will travel to these locations and ensure that the struggling miners receive some concessions.
