While the mining fraternity is pleased with the current high world market price for gold, some miners say that due to Coronavirus (COVID-19) restrictions and other factors they have been unable to maximise production.
Gold prices have risen sharply internationally as investors buy into safe havens and flee from the stock market. Governor of the Bank of Guyana, Gobind Ganga said the price is projected to increase, as in periods of economic uncertainty, when other commodities such as oil lose value.
Last week, spot gold was up 0.8% at US$1,726.94 per ounce on the world market and the Guyana Gold Board bought for US$1,738.58 per ounce.
The Guyana Geology and Mines Commission (GGMC) while taking COVID-19 precautions at its offices is working on reduced hours with a rotating system. This has limited their staff’s oversight of field work activities and thus they cannot enforce rules fully and also cannot clamp down on raiders and illegal miners as they would want to.
High gold prices have historically led to widespread illegal mining here but there is the heightened danger this time around of contracting the COVID-19 virus.
“Now is a great time for the mining sector because as you see gold prices today was over US$1700, fuel an ounce and fuel prices are down. But because of COVID and the social distancing restrictions, we cannot maximize on that because you have to limit your staff and you are also unable to get fuel from Venezuela,” local miner and executive of the Guyana Gold and Diamond Miners Association (GGDMA), Terry Singh told Stabroek News in an interview.
Similar views were expressed by veteran miner Alfro Alphonso and small claims miner Kennedy Smith.
“You are operating at a 20% capacity so you cannot get the production you would have targeted. It is a good time, in terms of price for gold, for mining but what good is it if you can’t use it. It is an issue we have been discussing because it is impacting all of us in the sector,” Alphonso said.
For Smith, he is most worried about his staff contracting the virus when they return to their homes on the coastland during their breaks or when his food and fuel rations are done and he has to venture to the coast to replenish them.
“Everybody is seeing the price of gold and saying it is good for miners and we are not disputing that. We are not disputing that at all, but we are saying that we have to look at the whole picture. This virus is serious and has ravaged countries so we cannot put our people at risk. We will abide with the rules set out for its prevention but those rules are impacting production,” he said.
“Not only this but another risk is coming out to town for breaks (days off) rations and now fuel, because as you know we can’t get from Venezuela because of the close off. Right now there are no (COVID-19) reports in our region (Barima-Waini) but you are coming out to the coast to stock up and you are hit with problems. Even if you charter a plane the number of persons are limited (by COVID-19 restrictions). The stocks you are taking in and the persons who are buying them is exposed and the virus could come back to our sanctuary. It is why I don’t blame villages that are in lockdown,” he added.
Smith said that his worry is that their food, personal items and fuel will be depleted and they will be forced to “make that dreaded trip”.
This newspaper understands that both Troy Resources and the Aurora Gold Mining company have reduced workloads and are constantly monitoring their employees’ health.
Singh said not only less mining staff is impacting the sector but that agencies and businesses are also working shorter hours so miners have to make adjustments too.
“The Gold Board is working lesser hours, the GGMC also and then you have the banks and the business places for parts and so forth. So there are many adjustments, not only to employees’ work schedules and social distancing but to set your schedule to get to these places and conduct your business,” he said.
Cease
Another setback is that some miners have chosen to altogether cease operations and vacate their lands. But Singh said that this puts them at the mercy of raiders and more so when oversight is also scaled down and at a time of booming gold prices.
He believes that the impact of COVID-19 on this country, especially the tumbling oil prices, should also serve as a wakeup call to policymakers to holistically develop all of its resources and sectors and not give more focus to any one.
“This here also shows that the gold industry is important and holds its own. With the oil boom came many shunning this and other sectors and the focus turned to oil.
But look at where we are. Oil is a volatile commodity and you cannot place all emphasis on it. I spent 26 years in the oil industry and I can tell you that you cannot just focus on oil,” he said.
“You have to invest in your resources and ensure diversification. You have gold, bauxite, agriculture …, invest in all because when you have all operating at their maximum they will be producing at their maximum and your country earns the maximum. Your people reap those benefits. This is a lesson for us and I hope we would have seen what can happen,” he said.
Head of the GGMC, Newell Dennison, told Stabroek News that the situation of the miners is something that his agency is also concerned about but that the health and well-being of his staff and the miners take precedence over everything else.
“The well-being of our staff and customers is of paramount importance to this agency so we are taking all necessary precautions.
We cannot afford for any of our staff to contract COVID-19 while on duty and will not risk our customer’s health to have them contract it at our offices either. So we have put in place very, very strict measures, from masks to sanitizing to ensuring the social distancing recommendations are carried out, for both staff and customers,” Dennison said when contacted.
He said that with the “skeleton staff” in the fields, he knows that it is not enough but every day the agency is reorganizing and hoping that they can do their maximum.
The GGMC head also expressed concern at the possible infractions in the hinterland when miners know that the agency’s capacity is not at its full complement and hopes that things are back to normal soon.
He said that he wanted to publicly thank not only his staff for working during this period, given that they are listed as essential workers, but to recognize others, especially medical staff and their ancillary workers for what they are doing. “It is a thankless job at times but I want to let our staff know we are grateful and to let those frontline essential care people know that the GGMC recognized and laud and applaud their genuine efforts”, he said.
