Guyana’s extractives industry continues to play a crucial role in the country’s growth and diversification with several major gold discoveries as well as the exportation of manganese for the first time in decades.
So to ensure that there are qualified technicians and tradesmen in the industry, a key goal of the government this year will be to strengthen the framework for biodiversity mainstreaming and mercury reduction.
“Our more traditional mining and quarrying sectors continue to play a crucial role in our nation’s growth and diversification, contributing not only to national production and export revenues, but also to job creation,” Minister of Finance Dr Ashni Singh said on Monday during the presentation of the 2023 budget.
He said in 2022, the government commenced the establishment of a comprehensive automated Mineral Property Management System with online capabilities that should be fully implemented by 2024 to allow the Guyana Geology and Mines Commission (GGMC) to decentralise its services to its mining stations, enabling many of the stations to offer the same services as the Head Office in Georgetown.
Singh added that the Guyana Mining School and Training Centre remains committed to providing qualified technicians and tradesmen for the industry by strengthening the enabling framework for biodiversity mainstreaming and mercury reduction.
“Particularly, the Centre will provide extension services to miners by delivering training that is customised to their operations to achieve these objectives,”
As it relates to the gold industry, he said the sector continues to be a key contributor to growth in Guyana’s non-oil economy, representing 8.3 percent of non-oil GDP and 58.2 percent of non-oil exports in 2022.
Promoting exploration
He said the government’s focus in the sector remains to be on promoting exploration activity that can eventually transition into production, thereby supporting growth, employment and export earnings. Singh disclosed that the development of underground activity in the sector progressed, but not at the originally anticipated pace due to supply chain constraints which shifted the timeline out to 2024.
Nevertheless, investment opportunities within the sector continued with major discoveries by exploration companies in the Oko, Cuyuni area, Omai, and Marudi. He noted that the Toroparu area’s potential remains hopeful, but changes in the company architecture led to some revision in the initial investment timelines.
“Notwithstanding, Government remains optimistic that all these areas that show potential are brought into production in the near-term,” he added.
In the bauxite industry, he disclosed, one of the two large operators advanced investments to further refine their bauxite ore, while the other made progress in the installation of its kiln at its Linden facility. However, the completion of the installation of critical plant and machinery of this kiln was delayed in 2022 due to global supply chain disruptions and is now expected to come on stream before the end of 2023.
Singh noted that the investment outlook for the sector is promising amid additional discoveries of world class deposits, especially at the Tarakulli deposit in Berbice. The government will continue to seek additional large-scale investors for the industry. He also disclosed that the number of persons employed in the sector increased steadily, rising from 438 in 2020, to 905 in 2022.
The sand and stone industry has been thriving due to the construction boom in Guyana. Similarly, Singh said, Guyana has exported manganese for the first time in five decades.
“The sole operator in the area commenced production in 2022 and remains on track to deliver on its US$75 million investment over the next three years. Though there were logistical challenges, the company still managed to make two shipments last year, totalling over 100,000 metric tonnes. This was the first time in over five decades since Guyana exported manganese. In 2023, manganese output is projected at 500,000 metric tonnes”, Singh disclosed.
Exploration of rare earth elements, including scandium, lithium, columbite/tantalite, will continue into the medium term.
