-additional surveillance for mineral trading entities
The miners’ association yesterday welcomed what it said were assurances from the government for ramped up measures to interdict gold smuggling including additional surveillance of entities trading in minerals.
Guyana Gold and Diamond Miners Association’s (GGDMA’s) statement followed another on Saturday which had launched a searing attack on the government for not doing enough to address smuggling of the precious metal. Statements of that type have usually incensed the government, possibly explaining why there was an almost immediate follow-up by the GGDMA welcoming progress.
In its statement yesterday, the GGDMA said it “welcomes the usual prompt response and action aimed at the continual improvement in the mining sector”. It said that the President of the GGDMA, Ronaldo Alphonso and other executives were engaged over the weekend following a call for more support to curb illegal mining and smuggling in the sector. According to the statement, the Government says that in addition to already existing measures there will be ramped up efforts to deal with the issues highlighted and that the GGDMA fully supports these measures and welcomes this definitive action.
Some of these measures include:
Identifying and regularizing specific areas which will be designated landings in the interior.
Additional mechanism to address the legitimacy of where persons can conduct their business in support of the mining sector in the mining community.
Addressing more aggressively the movement of itinerant individuals in the interior, including shops and miners. There will be measures to account for persons doing business in the interior.
Engaging in additional strategic operations in targeting clusters/areas that have been reported on raiding. This will include doing sweeps addressing issues with conflicts of tenure.
Additional surveillance in relation to entities that are trading in vulnerable minerals.
The statement did not identify who in government was engaged.
“The GGDMA welcomes and will continue to engage the Government of Guyana to address the rogue elements that sully the operations of the GGMC. Since taking office, the present administration has, much to the benefit of the industry, reinstated all of the incentives that were previously removed and (has) worked closely with stakeholders in the industry to create even more incentives in support of the industry and also to boost declaration. The Minister is constantly engaged directly with operators throughout the country and has worked directly with stakeholders to resolve issues. The GGDMA therefore reminds miners that it is part of their responsibility to ensure fair and true declarations, increase production and to work with the government to reduce illegal operations in the sector”.
The GGDMA reiterated its support for the Government of Guyana and the Ministry of Natural resources in taking the necessary actions to boost production, declarations and curbing smuggling.
Foot down
On Saturday, the GGDMA called on the government to put its foot down regarding gold smuggling and begin by curbing the illegal activities that precede it and it also adverted to corruption among regulators and civil servants.
In the wake of US sanctions on the Mohameds, the association pointed out that illegal mining, illegal shops, and the unregulated trading of gold within the interior, are the “pillars” upon which the illicit gold smuggling enterprises survive. It took the government’s regulatory agency, the Guyana Geology and Mines Commission (GGMC), to task for its lax enforcement in the sector thereby allowing illegalities to flourish. The agency, the association said, has over the years, turned “a blind eye” to repeat offenders, merely slapping them on the wrist, which in turn has fostered a culture of “unabashed lawlessness.”
According to the statement on Saturday, these illegal operators openly disregard the orders of GGMC officers and brazenly make violent threats against anyone trying to stand in their way. “An illegal operation is shut down one day but by the very next day they return to contravening the orders of the GGMC as if nothing had ever happened. Equipment is seized from repeat offenders and within days the said equipment is returned to them. There is no real serious consequence for their actions.”
Landings
The GGDMA complained that every year for the past ten years, it has been calling on the GGMC to step up its enforcement against illegal activities in the gold sector, but to no avail. It informed that in the past, there were a number of areas in the interior that were gazetted to permit trade to take place, however, this has degenerated into persons simply setting up itinerant trading posts, also known as ‘landings’ at will.
This, the release explained, has resulted in a “multitude of landings” throughout the interior, too numerous to be properly regulated, where illegal gold buyers set up shop and buy directly from unethical miners who are willing to sell their production for higher prices, free of any paper trail, thus avoiding the paying of any royalties or taxes. These landings are also hubs for human trafficking as well as the sale of illegal drugs and weapons.
“We have repeatedly called for the reduction of the vast number of these hubs and for the ones that remain to be properly regularized, but to date no meaningful action has been taken. If the avenues through which illegal miners and illegal buyers are connecting is significantly reduced, then there would undoubtedly be an increase in gold declarations.”
Closed areas
The association moved on to discuss the connection between closed mining areas and illegal mining. It pointed out that the proportion of mining lands in private hands is reducing year over year. Many of these lands are considered abandoned due to lack of rental payments and eventually end up fully under government’s control in what are termed “closed areas”.
The disclosure was made that as of 2020, there exists approximately in excess of six million acres of mining lands in the closed area, and since then, thousands more mining and prospecting permits, each with an average size of 1,000 acres, have gone abandoned, further inflating the number of lands which shortly, will likely be designated as ‘closed areas’ or have already been added to the closed areas holdings. It noted that while illegal mining taking place on lands held by the private sector is more often reported and in certain cases action is taken to stop the raiders, no one is fully aware of how much gold is being illegally mined on lands in the closed area.
The release asserts that “a blind eye” is turned by certain individuals appointed by the state to safeguard its interest in these areas to facilitate illegal mining for which they are no doubt handsomely rewarded which prompts the following questions. “How much gold is produced in these areas that goes undeclared? How many illegal operations in these areas are being funded by smugglers?
Further, there is currently illegal mining taking place on closed area lands in mining districts, Three, Four, and Five, with certain officers of the GGMC well aware of these activities. The claim was also made that many miners have made repeated appeals to the GGMC about illegal activities but very little gets done. And miners who report often find themselves targeted by the officers and have such, resorted to joining the “stay quiet gang.”
The GGDMA acknowledged that while overall gold production may be down for several factors, it remains convinced that reduced gold declaration is “inextricably linked to the proliferation of illegal mining.” It iterated that illegal mining coupled with the establishment of illegal shops that facilitate the purchase and sale of gold without effective oversight are among the chief reasons the government fails to get its revenue.
Given this state of affairs, the association opined that it is time the government also engages its financial agencies such as the Financial Intelligence Unit (FIU) and the Special Organised Crime Unit (SOCU) to investigate the many shop owners and mining operators who, despite having massive operations, do not declare any significant amounts of gold. In addition, the owners of some of the operations are well known and flaunt their wealth despite, on paper, not declaring any gold.
“And who is actually the real owner of these large active operations that do not declare any gold, but yet regularly purchase large quantities of fuel, spares and other supplies to support their operations? Is the equipment even really owned by these operators or is the equipment in fact owned by the smuggling ring to which the gold is eventually sold?” the association questioned.
The release also touched on the issue of civil servants connected to the industry, who are enjoying lifestyles beyond what their salaries can support. All of this, it adds, must be investigated, as it is of the firm belief that the aforementioned financial agencies have the relevant tools and procedures at their disposal to put all the pieces of this puzzle together and consequently take action condignly against the “masterminds” who currently reside in the shadows.
