Georgetown: The Guyana Gold Board (GGB) has recorded a 16 per cent drop in gold declarations by miners, but Guyana Gold and Diamond Miners Association (GGDMA) President Patrick Harding said the reduction is the result of a decline in production.
The miners have mined out the areas that are accessible and are now looking to go deeper into Guyana’s interior in search of more precious minerals.
According to Harding, the drop is not because of hoarding, but it comes as a result of miners not producing the amount of gold as before.
Presently, gold prices are tumbling internationally and there is a practical standoff between the Government and local miners over the low declarations.
According to Natural Resources Minister Robert Persaud, for the first half of 2014, the Gold Board recorded only 233,305 ounces of the precious commodity being declared in comparison to 270,178 ounces last year, which would equal the 16 per cent decrease in declarations.
The total gold declarations for January to May has been given as 165,595 ounces, while some 204,970.42 ounces were declared for the corresponding period last year.
Persaud explained that the Ministry and Government cannot point definitively to any causes for the decrease in gold declaration, but alluded to the fact that it may be because of environmental issues.
Although gold declarations have dropped, Persaud reaffirmed the Government’s commitment to expansion in the mining sector.
He told reporters gathered at a press conference on Friday that there was a 68 per cent increase in mining activity. The Minister pointed out too that there were 469 new mining permits issued, which represents an 89 per cent increase for the same period of January to May last year. He added too that there was a 39 per cent increase in the amount of prospecting licences being granted to miners.
It was explained that the sector is expected to return to performances similar to last year by the end of 2014.
Persaud also pointed out that the Charity office of the Gold Board will soon be operated by a private businessman. Additionally, there will also be an office in Port Kaituma, which will also be operated by a private businessman.
Additionally, Persaud related that the Ministry will be holding auctions and lotteries in August after a five-year hiatus. He explained that miners will be able to buy concessions at the lotteries and auctions, and they will also be able to access the geological data of the area.
The geological data would determine the possibility for gold and other mineral deposits in an area and in what amounts.
To this direction, three major firms are expected to join the mining sector. Those companies include ETK Sand Springs, which according to its website is a Canada-listed, gold-mining company. The other companies are Guyana Gold Fields Inc and Troy Resources Inc.
Persaud also articulated that the GGMC has taken additional steps to enhance existing infrastructure and roads. He said some 1.5 billion has been allocated overall to the rehabilitation of the existing infrastructure.
“This is dedicated work being done for more mining access in mining roads; this isn’t taking into account what the Public Works industry will do,” the Minister said.
GGMC Chairman Clinton Williams said the Commission is cognisant of the need for a more “holistic” approach to tackling the issue affecting the sector.
“We have concluded preparations and plans to launch auction… we have lotteries for the six mining districts and these lotteries are scheduled for the 18th of August, so these two important activities will see hundreds of individuals… who currently do not have access to their own properties,” said Persaud.
He explained too that the lotteries will give the smaller scale miners the opportunity to access their own concessions.
To this end, he advised the GGMC Board is putting in place a system of prequalified contractors. He explained that the system will save time since it is a long process to acquire a contractor.
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