Georgetown: An excess of 2000 medium scale permits have been relinquished within the last year alone due to the progressive fall of gold prices compounded with the high cost of holding lands, which ultimately forced many miners to abandon their holdings, however the Guyana Gold and Diamond Miners Association (GGDMA) noted that these lands can now be released to small scale miners, who are often confronted with the unavailability of lucrative mining lands- a move which can sustain the industry during these worrying times.
The Association highlighted that the availably of land with known presence of minerals and accessibility has always been a concern expressed by the small scale miners in the industry, but now with over 2000 permits being returned (equivalent to over two million acres of land), small miners now have an opportunity to benefit- without the need for the Government to dig into the public coffers.
“The GGMC (Guyana Geology and Mines Commission) has more than enough land locked off which can be distributed to small scale miners, this must be urgently addressed. The more than two million acres of returned land is more than adequate to satisfy this need, and one does not even need to dip into the state reserves at this time,” the body stated.
The Association noted that many persons can acquire lands that are without any minerals or with occurrences too low to ensure viability, and that this has in fact been the case with a majority of the small scale miners throughout the years. As such, the GGDMA is calling on the Guyana Geology and Mines Commission to direct this now available land to the smaller miners.
“The more than two million acres is the ideal land for small scale miners, since these are more likely to bear fruitful prospects. The GGDMA therefore calls for urgent action and keen attention to ensure that the real estate agents who lurk in the sector do not get access to these lands before the genuine miners can have an opportunity to make effective use of the land,” the Association stated.
Questioned Government
Meanwhile, the Association questioned the Government’s intentions for the mining industry, particularly in light of reports emanating from the press relating to their plans to “revamp” the sector.
“The GGDMA notes with great fear the recent messages in the press which seem to indicate that some are bent on ‘reorganising’ the sector to benefit those who now wish to make a quick fortune rather than mine,” the release read.
The Association also expressed some concerns over the talk of the redistribution of lands, which it noted would be at the expense of the private sector investment. “The days of nationalisation should be well behind us and support for keen and genuine national investors should be embraced and supported, not questioned and threatened. The setting of such a dangerous precedent would not only be deleterious to the local private sector, but would hurt prospects of foreign investments; such developments would no doubt give such investors reason for pause and hinder monetary flows into our country,” the release stated.
Professional mining companies, small operators
Moreover, the Association lauded the growing relationship between professional mining companies and the small operators, which has proven to be significantly impactful to the overall strength of the sector and beneficial to the small miners. These relationships see small miners benefiting from assistance through the provision of infrastructure, capital, spares, fuel and credit facilities which will them to continue plying the trade.
In fact, moves are afoot to ensure these relationships become more structured where both parties can be protected. “Many small operators do not have the means to setup a full-fledged operation, and depend on a partnership agreement to get started in the industry. Venturing to the local banks is, most often, not an option for such persons as the risks associated with the gold and diamond mining industry are too volatile for the banks to sanction loans to participants in the sector,” the GGDMA said, noting that this relationship offers a good mechanism that will ensure persons with genuine interest have enough start-up capital.
“The area of concern is not the existence of such relationships, but the structure of the relationship that must ensure fair terms to all parties involved and the legal enforceability of the terms of this relationship so that there is a sense of longevity and security. To this end there needs to be a well-crafted and formal partnership agreement. This has already been discussed with the GGMC and a proposal to have it established via mining regulations, to ensure protection of both parties, is already in the works and should be accelerated,” it noted.
Moreover, the GGDMA vowed to continue to work with the new Administration to address the issues that face the mining sector and to continue to strengthen the capacity of all legitimate miners.
The Association reminded that mining is a business and not a hobby or a get rich quick scheme, referring to the many persons often rush into operations when the prices of gold is at a record high. The organisation highlighted that mining poses daily struggles where persons venture into the unknown, prying from land to land, risking almost everything on a single put or claim.
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