Georgetown: Amid falling international gold prices and low gold declarations at the Guyana Gold Board, Natural Resources and Environment Minister Robert Persaud recently noted that Government is looking to set up a gold refinery.
The Minister related that the idea of setting up a refinery in Guyana was one that was being considered by Government and stakeholders in the mining industry.
He said: “Value-added continues to attract the attention of various parties outside of the gold industry, so we are talking to the jewellery- producing community to look at how we can expand and enhance in the jewellery production sector.”
According to Persaud, if this endeavour is successful, the target market will not only include local, but overseas markets as well, where the demand for gold is much higher.
Recently, A Partnership For National Unity (APNU) Member of Parliament (MP) Ronald Bulkan pointed out that there is “no value-added done to that commodity (precious minerals) or resource when it is mined out from the ground”.
He said that instead of just exporting the raw gold, Government should look to urge the private sector to invest in the business of jewellery production or other by-products of the raw-gold material.
“It does not have to be that we should only be exporting raw gold or unrefined gold. It can be used as a raw material to create value-added products,” said Bulkan.
Minister Persaud said Government understands this and is committed to developing a robust value-added sector.
Gold prices have been unpredictable and are dependent on a lot of factors beyond the Government’s control. He said if such a goal is attained, there will be more certainty in the local gold market and miners will know what to expect for their produce.
“At the times of unstable price, something happens in the US, something happens in the Middle East, I can tell you, it has a direct correlation to gold prices. So you cannot plan and operate in that environment, especially when you look at production costs and so forth… so to bring more stability and predictability, value-added is the way to go.”
Meanwhile, Guyana Gold and Diamond Miners Association (GGMA) President Patrick Harding said the mining fraternity welcomes the move.
He said it provides optimum opportunity for miners and businessmen alike to take advantage of the premium gold being produced in Guyana.
“They (foreign countries) have the market and we have the raw material, instead of exporting raw gold, we can export jewellery.”
Ronald Bulkan also called for diversification, not only in the gold industry, but the economy as a whole.
Guyana Geology and Mines Commission Chairman Clinton Williams said steps are being put in place to diversify the mining sector. He said that soon, miners will be prospecting for other precious minerals such as magnesium.
You must be logged in to post a comment.