Guyana’s gold rush

Oct 23, 2011 News

…of illegal miners, crime sprees and smuggling

By Leonard Gildarie

It is one of the most prized of possessions for people around the world and prices over the past year or so have climbed to record levels with an ounce currently going for just under US$2,000.
The situation of high gold prices is much to the delight of local operators in the industry looking to cash in with Guyana’s interior now reporting a ‘gold rush’.
Analysts believe that the prices will continue and push past the US$2,000 mark, peaking in two years.
But it has not come without its challenges and headaches for the government and its regulatory body, the Guyana Geology and Mines Commission.

Guyana’s gold rush is proving a headache for authorities.

There are now an increasing number of reports of illegal mining by foreigners, especially Brazilians… and of more guns present.
As a matter of fact one miner, during a meeting with President Bharrat Jagdeo last week, said that some of these illegal mining camps are being heavily guarded…with all likelihood – illegal guns.
And the President is interested in hearing more about this.
There has also been increasing reports of heavily armed gangs raiding mining operations, unsavory characters hanging out at water landings and shops.
Then there are the incidental murders and other acts of violence.
Crimes
More recently, there was the much-publicized robbery spree in the Cuyuni, Region Seven, at Piari Landing where five persons were wounded when a gang of armed bandits raided the area.
The gang made off with about $30 million in cash and raw gold. The men had also robbed several mining camps along the Puruni River, hours before the Piari Landing attack.
The gang opened fire indiscriminately, while relieving the terrified miners, many of whom were at the Piari Landing where a number of shops are located.
Eyewitnesses spoke of persons running into the dark bush under a hail of bullets to escape the masked men. One of them even spent hours hiding in a creek.
Six of the alleged bandits were captured and are now before the courts for that attack.
It is not an easy problem to tackle, from the government’s perspectives. Monitoring of the interior’s mining camp is not child’s play over the vast terrain and dense jungles.
Coupled with this is the fact that GGMC simply does not have enough manpower to conduct more frequent checks.
According to one miner, mining officers would visit a particular area, issue a cease work order but as soon they leave, it is business as normal.
According to Tony Shields, consultant of the Guyana Gold and Diamond Miners Association (GGDMA), GGMC continue to face staff shortages, affecting monitoring work.
There have been accusations that much of the problems are from illegal miners and the large presence of Brazilians and Venezuelans. Earlier this year, Venezuela and Suriname closed several illegal mining camps and there have been suspicions and reports that quite a number have relocated here.
Good Business
The coming of the Brazilians has seen brisk trading at the Lethem border. In the city, several Brazilian business places, nightspots and restaurants have sprung up.
Then there are the spin-offs. Several companies and individuals are benefitting from investments in minibuses and other transportations as the demand grew.
The local aircraft charter companies are reporting brisk business fetching passengers and supplies to usual and other not-so-usual destinations in the hinterlands.
Government has signed several cooperation agreements with Brazil with Guyana benefitting from new mining technologies from that country.
Aside from the spin-offs, Government has already signaled its willingness to accommodate the foreign miners…as long as they get regularized and pay the necessary royalties.
It is yet unclear how many miners, both foreign and local, are falling under the radar of the authorities.
According to GGMC’s 2010 figures, almost 10,000 persons are directly employed by the gold and diamond mining sector.
And President Jagdeo on Thursday, said that the police have developed a “formidable” database on gangs of robbers that operate in the interior.
This week, a long overdue meeting with Commissioner of Police, Henry Greene and the army on the crime situation is set to be held.
In 2010 gold declarations’ increased to 308,438 ounces, a percent higher than the previous year’s record output.
The total number of claims (verified and unverified) for small scale mining operations (gold and diamond) in 2010 was 14,335, according to GGMC.
Gold mining maintained its position as the biggest producer of the mining industry in 2010, accounting for 74.9 percent of the total value of mine output. The value of gold produced (G$71,843.700 million) in 2010 increased by 28 percent over 2009.
Despite the lucrative price for gold this year, and the ‘modest’ 300,000 ounces targeted, so far with only just two months remaining, as of Thursday only 207,000 ounces of gold was declared.
GGMC will be hoping that, like the last two years, there will be a surge by miners to sell to the authorized dealers, including the Guyana Gold Board, so that the target may be met.
Authorities have long suspected that the gold declared is just a fraction of what is being produced.
So what happens to rest of the gold and diamonds that are not being declared? There are indications, evidenced from seizures by authorities, that a percentage is being smuggled to neighbouring Suriname.
A good portion is also being sent back to Brazil, slipping through the borders, sources say.
Guyana is losing significant revenues because of this, one miner said.
The sector at the moment is a highly lucrative one once gold continues to be found. It is no wonder miners want more lands to be made available for operations.

1 thoughts on “Guyana’s gold rush”

truthfulbuddy October 23, 2011 at 9:58 am

In the time of the Burnham government,,,the GDF was stationed at,,,lethem where the berbician singer Chuch Gerrad is residing if not deceased,,,,kurupung,,,konawaruk,,madia,,,skeldon,,,linden,,,new amsterdam,,kamarang and those soldiers was exchanged or removed every three months,,Colonel Granger,,,Mojor Liverpool and the other high ranking officers in that time can clarify this,,,if ever the fool jagdeo had learned from the Burnham government ,,he would have ensured that this effort was maintained,,WHEREBY THERE WOULD HAVE BEEN NO EXPATRIATES ENTERING GUYANAS MINING AREA AND STEALING THE PRECIOUS METAL,,,not leaving out guyanese criminals also being involved,,,,FOR THE GDF IS TRAINED FOR JUNGLE WARFARE,,with the winning of the elections Colonel David Granger i am certain would revamp the old pactice of relocating the GDF bact to the interior locations,,this will guarauntee alleviate the problem of the Braazillians,,,Venezuelians , and other illegal persons removing the gold, the so called president jagdeo is a boys scout or even lower.the truth.