Gold is being sold outside normal arrangements - GGMC Commissioner

Gold is being sold outside normal arrangements – GGMC Commissioner

Jul 27, 2014 News

-16 percent decline in gold declaration worries Natural Resources Ministry

The 16 percent decline in the declaration of gold from January to June 2014 is “an issue that now worries” Minister of Natural Resources and the Environment, Robert Persaud.

Natural Resources Minister, Robert Persaud flanked by GGMC’S Commissioner Rickford Vieira (right) and Chairman Clinton Williams.

He revealed this at a press conference held at his boardroom on Friday. There, he highlighted some of the achievements and challenges in the mining sector.
He was accompanied by the Chairman of the Guyana Geology and Mines Commission (GGMC), Clinton Williams and its Commissioner, Rickford Vieira.
Persaud said that the Ministry continues to look carefully at the declaration of gold even as it monitors other minerals.
The decline in the declaration continues to be a matter of concern for the Ministry and based on discussions with the Guyana Gold and Diamond Miners’ Association (GGDMA) and other agencies, Persaud said that weather, price and cost of production have to some degree, reduced activities in some of the six mining districts.
Vieira said, “Gold, we believe, is being sold outside the normal arrangements and we are getting some support from the Guyana Police Force and the army and other agencies in this regard.”
As it relates to the worry over gold being hoarded, which was previously mentioned by President Donald Ramotar, Persaud said that he does not believe that is the case.
In fact, it may be too early to even draw such a conclusion, the Minister added.
He said that the recent figures of gold declaration are still being analyzed. He said 233,305 ounces of gold were produced between January to June this year as compared to 278,127ounces for the same period last year.
The Minister was then asked if it is too early to conclude that hoarding is taking place, then why has government taken that position. He insisted that that information would have probably been supplied by other stakeholders.
He said, however, that his Ministry would have been exploring how support can be provided to return to the 2013 levels of output and declaration.
Several issues, he said, were identified by the mining community, one of which included the availability of land for small, medium and large scale mining.
The Natural Resources Minister said that several interventions are in place. They include the launch of an auction which will be on August 11, and done through a very “competitive” process.
He said that there will lotteries in the six mining districts for small miners and that is scheduled for August 18. It is expected to see more than 100 people who currently have no access to their own land.
The lottery will give them an opportunity for that.
He said that the Ministry has also been very diligent and proactive in processing the necessary permits and applications for Prospecting Permits Medium Scale (PPMS).
It has issued 727 PPMSs from January to May. That is a 68 per cent increase when compared to last year. A total of 469 mining permits were issued and that accounts for an 89.6 per cent increase when compared to last year.
Eighteen prospecting licences were approved and that represents 38 percent increase from last year.
This, Persaud said, reflects the Ministry’s efforts to decrease the delays in trying to access permits and licences for mining and to dissuade illegal mining practices.
The Ministry’s geological capacity has also been improved and it has also retained the services of an advisor in this regard.
While noting that the weather patterns have been unpredictable, Persaud said that it has had an effect on the work done in the mining sector.
Priority has been given for road rehabilitation works. Just recently, a contract was signed to the tune of $43M for the improvement of Puruni road and a $70M contract was also signed for the rehabilitation of the road from Brian Sucre junction to Mahdia.
Whilst the Natural Resources Ministry wants to promote mining, it also wants to ensure good business is conducted and as such, it is making moves to adequately prepare itself by looking at the environmental challenges and how it is, they can support the mining community.
Commencing Monday, it will be mainstreaming aerial surveillance. So on the ground scrutiny will not only be done but it will be backed up by the additional method of observation to clamp down on illegal mining activities.
It is upon this background Persaud disclosed that the Ministry has been able to facilitate a fuel importation licence from the GGDMA. It is hoped that it will help the mining community in this regard since fuel accounts for 40 percent of their expenses.
Members of the mining sector will be able to source their own fuel and import it.
Discussions are also continuing over duty free concessions on certain types of vehicles. Persaud said that he is working towards bringing those deliberations to a positive conclusion.
The commitments to the Low Carbon Development Strategy and the mining interests would from time to time conflict with each other, but Williams, GGMC’s Chairman, said that the Ministry is looking to draft a policy that takes a look at both fronts and helps them to work cohesively.