Ministry highlights active gold mining projects totaling over GYD$2B

Aug 24, 2014 News

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The Ministry of Natural Resources and the Environment has made public several active projects within the mining sector totaling over G$2B.  As part of the annual Mining Week activities which commenced yesterday in Mahdia, Region Eight, it was noted that several activities will be held including a stakeholder forum that will enable miners to interact with Ministry officials and those of the Guyana Geology and Mines Commission (GGMC).
In the meantime, the government agency has stated that the GGMC recently signed a GYD$70M contract for the rehabilitation of the road from Brian Sucre Junction to Mahdia. This work has already commenced and will be using new technology (material for mechanical stabilization of pavements).
“The Government and the Ministry are cognizant of the conditions of the internal roads of Mahdia and as such, plans are to asphalt the roads given that monies have been expended on continuous rehabilitation. In this regard, a site visit and inspection for the paving of Mahdia internal roads will be done through the Ministry of Local Government. The project is expected to commence in the last quarter of 2014.”
Financial assistance is expected to desilt two creeks, namely Boysie and Anna creeks, at a cost of GYD$2.5M. Reduction in the overflow of the creeks and subsequent flooding is expected.  Some $80M will also be provided for the construction of a water treatment facility for Mahdia. The facility will include the construction of a 360 m3 capacity ground storage tank costing $40M; the rehabilitation of source intake, desilting and sealing of an existing porous channel at Salbora Creek which will cost $20M and rehabilitation work on the water distribution system, which is estimated at $20M.
The Ministry noted that the auction and lottery to open new mining lands was held during last week in Mahdia, Port Kaituma, Linden and Georgetown simultaneously. A total of 2,000 blocks of 1,200 acres each were identified for location via the lottery and auction, with 1,000 blocks placed in the lottery and 1,000 placed in the auction.
“To ensure that the process for the lottery and auction was as transparent and equitable as possible, both were modified. Each of the 2,000 blocks were numbered from 1 to 2,000 and all even numbered blocks were placed on auction and odd numbered blocks allocated for lottery. This ensured that blocks with geological information would not only be restricted to auctions but rather these can be accessed by persons via lottery.”
A half a billion dollar Land Reclamation Project (LRP) funded by the Commission commenced with three sites being identified at Mahdia, Puruni and Konawaruk. ”The Project is aimed at returning disturbed land to a stable, productive and self-sustaining condition, taking into account potential beneficial uses of the site and surrounding land.”
However, the general objective of the LRP is to promote sustainable natural resources and environmental management. This the Ministry said, will facilitate coordinated remedial land reclamation interventions, aimed towards managing and combating land and forest degradation from the activities within Guyana‘s extractive sector.
Additionally, the sum of G$1B was approved by Government as a revolving fund to assist small and medium scale miners to adopt the technology, processes and equipment that would enable miners to increase the rate of gold recovery and eliminate the use of mercury.
“To ensure that adequate financial prudence and the requisite control mechanisms are in place, the Board of Directors has established a Working Group, tasked with researching viable alternatives to the use of mercury in the gold mining process, in addition to processes that will increase gold recoveries from its current low percentage.”
The group will be testing various technologies and processes in differing areas, to ascertain what type of equipment is best suited to the varying conditions of the interior. The results of these field tests will serve to inform the Commission as to what equipment/process/technology can be deployed in the various areas.
A major concern in the mining industry is the reduction of cost; and given the high operational costs to miners and the fact that fuel is a main input of the production process; the Ministry said it facilitated the granting of a fuel importation license for the GGDMA.
“Based on representations of the GGDMA, it is expected that fuel will be provided to miners at a lower cost, hence reducing the cost of production.”
In addition, recommendations for waivers on matting were made to the Guyana Revenue Authority and this will directly impact on the cost of mining operations since matting would be sold by specific suppliers at a lower cost.
Government is also reviewing the recommendation for waivers for Double Cab Pickups for miners since this would promote efficient and safer travel. This is in addition to current tax waivers that already exist in the industry for spares and equipment such as All-Terrain Vehicles (ATV), Excavators, and Bulldozers etc.
The Ministry urged that the continued success of the programmes and measures being implemented, hinges “upon the collaborative efforts of all stakeholders working towards the common goal of developing and promoting the sector to its fullest potential.”

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