Latest update December 23rd, 2024 3:40 AM
Don’t forsake mining sector for oil
– GGDMA cautions govt.
The Guyana Gold and Diamond Miners Association (GGDMA) is calling on the government of Guyana not to forsake the mining industry and place all its attention on the looming oil and gas sector.
This call was made on Saturday by the Association in a statement released to the press. According to the group, it is extremely concerned about the future of the mining sector and believes that government should pay more attention to the industry that continues to be the backbone of the economy.
“The GGDMA wonders if just in anticipation the oil revenue has caused Guyana to contract ‘Dutch Disease’,” the association stated, referring to the undesirable impact on an economy by something that would cause a sharp inflow of foreign currency. One of the common causes of this around the world is the discovery of commercial quantities of oil.
According to the GGDMA, it may be possible that the government has placed a lot of energy into the oil and gas sector and green transformation without foreseeing the crippling of the mining industry that has supported the economic growth and stability of Guyana.
“Mining by small and medium scale miners continues to be the main thrust in supporting economic development, social development and poverty eradication. Hence GGDMA calls upon the government to ensure that priority areas are addressed.”
In its release, the Association said that it wishes to know what percentage of ordinary Guyanese stand to benefit from the oil and gas sector and how soon will ordinary Guyanese reap benefits, if any, from that industry.
Further, the Association said that with the downturn of sugar and sluggish performance of rice and timber, mining performance remains stellar. It is in this line of thinking that the GGDMA believes that some amount of emphasis should be placed on safeguarding the integrity of the mining industry.
The GGDMA hopes mining will not suffer as a result of the oil and gas sector
However, the Association is of the view that the government is not pleased with the small and medium scale miners and has lost interest in sustaining the growth and development of the sector.
The mining group said that there is need for infrastructural support in a number of interior areas such as Aranka, Mahdia, Matthews Ridge, Port Kaituma, Issano and Imbaimadai, all of which were birthed from mining activities.
The Association said that it is not satisfied that Guyana’s leadership is happy to build on the success of the mining industry.
“Over the past decade, mining has been the most significant contributor to the gross domestic product (GDP) of Guyana. The sector continues to play an important role in the national and local economies through the foreign exchange it generates, revenues to the state, direct and indirect employment it provides for indigenous villages and other interior settlements. In addition, a significant number of youth from urban areas and depressed coastland villages, many of whom are the main breadwinners for their families, find jobs in the mining sector.”
Using statistics from a 2016 report by the International Council on Mining on Metals (ICMM), the GGDMA showed that Guyana was ranked sixth in the world as one of the mineral dependent countries based on the Mining Contribution Index. In 2012, Guyana was ranked 11th and third in 2014.
According to the GGDMA, the ICMM report reinforces the need for the contribution of mining to national economies and should be thought of more strategically as a catalyst for sustainable development.
Moreover, the Association said that the future of the mining industry is vital in the context of the United Nations (UN) agenda for sustainable development and its component targets, such as global poverty reduction. As such, the mining body is of the view that the importance of mining has to be given priority to ensure the achievement of the Sustainable Development Goals particularly as it relates to poverty alleviation.
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