Minister defends stewardship of gold sector - Way paved for 800,000 ounces this year

Minister defends stewardship of gold sector – Way paved for 800,000 ounces this year

Jan 26, 2018 News

GGMC will be conducting emergency repairs to hinterland mining roads, amid complaints.

Government has defended its stewardship of the gold mining sector, yesterday announcing an 800,000 ounces target for this year.
During a review of the Ministry of Natural Resource work last year, Minister Raphael Trotman had pointed to a number of major decisions and opportunities that arose last year for gold – despite lower declarations, more earnings were made.
At the Guyana Gold Board (GGB) level, that entity was able to slash its deficit from $18B to $6B. That deficit was racked up starting around 2012 after the entity was left holding on to gold when world prices fell, creating significant losses.
The minister was responding to questions that gold sector did badly. Not so, Trotman insisted.
Foreign currency revenues were higher than the year before although declarations were lower by almost 50,000 ounces. This was mainly due to the higher prices on the world market in 2017.
The Opposition Leader, Bharrat Jagdeo, has accused Trotman of not managing the sector properly.
According to the minister, the indicators of the sector’s rebound are on records.
With new mining lands for syndicates, the opening up of new roads and the fact that the Guyana Geology and Mines Commission (GGMC) has taken it upon itself to handle a number of repairs of mining roads, these are all paving the way for an unprecedented 800,000 ounces to be met this year.
From over 700,000 ounces in a record-breaking year in 2016, declarations fell to 653,754 ounces last year.
For the Gold Board, the revenues from its sales overseas was a heartening US$241M, from
193,000 ounces compared to 226,000 ounces in 2016.
The miners did their part, with the gold dealers also chipping in.
In fact, gold dealers El Dorado Trading led the way, with Mohamed’s Trading following closely with declarations.
A number of decisions were taken that bode well for the sector this year. These include a reduction of new Gold Board fees, amnesty for property holders, a reduction of Gold Board operations, new lands for mining syndicates, the opening up of new roads in the backdam area for miners and a reduction in Tributors Tax.
Some $2B has been allocated by GGMC for work on hinterland roads and bridges, a main issue of concern, which had caused problems with declarations in the past, the officials explained.
According to Trotman, Jagdeo should explain where he got his figures from, especially as Guyana earned more foreign exchange from gold last year, and with Gold Board managing to slash its deficits.
Jagdeo, the minister insisted, has a penchant for twisting the truth and making outlandish statements.