Minister Bharrat pledges Govt.’s continued support and incentives to strengthen mining sector

Aug 28, 2024 News

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Kaieteur News – In his message for Mining Week 2024, Minister of Natural Resources, Vickram Bharrat, affirmed the government’s unwavering support for the mining sector through incentives to ensure the economic prosperity of the industry.

The Natural Resources Minister underscored the sector’s critical role in Guyana’s economy and the importance of environmental stewardship.

“As we celebrate Mining Week 2024, I would like to express our appreciation and best wishes to all the stakeholders in the mining sector, more particularly the small- and medium-scale Guyanese miners who continue to apply this trade and also to the staff of the Guyana Geology and Mines Commission, who continues to work tirelessly to ensure that the mining regulations are enforced, to ensure that the health and safety and well-being of miners are protected at all times, and, more importantly, to ensure that our environment remains intact,” he stated.

The minister highlighted the need for mining activities to align with environmental protection efforts.

“The theme under which Guyana Geology and Mines operate, I think, is very fitting as well: ‘Mine with the Environment in Mind.’ We cannot, at any point in time, speak of mining or extraction of natural resources without thinking or without the preservation and protection of our environment,” he said.

Moreover, highlighting the sector’s significance, Minister Bharrat noted its substantial contribution to the nation’s economy. He explained that mining continues to be one of the main contributors to Guyana’s Gross Domestic Product (GDP).

“Mining has been the bedrock on which our economy has been based for several decades and will continue to be a sector that many Guyanese will continue to prosper in,” he explained.

With nearly 30,000 Guyanese employed in the sector, the Minister assured continued government support and incentives, stating, “As a government, we are committed to ensuring that we grow the sector, to ensure that we provide continuous incentives for miners… all in ensuring that this economic activity continues to provide the kind of economic benefits that Guyanese would have enjoyed over the last decades or so.”

Speaking at his recent press conference, Minister Bharrat attributed the steady decline in gold production and declaration over recent years to a combination of unfavourable weather conditions, outdated mining practices, and labour shortages.

He outlined the challenges facing the gold mining sector and the efforts being made to address them. This publication had reported that from 2019 to 2023, gold declarations dropped by approximately 209,000 troy ounces, according to the Bank of Guyana annual reports. Recently, the government had warned gold smugglers to desist from the practice.

Minister Bharrat pointed out that gold production has been on a downward trend since its peak in 2016. “I don’t think it’s any secret that gold production has been on the decline. I think if you look at the chart, you will see 2016 peak, and then after that, it went straight up and continues in the 2022-2023,” Bharrat said. He highlighted that several factors have contributed to this decline, particularly severe weather conditions.

“In 2021 and 2022, there was significant flooding, not only on the coast, but the hinterland communities. I myself went into the Mazaruni district, and I saw the devastation of the flooding in that major mining district,” Bharrat explained.

He added that in 2023, the industry was hit by a significant drought, which hindered operations in key mining areas. “Some people were unable to go and work simply because there was no water,” he noted. The minister noted that the situation has reversed again in 2024 with another bout of significant flooding, further complicating mining activities.

Minister Bharrat also highlighted issues related to the mining practices of small and medium-scale miners, noting that many have been repeatedly mining the same properties resulting in low recovery rates.

“The other reason being, which we have noticed, and I think it was mentioned by the commissioner, is that for decades, our small- and medium-scale miners have been mining the same properties over and over again,” the minister said.

“[Small- and medium-scale miners] recovery rate in gold mining is too low, 35-40% is way too low,” he stated. The ministry is working with miners to introduce new methods and technology to increase recovery rates, which Bharrat believes will lead to higher production and profitability.

In addition to technical challenges, the minister pointed to the accessibility of mining lands as a significant barrier for small miners. “Accessibility to land has always been a cry from small miners,” the minister said, stressing the need for more prospecting to ensure mineralized properties before investment.

Labour shortages in the mining sector are another growing concern. Bharrat noted that many miners are moving away from the industry, often shifting to more lucrative opportunities in the oil and gas or construction sectors.

“What we have seen is a lot of people moving from the mining sector into the oil and gas or construction sectors, or they are engaged in other sectors while they’ve scaled down their activities in the mining sector,” Bharrat explained.

Despite these challenges, Bharrat affirmed that the GGMC is actively working to address the issues, particularly by increasing recovery rates and improving access to mining lands. Additionally, a US$1.8 million contract was recently signed with an American firm for mineral mapping of Guyana’s mining hotspots.

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• incentives, mining sector, Minister of Natural Resources, support, Vickram Bharrat

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