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Diamond and manganese production on the decline
…as bauxite, stone and sand surge
Kaieteur News- Bauxite, stone, and sand production surged in 2024, driving significant growth in Guyana’s mining and quarrying sector, even as diamond and manganese output saw declines, according to Minister of Finance Dr. Ashni Singh during his Budget 2025 presentation on Friday.
In 2024, the mining and quarrying sector expanded by 55.9%, driven by strong performances in bauxite mining and the other mining subsector. According to Dr. Singh, while this growth was primarily driven by the oil and gas sector and associated support services, other subsectors also demonstrated strong performance.
Bauxite mining grew by 48.4%, with the Linden operation seeing a remarkable 384.5% increase. “Reflective of Government’s supportive policies and increased investment in the sector, bauxite mining is estimated to have grown by 48.4 percent in 2024, with latest data reflecting 1.7 million metric tonnes of bauxite production, up from 523,742 metric tonnes produced in 2023,” Dr. Singh reported.
Diamond and manganese production on the decline
He explained that the operationalisation of the Metallurgical Bauxite (MAZ) project in Region 10 contributed significantly to this growth. Output from the larger producer in Linden increased by an impressive 384.5% to 1.5 million metric tonnes. However, the operator in Bonasika faced challenges, with production falling from 207,321 metric tonnes in 2023 to 173,970 metric tonnes last year.
He noted that currently two bauxite companies employ over 1,000 persons, with approximately 950 being Guyanese nationals.
The minister added, “We also continue to examine options for the resumption of operations in the Berbice River. With all these developments, the bauxite sector is poised to resume its place as a major contributor to our economy, and as a major employer in bauxite producing communities, setting the stage for the re-emergence of these communities as major hubs of economic and social activity.”
“Stone declarations and sand extraction are estimated to have grown by 80.4% and 48.5%, respectively, driven by demand from construction activity in the public and private sectors,” the minister said.
Sand production surged, with 67 permit holders collectively producing over 12 million tonnes in 2024, a substantial jump from less than 700,000 tonnes produced by 18 operators in 2020. He noted, “This upward trajectory is expected to continue in 2025, as more operators begin utilising their sand pits. “
Stone production followed a similar trajectory, with operational quarries increasing from six in 2020 to 16 by 2024, propelling output to over 3.3 million tonnes. Minister Singh underscored, “Investments in modern mining and transport equipment and additional barging capacity, as well as the maintenance of around-the-clock operations at mining pits and quarries, are set to further support the expansion and meet the growing needs of the market.”
To this end, the minister noted that the increase recorded in the bauxite, stone and sand sub sectors more than offset the declines of 17% and 7.2% observed for diamond declarations and manganese production, respectively, in 2024. In relation to manganese, the minister noted that Guyana exported manganese in 2022 for the first time in 54 years and residing in over 300 new jobs. “Production will continue as long as the resource remains adequate to sustain a viable and competitive operation,” he added.
Minister Singh noted that for 2025, the mining sector is projected to grow by 10%. He added, “Additionally, the other mining and quarrying subsector is anticipated to continue its strong performance this year, with projected growth of 29.8 percent. This reflects robust growth continuing in infrastructure investment through the PSIP, combined with intensified activity in private sector construction. “
Notably, bauxite mining expected to expand by 70.1%, largely driven by a 167.3% increase in production from Linden. Additionally, the minister also revealed that non-oil export earnings rose by 16% to US$1.8 billion, bolstered by significant increases in gold, rice, and bauxite exports. Together, these three commodities contributed US$1.3 billion. Bauxite alone recorded a 19.2% increase in export value.
(Diamond and manganese production on the decline)
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