Jagdeo makes about ‘turn’ on local content for mining industry

Aug 20, 2025 News

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Kaieteur News – The People’s Progressive Party/ Civic (PPP/C) is now promising to explore the possibility of extending the Local Content Law to the mining sector.

In 2021, Guyana passed its local content legislation, which caters to locals getting first preference in the country’s oil and gas sector. The Local Content law is intended to regulate the way companies operate in Guyana’s oil and gas sector; employs persons, buy services and the way that they procure goods.

Since the law was enacted, several loopholes were identified by the government and they had promised to make amendments to the law during this current term.

However, according to the PPP’s 2025 manifesto the party plans to conduct a review of the Local Content Act in its next term in consultation with oil and gas as well as other stakeholders.

The review will be conducted with a view to identifying opportunities for expanding and updating the law, continue training and capacity building efforts, to equip more Guyanese nationals for quality jobs in the oil and gas sector, and equip more Guyanese companies to be able to compete for business opportunities in the sector.

One notable part of the PPP’s plan to review the Local Content Act, is to examine the possibility of expanding applicability of the Local Content Act to other sectors, particularly the gold and bauxite mining sectors.

The PPP said that this being considered especially in light of imminent large scale developments.

Guyana has a long history of small- and medium-scale alluvial mining. However, its mining-friendly policies and supportive government have attracted several foreign firms in recent years. This publication previously reported that five Canadian mining companies collectively control an estimated 15.5 million ounces of gold across various projects in different stages of development. These ventures are currently undergoing exploration, feasibility studies, and permitting processes, with first production expected between 2026 and 2028. Most of these companies have commended Guyana’s favorable regulatory environment and view their projects here as key drivers of future growth.

At present, only one large-scale gold project is in operation, the Aurora Gold Mine (AGM), owned by Chinese state-owned Zijin Mining Group Co. Ltd. through its subsidiary AGM.

Jagdeo then

In July 2022, PPP General Secretary, Vice President Bharrat Jagdeo had dismissed calls for the local content requirements to be extended to the mining industry. Kaieteur had reported that the VP was asked during a Guyana Manufacturing and Serving Association (GMSA) event whether the government would consider extending the local content requirements into the mining, bauxite, and other major industries.

Jagdeo in his response highlighted that doing that was not a part of the PPP’s plan at that time and explained that if the local content requirements were extended to every sector of the economy, “then it can kill the national momentum that we have…”

To support his position at that time, Jagdeo explained that as it is the government is having a difficult time administering the local content laws in the oil and gas sector, as they are now in the process of learning.

He noted that Guyana has to build its capacity, adding that the government does not want the legislation to promote rent-a-citizen behaviour, which is something that was recognised as a loophole in the oil and gas sector.

Jagdeo had also pointed out that the government would need to take into account that Guyana is part of the World Trade Organisation (WTO) and the Caribbean Community (CARICOM).  He outlined that it is not desirable to implement the local content legislation in other sectors because if the government starts shutting down every sector to foreigners or imposing requirements for their investment in every other area it can create a reciprocal behaviour for Guyanese investors abroad or alternately the foreign countries can put up trade barriers, countervailing taxes to prevent Guyanese products from going into their markets.

Unlocking the Potential of the Mining Sector

Moreover, the PPP said in its manifesto that it have recognised the importance of the mining sector, particularly gold and bauxite, plays a critical role in Guyana’s  economic wellbeing, generating employment and incomes that are critical to several large communities, such as Bartica and Mahdia in the case of gold, and Kwakwani and Linden in the case of bauxite.

Going forward, the party noted that they are committed to maintaining a framework that remains attractive to private investment in mining to boost production, exports, and employment.

If reelected, PPP said it will continue to work with private investors to realise new large-scale mining operations coming into production that will create thousands of jobs, and boost economies of surrounding communities.

Another plan of the party is to make more lands available for small miners to be able to access concessions and continue to invest aggressively in hinterland roads and airstrips to improve access to mining areas.

The party also said it will maintain the favourable fiscal regime for the sector, with no increase in royalties, no VAT on heavy equipment, and no tributors tax.

For the bauxite mining sector, the PPP said it will continue to work with private investors to ramp up fully the metallurgical grade bauxite (MAZ) project in Linden, which is already creating hundreds of jobs and breathing new economic dynamism in Region 10.

PPP said it will also engage with private investors to resuscitate bauxite mining at the abandoned locations in the Berbice River, and encourage exploration of other areas with bauxite mining potential. The party noted that with the landing onshore of gas resources, including the second pipeline in Berbice there is opportunity to explore the viability of alumina refining, in collaboration with private investors.

Additionally, the party promises to continue to support expansion in the production of quarry stone and sand products, the demand for which is growing as a result of the construction boom.

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• Bharrat Jagdeo, Guyana, Local Content Law, Manifesto, Mining, PPP

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