Gold performance remains admirable

DPI, GUYANA, Monday, November 27, 2017

Gold declarations are projected to remain stable despite an expected decline in the price of the precious metal by the end of 2017.

Minister of Finance Winston Jordan today outlined the performance and projections for the mining sector, during his presentation of the 2018 National Budget to the National Assembly.

Minister Jordan stated that the declaration for 2017 is expected to amount to approximately 712,706 ounces. This surpasses the initial 700,000 ounces projection. The Minister anticipates that 2018 projections will surpass this.

This performance is expected despite the fluctuation in the gold prices on the international market. Gold rose to approximately US$1,350 per ounce, a 2 percent increase in the third quarter of 2017. The increase is believed to be driven by strong investment and a weakening US dollar.

The minister explained that this price is not expected to stay up with an anticipated decline by the end of 2017, and into 2018, due to an anticipated rise in US interest rates and a strengthening of the US dollar.

Meanwhile, the industry is still trying to arrest the issue of smuggling of gold out of the country. “Not only is this hampering our nation’s development, it also casts a shadow over other law-abiding miners”, Minister Jordan said.

This year, a team of trained wardens deployed in mining areas were tasked with enforcing mining regulations and other relevant laws. Another 41 wardens are expected to be deployed in 2018.

Additionally, the government will be regulating the importation of mercury come 2018 with a view to reducing its use. This is in keeping with its international commitment to the Minamata Convention on Mercury.

Gold and Diamond remains the economy’s most valuable contributor and the government has waived $64.4M in vehicles and $188M in fuel imports, as part of enabling small and medium scale miners in the industry.

 

By: Tiffny Rhodius