Major increase in gold production imminent – President Ali
The gold mining sector is poised for a major uptick in production as the government sets a target of one million ounces by 2030.
President, Dr Mohamed Irfaan Ali detailed the massive progress being recorded in the sector as he addressed a special sitting of the 12th Parliament last Thursday.
He announced that three large-scale gold mining companies are actively exploring opportunities within the Guyana Shield.
Reunion Gold Corporation (RGD) of Canada is currently operating the Oko West gold project in Region Seven (Cuyuni-Mazaruni), and Goldsource Mines Inc. operates the Eagle Mountain concession located in Region Eight (Potaro-Siparuni). These are only two of several foreign companies currently operating in Guyana,
The president explained that the long-term plan for 2025 and beyond includes a vision for sustainable growth in the mining sector in alignment with the Low Carbon Development Strategy 2030 (LCDS 2030).
“A key priority is the completion of a multi-year mineral mapping initiative aimed at supporting low-impact mining and improving planning in mineral-rich areas. The government seeks to attract at least three large-scale mining companies by 2030 with a goal of reaching gold declaration of more than a million ounces,” he said.
The government recently signed a US$1.8 million mineral mapping contract with a United States (US) company, Global Venture Consulting LLC, to facilitate strategic mining with added benefits for medium and small-scale miners.
By providing a solid foundation of geological knowledge, mineral mapping empowers mining companies to make informed decisions, enhance operations, and maximise the value of their mineral resources.
With a keen eye on bolstering the gold industry, issues of accessibility and maintaining high-quality standards are also being tackled.
Since assuming office, the administration has implemented concrete measures to stimulate production in the sector, such as distributing mining claims to small-scale miners and providing them with training and support.
Over the last four years, some 700 small miners have received land tenures, contributing to the increased production in Guyana’s mining sector.
Three lotteries were also held during this time, resulting in some 550 small miners benefitting from their mineral property. Of that amount, 150 were distributed in Bartica, while another 200 small miners in Mahdia also received land tenures.
Additionally, the government has imposed substantial fines and penalties on gold smugglers. Local authorities can now identify new tactics used by gold smugglers, largely due to the establishment of a task force and rigorous periodic assessments of gold declarations.
President Ali described the state of the mining sector that the PPP/C administration inherited and said that during his term the sector has undergone a transformative that has revitalised the industry.
The head of state lamented that the bauxite industry “contracted by 61.9 per cent between 2015-2019 and this resulted in 50 per cent reduction in the labour force in Region 10.”
Thanks to his government’s sound policies, President Ali said more than US$120 million has been invested in the industry, leading to the creation of 500 jobs since 2020.
“Over the last four years, these sectors experienced GDP growth of 255.3 per cent between 2020 and 2023,” President Ali noted.
Meanwhile, since 2020, 21 new quarry licenses have been issued, reflecting the growing interest in quarry operations and the government’s determination to help spur expansion.
Looking ahead, President Ali said that Bosai Minerals Group Guyana Inc. bauxite operations are set for progressive expansion this year, alongside an anticipated growth in stone quarry operation, which is expected to produce 4.3 million tonnes of material annually.