Investor confidence, continued high prices augur well for gold mining

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THE gold mining industry is a principal destination for inward foreign direct investment (FDI), and the demonstrated level of investor confidence and anticipated continuation of high price levels augur well for the sector this year. Finance Minister Dr. Ashni Singh made this upbeat projection about the industry during his 2013 Budget presentation; asserting that every programme, every project, every activity contained in Budget 2013 takes Government one block closer to building Guyana and a better quality of life for its citizens.

Dr. Singh reported that the gold mining sector has been playing an increasingly important role in the domestic economy, with production reaching unprecedented levels. He said the growth of the industry has resulted in significant job creation and multiplier economic activity in mining communities, and indeed throughout the country.

Increased investment in the sector has resulted in innovative technology being utilized; and, for the first time, a local miner is engaged in hard rock mining, while more land dredges and water pumps are being utilised to enhance efficient recovery and production.

Guyana Goldfields Incorporated and ETK/Sandspring Resources Limited are just two of several large-scale investments in the sector, and both are expected to commence commercial production by 2015. These two investments alone will generate 550 jobs during their development phase, and another 400 during mining operations.

Other large-scale investments by Sacre-Coeur Minerals Limited and Eagle Mountain Gold Corporation are underway, and are anticipated to commence operations in 2014.
 
Declared gold production of 438,645 ounces was the highest recorded in the entire history of the gold industry, excluding Omai production; and was 20.8 per cent higher than in 2011.
The Guyana Gold and Diamond Miners Association (GGDMA), representatives of local gold and diamond miners, recently announced that members are working towards a declaration of 460,000 ounces of the precious metal this year.