A GINA feature…
For Centre
GUYANA’S vast natural resources in terms of land, rivers and streams, known the world over for their rich mineral deposits, form the core of the country’s mining industry, providing employment for thousands, while contributing significantly to its foreign exchange earnings. Once believed to be the location of El Dorado, the fabled ‘City of Gold’, Guyana, because of its rich gold and diamond resources, continues to attract both local and foreign investors who venture into the various regions of the country where large gold and diamond deposits are still found today.
In 2008, Guyana’s gold production accounted for 25 per cent of its export earnings, while the gold and diamond mining sector contributed to a larger percentage of the Gross Domestic Product (GDP) than sugar has over the last 10 years.
In 2009, the industry declared a whopping 300,000 ounces of mineral, thus making its mark as a propelling force behind the growth of Guyana’s thriving economy.
It goes without saying that the government recognizes the importance of this sector and the role of small and medium-scale miners who continue to be the driving force behind this important revenue generator to the economy.
But while it is appreciative of the price for gold on the world market at an approximate US$1000 per ounce and its effect on the country’s economic growth, the administration is also cognizant that the activities involved in mining, if not managed efficiently, can be harmful to both humans and the environment.
It was because of this realization that the sector was brought under the spotlight as the recipient of much scrutiny and priority as all efforts are being made to aid its transformation and ensure sustainability.
In this light, Government advanced its efforts to implement measures and regulations aimed at aligning the industry with Guyana’s Low-Carbon Development Strategy, which forms the pathway to development with forest preservation at the core.
Mining investments
Mining over the years has improved as a reputable sector, providing a source of employment for residents in many hinterland communities across the country while contributing to the country’s GDP.
Head of the Guyana Office for Investment (Go-Invest), Mr. Geoff DaSilva said that there is massive investment in mining, and the projects which the agency has facilitated do not reflect the reality of the investments that are being made in the mining sector.
“We don’t work with a lot of the mining projects directly; we work with a select few in agreement with the Guyana Geology and Mines Commission (GGMC),” Da Silva said.
Go-Invest has facilitated five projects in mining during the first quarter of the year which do not include the projects that are handled by GGMC.
Guyana Goldfields, a Canadian company, recently invested CDN$2M in a mining project that involves sediment sampling, trenching, and drilling.
The project is being done at three locations; Mad Kiss, Aleck Hill and Rory’s Knoll. The latter is considered the core of the project site and is where the bulk of the mineralised contents are, pyrite (a common mineral, found in a wide variety of geological formulation from sedimentary deposits) and gold.
Making mining more environmentally safe
Stakeholders in the mining industry were provided with the necessary information pertaining to the existence of the sector in the context of Guyana’s LCDS through a series of consultations conducted by the GGMC in collaboration with the Office of Climate Change.
During the consultations miners were assured of Government’s commitment to ensuring that the livelihood of miners was not threatened and that mining will continue even after the implementation of the LCDS.
The consultations clarified various misconceptions among stakeholders and provided information about enforcement and new regulations in the sector.
Land-use committee
Government established the Land-use Committee headed by Minister of Transport and Hydraulics Robeson Benn in December 2009 to regulate the activities of small and medium scale miners.
One of the responsibilities given to the committee was to enlighten miners about a new policy that requires that a formal notification be given to the relevant authority, in this instance the Guyana Forestry Commission (GFC), whenever there is need to relocate, explore mining options and cut trees in different areas.
This is to reduce instances where miners have relocated to other areas without exploiting the original site.
The regulations will encourage miners to plan their affairs in a formal way allowing the necessary forestry and mining agencies to assess the virtue of allowing mineral extraction that is environmentally safe, in a particular, evaluated location.
It would also allow miners the opportunity to budget responsibly considering the investment capital and the need to repay bank loans and credit from business associates.
Therefore they can look forward and prepare a programmed agenda where they can project the new desired location prior to the conclusion of operations at the existing mining site since there must be reserves in mind, with one year or as much time as is necessary to begin the safe removal of trees and topsoil.
This move requires a change of mindset and thinking to be receptive to the notification requirement that will benefit miners by helping them to plan and avoid mining on depleted land and debt payments on equipment.
Maintaining safe environmental practices
To ensure that the large equipment and machinery used in mineral extraction do not impact negatively on the lives of residents in surrounding communities especially as it relates to water contamination and pollution, Government has taken steps to ensure that any water reaching streams through the use of such equipment will be measured according to the National Turbidity Unit to ensure that it is non-toxic and pollution free.
The Institute of Applied Science and Technology (IAST) and GGMC work with miners to ensure that effluent does not affect or contaminate rivers and the aquatic life therein, remain clean.
The GGMC compiles quarterly reports which ensure that turbidity measurements are done across the country and that mercury if used is done so in a safe specified manner. Mines officers continue to visit sites to ensure that the necessary equipment are being used and in a correct manner.
Gold production
Over the past 20 years there has been a steady increase in the number of small and medium scale miners in Guyana.
In 2009, 305,000 ounces of gold was declared an amount that was made more impressive when one considers that the number reported represents the combined output of approximately 700 individual operations with a disparity in the size each individual declaration which vary from 10-20 ounces to 10,000 – 20,000 ounces from a wide range and a large number of miners and sizes of extraction location.
Though production declined in the early part of 2009, 94,000 ounces of gold was declared for the first quarter at the end of April 2010 the declaration was 111,000 ounces.
By the half of the year gold production in Guyana was on target having surpassed the numbers of the previous year.
Ensuring Safer Mining Practices
The low-carbon path which Guyana has taken requires stricter monitoring and regulation within the mining sector.
Over the past months several stakeholders in this sector have been meeting to discuss its future in light of Guyana’s new development model which seeks to gain compensation for the carbon services that its forests provide to the world.
Several stakeholders of the GGMC and the Guyana Gold and Diamond Miners Association (GGDMA) and the mining community held mee
tings to review the sector for alignment with the revolutionary Low Carbon Development Strategy (LCDS).
The (GGMC) in collaboration with the Labour Ministry, drafted a new set of occupational health and safety regulations for miners which requires adherence to the health and safety regulations and ensure that they are enforced at all times.
Miners are expected to ensure that they comply with provisions of the Occupational Health and Safety Act while operating within the parameters set for effective monitoring systems and inspections, investigations and inquiries in mines to improve safety for miners and minimise accidents on the ground.
Mine owners are also required to provide for the safety needs of their workers by providing the necessary gear for protection against hazards.
The safety regulations also stipulate that no worker should be allowed to work alone in any place where his/her safety may be compromised by the inability to communicate directly with another person.
Miners are also required to make provision where necessary to contact any worker working alone personally or by radio, telephone or other suitable means at least once in every two hours. Only competent workers should be allowed to work alone in an underground mine.
The employer is further required to ensure that at no time, a worker is working where another is working overhead unless measures are taken to protect that person’s safety.
The employer is mandated to maintain an effective record of mine workers’ movements, and for this record to be constantly examined and a report made if any worker is unaccounted for.
The regulations also stipulate that a mine supervisor examine the underground worksites at set intervals and ensure that hazardous areas are identified by appropriate signs.
Additionally, it is the mine owners’ responsibility to ensure there is adequate lighting for ground assessment works in the mine.
Employers are mandated to provide a second entrance and exit in mines for safety purposes and to ensure that there is no unauthorised water accumulation; that dams and drainage are effectively used to minimise water accumulation, and those dams are subject to inspection.