By Alva Solomon 

Against the backdrop of a healthy month of gold production in January and a rise in favourable gold prices on the international market, government will this year take steps to strengthen the mining sector, including in the field of the bauxite where an alumina plant is being planned for Linden. Natural Resources Minister, Raphael Trotman told the National Assembly last evening during the budget debates that some 35,000 ounces of gold had been recorded for the month of January. He said that the price of the precious metal rose to USD$1,200 and according to him analysts are optimistic that the price will rise to USD$1,400 before the end of this year.
Quoting from an online publication , ‘The Week’, he said that the publication favourably reported – “But the trajectory over recent weeks is clear: from a near seven-year low around $1,000 back in December, gold has been setting higher peaks and shallower troughs’.
Trotman said that Finance Minister, Winston Jordan has already indicated that this year gold production was expected to again do the heavy-lifting by providing a minimum of 550,000 ounces to the national quota, an increase of 22% over the total 2015 production.
He said that in spite of the downturn in bauxite, a figure of 13.4 % and quarrying which stood at 0.3%, the mining and quarrying sector grew by a strong 9%, thanks to a very dominant performance by gold, which grew by 16.4 %.
Trotman said that stakeholders within the gold industry including the miners, the Guyana Gold and Diamond Miners Association (GGDMA ) and the Guyana Women Miners Organisation (GWMO), and the larger mining companies have given assurances to the government that the targets will be met.
He said that in 2015 the gold industry had seen a number of highlights, including the establishment of an Anti-Gold Smuggling Task force which was created to address allegations of rampant gold smuggling. In addition he said that the implementation of the roadmap for Minamata Convention on mercury for mercury- free mining which is a cause of concern for all, was also effected.
As regards the bauxite industry, Trotman said that this year the Government would move to implement its manifesto commitment to ensure the creation of a “high level technical team to develop plans to examine the possibility of an international scale alumina refinery in Linden.” He said that the Opposition will be invited to participate in this exercise and he expressed hope that “their patriotism would not wane to a point where they say no to the invitation.”
He said that the bauxite sector underperformed in 2015, largely due to low commodity prices and this year the industry was forecasted to face challenges, as commodity prices are expected to remain low. The forecast for the next decade is positive, he noted , as it was expected that bauxite projects worldwide would have to be enhanced and developed to supply alumina capacity growth in China, the Middle East and India.
Trotman noted that the RUSAL Bauxite Company and the BOSAI mining Company, the two companies currently operating in Guyana, were holding their own and another company, First Bauxite Inc. was making preparations to mine as soon as there was an upturn in the world’s economy and financing was available.
Meanwhile, the forestry sector is this year expected to produce 550,000m3 with export value at US$54M.
Trotman told the National Assembly that work was underway to support sustainable forest management and trade and ensure access to the international forest products market.
He said that Government would continue to work along with the international community to develop a comprehensive, equitable and sustainable international regime of compensation for the provision of climate amelioration services by countries such as Guyana.
As regards the budgetary allocation for the natural resources sector, Trotman said that the monies were necessary to support the continued development and implementation of robust policies related to the nation’s natural resources.
To this end , he said this would be done while coordinating the network of implementing agencies under the purview of the Ministry, and monitoring and evaluating the country’s programmes in the areas of natural resources and the environment.