A new series of proposals from the government also moots veto power for the forestry commission over mining decisions.
It was the latest sign, as several miners had voiced concern, that the Low Carbon Development Strategy (LCDS) and the recent forest protection agreement with Norway will affect mining. Last month, President Bharrat Jagdeo had stated that plans were being drawn up to increase the coordination between the Guyana Geology and Mines Commission (GGMC) and the Guyana Forestry Commission (GFC). He stated at the time that new procedures and practices must not be so bureaucratic as to strangle operations.
Stabroek News understands that the new proposal has been drawn up by the Office of Prime Minister Samuel Hinds, who has responsibility for the mining sector. According to the proposal, for mining activities to commence within the sector, the miner would have to conduct exploration and make relevant submissions to the GGMC. The mining commission will then forward the miner’s findings to the GFC for any clarifications before a final decision is made.
According to a source within the industry, the proposal hinges on the GFC playing an integral role in the vetting of mining activities in forestry concessions, noting that the bigger picture reflects consequences which the industry may have to bear with the implementation of the LCDS, which has been presented as a development strategy for the country.
According to the source, the mining industry has been making necessary adjustments in light of the relevant requirements of the LCDS. The source said that historically, the relationship between the mining and forestry sectors has been healthy and the conditions, under which those within the sector may have to operate in future, especially the small miners, may not bode well for the mining sector. He said that there are persons within the mining sector who are also engaged in logging, and according to the source the mining sector has been taking steps to curtail damage to the environment.
The source noted that a mining claim encompasses roughly a 27-acre plot of land while a forestry concession usually covers thousands of acres of land. The source stated that the GFC has been enforcing existing regulations which foresters are not comfortable with and according to him, against this background, both sectors may see a decrease in output since many may opt out of both productive industries.
As regards the small miners, the source stated that it is virtually impossible for a small miner to work in tandem with a six-month prior-notice requirement, noting that the timeframe will see the miner eagerly awaiting the outcome of his prospect’s findings, not knowing whether he/she would get the go-ahead to mine.
Front burner
Executive Director of the GGDMA, Edward Shields when contacted for a comment yesterday told Stabroek News that the GGDMA received the proposal recently and the body has since called a Special Members Meeting on January 8, 2010 where the issue will be on the front burner. He said that he believes that the persons within the mining industry, more so the small miners may not be in agreement with the proposal but noted that all concerns will be discussed when the meeting is called next Friday. GGMC Commission-er William Woodford is expected to be present at that forum.
The notice for the meeting in yesterday’s issue of the Stabroek News says that the forum will also consider the GGMC’s proposals “to increase monitoring and readily detecting and disciplining infractions of Mining Laws and Regulations”.
At a dinner earlier this month at State House, President Jagdeo had warned miners about tougher scrutiny and had announced plans to greatly increase the number of Mines Officers stationed throughout the hinterland to monitor all operations.
A December 9 statement on the dinner from the Office of Prime Minister Sam Hinds had said an issue has existed for many years between the mining and timber sectors about the felling of trees and otherwise degrading forests in the course of mining. It said that this contention has been steadily intensifying in step with the growing need for wood exports to be ‘forest certified’. “The recent agreement with Norway through which Guyana receives payments for avoided deforestation and degradation now puts a significant monetary and moral cost to any unnecessary degradation of forest areas for any purpose”, the statement asserted.
According to the statement, Jagdeo assured the miners that he recognized and applauded the contribution of the sector to exports and in providing purposeful work to thousands of persons. “Following recent Cabinet discussions, plans are being drawn up to increase the coordination between the GGMC and the GFC and greatly increase the number of officers of the GGMC to be stationed at various locations throughout the hinterland to increase the monitoring of all mining operations”, the statement said.
Several miners had expressed concerns that a proposed requirement that miners carry out exploration before they would be allowed to mine will see as much as 80% of small and medium-scale miners being forced out of business. One miner, former President of the GGDMA Patrick Pereira had called for the exemption of 7% of Guyana’s total forested area, amounting to just over one million hectares for small and medium-scale gold and diamond miners to mine under present alluvial conditions.
Ever since the LCDS came into to being, the authorities have been taking steps to tighten regulations in the relevant industries and the mining sector had been under increased focus, with miners being told that they would have to radically transform their mindset and operations. President Jagdeo has stated that the LCDS would not see a cessation of economic activities in the forest, and he assured that no rule would be made to shut down the entire industry.
However, several miners had expressed concern that the exploration proposal and its requirements may see as much as 80% of small and medium scale miners being forced out of business.
Immediate past President of the GGDMA, Alfro Alphonso told Stabroek News several months ago that if the exploration requirement and other regulations are enforced, only the large scale miners will remain in the industry, since according to him, to comply with regulations will be very costly.
