New regulations will kill small operations

“The Bartica protest was no political gimmick. Miners and their families and the various other businesses operations that service and depend on the industry are fighting for their economic lives,” the source said. “The truth is that no one believes the assurances which the government has been seeking to provide that it means the mining sector no harm. We do not believe that it is a matter of spitefulness. The government has simply been caught in a bind and has decided that mining will have to carry the can.”

But according to the mining sector investor the enforcement of the new regulations, which the majority of miners oppose, could inevitably result in “chaos and confusion” in the industry. Up to early this week, Stabroek Business had been told that neither side appeared likely to back away from its position on the new regulations. However, on Wednesday, the day prior to yesterday’s crucial meeting between the Land Use Committee set up by government and President Bharrat Jagdeo this newspaper learnt that a compromise position might have been emerging.

The mining official told Stabroek Business he believed that at the heart of the new regulations was a move by government to provide verifiable evidence of its commitment to more responsible environmental practices. “What I also believe – what the vast majority of the mining community believes – is that government’s pursuit of enhanced environmental credentials is aimed at satisfying its agreement with the Government of Norway and meeting the environmental standards set in the President’s Low Carbon Development Strategy and that this can only be done at the expense of the mining industry.”

Fighting for their lives?

The source challenged what he said was “a view being put around in official circles” that the mining community did not understand the implications of the focus on what he described as “a new set of environmental standards” for the operation of the mining sector. “It is clear – and it says so in the agreement with Norway – that the LCDS now means that the government will now have to make a stronger and verifiable commitment to reducing emissions from deforestation and forest degradation and to what the environmentalists call the sustainable management of forests. Obviously, in its quest to fulfil that commitment it will take a much closer look at the operations of the mining and forestry sectors.  We do not oppose this. Our point is that whatever commitments are made must take into account the economic and social roles that the two sectors play in the lives of Guyanese and in the development of the country.”

When Stabroek Business spoke with Executive Director of the Guyana Gold and Diamond Miners Association (GGDMA) Edward Shields on Tuesday he declined to comment on the likely outcome of yesterday’s meeting though he did not rule out the possibility that it might yield a compromise.

However, the mining source told Stabroek Business he was aware that some miners had been seeking to fashion a compromise position that sought to reduce the six-month waiting period for the commencement of mining operations on new claims. He said he had been notified that the proposed compromise had been discussed among some members of the Land Use Committee which includes both government officials and representatives of the mining sector. “I can tell you that the general feeling among the miners is that government may have already made up its mind about this new regulation. I think that the time for compromises may have past and gone.”

Government officials, including President Jagdeo and Prime Minister Samuel Hinds have publicly indicated the administration’s intention of proceeding with the enforcement of the six-month regulation. However Agriculture Minister Robert Persaud, when he had addressed miners at Bartica while acting in the capacity of prime minister had suggested that some miners may be exempted from that regulation.

The mining industry official told Stabroek Business that the decision to impose the new regulation had taken no account of the nature of the mining sector and the impact that such a regulation would have on mining operations and on the various other business pursuits that depend on mining. “What are the miners expected to do during this waiting period. Sit around and wait while millions of dollars in resources are tied up. We have had anxious enquiries from those other sectors that are responsible for air, sea and land transportation, equipment acquisition and ration suppliers. All of them are concerned that their businesses will suffer if the six-month regulation stays.”

Two weeks ago Shields had told Stabroek Business that he believed attempts to enforce the new six-month waiting period could lead to “chaos” in the mining sector, a view which this newspaper’s source endorsed. “That is clearly a possibility. What will very likely happen is that rogue miners will simply raid those areas that are awaiting official approval for legitimate mining and those miners who have invested heavily in those claims will simply not allow that to happen. I cannot think of any workable security measures that will stop that kind of lawlessness from happening,” the source said.

Meanwhile, the source also endorsed the view expressed by Shields that the focus by government ought to be on enforcing existing mining regulations rather than putting new ones in place. He said the miners had made it clear through their association that they stood ready to abide with existing regulations and were prepared to support the efforts of the Guyana Geology and Mines Commission (GGMC) to take action against those who break the law. “The problem is that lawlessness has taken root because of the problems associated with enforcement of regulations. What we are advocating is that as part of its effort to enhance its international environmental credibility the government should seek to do more to ensure that the regulations are enforced,” the source said.