Jagdeo says ‘rich’ miners in $30m campaign against reforms

This is according to President Bharrat Jagdeo, who was speaking at a press conference yesterday at the Office of the President. The Head of State reiterated that the administration’s plans to reform the sector will go ahead. He said that the authorities would not want to act unilaterally where reforming the sector is concerned and according to him, “If we cannot do it together, we will have to go alone”.

He noted that there are a few persons within the sector who “feel that the mineral wealth belong to them”. The President said that a Memorandum of Understanding (MOU) was discussed with those within the sector prior to the launching of the Low Carbon Development Strategy (LCDS) which related to changes which would have to be made to the mining sector.

According to the President, those issues which were discussed related to the phasing out of the use of mercury in the mining sector, discussions on a MOU between forest lease holders and the holders of mineral licences, as well as restoration of mined-out areas. As regards the MOU between forest lease holders and licensees in the mining sector, the President noted that if the miners were to indiscriminately cut down trees as they go about their mining activities, the loggers would end up facing penalties and according to him, this was discussed several years before the launching of the LCDS.

He stated that when he met with miners last year at a forum at the Tower Hotel, a number of persons, the small miners in particular, questioned when the authorities would return to prospecting before mining, their concerns hinging on the bigger miners’ use of their excavators to cut down trees. “Even the sector recognized this”, the President noted.

He said that there are a few “rich” persons within the industry, some of whom do not declare their  gold assets, who believe that the industry belongs to them, and according to him, he gathered recently that such persons have raised $30M to facilitate the other  miners to protest, informing them that the administration plans to regulate them out of the industry.

The President stated that the administration is prepared to work with the sector and he downplayed concerns that the government wished to shut down the sector.

At a special meeting called by the Guyana Gold and Diamond Miners Association (GGDMA) on January 8 this year, miners turned out in large numbers when issues relating to the administration’s plans to reform the industry were discussed with GGMC Commissioner William Woolford. Discussions covered the six-month proposal as well as the Guyana Forestry Commission (GFC) having veto power on the commencement of mining activities.

As the miners called on the authorities to reconsider the 6-month proposal, they noted that the proposal is a threat to their existence and called on the authorities to withdraw the proposal. GGDMA President Norman McLean stated that the GGDMA has written to the authorities to have the proposal withdrawn  as well as informing  the relevant government  agency that it was “not necessary” for the GFC to have veto power.

GGDMA Executive Director, Edward Shields stated at the forum earlier this month that the body was not aware of the proposal at its birth, noting that it was brought to the fore without consultation with the GGDMA.

The recent 6-month proposal before mining can commence as well as plans for the GFC to have veto power over mining decisions are the latest signs, several miners stated recently, that the LCDS and the recent forest protection agreement with Norway will affect mining.

Ever since the LCDS came into being the authorities have been taking steps to tighten regulations in the relevant industries and the mining industry has seen increased focus, with miners being told that they would have to radically transform their mindset and operations. Several miners have stated that the exploration proposal and its requirement would see the industry being reduced to 10 to 15 small and medium scale miners to salvage what would remain in the industry.