Neither the LCDS nor the Norway MOU suggests the cessation of mining

We at the Guyana Geology and Mines Commission read Fidel A Captain’s letter in your December 30, 2009 edition and shared the feeling of great elation that the Guyana Gold and Diamond Miners Association had called on the gold miners to meet and exceed the target of 300,000 ounces of gold for 2009. We too laud this successful industry and recognize that its contribution to the economy of Guyana cannot be denied. We detect, however, that his perspective on the MOU between Norway and Guyana is not grounded on the factual information contained in the LCDS document. We offer the undermentioned facts, as they relate to mining and the LCDS.

1.  Neither the LCDS nor the MOU demands, requires, or suggests the cessation of mining. There is therefore no need to consider remuneration of miners under any programme since the miners will be busy earning a living mining for gold, diamonds, bauxite, sand, stone etc There is no need to consider alternative employment for those who depend on mining since mining will be proceeding apace. There will be no need for remuneration of the Guyanese nation for the minerals in our earth, since exploration will continue to detect and define those minerals and mining will produce them for earning of revenue and other benefits for the citizens of Guyana.

2.  The LCDS and the MOU with Norway both expect, and require that the miners continue to improve their efficiency and effectiveness in all areas. The Guyana Geology and Mines Commission and the Guyana Gold and Diamond Miners Association have always urged the miners to comply with all the applicable laws. The thrust for miners to operate in accordance with acceptable international standards continues to get stronger and certainly predates the LCDS and the MOU with Norway. No one can deny that this thrust is vital and we at the Guyana Geology and Mines Commission acknowledge the positive support the Guyana Gold and Diamond Miners Association has been giving in this regard.

3. The MOU between Guyana and Norway allows Guyana to gain revenue of US$250m over a five year period. This revenue cannot be directly compared with the US$300m gross sales value of the gold bought by the Guyana Gold Board. The comparison should be made with the US$21m revenue and other net benefits from the mining of the gold.

The local gold and diamond mining industry has been increasing its excavation capability and has started focusing on mercury abatement methods, improved recovery systems, as well as on improving exploration methods and equipment. The Environmental Regulations for Mining came into force in March 2005 and, following an education and awareness campaign targeting the mining community, enforcement began. These regulations will be strictly enforced in 2010, and beyond.

In addition, the Guyana Geology and Mines Commission in its work programmes and activities over the years has long had a focus on improving gold and diamond recovery, and recovery of other economic minerals This focus had a dual purpose, to improve the economics and efficiency of the mining operations, with benefits accruing to environmental management through cleaner recovery methods; and, better ability to afford such environmental management. Guyana Geology and Mines Commission has actively promoted exploration by medium scale miners, and environmental and social awareness and responsibility in mining-

Guyana Geology and Mines Commission has also partnered with others — notably the UNDP, WWF and CIDA, to undertake collaborative projects for environmental management, and building capacity in GGMC and among miners and community representatives for environmental management. The GoG/UNDP Capacity Building for Management of Natural Resources and the Environmental Project: Sub Project for Capacity Building and Education and Awareness of the environmental regulations for mining was concluded in January 2009. The CIDA funded Guyana Environmental capacity Development (GENCAPD) Phase 2 Mining and Communities Project, and the WWF funded Promoting Sustainable Gold Mining in the small and Medium Scale Gold Sector Project, are ongoing with GGMC and GGDMA as the main participants. As these projects are executed in partnership with GGMC, they strengthen our efforts in environmental management in mining, widen our reach, affirm our results and achievement, while building capacity for environmental management.

Thank you and a happy New Year to one and all.

Yours faithfully,
William Woolford
Commissioner (ag)
GGMC