Up to this week, gold declarations totalled 106,000 ounces—about a third of the target this year—but Chair-man of the Guyana Geology and Mines Commission (GGMC) Board of Directors Major General (rtd) Joe Singh expressed worry that some of the production is being smuggled out of the country.
The figure should be higher if everything is being declared to the Gold Board, Singh told miners at the bi-monthly meeting of the Guyana Gold and Diamond Miners Association (GGDMA) on Wednesday. He referred to stories of people going into certain interior airstrips with money to purchase gold. “Where that gold is going I have a suspicion because I understand that there’s a lucrative cross border movement of gold,” said Singh.
The GGMC Chairman’s view was not shared by one miner, who said he did not believe there was large-scale smuggling and he referred to internal trading.
Earlier, Singh had said that illegal mining contributes to smuggling, saying that this gold does not go to the Gold Board because “how do you declare gold from an illegal operation?”
“The country suffers, you suffer and the revenues that could be generated and the declarations that could be generated from the mining sector are all compromised,” Singh said as he appealed to the miners to play their part in arresting this situation. He acknowledged that their function is not to find out who is smuggling gold. However, he said smuggling is a reality and he suspected that many of the miners know how the system is working.
It would be helpful to arrest the situation not only because of its illegality and linkages to perhaps other “deviant activities,” but it is unfair to the miners who have to deal with the challenges to recover the gold “while others are just there collecting and not having to go through those sacrifices,” Singh added. He stressed that there is a collective responsibility from the Commission and the GGDMA to ensure that best practice prevails.
Singh addressed several issues, including corruption, saying that any GGMC officer found in any compromising position will be dealt with condignly even as he stressed the need for evidence for action to be taken. “I have not seen any proof in the three months that I’ve been there of the allegations which have been made. I’ve not seen anything that can be followed through,” he said.
The GGMC Chairman told the miners there is no point in making an allegation if there is no proof to back it up, while questioning how they could take action against someone without evidence. He urged that complaints be followed up. “We’re just perpetuating an evil and that corrupt influence will continue and it will influence others,” he warned.
Singh spoke on his role, stressing that consultations will be a major part as changes come to the sector. There is a future for mining, he assured. “I am not anti-mining, you have a friend sitting here but if we are to maintain this friendship we have to work hand in glove. We have to ensure that we observe the Act, the regulations and those who are perhaps not represented by the GGDMA, that they are encouraged to put themselves in order,” he told the miners.
Additionally, he noted that the sector is growing yet the staffing and reorganisation of the GGMC remains the same. “We cannot continue to have this runaway arrangement and the organisation and management of the sector is not on a firm footing,” Singh said. He suggested several ways in which staff could be recruited and pointed to the need for training and experience.
Meanwhile, Singh suggested that the regulations need retooling to reflect new methodologies, new systems and new ideas. As well, he floated the idea of the boundaries of the current six mining districts being redrawn. Singh also explained aspects of the Guyana’s forest agreement with Norway and how it will affect the sector. There is a future in mining in accordance with rules, he said, even as he emphasised that consultations will be a critical part.
The miners took the opportunity to raise several issues of concern, including security, rising transportation costs, and proposed new rules.
Executive Director of the GGDMA Edward Shields raised the topic of rates and royalties being increased and told the miners that Prime Minister Samuel Hinds has said that he does not know about any discussions on the raising of rates. However, Shields said, the Prime Minister said implementing a windfall tax for large-scale mining operations is being discussed. He has said that this will not be for small and medium-scale operators, Shields reported.
