Government’s move to open new lands for mining is likely to increase deforestation and this could impact the deal under which Norway is paying Guyana to protect its forest, with the Scandinavian country last week reiterating that its focus is on keeping deforestation rates down.
Guyana is already facing cuts in payments from Oslo after its deforestation rate for 2012 rose above a benchmark set under the five-year partnership which ends next year. Under the partnership, Guyana can be paid up to US$250 million by 2015 for results achieved in keeping its deforestation and forest degradation below an agreed level and progress on REDD+ enabling activities.
However, alarm over the recent drop in gold declarations has seen government moving to open areas across the country for mining with auctions and lotteries for lands due to take place in the next few weeks. Gold exports amounted to US$648.5 million last year and Chairman of the Guyana Gold Board Gobind Ganga has said that the decline for the first five months of this year has seen Guyana losing about US$100 million in foreign exchange and approximately $1.5 billion in royalty and taxes.
Meanwhile, under the pact with Norway, thus far, Guyana has only earned US$115 million with payments last being announc-ed in 2011. Months into negotiations for Year 3 (2012) payments, Oslo and Georgetown are yet to reach agreement. In the previous year, the payment was announced shortly after the confirmation of deforestation rates but
