With an increase in deforestation affecting a forests protection pact with Norway, Minister of Natural Resources and the Environment Robert Persaud yesterday said that there will be increased monitoring of mining operations.
Speaking during the Budget 2014 debate in the National Assembly yesterday, Persaud said that while government looks to exploit Guyana’s natural resources, initiatives are underway to do so in a balanced manner. Government has partnered with stakeholders including other governments to get the support needed to generate a comprehensive geological map which will provide a depiction of where Guyana’s minerals are located thereby allowing government to engage in “sensible mining,” he said.
Persaud also spoke of the establishment of real-time satellite imagery which will be used to pinpoint and track the location of dredges, as well as mining areas. The technology can be used to pinpoint deforestation hotspots and track locations where illegal mining is taking place, the minister said. Government has also enlisted the assistance of the Guyana Defence Force (GDF) which Persaud said has agreed to monitor mining areas from the skies. He also said that talks have been initiated with private aircraft operators in an effort to get them to provide additional support to monitoring efforts.
The stepped-up efforts follows confirmation that Guyana’s deforestation rate has increased and Guyana stands to lose about US$20 million under its performance-based forests protection pact with Norway. The increased deforestation is as a result of increased mining.
Persaud also told the House that on-the-ground manpower will be enhanced as the ministry is looking to construct 15 mining stations to supplement those already in existence. The minister further said that government is collaborating with the World Wildlife Fund (WWF) and a range of other partners to enhance environmental monitoring.
Government is also boosting the capacity of the Environmental Protection Agency (EPA) and is looking to establish an environmental division within the GGMC, he said. Residents of Amerindian communities will also be trained so as to increase monitoring capacity, the minister added. This ought to be helpful since these residents are close to areas which require monitoring, he asserted.
Meantime, more investments in the gold mining sector are expected this year.
Gold and Diamond Production
Earlier, the minister lauded small and medium scale miners who were able to produce and declare in excess of 481,000 ounces of gold last year. He pointed out that this is the first time that this has been accomplished without the contribution of large scale miners. The last time this was done, he added, was when Omai was also involved in gold mining.
The minister said that small and medium scale miners were granted concessions including duty-free concessions. Through such initiatives the ministry has helped small and medium-scale miners to acquire around 150 excavators, 190 ATVs, and a number of tractors and trucks. Also, while miners are able to source single-cab pickups to help run their operations, Persaud said that the ministry is looking at regulations to be able to provide small miners, particularly women, with double-cab pickups and cars.
Further, he said, the ministry is facilitating the acquisition of mercury-free technology as it moves towards phasing out the use of the substance in mining operations. A number of companies, through concession granted by government, have been able to supply miners with the mercury-free technology. By the end of 2013, around $1 billion was spent on efforts to move away from the use of mercury in mining operations, he said.
Responding to statements made by APNU MP Joseph Harmon that the support given to miners is insufficient, Persaud countered that both the Guyana Geology and Mines Commission (GGMC) and the Guyana Gold and Diamond Miners Association (GGDMA) are working along with the ministry to provide the support that small and medium-scale miners need.
With regard to the “unstable” price of gold on the world market, the minister said that methods have been adopted to cushion small miners.
Forestry
Meanwhile, declaration of diamonds is up by over 55 percent and quarry production has increased by as much as 40 percent. This is a result of developments in public works and speaks to private construction taking place in the sector, Persaud said. He also said that production from the forestry sector has increased by close to 10 percent, largely due to improvements in the production of value added goods. As a result of the increase in value-added, log exports have decreased by about 12 percent while the production of value-added products have spiked by around 30 percent, the minister asserted.
Persaud said that these advancements have been made as a result of the the sector’s realization of its prospects and its decision to capitalize on those prospects.
Bauxite
With regard to bauxite production, Persaud said that several challenges have been encountered but they have not been significant enough to hinder progress. Two major companies, he said, have invested a total of US$17 million while plans to enhance production and exports, abound.
Through the efforts of government, the minister declared, the bauxite industry has been resurrected through foreign direct investment thereby reviving the communities which were once “abandoned.” The investments have led to continuous developments in the sector which is poised to expand this year thereby creating employment opportunities, Persaud said.
He further disclosed that Russian bauxite company RUSAL had to adjust their initial proposal due to the realities of international conditions but the adjustment did not adversely affect communities or the environment. Also, three new bauxite mining areas are soon to be developed. They are expected to have lifespans of 20 years each. Government expects the added investment to produce 500,000 tons of the mineral per annum, he said.
Oil and Gas
In relation to oil and gas, Persaud said that productions prospects, once economically viable deposits are found, are good. He said that REPSOL has started exploration in the Kanuku block, while Exxon is preparing to carry out its own explorations.
Anadarko was also engaged in exploration in the Roraima Block but the unresolved maritime delimitation disagreement between Guyana and Venezuela has put these explorations and any findings it might turn up, on hold, he said. Tullow Oil, Exxon Mobil and CGX are also involved in exploration exercises of their own, the minister said.
Diversification
Government is also looking to ascertain what other minerals can be found in Guyana’s soil. Persaud told the National Assembly that this was the objective behind the granting of the Permission for Geological and Geophysical Survey (PGGS) to Muri Brazil to carry out the survey in the New River Triangle Area. According to the minister, that effort was particularly aimed at ascertaining the presence of rare earth elements, known to be a very scarce, expensive commodity.
