Guyana warns against under-reporting of gold output

The Guyana government is charging that while there has been a significant increase in gold production last year, the under-reporting of output is depriving the country of much-needed foreign exchange.

Natural Resources and Environment Minister Robert Persaud said last year, gold production was recorded at 363,083 ounces, approximately 14 per cent above the projected 320,000 ounces.

But Persaud said that while this is very significant, it does not fully reflect true production.

"Stakeholders will tell you that perhaps gold production might be in the range of 600,000 ounces," Persaud said, noting that gold prices are expected to reach close to US$2,000 per ounce by the end of the year.

"We can have the most robust system but ... if you have players within the sector itself that are encouraging and supporting the violations, then it will not be effective," Persaud said.

Figures released by the government also show that bauxite production was estimated at more than 1.7 million tons, four per cent higher than what had been projected.

Persaud said that the mining sector is carving a path of greater development as four mineral agreements were signed between the Guyana government and international investors with access to international markets.

Sandspring Resources Inc and its associate ETK Inc signed a deal for a large-scale operation that has the potential of contributing about US$550 million annually with gold production estimated between 250,000 and 300,000 ounces annually.

Guyana Goldfields also signed an agreement last year valued at US$1 billion to develop the Aurora Mines.

But the authorities note that diamond production has decreased as a result of the rising gold prices which have resulted in more miners going into gold production.

- CMC