Overview
The mining and quarrying sector represents a critical component of Guyana’s economy, given that it contributed 12.15 % towards Guyana’s GDP. Guyana’s mining sector is currently focused on gold, bauxite and diamonds, while mineral commodities accounted for 39.96% of Guyana’s total exports in 2020. The country has also deposits of other minerals such as semi-precious stones, laterite, manganese, kaolin, sand resources, radioactive minerals, copper, molybdenum, tungsten, iron, and nickel.46 The country’s geology can be sub-divided into the Northern and Southern provinces, and the Takatu Graben Basin:
- northern Guyana is underlain predominantly by the Paleoproterozoic Barama Mazaruni Supergroup (PBMS) rocks which consist of greenstones intruded by granites (2-2.3 Ga) that forms the conduit for gold mineralisation and predictable mines at the PBMS/Granite contacts, other mineralisation such as PGM, rare earths: lithium, columbite, tantalite, manganese and kyanite are possible occurrences in this province;
- north-western Guyana is dominated by the Roraima Formation (RF) which is predominantly conglomerate, and lies unconformably above the PBMS, is intruded by the Avanavero suite (1.65-1.85 Ga). RF is associated with diamonds;
- southern Guyana (Southern Province) has the dominant Kanuku Mountains, an uplifted granulite belt known as the Kanuku complex; and
- the Complex is fault bounded to the north by the Takutu graben while to the south, there is a transition to Proterozoic granitoid intrusions and supracrustal cover rocks.
Mining in Guyana is administrated via the six established mining districts namely Berbice, Potaro, Mazaruni, Cuyuni, North West and Rupununi. The mining districts cover approximatively 46 million acres. The largest district is the Rupununi which covers 17.6 million acres, while the smallest is Potaro. GGMC’s updated Land Tenure Map for licenses and permits is available here.
Gold discovered in the Cuyuni River
250 Oz of Gold produced
Guyana was one of the ten most prolific gold bearing region. Gold produced by “porknockers” using artisanal methods before introducing couple jet dredges (20% recovery rate)
A large open pit at Omai mines “Omai Gold Mines Limited” founded in 1993. In 2006 Onwards, the country benefited from a significant increase in gold production.
The country’s gold production (OMAI & ASM) reached ‘455,918 Oz (largest recovery to date).
Guyana Goldfields Inc. (a Canadian based company), was awarded a twenty-year large-scale mining license in the Cuyuni region. The company operates in Guyana through its wholly owned Guyanese company Aurora Gold Mine (AGM).
Artisanal, small and medium scale mining activities (ASM) reported 403,000 Oz, which cumulatively higher than OMAI’s highest declared output.
Troy Resources Ltd acquired Azimuth Resources Limited which had discovered and delineated the Karouni Project in Guyana. The Gold production reached 481,103 Oz.
Troy Resources Guyana Inc. (a wholly owned Guyanese subsidiary of Troy Resources Limited) was incorporated and acquired a twenty-year large-scale mining license in West Kaburi.
AGM started commercial production in January 2016. In 2016, total gold declaration increased by 58.1%. The expansion in gold declarations was on account of contributions from small and medium scale miners of 67.7% of the total output or 482,612 ounces and from two foreign gold mining companies – Guyana Goldfields and Troy Resources – of 32.3% or 230,094 ounces.
The country’s total gold production amounted to 653,753 Oz. Troy Resources Guyana Inc’s production was over 57,000 ounces during 2017.
AGM (Guyana Goldfields) reached 150,450 Oz of gold produced for the full year 2018. Troy Resources Guyana gold recovery reached 70,207 Oz. The country’s total gold production amounted to 613,073 Oz.
The gold subsector experienced greater declarations by small & medium scale miners by 23.9 percent to 448,321 ounces while the combined output of the foreign companies (Guyana Goldfields Inc. and Troy Resources Guyana Inc.) declined by 26.6 percent to 186,584 ounces.
The gold production volumes decreased by 8% as of the major other products during 2020. This decrease in exploitation activity is likely due to COVID restrictions.
The gold mined is sold mainly to the Guyana Gold Board (GGB) and to private licensed gold dealers. However, it is common for miners to sell or exchange their gold for supplies provided by shopkeepers or for some licensed dealers to trade with other dealers. Some traders also rent their claims to small miners, who are obligated to sell the gold recovered to the traders. The gold production for 2020 totalled 585,433 T.oz, down 8% from 634,905 Toz in the previous year as detailed in Section 3.12.2 of this report. There are currently two large gold mines active in the Guyana Shield: The Aurora mine, operated by Aurora Gold Mine and the Karouni mine, operated by Troy Resources. Gold production from both large-scale gold mines represents 29% of gold production as shown in the figure opposite.
Guyana Goldfields signed a mineral agreement with the Government of Guyana and received its mining license in November 2011 to operate and build the Aurora Gold Project.50 The Mine lies within a greenstone belt of the Paleoproterozoic Guiana Shield. The central portion of the Guiana Shield is sub-divided into the Barama Group conformably overlain by the Mazaruni Group of rocks, both consisting of a pile of metasedimentary and metavolcanics rocks. The Mazaruni Group was further sub-divided into the Cuyuni and Haimaraka Formations.51 The Aurora Gold Mine and Aranka property are accessible by 170 km long, access road and on-site airstrip.52 On 11 June 2020, the Zijin Mining Group entered into an arrangement agreement with Guyana Goldfields Inc. The total consideration for the acquisition was approximately CAD$323 million. The transaction was completed on 25 August 2020 and the Zijin Mining Group currently owns 100% equity interest in Guyana Goldfields. Guyana Goldfields was subsequently delisted from the Toronto Stock Exchange.
Troy Resources completed in 2013 the acquisition of ASX listed, Azimuth Resources Limited whose main asset was the Karouni project located in Guyana.
On 21 January 2014, the company announced results of the preliminary economic assessment (PEA) for the development of the Karouni project. The PEA assumes a total 5.2 million tonnes of material will be processed with an average grade of 4.13 g/t with recovered gold production of 633,000 oz over a seven (7) year mining life.
Bauxite Production Overview
Guyana has been producing bauxite for over a hundred years by two major North American integrated namely Alcan and Reynolds. The figure below summarises the history of bauxite mining in Guyana
Discovery
Coastal belt from NW district to Corentyne River; Pomeroon, Essequibo, Bartica, Mackenzie (Now Linden), Ituni, Canje, and Orella.
– Demba
– Processing facility based on inland train at Makenzie
– 1920: 2nd mine in Cockatra
– 1925: 3rd mine at Trewan
– ALCOA transferred to ALCAN Guyana; and
– Guyana was the 3rd largest producer of bauxite in the world.
– Berbice bauxite co started exploration at Kwakwinin.
– 1943: Hope & Montgomery mines opened 1943,
– Production record triggered by World War II demand;
– 80 km railway line (Mackenzie-Ituni- new mine) completed.
Berbice mines opened, construction of Alumina plant started
– Production of Alumina at Mackenzie;
– 1968: Mackenzie -Soesdayke Highway opened; and
– 1970: Building the mining town of Macmarburg renamed Linden.
– Nationalisation,
– low- performance period –
1982: close up of Alumina plant, Bermine, Linmin- Guybau, then Guymin.
– BOSAI of China took over Linmin & UC Rusal; and
– Third largest Company “GINMIN” near Bonasika discovered high quality bauxite.
Output of bauxite was reduced by 69% from 1,920,336 tonnes in 2019 to 595,943 tonnes in 2020.
Currently, Guyana produces the bauxite through three companies as follows:
- the Bauxite Company of Guyana Inc. (BCGI) which currently operates in Kurubuka, Upper Berbice. It also operated in the Kwakwani area through a couple of permits. The company’s primary product is dry metallurgical grade bauxite (MAZ) which is used to make aluminium;55
- Bosai Minerals Group Guyana Inc. (BMGGI) which currently operates two mines in East Montgomery and the tailings pond (reclaim) area. The company’s primary product is Calcined (refractory) grade bauxite (RASC/AGB) which is used to make bricks for the lining of kilns, and furnaces; and
- Guyana Industrial Minerals Inc. (GINMIN) which is a subsidiary of First Bauxite Corporation (FBX). The company installed its industrial-sized trommel at the Bonasika 7 site in 2017. DPI announced operations on Thursday 20 February 2020 that the company officially opened its Guyana, formally becoming the third large-scale bauxite mining operation in the country. As of 01 January 2020, the company began production and export of bauxite from its Bonasika Bauxite Project located in Region Three. First Bauxite has 225 employees, 95 permanent staff and 130 contracted workers. Of this workforce, eight are ex-pats and the remaining 217 are Guyanese nationals.
Output of bauxite was reduced by 69% from 1,920,336 tonnes in 2019 to 595,943 tonnes in 2020 as detailed in Section 3.12.2 of this report. This was the result of the decision of the parent company Rusal to suspend its activities in Guyana during 2020.
Diamonds production overview
All diamond production in Guyana comes from alluvial operations as the deep tropical weathered rocks facilitate the concentration of chemically and physically resistant minerals such as gold and diamonds. Diamond has been discovered in Guyana since 1887. The total production recorded has exceeded six (6) million carats. In the 1980’s, the production declared fluctuated between 4,000 and 12,000 carats per year, of which 60% were reported as being of gem quality. Undeclared production was probably higher, as much of the production was reportedly smuggled out of the country. Diamond production reached a peak with over 200,00057 carats per year mainly from the Mazaruni River Basin during 1920s. The sector has been falling ever since, until it reportedly reached 19,240 carats in 2020 as detailed in Section 3.12.2 of this report. The diamond sub-sector decreased by 11.5% primarily due to weaker local demand and reduced production related investments.58 Alluvial diamond deposits in Guyana are clearly associated with the Roraima Formation, as all the rivers and streams that flow across the Roraima Formation contain diamonds. The most probable source in the Roraima Formation are the thick layers of basal conglomerates. However, to date no kimberlite or lamproite indicator minerals, such as pyrope garnet, Mg ilmenite, chromite or chrome diopside, have been found in either the Roraima Formation rocks or any of the alluvial diamond deposits in Guyana.
Diamonds are mostly found in fluvial areas also on Roraima Plateau. Diamondiferous areas are mainly located in:60
- the north and the South of the Potaro river.;
- the valley of Puruni and Mazaruni; and
- the west of the country towards Potaro.
The mining permit holders in these regions are Golden Eruption Resources(Guyana) Inc, Guyana Quartz Sandport Inc, Kilroy Mining Inc, Royal Gold Inc, South America Mining Intl (Guyana) Inc, Correia Mining Company Ltd, Golden Eruption Resouress(Guy) Inc, Guyana Diamond Trading Company, Royal Gold Inc, Sanmik Civil Works LTD and TINO Innovative Mining.
Context of the Artisanal, Small, and Medium Scale mining
Guyana is part of the wider Amazonia with its tropical rain forests, rivers and related eco-systems. The Guyana Shield covers nearly 1 million km2 of surface area on the northern end of South America. The shield was formed during the Proterozoic age, and, before the formation of the Atlantic Ocean, it was contiguous with West Africa’s Leo Mann Shield. Both the Guyana and Leo Mann shields host corridors of low-grade metamorphic rocks that contain significant gold deposits. Gold plays a significant role in Guyana’s economy, representing about 64% of its foreign exchange and 15% of its total economic output. The artisanal and small-scale gold mining (ASGM) sector in Guyana is robust, accounting for 88% of its gold production, and it is completely legalised. It is also the primary source of employment and revenue for more than 15,000 people in Guyana’s hinterland, including members of local native communities.61 Guyana’s Artisanal, Small and Medium-scale Gold Mining (ASGM) sector has been in existence for more than one hundred years. Unlike most other countries, the ASGM sector has legal status in Guyana. under the Mining Act (1989) mining activities have been fully legalised, with the scale of mining (small, medium, or large) dependent on the size of the dredging equipment and technology used.62 Gold in Guyana is produced primarily by hydraulic dredging and sluices, and mercury is used in the final stage of the gold extraction process. Mercury is used primarily by the ASGM sector while the large-scale miners use cyanide. Mining is the largest consumer of mercury. All gold extracted in Guyana is required to be sold to the state, and as such miners bring their sponge gold to either one of the Guyana Gold Board (GGB) locations in Georgetown or Bartica, or to one of the private gold dealers licensed by the GGB. A gold dealer is licensed to buy on behalf of the GGB and export. Miners may also bring their sponge gold to one of several gold traders licensed by the GGMC that can purchase gold and resell it within Guyana. Although Guyanese miners can easily smelt and sell gold to licensed dealers and traders, some miners choose to sell to unlicensed gold buyers. These private shops may offer a higher price for gold than GGB or may provide miners with other incentives such as supplies or the ability to work the shopkeepers claim. Although all gold buyers are required by law to sell the gold to GGB, there may have been smuggled to neighbouring countries by unlicensed gold buyers.63 On 10 October 2013, the Government of Guyana signed the Minamata Convention, which it subsequently ratified in September 2014. The Minamata Convention is an international treaty designed to protect human health and the environment from anthropogenic emissions and releases of mercury and mercury compounds. Guyana was one of the first countries to sign the legally binding agreement. Since the signing of Minamata Convention on Mercury, the Government has put together a National Working Group to guide the development of a National Action Plan in December 2015.64 This Group comprises regulatory agencies and Government Ministries as well as funding partners.65 The Minamata Initial Assessment report for Guyana has been issued in 2016. The Secretariat of the Minamata Convention on Mercury issued in December 2021 the “first First full national report Guyana” of the Minamata Convention on Mercury.
Main exploration and prospecting activities
Since 1999, Guyana Geology and Mines Commission (GGMC)66 has carried out fifty-nine (59) regional geo-chemical exploration projects, which covered a total of 83,010 km2 or 38.4% of Guyana’s total surface area. These exploration projects utilise the 48+ multi – element stream sediment geochemistry exploration methodology that can recover elements or metals in background and anomalous concentrations including gold and other non-traditional suite of minerals such as manganese, platinum group elements, base metals, lithium, Rare Earth Elements (REE) such as scandium and radioactive elements such as arsenic. Geological Services division at GGMC may provide the corresponding results and data as well as technical support to small and medium scale miners and other stakeholders upon request.
Institutional Framework
The main Government Agencies involved in the mining sector are as follows:
| Institution | Description |
|---|---|
| Ministry of Natural Resources (MNR) | The MNR was established on 17 December 2011 as the Ministry of Natural Resources and the Environment (MNRE) with the primary focus of harmonizing policy and management in the natural resources-based sectors. However, following the appointment of a new Government in May 2015, the institutional structure of MNRE changed, and it became a Department of Natural Resources and Environment under the purview of the Ministry of Presidency. A second change took place on 18 January 2016, which saw the Department of Natural Resources and the Environment transformed into the Ministry of Natural Resources (MNR). MNR’s role is to develop, implement and oversee policies for the responsible exploration, development, and use of natural resources while ensuring the protection and conservation of the environment. |
| Ministry of Finance (MoF) | The MoF is mandated to formulate economic and fiscal policies. It is responsible for managing financial and material resources of the Government of Guyana. It is also responsible for managing the State’s participations in companies operating in the country. The Accountant General Department107 within the Ministry of Finance is tasked with the responsibility of supervision of the government’s accounting systems on behalf of the Minister of Finance and to ensure that all payments are on behalf of the Government of Guyana Expenditure are made in a timely manner. |
| Financial Intelligence Unit (FIU)108 | The FIU was established under the Anti-Money Laundering and Countering the Financing of Terrorism Act (AML/CFT) Chapter 10:11 as an agency responsible for requesting, receiving, analyzing, and dissemination of suspicious transaction reports and other information relating to money laundering, terrorist financing, or proceeds of crime. |
| Guyana Revenue Authority (GRA)109 |
GRA is a Government Agency established under the Revenue Authority Act
Chapter 79:04 of the Laws of Guyana. It is the result of the merger of the
Inland Revenue Department and the Department of Customs and Excise in
2000. GRA is responsible for:
|
| Guyana Geology and Mines Commission (GGMC)110 |
GGMC was created from the Department of Geological Surveys and Mines by an
Act of 1979. It is the statutory institution that treats all requests for
minerals and oil and gas properties in Guyana. Permission must be received
from this Commission before any mining activity can start. The Mines
Division of the Guyana Geology and Mines Commission111 is one of five (5)
core divisions, which is responsible for regulating, monitoring, and
recording of mining activities of small, medium, and large-scale mining
operations. The Mines Division comprises five (5) units namely, Technical,
Surveying, Inspectorate, Mineral Processing, and Clerical.
GGMC’s roles include:
|
| Guyana Gold Board (GGB)112 |
GGB was created in 1982 to manage the business of trading gold in Guyana. Its main roles include:
|
| National Insurance Scheme (NIS)115 |
NIS was created in 1969 under the Ministry of Finance. It is responsible for settlement and maintaining a system of social security in Guyana. Its mission includes:
|
| Environmental Protection Agency (EPA)116 | EPA was created under the Environmental Protection Act in 1996. It is mandated to conserve, manage, protect, and improve the environment by taking actions to prevent and control pollution, access the impact of economic development on the environment, and ens |
| National Industrial and Commercial Investments Limited (NICIL)117 |
NICIL is a State-Owned company, 100% owned by the Government of Guyana. Its primary objectives include subscribing for, taking, or otherwise acquiring, holding, and managing the Government’s shares, stocks, debentures, or other securities of any company, cooperative societies, or other corporate body.
NICIL engages in many activities such as:
|
| Amerindian Village Councils |
These were established under the authority of the Amerindian Act (2006). A Village Council has legal recognition as a body corporate to hold legal title issued under the State Lands Act (1903). The Indigenous peoples’ community has collective beneficial ownership of these lands.
By the Absolute Land Titles of their lands, Indigenous Peoples own the forests, timber, and Non-Timber Forest Plants or Products (NTFPs) on their lands and the forest carbon rights. They can also veto small and medium mining activities on their titled lands and on lands contiguous to their titled lands as laid out in the Amerindian Act (2006). The Amerindian Act, which is the primary legislation governing the affairs of the Indigenous peoples of Guyana, has been pending revision since 2017. The Government of Guyana through the Ministry of Indigenous Peoples Affairs (MoIPA) started from April 2018 the first series of formal regional consultations leading to the revision of the Amerindian Act 2006. Recommendations for the proposed revision of the Act were submitted to the Ministry in 2019. These recommendations include amendments to existing provisions relating to land title, free, prior, and informed consent, and Village Governance. |
| Pesticides and Toxic Chemicals Control Board (PTCCB) |
PTCCB is a semi-autonomous agency within the Ministry of Agriculture created under the Pesticides and Toxic Chemicals Control Act in 2000. Its principal function is the management of pesticides and toxic chemicals with a specific focus on the manufacturing, importation, transport, storage, selling, using, and advertising of these chemicals in Guyana.
The Board consists of a representative of the EPA, representatives of the Ministries of Agriculture, Health, and Labour, and representatives from non-governmental organizations or private sector agencies, not exceeding seven members. PTCCB is operated by its Permanent Secretariat which carries out the mandatory responsibilities and the operational and administrative policies handed down by the Board of Directors. A Memorandum of Understanding was signed between the PTCCB, the Ministry of Natural Resources, EPA, and GGMC on 30 August 2019 to coordinate and enhance procedures for the management of mercury. According to paragraph 4 of this MoU, MNR, GGMC, and PTCCB shall agree annually to a capped amount of mercury to be imported for use in the small and medium-scale gold mining sector, starting with an amount of 1,000 flasks / 34,500 kg per year. This amount shall serve as the base quota, gradually reducing contingent on factors such as projected gold declaration, streamlining and implementation of alternative technologies, and as agreed by the parties. |
Legal Framework
In order to strengthen mining exploration and production, Guyana adopted several legislations which
allow foreign investors to start prospecting and production activities. The following are the main
legislations which govern the mining sector:
List of main laws governing the mining sector
| The Guyana Gold Board Act of 1981, (Cap 66:01)3 |
|---|
| The Guyana Gold Board Act of 1981, (Cap 66:01) created the Guyana Gold Board (GGB). GGB grants authorisations to process, sell or export gold extracted from Guyana. The GGB Act was amended in 1987 and in 1994 to strengthen the requirements to sell gold to GGB, thereby extending the definition of officer, increase penalties and to address other matters4. |
| The Guyana Gold Board (Dealers) Regulation 4 (1997) under the GGB Act |
|---|
| The Guyana Gold Board (Dealers) Regulation 4 (1997) under the GGB Act sets out the requirements to be applied for a license dealer to process, sell or export gold. |
| Mining Act, No. 20 of 1989 (Cap 65:01)1 |
|---|
| The Mining Act, No. 20 of 1989 (Cap 65:01) as published in the 2012 revised laws of Guyana taking into consideration the amendments of 1992, 1997, 2006 and 2010 is the principal Act regulating the mining sector in Guyana. It provides the legal basis under which mining exploration, development and production are to be conducted. It defines the rules for granting exploration licenses or permits. This Act provides that all subsurface mineral rights in Guyana are owned by the state and authorises GGMC to manage these resources. |
| Guyana Geology and Mines Commission Act, No. 7 of 1979 (Cap. 66:02), as amended in 19872 |
|---|
| TThe Guyana Geology and Mines Commission Act, No. 7 of 1979 (Cap. 66:02), as amended in 1987 created GGMC and sets out its functions and roles. GGMC provides effective stewardship of all mineral resources by ensuring that opportunities for mineral resources development (exploration and extraction) increase, by promoting and supporting investment in the mining sector. |
| The Amerindian Act, No. 6 of 2006 (Cap 29:01)5 |
|---|
| The Amerindian Act, No. 6 of 2006 (Cap 29:01),which sets the obligations of GGMC when it intends to issue a permit, concession, license, or other permission over or in Amerindian land. The Act established the National Toshaos Council which comprises all Toshaos in Guyana6 . |
| The Natural Resource Fund Act (2019)7 |
|---|
| The Natural Resource Fund Act (2019) which established the Natural Resource Fund to manage the natural resource wealth of Guyana for the present and future benefit of the people and the sustainable development of the country. |
Moreover, the laws of Guyana including those governing the extractive sector can be consulted
electronically from the GGMC website.