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Gold price up… Operations down

Screen Shot 2014-06-25 at 6.55.51 PMOn Tuesday the price for gold slightly increased on the world market to 1325 US dollars making it the strongest since April this year for the precious metal.

The Guyana Gold Miners Association in a recent study among miners on gold production revealed that miners have scaled down their operations by approximately 40 percent in some cases.

The preliminary observation by the Association also disclosed that there has been a reduction in fuel sales, drop in sales of equipment and spares in the mining sector.

The organisation on Tuesday met with the Minister of Natural Resources and the Environment along with representatives of the Guyana Gold Board and the Guyana Geology and Mines Commission to find common ground on gold declaration.

Gold miners have recently accused the Gold Board and other authorities of going around threatening miners using an old piece of legislation.

The issue surrounds lower than expected declarations of gold production and the authorities have since accused miners of hoarding and smuggling gold as they wait for a better price.

The miners have taken a position that what they have declared to the Guyana Gold Board is indeed the actual production figures and that they can only declare what was produced.

During the meeting with the Natural Resources and Environment Minister the Guyana Gold Miners Association lobbied for the review of the Gold Board Act which the organisation feels is necessary.

It was agreed that a sub-committee would be established which includes both private and public sector representatives to undertake the task of reviewing the entire act.

The matter of conditions for the licensing of gold deals to ensure that there is greater efficiency in the market was also discussed. Another issue of concern was crime in the mining sector which is expected to be addressed by a meeting to be held with the Guyana Police Force.

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