Miners under threat: New regulations can force closures in six months – GGDMA

Miners under threat: New regulations can force closures in six months –
GGDMA
…Barama roads being closed to miners
Kaieteur News, 23 September 2007


Recent Government decisions, among them to stop issuing mining
licenses for Barama concessions and ordering a stoppage of dredging
operations in the Waini area, will in effect force the closure of small
and medium scale miners in six months.

Yesterday, the Guyana Gold and Diamond Miners Association (GGDMA) also
disclosed that the decision by regulatory body, the Guyana Geology and
Mines Commission (GGMC), to increase rental payments for land
concessions has been done without their input.

The association, during a press conference yesterday at Cara Lodge,
Quamina Street , announced that the decisions were conveyed to them
during a quarterly meeting with Prime Minister Sam Hinds and the GGMC.
The association said it has since convened a meeting to be held next
Friday at its Quamina Street headquarters to discuss the threats to the
miners.

New decisions

According to the miners, it was learnt that no further mining licences
will be issued in concessions held by Barama. “A protocol is being
determined for miners to access roads already being used by Barama.

However, further roads, sand trails, etc, being built by Barama in the
future will not be accessible to miners,” GGDMA Executive Director
Edward Shields said in the statement. Present at the press conference
also were Secretary Carl Baldie, Executive Members Patrick Harding and
Charlie Da Silva, and Vice President Major General (Rtd) Normal McLean.

The association also said that it was taken back by the decision to
stop all dredging operations in the Waini area since it was “surprised
that such decisions can be taken without any consultation with the
mining community.”

GGDMA also lashed out at a mining committee that has been set up by
Government which has not asked for the miners' input. “The association
notes that Government has appointed a governing committee for mining
(Minister Robeson Benn/Odinga Lumumba/Evan Persaud) whose terms of
reference are unknown to the miners, yet it is apparent that Government
seems to be acting on their own recommendations.”

According to GGDMA, the committee has not yet spoken to the miners.

Additionally, the association also questioned a new system where
abandoned mining permits will only be re-issued by way of lottery or
auction. Quartz Hill is an example where, after using the auction
system, the situation became chaotic and is posing difficulties for
block holders.

“Such a system cannot be introduced permanently without investigating
why it is not working presently and what are the causes,” GGDMA said.

Mining Problems

Meanwhile, the association has disclosed that GGMC will start an
environmental campaign to ensure that miners are adhering to
regulations. Stressing that the body had been calling for an end to the
use of mercury which has severe environmental impacts, Shields also
wondered about the coincidence of this campaign, especially in light of
the recent decisions.

Referring to the recent decision to give Amerindians titles to land,
the association said it has scheduled a meeting with Amerindian
Minister Carolyn Rodrigues to iron out some issues.

According to Shields, some miners had been operating on the Amerindian
lands for years. “Yes, one can ask the Amerindians whether they can
continue operating on the land. It is either yes or no. But what
happens when that miner has to move. Who compensates him? What is the
position? Is GGMC going to make some other lands available?”

According to Shields, with the way things are going, it seems as if
Guyana was going back to colonial days where the term “Bookers' Guyana
” has now turned into “Barama Guyana ”.

Commenting further on the implications of Barama closing its roads to
miners, the GGDMA officials explained that under regulations, roads
developed by miners will have to be accessible to others. However, in
the case of Barama, this clearly was not the case. While unable to
provide figures, the association said that the impact would be
far-reaching for miners.

Major contributor

According to the mining body, the industry is the major contributor to
Guyana 's GDP, ranking in the top two earners for the last 10 to15
years. The industry has paid $1.4 billion in royalties and taxes with
the Guyana Gold Board after purchasing $20 billion in gold and diamond
from medium and small scale miners in 2006.

Additionally, GGMC earned some $276 million in royalty from some
340,000 carats of diamonds. On top of this, the commission was paid
around $700 million in rental in 2006.

With around 15,000 persons employed directly in the sector and 60,000
benefiting indirectly, there are also about 1,500 dredges registered
with GGMC, said the association.

In addition to networks of roads and airstrips built by miners which
benefit everyone, miners are plugging some $5 billion into heavy duty
machinery purchases every year.

Last year the industry said it had achieved the best year in its
history and projects that this gets even better this year.

GGDMA yesterday said that it will be requesting an urgent meeting with
President Bharrat Jagdeo in a bid to understand Government's new policy
on mining, so miners could be told.

“The association believes that once the miners' position is known to
His Excellency, when all the pros and cons are laid on the table, a
decision based on empirical data and not on subjectivity would be
acceptable to the government and the mining community.” Kaieteur News
attempted to make contact with Prime Minister Sam Hinds and Barama for
comments, but calls were not immediately returned.