Presentation on theme: "An overview (2005-2010) By K. Ramdas Senior Mining Engineer Guyana Geology and Mines Commission May 31, 2011."— Presentation transcript:
An overview ( ) By K. Ramdas Senior Mining Engineer Guyana Geology and Mines Commission May 31, 2011
The purpose of this presentation is to: Provide a basic overview of Guyana s Gold and Diamond mining Sector and its performance from 2005 to Provide an overview of Capital investment in the Small and Medium scale mining sector in Guyana
The small and medium scale gold and diamond mining sector in Guyana is a significant contributor to the national GDP, and foreign exchange earnings. This has brought new challenges to the sector and presents a greater need to implement solutions to meet these challenges in order to sustain the sector.
MD #1MD #2MD #3MD #4MD #5MD #6Total Gold, Oz056,42093,40278,13346,45934,024308,438 Diamonds, metric carats235316,08223,0426,89301,55049,920 Area (Km 2 )35,13014,21031,49017,76015,68071,250185,520 PPMS2302,3552,3941,7591, ,785 MP ,163 Claims3403,7603,3552,3865, ,508 % of Total (gold) % of Total (diamonds)
Lic. Gold and Diamond Mining Operations within the Sector MD MD MD MD MD MD
In 2010 domestic mine production of gold increased to 308,438 ounces, 1 percent higher than the previous years record output. Total exports of gold mainly to the United States and Canada decreased from 311,844 ounces in 2009 to 302, ounces in 2010, a 3 percent decrease. The average annual price for gold was US$1,144.61, an increase of 26.7 per cent from 2009.
Diamond output declined 65.3 percent to 49,920 metric carats in 2010 – 106 dia. Producing operations Average value per carat for Guyanas rough diamonds in 2010 was US$156.09, an increase of 4.7 percent Overseas trade in diamonds in 2010 decreased significantly by 51.2 percent, from 94,831 metric carats in 2009 to 46, metric carats in 2010 The value of diamonds exported was US$7 million, down from US$14.1 million in 2009 Exports – Belgium 59.2% - United Arab Emirates 21% - Others 19.8%
Gold mining maintained its position as the biggest producer of the mining industry in 2010, accounting for 74.9 percent of the total value of mine output. The value of gold produced (G$71,843.7 million) increased by 28 percent over diamond (G$1,585.7 million), 1.7 percent
Small and Medium Scale sector (gold and diamonds) Large scale sector (bauxite) Quarries(sand, stone, loam)
The Mineral Industry contributed G$29.1 billion (9%) to the GDP in Gold production accounted for 77.4% of the Mineral Industrys contribution to the GDP (equivalent to 7% of Guyanas GDP), all of which was contributed by the Small and Medium Scale gold miners Diamond, bauxite and quarry products accounted for the remaining 22.6% of the Mineral Industrys contribution to the GDP (equivalent to 2% of Guyanas GDP).
CommodityUnit QuantityValueQuantityValueQuantityValue US$mill. Goldoz251, , , Bauxitem/t2,116, ,414, ,113, Diamondm/c193, , , Quarry stonem/t n/a Sandm/t33,2310.9n/a 71, Claym/t1, n/a Sources: Guyana Geology & Mines Commission; Bank of Guyana; Bureau of Statistics Guyana
% Change Gold Volume (ozs.) Value (US$M) 311, , Diamonds Volume (m/carats) Value (US$M) 94, , Sources: Guyana Geology & Mines Commission; Bank of Guyana; Bureau of Statistics Guyana
Sector* Small and Medium scale Gold and Diamond mining 8,1249,41013,800 Large scale – Bauxite mining1,2821,1122,073 Quarries (including sand and loam pits) Total9,67310,78917,189 Source: Guyana Geology & Mines Commission (a) Average whole year * Revised
Capital investment in the Small and Medium Scale mining sector in 2010 exceeded US$145 million. New capital investment in the Small and Medium Scale mining sector in 2010 was US$74.4 million.
New investment in dredging equipment increased from US$20.2 million in 2009, to US$29.8 million in 2010, an increase of 47.5%. New investment in Specified Equipment (Excavators, Bulldozers, Wash plants, Crushers etc.) increased by %, from US$19.4 million in 2009 to US$44.6 million in 2010.
The Government has been working with the mining sector to identify ways to embark on wide-ranging reform of the mining regulations and their enforcement to ensure that mining operations promote higher standards of environmental sustainability alongside much needed economic development. GGMC has increased its monitoring and enforcement in the field, both in terms of number of personnel as well as in procedural and systems improvements.
LCDS – Requirement for monitoring deforestation and degradation MRV – Independent forest Monitoring, Reporting and Verification; Greater Scrutiny – Nationally and internationally.
No changes in Mining Practices Mineral Processing Practices for greater recovery and elimination or reduction of mercury use Need for Exploration