PM urges deeper interest in mining -- says sector key to transforming Guyana
Guyana Chronicle
August 25, 2004
MINING is a primary economic activity, a fundamental way of making a living, and Guyanese should develop a deeper interest in the industry, according to Prime Minister Sam Hinds.
Mr Hinds, also Minister responsible for Mining, made the call in a feature address Monday at the opening of a three-day exhibition organised by the Guyana Geology and Mines Commission (GGMC).
The exhibition, which commemorates `Mining Week 2004’, is on at the Umana Yana in Kingston, Georgetown.
Prime Minister Hinds said many important materials used daily are either grown or mined, and the mining sector has contributed greatly towards the country's development, making up 25% of the total value of goods and services produced locally.
Miners have been the "pioneers initiating new communities in further lands wherever minerals are discovered" universally, he said, and identified Linden, Kwakwani and Aroaima, Mahdia, Kurupung, Port Kaituma and Matthew’s Ridge as local communities founded on or boosted by mining.
However, Mr Hinds said there was room for growth in the GDP by five to ten times more than it is growing, and miners should make greater changes to help achieve the country's development objectives.
He said since the very nature of mining is quite disturbing to the earth, miners are obliged to minimise negative inputs and restore the area by diversifying their activities and extending their acquired skills.
"Mineral resources must be recovered where they are found...Miners and mining communities must look to diversify their activities from their mining base, extending skills which they may have developed in the course of mining and arrest first generation capital accumulation into second generation, branching into transportation, construction, agriculture, timber, wood processing, non-timber products, eco-tourism...There have been several successful examples in the past and there is need for many more in the future," the Prime Minister pointed out.
Touching on the fact that an area cannot be mined forever, he referred to Omai Gold Mines Ltd., which is expected to close during next year.
Mr Hinds explained that information he received has shown that while Omai is running an exploration programme, it has exhausted known economic reserves, and will most likely end operations here soon.
He said the closure will result in a fall in the country's gold production.
"Mining is about ending; existing stockpiles would feed the mill for about 11 months, and closure operations would extend for about another year.
“As in all such cases we were all hoping that new economic reserves would have been found to keep the Omai operations going, but now we must accept the inevitable," he said, adding, "In just over a year there would be a fall in our gold production and declaration of about 300,000 ounces per year."
"Ten years ago conventional wisdom suggested that there could be another five Omais in Guyana. Now one looks for five or ten medium sized gold operations of about 50,000 ounces per year...We hope there will be such developments at Peter’s Mine, Marudi, Tassawina, Turoparo and Makapa."
Mr Hinds further explained that mining can never go on without the presence of profitable economic resources.
"Mining in an area extends for a period lasting only as long as the economic resources can be mined profitably, as long as new, rich reserves can be found, as long as advances in equipment and techniques for mining and mineral processing can be made, and as long as improvement in employees' productivity and work quality can offset the pressures of losses in physical advantage and increase costs, and so keep expenses below revenues...Thus long and no longer can mining in an area be sustained!" he stated.
However, Mr Hinds said, there is great development potential in other mineral resources found here.
"There has been a great increase in mining...There is much excitement in the bauxite, alumina, aluminum circles, as the belief takes hold that significant investment in new developments can be justified now...Diamond production has been rising steadily...With respect to petroleum, most of you would have seen recent projections by CGX, very enthusiastic and hopeful that economic quantities of petroleum would be found on-shore in the Berbice/Corentyne area. CGX utilises a novel buramay method to narrow areas for seismic surveys and now has about six primary on-shore targets where it hopes to start drilling in two or three months."
The Prime Minister pointed to the low turn-out at the gathering and urged miners to encourage and develop partnerships and work towards making the industry more interesting in order to attract more participation and earn acceptance in society.
"Although every human activity without exception has environmental and social impacts, consequences and outcomes, the impacts, consequences and outcomes inherent in mining by its very nature, its disturbance of the earth in hitherto untracked areas, its pioneering contact with hinterland and indigenous sources, all bring special focus on mining - miners should be aware of the need to earn and maintain social acceptance. Miners must work at developing collaborations, alliances, partnerships with others.”
Mr Hinds also asked miners to maintain healthy lifestyles while they are away from their families. "The biggest challenge is to change our frame of thinking, change our lifestyles. We in mining need to stop and turn back STDs, HIV/AIDS, malaria and the use of narcotic drugs. Miners still live lives of significant deprivation and hardships...to provide a living for our families..."
Returning home with sexually transmitted diseases, malaria or as a drug user, "is to return home as a big burden, rather than with the benefits of hard earned money," he told the miners.
Sixteen mining companies, including Omai, are showcasing Guyana's mineral resources, products and services offered by companies associated with the field, and are offering tours to various institutions and individuals who express an interest, during this week and next week.
The exhibition ends today. (SHAUNA JEMMOTT)