An overview (2005-2010)
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 2010.

Provide an overview of Capital investment in
the Small and Medium scale mining sector in
Guyana - 2010
•
•
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 #1 MD #2 MD #3 MD #4 MD #5 MD #6
Gold, Oz
Diamonds, metric
carats
Area (Km2)
PPMS
MP
Claims
% of Total (gold)
% of Total (diamonds)
0
2353
Total
56,420 93,402 78,133 46,459 34,024 308,438
16,082 23,042
6,893
0
1,550
49,920
35,130 14,210 31,490 17,760 15,680 71,250 185,520
230
2,355
2,394
1,759
1,236
811
8,785
2
344
344
337
108
28
1,163
340
3,760
3,355
2,386
5,918
749
16,508
0
18.3
30.3
25.3
15.4
10.7
100
4.5
32.7
46.1
13.6
0.0
3.1
100
Lic. Gold and Diamond Mining Operations within the Sector
2005
2006
2007
2008
2009
2010
MD 1
10
7
4
5
6
3
MD 2
355
320
415
551
549
886
MD 3
710
798
769
811
983
1030
MD 4
244
290
378
453
554
717
MD 5
162
177
170
181
299
372
MD 6
23
25
58
71
80
94
1504
1617
1794
2072
2471
3102



In 2010 domestic mine production of gold
increased to 308,438 ounces, 1 percent
higher than the previous year’s record
output.
Total exports of gold mainly to the United
States and Canada decreased from 311,844
ounces in 2009 to 302,653.68 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 Guyana’s 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 46,253.21 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 2009.

diamond (G$1,585.7 million), 1.7 percent
2005
2006 2007 2008
2009
2010
Small and Medium Scale
sector (gold and diamonds)
49.6
69 64.3 66.2
77.8
76.6
Large scale sector
(bauxite)
46.4
28.6 31.8 29.7
18.5
19
3.7
4.4
Quarries(sand, stone,
loam)
4
2.4
3.9
4.1



The Mineral Industry contributed G$29.1 billion
(9%) to the GDP in 2010.
Gold production accounted for 77.4% of the Mineral
Industry’s contribution to the GDP (equivalent to 7%
of Guyana’s GDP), all of which was contributed by
the Small and Medium Scale gold miners
Diamond, bauxite and quarry products accounted
for the remaining 22.6% of the Mineral Industry’s
contribution to the GDP (equivalent to 2% of
Guyana’s GDP).
Commodity
Unit
2008
Quantity
2009
Value
Quantity
2010
Value
Quantity
Value
US$mill.
US$mill.
US$mill.
203.7 311,884.40 281.7 302,653.70 346.4
Gold
oz
251,811
Bauxite
m/t
2,116,462
131.1
1,414,907
79.5
1,113,526
93.7
Diamond
m/c
193,027
31.2
94,831
14.1
46,253.21
7.1
Quarry stone
m/t
137
0.024
n/a
n/a
100
0.0035
Sand
m/t
33,231
0.9
n/a
n/a
71,690
0.454
Clay
m/t
1,119
0.041
n/a
n/a
n/a
n/a
Sources: Guyana Geology & Mines Commission; Bank of Guyana;
Bureau of Statistics Guyana
2009
2010
% Change
Gold
Volume (ozs.)
Value (US$M)
311,884.4
281.7
302,653.68
346.4
-3
23
Diamonds
Volume (m/carats)
Value (US$M)
94,830.6
14.1
46,253.21
7
-51.9
-54.8
Sources: Guyana Geology & Mines Commission; Bank of Guyana;
Bureau of Statistics Guyana
Sector
Small and Medium scale Gold and Diamond
mining
Large scale – Bauxite mining
Quarries (including sand and loam pits)
Total
Source: Guyana Geology & Mines Commission
(a) Average whole year
* Revised
*2008
2009
2010
8,124
9,410
13,800
1,282
1,112
2,073
267
267
1316
9,673
10,789 17,189

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 129.9 %,
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