Industry Trend Analysis - International Firms To Gain Ground In Gold Sector - MAY 2016
BMI View: Guyana ' s gold sector, while small on a global scale, will remain an important source of government revenue, as production growth is supported by low operating costs and a few major projects in the coming years. The country ' s gold output will be increasingly be driven by international firms rather than small-scale artisanal miners as the government tightens environmental regulations.
International miners will increasingly dominate Guyana's gold production, supported by a strong project pipeline with high grade reserves. Meanwhile, the country's traditional artisanal gold miners will face heightened regulations. On April 19, the Guyana Geology and Mines Commission revoked permits for gold and diamond miners operating within 18 metres of a riverbank. The ban reflects the efforts of local activists pushing for improved protection of waterways and rainforest, which remain under threat from wildcat gold mining and logging operations. According to the United States Geological Survey (USGS), in 2013, hundreds of small-scale artisanal operations with thousands of gold mining permits drove the country's output, as declining gold prices led to projects by international companies being delayed.
Exports To Remain Key To Economy
|New Projects To Boost Output|
|Guyana - Gold Ore Production ('000 ounces)|
|Source: Bloomberg, BMI|