With gold declarations falling by 16%, the Alliance For Change (AFC) believes it is imperative that the Government takes critical steps to arrest the situation, not only in the gold Industry, but in the other non-oil sectors.

At a press conference on Friday, Executive Member of the AFC, Juretha Fernandes said the first quarter report from the Bank of Guyana is an indication that the much feared ‘Dutch Disease’ may be in full play in Guyana, affecting non-oil sector in particular gold and sugar. 

It was pointed out that the gold industry contracted by 11.2%, with small and medium scale operators output declining by 16.2%.

“The government’s projected non-oil growth was heavily based on a recovery in the gold mining industry with gold declarations increasing by 15.7% in 2024. However, on the contrary, the first quarter report from the Bank of Guyana for 2024 stated that gold output has declined overall by 16%, with declarations from small and medium scale operators declining by 24.2%,” Fernandes explained. 

The Opposition Member of Parliament said the situation in the Gold Industry is of grave concern, noting that the overall decline is largely due to the decline in declarations from small and medium scale operators. 

She said the Government must step in, and address issues facing the sector.

“The Alliance For Change calls on the PPP government to put immediate measures in place to aid small and medium scale operators who are facing harsh mining situations, and more importantly for the PPP Government to put measures in place to curb all illegal activities that would result in lower declarations of gold,” Fernandes urged 

Just last month, the US Treasury Department’s Office of Foreign Assets Control (OFAC), sanctioned Guyanese Billionaire, Nazar Mohamed; his son, Azruddin Mohamed and their company, Mohamed’s Enterprise for allegedly engaging in large gold smuggling and tax evasion. Permanent Secretary Mae Thomas was also sanctioned for aiding the Mohameds. 

Fernades said in addition to gold, sugar has seen a significant decline during the first quarter of the year. 

“At no surprise to us, sugar production has recorded a decline of 46% in the first quarter. This is evident that the government projection of 66.1% growth through mechanization and conversion is failing rapidly. While billions of dollars are being pumped into the sugar industry, the industry continues to fail,” she said. 

The AFC Executive said Government must face the reality of the Sugar Industry, and put measures in place to curb the inevitable social impact that lies ahead.

The Bauxite, Diamond and Timber Industries also experienced significant declines along with other industries.  

Related posts:

Norton proposes Multi-agency Task Force to tackle decline in gold production Miners Association President calls for action against raiders and smugglers in gold industry Gold declarations by small and medium scale miners continue to decline Gold and Diamond Miners Association happy with Budget measures for gold mining industry