Joint approach taken to tackle gold prices

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goldThe Ministry of Natural Resources and the Environment recently met with executives of the Guyana Gold and Diamond Miners Association [GGDMA] to discuss further collaboration through a joint approach to mitigate the effects of the falling gold prices.

The meeting was hosted by the Minister of Natural Resources and the Environment, Robert Persaud.

Since the fall in gold prices in April, the Ministry of Natural Resources and the Environment, the Guyana Geology and Mines Commission (GGMC), the Guyana Gold Board (GGB) and the Guyana Gold and Diamond Miners Association (GGDMA) has been having active engagements to deliberate on issues pertaining to the drop in the global gold price.

The global gold price was weak in the first half of April. Although it started the month at $1,600, it rapidly declined and tumbled further to its lowest level in two years to $1,363 an ounce.

As such, the various stakeholders agreed that the price of gold is sometimes very unpredictable and the quantity of gold declared in and exported by Guyana will not influence the global market.

In Guyana, the gold subsector had an outstanding year in 2012. Declaration of gold increased to 438,645.16 ounces as at the December 31, 2012; 20.81 percent higher than the previous year’s record output and the highest output produced since 2003 (highest recorded in the entire history of the gold industry excluding Omai production).

Further, to ensure that the national impact of the changing price is not significantly felt by Guyana, the Ministry of Natural Resources and the Environment, GGDMA, GGMC, GGB and other stakeholders have been discussing various proposals for consideration to cushion the falling gold price to support the mining sector.

During the meeting Minister Persaud expressed his commitment to continue to make representation to the government to examine the proposals to support the sector.

He also outlined several ongoing initiatives that are being undertaken by the GGMC to support all miners within the sector in light of the falling gold prices.