Category: Press Releases

12 Mar
By: Tanika Jones 0

International mining companies to invest millions more in Guyana

Several Canadian mining companies operating in Guyana have pledged to invest tens of millions of US dollars in expansion projects here. This announcement was made at the just concluded Prospectors and Developers Association of Canada Convention (PDAC) held in Toronto from 4-7 March, 2018.

The annual PDAC Convention is regarded as the premier international event for Canada’s mineral exploration and development industry.

Scott Caldwell, Chief Executive Officer of Guyana Goldfields Inc., the largest foreign gold mining company in Guyana, announced that the company plans to boost annual gold production to 300,000 ounces by 2022 with the introduction of underground mining. He highlighted his company’s corporate social responsibility record which includes on-going training and development of the Guyanese workforce.
Caldwell pointed out that the Government of Guyana receives eight per cent royalty of all the gold mined and added that the company’s on-going expansion augurs well for Guyana, its shareholders and stakeholders.

Guyana Goldfields Inc. has spent approximately US$50M in the local economy over the years in the areas goods and in services such as hauling of freight, engineering, and contract mining.

Rich Munson, Chief Executive Officer of Sandsprings/ETK, which has acquired the Toroparu Gold Project,said that this undertaking is the number two ranked undeveloped project in South America. The Toroparu Gold Project is described as a world class asset with a 10 million-ounce potential gold reserve.

He explained that Noting Sandsprings/ETK will in the future face a demand for about 35 megawatts of electricity when the operation is up and running and is therefore developing a hydro-electric station known as the Kurupung River Hydroelectric Project (KRHP). This station will use run-of-river technology which requires no damming. He added that his company is mindful of Guyana’s interest in hydro-electricity, and has designed the KRHP to be expanded incrementally from 50 megawatts to 100 megawatts with the aim of supplying external clients. Yannis Tsitos, President and Director of Goldsource/Kilroy Mining, indicated that his company has spent more than US$22M in exploration and development in Guyana which he described as, “an extremely good jurisdiction.” The company intends to eventually produce around one million ounces of gold, averaging between 55,000 and 75,000 ounces a year.

The Goldsource/Kilroy Mining executive who has a background in bauxite mining also spoke to investors and other mining operatives about Guyana’s high-quality bauxite which he explained yields about 62 per cent alumina when processed. “I would hope that one day Guyana can come out of the loop of being an exporter of raw bauxite by self-producing, and eventually building an alumina or even an aluminum plant,” he urged.

Minister of Finance, Hon. Winston Jordan was the featured speaker at the prestigious event. During his address, he outlined the Government of the Cooperative Republic of Guyana’s Vision and projections for the extractive sector. He also called attention to ‘the United Nations Sustainable Development Goals, which were adopted by the UN General Assembly, that acknowledged inter alia, the need for environmentally sustainable economic development and stressed that the mining industry has a pivotal role to play in the attainment of these goals, by ensuring that its operations leave a positive footprint on the environment, even as it generates profits, creates employment and promotes economic growth.’

Minister Jordan assured the more than twenty five thousand investors, analysts, mining executives, prospectors, geologists, indigenous peoples, government officials, and students from over 125 countries participating in the Convention that ‘Guyana’s economy has achieved relatively stable economic growth consistent with the global trends’ and its ‘fiscal position has remained strong, with growing current account surpluses,’ and an ‘overall deficit (that) has been kept within sustainable levels.

He said that the ‘financial system is robust, with banks and other non- bank financial institutions being sound and adequately capitalized, Public debt levels are prudently managed while annual inflation hovers around 2 percent.’ He further said that with foreign reserves that are over 3.5 months of import cover, and no exchange controls, Guyana’s environment makes for hassle-free repatriation of profits and dividends.’
Minister Jordan lauded Guyana’s mining sector as a significant pillar of the country’s economy and the main contributor to the Gross Domestic Product (GDP) for the past three years as well as a major source of Foreign Direct Investment.

He noted though, that while mining in Guyana is successful, it is ‘unable to unleash its full potential’ because it is challenged by the ‘unavailability of requisite capital to local investors.’To address this challenge, he said, ‘Government is encouraging local miners to establish linkages with foreign investors and members of the Diaspora to access the necessary financing and technology while at the same time providing fiscal incentives in the form of concessions on machinery, equipment and fuel, and waiver and remission of taxes on motor vehicles, based on the value of gold declaration.

He added that mining operators are permitted to hold foreign exchange retention accounts while larger operators are subjected to an Investment Development Agreement that allows for duty and tax concessions for specified periods in the life of the investment.

Minister Jordan also underscored that the‘Guyana Office for Investment is ready and ably equipped to facilitate investors and to help them navigate any bureaucracy and assured that investors are guaranteed the safety of their investment and the ease of doing business. He pointed out that Government is cognizant that a strong legal and regulatory framework is a prerequisite for the orderly and safe development of the sectorand that it has undertaken revisions to the Mining Act and Regulations which are expected to be completed and laid in the National Assembly by the end of 2018.

The Finance Minister in his address announced too, that with the recent discovery of in excess of 3.7 billion barrels of recoverable oilin the country’s offshore basin, production of first oil is expected in the first quarter of 2020, with 120,000 barrels per day being targeted which could eventually reach 500,000 barrels per day by 2025, and up to 1,000,000 barrels per day by the late 2020s. He highlighted that the revenues that Guyana will earn from this discovery will have a transformative effect on the country. He further added that the Government is keen to avoid the ‘oil curse’ and thus is ‘presently fashioning a constructive and enlightened Sovereign Wealth Fund, to provide for inter-generational equity. The Fund’s legislation is expected to reach Parliament in the last quarter of 2018.’

Member of Parliament in the Canadian House of Commons who is also the Parliamentary Secretary to the Minister of International Trade, Pamela Goldsmith-Jones, pointed to Canada’s renowned capabilities in off-shore oil and gas, and acknowledged that Guyana is a key market for Canada.

“In 2016, Guyana became Canada’s largest merchandised trading market within CARICOM because of a significant increase in gold imports to Canada…our government is committed to further strengthening our relationship with our friends and partners in Guyana,” Goldsmith Jones said.

Noting Guyana and Canada’s longstanding trade relationship, the Member of Parliament emphasised, “there’s no question that Guyana holds a promise for Canadian companies in the extractive sector, especially in mining and oil and gas, which we recognize as important to Guyana’s economy.”

Guyana’s High Commissioner to Canada, Clarissa Riehl and Canadian High Commissioner to Guyana, Lilian Chatterjee also made brief remarks.

Minister Jordan and the GO-Invest team met with the Premier and Deputy Minister of Natural Resources for Newfoundland and Labrador to discuss opportunities in mining, Oil and Gas and the Natural Resources sector in General.

Chief Executive Officer of Go-Invest Owen Verwey, following the event, said he was heartened by the tremendous interest shown in Guyana Mining Day 2018 in Toronto, noting that “Guyana is indeed being recognized as a world-class investment option for mining and natural resources.”

The event was chaired by newly appointed Guyana Consul General to Toronto, Ann Choo.Also presenting at the forum were Metallica Commodities Corporation, Goldstrike/Romanex, Guyana Women’s Mining Organization and Guyana Geology and Mines Commission.

Guyana Office for Investment

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12 Mar
By: Tanika Jones 0

Guyana’s mineral resources still under-explored- Min Jordan tells PDAC 2018 Convention

Guyana’s mineral resources still under-explored- Min Jordan tells PDAC 2018 Convention
Mar 07, 2018 Government, Ministry of Finance, News

DPI, GUYANA, Wednesday, March 7, 2018

Minister of Finance Winston Jordan has extended an invitation to Guyanese in the diaspora to “come home” and tap into the under-explored mineral resources existing here.

Minister of Finance Winston Jordan- (photo courtesy of MOF).

The Minister was addressing overseas-based Guyanese and other attendees of the 2018 Prospectors and Developers Association of Canada(PDAC) convention on Tuesday in Toronto Canada.

The annual PDAC Convention which commenced on Sunday, March 4, is regarded as the premier international event for the mineral industry. It has attracted more than 25,000 people from 125 countries in recent years. It concluded today.

“To the Guyanese in the Diaspora, if you want to share in the buzz and excitement stemming from our recent oil discoveries; if you want to help us to diversify the economy, so as to ensure our non-dependence on petroleum revenues; then now is the time. The motherland needs you, your financing and your expertise, Come home to Guyana!” Minister Jordan said.

The Finance Minister said the mining sector is economically important to Guyana. As a share of the country’s Gross Domestic Product (GDP), it has accounted for approximately fifteen (15) percent at the end of 2017, with gold being the main contributor. Mining, he said, is also the major source of Foreign Direct Investment into the country, accounting for approximately twenty- five percent of the total amount.

According to Minister Jordan, one of the main reasons why the sector is unable to unleash its full potential is the unavailability of the requisite capital to local investors. To address this challenge, he said the Government is encouraging local miners to establish linkages with foreign investors and members of the Diaspora to access the necessary financing and technology.

In an effort to make the sector more competitive, the Government has been providing fiscal incentives in the form of concessions on machinery, equipment and fuel, and waiver and remission of taxes on motor vehicles, based on the value of gold declaration.

Mining Operators are also permitted to hold foreign exchange retention accounts, while larger operators are subjected to an Investment Development Agreement that allows for duty and tax concessions for specified periods in the life of the investment.

“With our one-stop investment agency, Go-Invest, ably facilitating investors and helping them to cut the red tape and bureaucracy, investors can be guaranteed the safety of their investment and the ease of doing business,” Minister Jordan said.

By: Alexis Rodney


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01 Mar
By: ict 0

Ministry of Finance Refutes Stabroek News’ Article

The Ministry of Finance notes with consternation an incredible headline in today’s Stabroek News ‘Finance Minister proposal on GuySuCo Chair draws opposition at Cabinet’ and the equally incredible story that followed.

For the record, the Minister of Finance, Winston Jordan was in fact attending an important Pre – Governors meeting of the IDB in Jamaica which ran from February 26 to 28, 2018. He returned to Guyana last night.

Therefore, contrary to Stabroek News ‘sources,’ Minister Jordan was NOT present at Cabinet on Tuesday and consequently, did not ‘propose, argue, make a presentation or reasoned’ with Cabinet as reported.

The Ministry of Finance calls on the Editor of Stabroek News to retract forthwith all actions attributed to the Minister of Finance in its article and to apologise to its readers for this misinformation.

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18 Jan
By: ict 0

Minister of Finance, Hon. Winston Jordan remarks on the occasion of the Signing Ceremony for the Sustainable Land Development and Management Project

Your Excellency President David A. Granger; Colleague Ministers of the Government; Mr. Reuben Robertson, Country Representative of the Food and Agriculture Organisation of the United Nations (Guyana Office); Representatives of other sector agencies; Members of the media; other invited guests, Ladies and Gentlemen:

Today, I am pleased to make Brief Remarks on the occasion of the signing of the Sustainable Land Development and Management Project which will be implemented by the Guyana Lands and Surveys Commission in collaboration with the United Nations Food and Agriculture Organisation (UNFAO).

Allow me to begin by saying that I endorse this project, which has been designed to ensure that the productivity and economic potential of our land is maintained, even as we utilise our natural resources to streamline and develop our green economy. Indeed, the overarching goal of sustainable land management should be to contribute to government projects and programmes that are aimed at achieving poverty reduction, economic growth while promoting the full utilization of land resources in a sustainable manner. As such, issues to do with improving land tenure security; enhancing the efficiency, transparency, and improving service delivery of land titling and registration; and enhancing local government capacity to undertake land management functions, must be brought into contention.

I am happy that this project has been designed to tackle many of these areas. We have high expectations that this land management project will provide the required data to inform our planning processes, and help us to position, strategically, our physical infrastructure such as roads, bridges, drains, culverts and other structures, in order to avoid disrupting the ecosystem. It will also allow us to protect and rehabilitate those areas that have been degraded through irregular and unsustainable mining and logging practices that cause erosion and contaminate our waterways, among other negative effects. Further, it is envisaged that sound land management will provide information that helps to reduce the level of production risks and protect the natural resources potential by preventing degradation of air, soil and water quality. More importantly, it will help to ensure that economic ventures are socially acceptable and sustainable.

Lest we think otherwise, land management is absolutely essential, since it combines technologies, policies and activities with socio-economic principles and environmental concerns, in order to maintain and enhance the production of goods and services. The report from a global study that was conducted in 2013, proved that sustainable land management has the potential to feed more people; provide opportunities for growth and livelihood diversification, restoration of natural ecosystems; address climate change impacts and build justice and security for the rural poor.

In my maiden 2015 Budget Speech, and in recognition of the agricultural sector’s contribution to the economy, I pledged our Government’s commitment to: (i) restore and enhance soil fertility; (ii) crop rotation; (iii) efficiency in water use; (iv) reducing the use of chemicals and pesticides, among other measures. I wish to let you know that Government remains committed to this thrust through its yearly budgetary allocations to the sector.

I note that a key objective of this sustainable land development and management project is to create an enabling environment which will help to shape our economic landscape in the areas of renewable energy initiatives (solar, hydro and wind power), the preservation and protection of our eco-system, promotion of eco-tourism, and the creation of green jobs and green spaces for recreational purposes. It has been determined that these efforts would require a cross-sectional approach consisting of Government, the private sector and civil society in order to flourish.

Recognising the need to protect Guyana’s natural capital, the concept of sustainable communities was materialised through the establishment of the Ministry of Communities – the vision of His Excellency President Granger.  This vision allows for the building of cohesive, empowered and sustainable communities that would protect the natural capital, boost socio-economic growth and increase job opportunities through Government’s support to micro, small and medium enterprises (Budget Speech, 2015 p.51). This is being done, currently, through initiatives such as the Micro and Small Enterprise Development Project and the Amerindian Development Fund.

I should highlight that the SLM addresses, to varying degrees, a number of the Sustainable Development Goals (SDGs), in particular, SDG 15 – “Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably managed forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss”. More importantly, it will develop data gathering and monitoring, reporting and verification (MRVs) mechanisms that would assist in supporting the implementation of our Green State Development Strategy and help us to monitor our progress towards the achievement of the Sustainable Development Goals by 2030.

In closing, the Government of the Cooperative Republic of Guyana looks forward to the timely and seamless implementation of this transformative project.   We need to take stock of lessons learnt and ensure that slippages identified in the implementation of GRIF projects – those associated with time and costs overruns – are not repeated in this project.   I want to impress upon the implementing partners of this SLM project to ensure that all deliverables are achieved within the specified timeframe and budget. This, of course, would require the cooperation of all relevant stakeholders to support the Guyana Lands and Surveys Commission in carrying out its mandate to realise the goals of the Sustainable Land Management project

Thank you

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23 Oct
23 Oct