The Alliance For Change (AFC) in a statement has expressed deep concern on the rapid decline in the mining industry and warned that Guyana may be afflicted by the Dutch Disease, which is the unwise management of wealth.
In Guyana’s context the new wealth is oil and gas as evidenced by the growth in GDP and the country’s ranking as the richest in the world per capita and the world’s fastest growing economy.
The AFC pointed out that prior to the 2020 COVID-19 pandemic Guyana produced and declared almost 700,000 ounces (ozs) of gold, with an average price point of US$1,700 or GY$350,000 per oz. The party expressed concern that in 2024 a mere 209,000 ozs have been declared, which at today’s price is worth US$2,600, reflecting a US$900 increase yet production is plummeting.
According to the party, the sector’s shortfall may be the result of the Dutch disease, where attention is diverted from other sectors and placed solely on one, as evidenced by “all attention ..now being paid to shoveling money into roads, bridges, unnecessary infrastructure projects, and friends and family’s pockets.”
More than 60 percent of Guyana’s 2024 GY$1.146 Trillion (US$5.5 Billion) is allocated to the infrastructure sector.
The AFC notes the Ministry of Finance’s reports chronicle a terrible scenario of plummeting production of gold, diamonds, manganese and bauxite, and accused the government of a complete volte-face on environmental protections against the ravages of mining that the APNU+AFC government worked steadfastly to introduce.
Going further, the party which was part of the A Partnership for National Unity and Alliance Change (APNU+AFC) coalition government, recalled that administration built and restored hinterland roads, offered incentives, conducted lotteries for small and medium-scale miners, and provided greater superintendence of the industry to curtail lawlessness and smuggling.
The party has accused the People’s Progressive Party (PPP) of being swept into office with sweet words of promise, but instead of the glorious days they proclaimed, a deep darkness has set in.
The AFC blasted President Irfaan Ali for his refusal to renew Investment Development Agreements granted by the Ministry of Finance under Winston Jordan, the granting of tax incentives on par with the Agriculture industry, the review of mining legislation, and the Rehabilitation and opening up of vital road links, just to name a few.
According to the party President Ali earlier this year met miners secretly and gave commitments that he, and his ministers, would facilitate their reasonable requests. “However, at the very end of the year, over 80% of the deliverables promised have not been fulfilled,” the party noted.