BUDGET 2022: Significant growth in gold sector this year as millions in foreign investment expected

The gold mining subsector represented 8.8 per cent of Guyana’s economic output in 2021 and this sector is expected to contribute significantly to the Guyanese economy again this year, Finance Minister Dr. Ashni Singh has said.

“Significant growth can be expected from the subsector in 2022, with gold declaration envisaged to continue to be dominated by small and medium scale producers,” Dr. Singh said during the presentation of the 2022 National Budget presentation.

These producers are operating 1,054 small-scale mines and 25-medium scale mines.

Gold output was the third largest non-oil sector of the local economy in 2021, and accounted for more than 60 per cent the country’s total non-oil export earnings. Earlier in his budget presentation, Dr. Singh said that the country’s total export earnings was more than $4 billion in 2021.

Meanwhile, the Finance Minister stated that 202 medium-scale mining blacks were awarded via lottery and 65 via auction.

Looking ahead in this sector, Dr. Sigh also revealed “two or probably three” large-scale operators are expected to come on stream in the medium-term.

And, Dr. Singh said that investment in the Toroparu area will finally result in long anticipated development of a full-fledged gold mine since an international mid-tier gold company has confirmed their interest in this project.

The Toroparu mine is estimated to be one of the largest gold mining projects in Guyana; it is located in the Upper Puruni River Area of north-western Guyana.

Notably, the News Room understands that development works to the tune of US$165 million could be made in 2022, with a further US$189 million expected in 2023. That should allow production to commence in 2024.