El Dorado Trading records highest gold declaration for 2021
- Contributed approx. $7B to Consolidated Fund during past year
After another solid year, local gold mining and trading company El Dorado Trading has once again emerged as the country’s number one gold dealer with the highest declaration for 2021.
This is in midst of the many challenges the industry faced during the last 12 months, including the floods in the first half of the year. During that period, Guyana recorded the second highest level of rainfall since 1981.
That situation severely affected gold production in the past year, but according to a representative of El Dorado Trading, the company has been able to remain resilient and steadfast in its operations, while contributing to the country’s growth and development.
During his 2022 National Budget presentation last month, Senior Minister within the Office of the President with responsibility for Finance, Dr. Ashni Singh, said the gold mining sub-sector was estimated to have contracted by 14.8 percent in 2021.
This, the Minister explained, was driven by lower output from both large and small and medium scale producers.
In existence for over two decades, El Dorado Trading said it is grateful to the People’s Progressive Party/Civic government for the relief measures it has instituted for the extractive industry, including the removal of Value Added Tax on mining equipment.
This, the company representative indicated, was significant for the sustenance of the industry during the past year, as would be the extensive 2022 budgetary allocation for the expansion and development of hinterland roads.
The company added that in 2021 it was able to help Guyana maintain a stable exchange rate, contributing over US$400m in remittances.
Additionally, El Dorado Trading has contributed approximately $7B in royalties and taxes to the Consolidated Fund in 2021, making it a significant driver of development in Guyana.
“We want to especially thank the miners who were responsible for making things happen in 2021, despite the challenging weather conditions that we experienced,” the company representative added.
Looking ahead to next 12 months, the company is excited about the prospects for the industry, especially given the forecast outlined by Dr. Singh.
“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 were 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. Singh 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.