Guyana - Country Commercial Guide
Mining and Minerals Sector

This is a best prospect industry sector for this country.  Includes a market overview and trade data

Last published date: 2020-10-21

According to the Ministry of Finance’s End of Year Outcome report, the mining and quarrying sector’s contribution to GDP was 15 percent in 2019.  The sector recorded growth of 26.4 percent at the end of 2019.  Known as “El Dorado” for its gold, Guyana also exports bauxite and diamonds.  Guyana’s mineral heritage includes deposits of semi-precious stones, kaolin, silica sand, soapstone, kyanite, feldspar, mica, ilmenite, laterite, manganese radioactive minerals, copper, molybdenum, tungsten, iron, and nickel, among others.

Subsector Best Prospect

Large Scale Gold Mining

According to the Ministry of Finance’s end of year report, gold mining grew by 3 percent in 2019, bauxite 1.7 percent and other mining 7.3 percent.  The two large mining companies in the gold subsector recorded lower production in 2019, largely as a result of operational setbacks that included the suspension of one company’s activities for almost three months.  There are ongoing efforts to transition operations to mercury-free mining with Conservation International, executed jointly by the Guyana Geology and Mines Commission (GGMC) and the Guyana Gold and Diamond Miners Association.

Key hurdles facing potential investors includes elevated health and safety concerns.  At the end of 2019, a mining pit collapsed and this led to increased scrutiny by the former government.  Guyana’s gold royalty stands at 8 percent and corporate entities are taxed at a rate of 25 percent.  Applications for prospecting and mining licenses are sent to the GGMC.  The approval of a mining license paves the way for arrangements to be made with the Guyana Office for Investment to allow for the free importation of equipment, supplies and materials to be used for gold production.  The Office of the Presidency has oversight of Guyana’s natural resources.  COVID-19 restricted some mining operations, as many laborers contracted the virus.

Leading Market Indicator

Participant

2018 Actual Production (ounces)

 2019 Actual Production (ounces)

Guyana Goldfields

163,568

141,316

Troy Resources

90,684

45,268

Small and Medium Sized Miners

361,971

448,321

Total

616,223

634,905

 Source: Bureau of Statistics

Opportunities

Opportunities within the mining sector in Guyana include prospecting, provision of mining equipment and value-added processing, the latter especially if electricity rates decline. The country does not have a smelting facility.  

Web Resources Guyana Office for Investment

Office of the President: https://motp.gov.gy/

Guyana Geology and Mines Commission:  https://www.ggmc.gov.gy/

Ministry of Natural Resources and the Environment: https://nre.gov.gy/