In a critical review of the Guyana Geology and Mines Commission (GGMC)’s data submitted to the Guyana Extractives Industries Transparency Initiative (GYEITI), concerns have emerged by that body regarding expired mining prospecting permits and the handling of funds designated for reclamation operations.
In its report for the fiscal year if 2021, the GYEITI noted that several prospecting permits and licences, although renewed annually, have expired, prompting questions about the activities on these mining sites. There is also speculation that some might have transitioned from prospecting to production without the necessary permissions.
According to the GYEITI report, mining entities holding multiple licenses raise the prospect of becoming comparable in size to large mining entities, emphasizing the need for a thorough review.
Furthermore, it said discussions with GGMC revealed changes in the security measures for reclamation operations. Until 2018, licensees either provided cash or a bond for this purpose. Since 2018, a cash sum was mandated, but concerns arose as the cash was deposited into a general bank account, raising questions about its earmarking for reclamation obligations.
In response to the GYEITI’s request for clarity, GGMC provided a Schedule of Refundable Deposits on December 6, 2023, totaling $1.18 billion. However, the report acknowledges the need for more information, including the date of cash receipts, the associated licences or permits, conditions for cash use, and the repayment dates.
GYEITI stressed the importance of identifying and ring-fencing monies held by GGMC against future reclamation expenditure to ensure proper utilization. Due to the timing of the schedule receipt and the need for additional information, the independent administrator acknowledged limitations in providing more clarity in the current report.
