The Guyana Gold and Diamond Miners Association (GGDMA) today criticized the Guyana Geology and Mines Commission (GGMC) for lax oversight within the mining sector. The GGDMA said this state of affairs has led to a flourishing culture of lawlessness and illegal activities, which are the bedrock of rampant gold smuggling in the country.
According to the GGDMA, the roots of the gold smuggling crisis lie in a series of unchecked illegal activities within the mining sector, including unauthorized mining operations, unregulated trading posts, and the proliferation of illegal gold shops in the interior regions of Guyana. The association contended that the GGMC’s ineffectiveness in curbing these activities has created an environment conducive to smuggling, thereby undermining the legitimacy of the gold trade in the country.
Moreover, the GGDMA highlighted that the GGMC’s approach to enforcement has been alarmingly lenient, allowing illegal operators to repeatedly flout the law without facing significant consequences. Over the years, the representative body said many offenders have been treated with what it describes as “slaps on the wrists,” a practice that has emboldened illegal miners and traders. Equipment seized from repeat offenders is often returned within days, and illegal operations that are shut down one day are typically back in business the next.
Another major issue highlighted by the GGDMA is the unchecked proliferation of itinerant trading posts, commonly known as “landings,” which have become hubs for illegal gold trading. In the past, gold trading was confined to a few gazetted areas within the interior, but the current reality is starkly different, it said. These landings, too numerous to be effectively regulated, allow illegal gold buyers to operate freely, purchasing gold from unscrupulous miners at higher prices and bypassing any formal documentation or tax obligations.
The association pointed out that these landings are not just centers for illegal gold trade but also hotspots for a range of illicit activities, including human trafficking, and the sale of drugs and weapons. Despite repeated calls for the reduction and proper regulation of these trading posts, the GGDMA lamented that no meaningful action has been taken by the authorities.
Another critical concern is the rise in illegal mining activities on lands designated as “closed areas,” which are under the exclusive control of the government. The GGDMA reported that thousands of acres of mining lands have been abandoned by private operators due to non-payment of rentals and have subsequently been absorbed into these closed areas. The association suspected that a significant amount of gold is being mined illegally in these regions, often with the tacit approval of certain state-appointed officials who are suspected of turning a blind eye in exchange for personal gain.
Further, the GGDMA claimed to have received numerous reports from miners about illegal activities on these lands, particularly in mining districts 3, 4, and 5, but noted that little has been done in response. According to the organization, miners who report these illegal activities often face retaliation, leading many to adopt a stance of silence for their own safety.
The GGDMA emphasized that the proliferation of illegal mining and unregulated gold trading has a direct impact on the country’s gold declarations and, consequently, on government revenue.
The association therefore called on the government to employ its financial oversight agencies, such as the Financial Intelligence Unit (FIU) and the Special Organized Crime Unit (SOCU), to investigate the owners of large mining operations who, despite the apparent scale of their activities, do not declare significant quantities of gold.
The association said there are concerns that some of these operators may be fronting for larger smuggling networks and that the equipment used in illegal mining might actually belong to these smuggling rings. The GGDMA also raised questions about civil servants connected to the mining sector who appear to be living beyond their means, suggesting potential involvement in illicit activities.
As such, the GGDMA called on the government to demonstrate a genuine commitment to addressing the underlying issues that facilitate gold smuggling. The association stressed that without decisive action to curb illegal mining and the unregulated trade of gold, Guyana’s gold industry, which is of significant historical and economic importance, faces a bleak future.
In addition, the association warned that if the country fails to provide assurance of the transparency of its gold sources, it risks losing the confidence of legitimate international buyers, which could jeopardize the entire industry.
