Author: Canaan Bridges Consulting Inc.
Natural resource valorization in Guyana accounts for an increasing share of the country’s economic growth. The recent oil boom, gold mining and production are significant sources of revenue for the country. Within this paradigm, the contribution of artisanal and small-scale gold mining to Guyana’s economy is significant. The sector contributes between USD 234 and 548 million annually to the economy, and accounts for 70% of the country’s gold production. More than 15,000 individuals are involved in this downstream activity. The sector generates income for several households, including those in remote areas and Guyana’s Indigenous territories.
The artisanal and small-scale gold mining ecosystem is complex, comprising multiple stakeholders with diverse interests. Sectoral challenges pose major threats to the sustainability of small-scale gold mining, particularly to the livelihoods and well-being of gold miners. The social and economic conditions of artisanal and small-scale gold miners in Guyana differ from those of the more affluent miners in the industry. Despite its substantial contribution to Guyana’s economy, these workers earn comparably less than their counterparts. This group receives between 60% and 85% of the global market price for their gold.
Gold mining involves the extraction of a non-renewable resource from below the Earth’s surface. Forested areas are often cleared for these purposes. Mercury is commonly used by artisanal and small-scale gold miners to bind gold particles in ore and to burn off the residue, thereby revealing the gold. This process is toxic and globally accounts for the majority of mercury pollution. Its environmental impact on Guyana can be devastating. The use of mercury in artisanal and small-scale gold mining affects miners’ and community health, Guyana’s biodiversity, crop productivity, the health of marine and inland waters, and the country’s overall well-being.
The affordability of mining equipment and the long-term interest in adopting sustainable methods for gold extraction are two of the most pressing issues facing Guyana’s artisanal and small-scale gold miners. Large-scale gold miners operate on substantial land areas, have lucrative portfolios, access to capital and technological resources, and are better positioned to comply with local regulations and applicable standards. While Guyana’s offshore Stabroek Block oil production has had several positive effects on the economy, an increase in the cost of living is also among its impacts. This includes increased prices for mining equipment and environmentally friendly resources to facilitate gold extraction.
Several development-based strategies can catalyze growth in Guyana’s artisanal and small-scale gold mining sector. These include:
While there are local programs promoting sectoral changes, a cohesive approach is required to mainstream and implement sustainable practices more broadly.