Govt sets up intelligence operation to uproot illegal gold dealers – VP Jagdeo

Vice President Dr Bharrat Jagdeo has disclosed that the Guyana Government has put in place an intelligence operation to go after all those who engage in illegal gold transactions in the country.
Earlier this week, the Natural Resources Ministry highlighted a situation where the decrease in gold declarations is at odds with the investments being made in the mining sector. Consequently, it was announced that an investigation will be launched to determine whether gold smuggling/illegal trade is responsible for this disparity.
During a press conference on Thursday, VP Jagdeo said the government is of the view that there is a significant declaration of gold production. He said the figures show a disparity of nearly 30,000 ounces above the actual production number.
“So, we believe that some producers are not declaring because they’re making bigger investments in the area but they’re not declaring. The second thing is they are selling to people who are not authorised to buy gold,” the Vice President noted.
Currently, there are six authorised gold dealers in the country along with the Guyana Gold Board.
Jagdeo warned miners that if they sold gold to anyone other than these authorised sources then they were committing an illegal act and the government would be going after them – both the seller and buyer.
“There is a lot of intelligence now. We have a dedicated intelligence operation to find out who these people are. If you sell gold to an unauthorised dealer, you run the risk if you have a claim of not just getting prosecuted but losing your claim because you’re committing an illegal act.”
“The people who are buying gold who don’t have licenses, we believe they’re buying for all sorts of people because the premium they’re paying can’t be justified by the world market prices. So, they too will have to be prosecuted. So, both parties, the buyers and the sellers, would face prosecution,” the Vice President indicated.
In a statement on Monday, the Natural Resources Ministry reminded miners that they are required to sell all the gold they find to licensed gold dealers/traders or to the Guyana Gold Board, which it said is tasked with ensuring the laws surrounding the selling of gold are upheld.
According to the Ministry, a recent analysis and assessment show a significant difference between the production of gold and the declaration/sale of gold to licensed gold dealers, traders, and/or the Guyana Gold Board.
“This is evident from the reduction in gold declaration to date when compared to current mining activities and concomitant investment within the sector. In this regard, an investigation has been launched aimed at having those involved in such action face the full force of the law,” the ministry said.
It further warned that persons found to be in breach will face the full force of the law including miners with existing claims at risk of losing their holdings in addition to being prosecuted.
“Persons in breach of this legal requirement will be prosecuted, and in the case of miners with existing property tenures within the Guyana Geology and Mines Commission (GGMC), they may be in jeopardy of losing such tenures. Miners culpable of selling gold to unlicensed dealers/traders, in addition to being prosecuted, may be restricted from the mining sector,” the Ministry’s strongly worded statement read.
In July, there were reports that Brazilian federal authorities had launched an investigation into a Guyanese businessman suspected of laundering millions worth of illegally mined gold into that country.
The probe was initiated after authorities discovered the involvement of an alleged Guyanese businessman, who has ties to the gold mining industry in Guyana and conducts business in Brazil under suspicious circumstances.
Reports are that Federal Police agents suspect that the Guyanese businessman has a Brazilian partner who aided in the movement of funds through the companies.
At the time, VP Jagdeo had warned of tough measures and consequences for any miner found engaged in such illegal activities. In fact, Jagdeo had admitted that the government has been monitoring the decline in gold declarations, with at least one foreign company on its radar for declaring lower-than-usual figures.
The Bank of Guyana (BoG), in its Half Year report for 2023, reported that gold declaration declined by 11.4 per cent to 209,756 troy ounces at the end of June this year. This, it noted, reflected lower declarations by the small and medium-scale miners, while the large-scale miners registered an increase in declarations for the period. Labour shortages also contributed to the reduced declarations.
Small and medium-scale miners, which accounted for 75.8 per cent of total declarations, declined by 15.8 per cent.
For 2022, the declaration was 486,415 ounces; in 2021 it was 499,054 ounces; 2020 recorded 584,291 ounces and 2019 some 634,905 ounces. (G8)