Miners involved in gold smuggling racket will face consequences – VP

…as Govt monitors decline in gold declarations

Following reports that Brazilian federal authorities have launched an investigation into a Guyanese businessman suspected of laundering millions worth of illegally mined gold into that country, Vice President Dr Bharrat Jagdeo has warned of tough measures and consequences for any miner found engaged in such illegal activities.
In fact, Jagdeo has admitted that government has observed a decline in gold declarations, with at least one foreign company on its radar for declaring lower than usual figures.
“It’s absolutely true that we’ve noticed, especially in the last couple of years, a significant deviation [in gold declarations] and with the story coming out from Brazil, now we realise that it [gold] may be diverting,” the Vice President told a news conference on Thursday.
“We had, at one stage, thought that Venezuela gold was coming into Guyana to bypass the sanctions and go out…now we’re realising that it’s actually our gold going into Brazil and obviously to bypass the five per cent royalty and the two per cent final tax.”
The Bank of Guyana (BoG), in its first quarter statistical report on the performance of the economy for the year, said gold declarations decreased by 5.3 per cent when compared to the same period last year.
“…gold declarations were lower by 5.3 per cent, as local and licensed dealers declarations contracted by 23.9 per cent,” the report noted. However, it added that “the declarations from Aurora Gold Mine Inc. (AGM), Zijin Mining’s subsidiary in Guyana, the sole operating foreign company, increased by 65.4 per cent, when compared to the same period one year prior.”
For 2022 the declaration was 486,415 ounces; 2021 it was 499,054 ounces; 2020 recorded 584,291 ounces and 2019 some 634,905 ounces.
But Jagdeo noted that at least one foreign firm operating in Guyana is reporting lower than usual declarations. “I’ve noticed in the declarations, at least one foreign company, their declaration has dropped too and so we’re paying attention to that.”
As such, he noted that there is an ongoing investigation and that culprits will face the consequences.
“We’re going to take tough measures against people because we’re going to track also those who are benefitting from concessions. A lot of the local medium scale miners, they get concessions from the government too and if they’re a part of this racket, then they will face consequences too as well as those who are a part of the export of the gold,” the Vice President warned.
According to an article published by Brazil’s Ministry of Justice and Public Security earlier this month, its investigation, known as Operation Vanglória, focuses on individuals believed to have facilitated the movement of illegally sourced gold from Guyana into Brazil.

Suspicious circumstances
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.
One of these entities, purportedly involved in the trade of hospital supplies, has allegedly laundered over US$12.3 million worth of gold through its operations, despite having no physical presence at its registered address.
Brazil, due to its size and numerous bordering countries, has become a hotspot for gold smuggling activities. With nearly 200 ports along the Atlantic Ocean, the country serves as an ideal starting point for criminal organisations seeking to smuggle gold out of South America and into lucrative markets like the United States, Asia, and the Middle East.
It is estimated that around 30 tonnes of gold, valued at approximately $1.86 billion, is illegally extracted from Brazil each year.
As part of Operation Vanglória, Brazilian authorities said they have executed three search and seizure warrants in their efforts to locate the gold. (G11)