Stricter oversight, increased field operations to tackle illegal gold trade

– authorities caution against paying workers in raw gold

Local authorities will be rolling out a series of measures aimed at curbing illegal trade in Guyana, including imposing stricter oversight of operators and heightened field operations. These were among actions identified during a recent high-level meeting held by the Ministry of Natural Resources in collaboration with the Guyana Gold and Diamond Miners Association (GGDMA) to address concerns in the sector, including gold declarations. During the engagement, Natural Resources Minister Vickram Bharrat emphasised the Guyana Government’s commitment to ensuring that the country’s mineral resources are managed responsibly, transparently and in accordance with the law. He reminded us that since 2020, the People’s Progressive Party/Civic (PPP/C) Administration has delivered unprecedented technical, financial and regulatory support to the sector and its stakeholders. Further to this, the Government has made significant enhancements to the sector’s guiding regulations, as well as supporting compulsory training for miners. Among the series of enhanced measures that will be rolled out immediately is a tighter oversight of gold dealers and traders. The Ministry said in a missive on Saturday that it will intensify regulatory scrutiny of all licensed gold dealers and traders. This includes stricter audits of purchasing records, verification of source declarations and routine compliance checks to ensure adherence to licensing conditions.
“Dealers found to be facilitating undeclared gold transactions or failing to meet reporting obligations will face sanctions, including suspension or revocation of licences. These measures aim to close gaps that enable under-declaration and strengthen the integrity of the gold supply chain,” it warned. Moreover, there will also be increased field operations geared towards stopping illegal mining. This will see the Ministry significantly scaling up field monitoring and enforcement efforts across various mining districts. These operations, it noted, will target unauthorised activities and ensure compliance with environmental, safety and production reporting requirements. In addition, there will also be an intensified seizure of illegal equipment. According to the Natural Resources Ministry, agencies under the Ministry’s purview have been instructed to heighten the confiscation of equipment found to be operating without legal documentation or in prohibited areas. “This initiative is part of a zero-tolerance stance on mining that undermines national regulations,” the missive detailed. Further, the Natural Resources Ministry plans to field multi-agency activities to arrest and charge illegal operators. This measure, it explained, will expand collaborative operations involving the Guyana Geology and Mines Commission (GGMC), the Guyana Police Force (GPF), the Guyana Defence Force (GDF) and other relevant agencies. These joint efforts will focus on identifying, arresting, and prosecuting individuals and groups engaged in illegal mining.

Prohibition on payment in gold
Meanwhile, Saturday’s missive also saw local authorities reiterating calls for miners to sell gold only to the Guyana Gold Board or licensed dealers.
“The Ministry and the GGDMA is strongly urging all miners to conduct sales through the Guyana Gold Board or authorised licensed dealers. This is essential to maintaining accurate national production data, supporting fair trade and ensuring that the benefits of the sector are properly accounted for,” it emphasised.
Another call by the Natural Resources Ministry was for workers in the mining sector to not be paid in raw gold – a practice called “Blai box” whereby workers are compensated with gold rather than wages. But the Ministry reminded that all employees are to be compensated through lawful financial channels in accordance with labour laws and tax regulations. “Paying workers in gold undermines transparency, weakens declaration accuracy and exposes workers to exploitation and unsafe practices. The Ministry will increase inspections to ensure compliance, and employers found violating labour and tax rules will face penalties. We also remind miners that it is illegal for miners to allow what is commonly referred to as the “Blai box”. Gold can only be used for transactions with approved buyers and the Guyana Gold Board,” the missive stated. The Ministry went on to reaffirm its commitment to working in partnership with the GGDMA and all legitimate miners to strengthen the sector. Minister Bharrat noted that while enforcement will be sharply increased, the Government remains open to continuous dialogue and collaboration to address industry challenges and support responsible mining practices. The Ministry added that it looks forward to ongoing cooperation aimed at improving governance, boosting declarations and protecting Guyana’s natural resources for the benefit of all citizens. This recent high-level meeting comes as the GGDMA issued an urgent call to all miners to intensify their efforts to meet the 2025 national gold declaration targets. In its statement, the Association reminded miners that the sustainability of the sector relies on compliance, transparency, and the rejection of illicit trading channels.