Friday, May 3rd 02:24 PM IST

Price plunge prompts Guyana to put aside Gold sale

# Guyana gold  # South America gold  # GGDMA  

Guyana is among the world's top 30 gold producers, with the metal being one of the country's top exports.

GEORGE TOWN(BullionStreet): The recent gold plunge prompted Latin American nation Guyana to put aside it's gold sale plan.

According to Guyana Gold Board, the country is also trying to decide what to do with a large quantity of gold it bought from local miners when demand was high.

Guyana president Donald Ramotar said he will meet with advisers to determine when it's best to sell the gold following a recent fall in prices.

The President declined to say how much gold it had bought from local miners, but miners' association s puts the number at 60,000 ounces.

He says the association warned the government about dropping prices.

Ramotar noted that gold doesn't spoil, and said that the gold mining industry has generated more than US$1 billion in recent years.

Local miners sold 415,000 ounces of gold to the state board last year.

Guyana is among the world's top 30 gold producers, with the metal being one of the country's top exports.

The Guyanese government signed a $1-billion agreement with Canadian company Guyana Goldfields Inc in 2011 for what it says is the largest private mining investment in the South America country.

The project in the Aurora region is the first large-scale gold mining licence that Guyana has issued since 1991.

The government said it is expected to create more than 1,900 temporary and permanent jobs and Guyana Goldfields said it is expected to generate $1.6 billion in government revenues at a time of record gold prices.

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