Mining in Guyana
Mining in Guyana is a significant contributor to the economy owing to sizable reserves of bauxite, gold, and diamonds.
The price of gold attracts workers away from agriculture labor for quick gains, the result of which can have a detrimental effect on Guyana's overall economy.
Major mining sites are at Linden, south of Georgetown, and Kwakwani on the Berbice River[6][13] In 2016, 1,479,090 tonnes of bauxite was produced.
[17] Aluminium became an important resource during the First World War as it was a key material to make aircraft, and so the global demand for bauxite increased, leading companies to expand development in Guyana.
[18] The British government was unwilling to allow Alcan to own the bauxite mines in Guyana because the United States was in control of the Canadian company.
[17] Bauxite production in the 1960s was around 3 million tons per year and by the early 1970s, the two companies made up 45 percent of the nation's foreign exchange earnings.
[16] However, the resulting government-run industries suffered from poor management, commodity price fluctuation, and global competition and production fell to 1.3 million tons by 1988.
First Bauxite Corporation made plans to develop mining at Bonasika in the Essequibo River,[20] which after delays from lack of financing, started operations in 2020.
[18] Bauxite exports increased by 400% in Guyana during the Second World War, and so the environmental consequences became more severe due to the expanding industry.
[18] Tropical forests were cleared to create new mines and the Bayer process left behind red mud and air pollution.
[18] The natural environment of the community Coomacka (Kumaka) in Upper Demerara-Berbice has been altered by bauxite mining.
[24] The population of Upper Demerara-Berbice in 1960 was 17,553, with 38% of the people being local, and the other 62% having migrated to the area to seek work at the bauxite mines.
[16] The MacKenzie area of Upper Demerara-Berbice was socially and physically divided based on race during colonial rule of British Guiana.
[16] The unequal working and living conditions the Black, brown, and mixed people of MacKenzie faced resulted in the formation of the British Guiana Labour Union (B.G.L.U.)
[22] In 2009, 57 employees of the Bauxite Company of Guyana Inc. were fired for participating in a strike to campaign for higher wages and better workers' rights.
[25] The employees who were a part of the strike were unable to seek employment at other bauxite mines due to their participation.
[4] The industry is mostly made up of medium-scale operations that use land dredging techniques[6] however, diamond mining has been on the decline.
In 2016, ExxonMobil announced Esso has discovered additional high-quality oil-bearing sandstone resources in the offshore Stabroek Block of the oilfield.
