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Business
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Guyana Bans Unapproved Sales of Mining Land and Rejects Powers of Attorney as Proof of Title

By
Distilled Post Editorial Team

The Guyana Geology and Mines Commission (GGMC) has issued a public notice warning miners and prospective buyers against selling, or purporting to sell, mining lands without meeting the legal and regulatory requirements. The Commission said breaches could lead to prosecution, and that non-nationals face deportation proceedings where Guyanese law allows.

The notice restates the basis on which land is held. Mining lands are granted for the purpose of carrying out mining and remain subject to the laws, regulations and conditions of the relevant tenure. The GGMC urged prospective buyers and investors to check the legal status of a property directly with the Commission before signing agreements or committing money.

Powers of attorney are a particular concern. In an advisory published on 1 September, the Commission stated that an irrevocable power of attorney is not, in itself, acceptable proof of ownership or lawful tenure of mining property. It added that private agreements, receipts and similar instruments should not be treated as evidence that a person has the right to sell or transfer a mining property. The advisory followed weeks and months of reports of acquisitions of GGMC concessions, mainly for gold but also for uranium and rare-earth minerals.

The Commission does not rule out investment in mining properties. It acknowledges that some properties need extra capital, technical expertise or other resources, and encourages tenure holders to consider lawful joint ventures with suitable partners. In an earlier statement it said such arrangements should be properly structured, documented and submitted to the Commission for consideration and approval. A tenure holder who wants outside funding therefore has an approved route, and the Commission expects it to be used.

Enforcement is already under way. The GGMC says compliance and enforcement exercises will continue across all mining districts. The Ministry of Natural Resources has reported a series of detentions this year. Six non-nationals were detained on 20 August after being found running an underground shaft operation without approval, in a joint effort by the GGMC Corps of Wardens and the Guyana Police Force. In September five more non-nationals were detained in the Potaro district, with equipment and gold seized, and the ministry said that non-nationals previously found in illegal mining are being deported. Earlier in the year the ministry said more than 400 pieces of equipment, including engines, pumps, generators and excavators, had been seized in joint exercises since enforcement intensified.

The notice also covers the sale of gold. Miners must sell all gold produced to the Guyana Gold Board (GGB) or to licensed gold traders or dealers, and the Commission calls compliance compulsory and essential to transparency, accountability and integrity in the industry. The requirement has been under scrutiny before. In a separate statement on the Toroparu area, the Commission said attempts to verify records of sales to licensed dealers or traders had proved difficult, raising compliance and accountability issues under the Mining Act and its Regulations. To make lawful sales easier in remote areas, the ministry has said that the Gold Board will introduce mobile purchasing units.

The notice closes with a statement of responsibility. The Ministry of Natural Resources and the GGMC say they remain committed to safeguarding Guyana's mineral resources, promoting responsible mining and ensuring that all mining activity follows the law. The Commission's position is that the stability of the sector depends on operators keeping to the statutory framework.

The notice gives no figures for transactions under review and does not say how many land transfers the Commission regards as unauthorised. Nor does it set out the penalties that would follow beyond prosecution and deportation. For tenure holders, the practical advice is narrow. Sales of granted mining land need authorisation, a power of attorney does not establish title, and any buyer should confirm the position with the Commission first. Investors who want a stake in a property are directed to joint venture agreements that the Commission has approved.

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