While Guyana’s oil and gas boom dominates headlines, the country’s mining sector, particularly gold, remains a critical part of its economic fabric. Historically, gold mining was the backbone of Guyana’s economy and even today, as oil transforms the nation’s outlook, mining continues to evolve in response to shifting market dynamics, environmental challenges and political developments. 

According to the US Geological Survey, Guyana’s gold production has dropped from a peak of 22,168 kilogrammes in 2016 to just 15,129 kilogrammes in 2022. The decline stems from a combination of unfavourable weather conditions, outdated mining techniques and a shrinking labour pool as many workers migrate to the more lucrative oil and gas industry. As the Minister of Natural Resources noted, frequent floods and droughts have disrupted operations, with current recovery rates hovering at just 35 – 40 percent, inefficiencies continue to weigh the sector down. 

Still, the outlook for the next 12 months is cautiously optimistic. A mining and natural resource consultant explained, “Over the next 12 months, we can expect to see increased activity, particularly on the larger scale. The Oko West project is expected to move into construction once the environmental permits are sorted... it’s going to draw more attention to Guyana as a serious mining destination.”

“The Oko West project is expected to move into construction once the environmental permits are sorted... it’s going to draw more attention to Guyana as a serious mining destination.”

A mining and natural resource consultant, LatAm

On the smaller scale, if gold prices remain stable or climb, more independent miners are likely to return to production. Government incentives, including tax breaks and duty-free concessions on mining equipment, are helping and recent efforts to improve recovery methods could begin to push production numbers upward. 

Despite a challenging past few years, the country’s mineral reserves remain far from depleted. “Guyana’s mineral resources are far from tapped out. We’re talking about gold, of course, but there’s also interest picking up in bauxite and so on,” noted one sector observer. However, competition with the oil and gas industry for both labour and governmental attention remains a hurdle. 

Mining in Guyana also operates at a tricky crossroads of environmental, cultural and legal complexity. Indigenous communities (particularly Amerindian groups) are playing an increasingly active role in mining. In June 2025, the Minister of Natural Resources confirmed that several Amerindian villages are now running mining operations on their land, diversifying beyond agriculture with government support. This marks quite a change in the sector’s relationship with Indigenous peoples. 

Yet not all is smooth. Tensions occasionally arise around land rights, permits and environmental impacts. “The Amerindian Act is clear regarding land ownership... but there’s also a caveat that, if it serves the interest of a national goal, the government itself can have access to what lies beneath the earth,” highlighted the expert. In some cases, old permits conflict with newly extended Indigenous lands, creating legal ambiguities and friction. “Even if there is no mining happening in the indigenous community, mining upstream or downstream still affects whoever’s living there because the entire mining operation uses water,” the expert affirmed. 

“The Amerindian Act is clear regarding land ownership... but there’s also a caveat that, if it serves the interest of a national goal, the government itself can have access to what lies beneath the earth.”

A mining and natural resource consultant, LatAm

Environmentally, Guyana faces pressure to reconcile its growing mining footprint with its sustainability goals. The government has promoted the Low Carbon Development Strategy (“LCDS”), aiming to attract responsible investors. But there’s a growing divide between small and large operators, especially around environmental management. “There is significant environmental concern that the damage left behind is increasingly getting worse,” remarked a public and private sector consultant. The continued use of mercury, while technically being phased out, is another sticking point. “Mercury is much more affordable; therefore, this remains a challenge for the sector,” stated the consultant. 

Looking ahead, the upcoming general elections loom large over Guyana’s mining sector. In 2020, the results were extremely close, with the ruling People’s Progressive Party (“PPP”) securing just 33 of 65 seats. President Dr. Irfaan Ali’s administration currently leads, and early signs suggest they may retain power. The opposition - comprising the People’s National Congress Reform (“PNCR”) and the Alliance for Change (“AFC”) - remains disorganised, still debating coalition strategies and candidate selection. 

For the mining industry, political stability and continuity are viewed as beneficial. A win for the PPP would likely maintain current policies around tax incentives, permitting and Indigenous inclusion. A favourable outcome for the sector would be one that ensures administrative continuity, regulatory clarity and further investment in mining infrastructure and recovery technologies. 

However, many miners are pragmatic and driven more by market dynamics than government shifts. “Once there is a reasonable price of gold on the market... there isn’t much policy that can influence a spike in gold mining activity other than the price,” one source stated. In fact, mining activity tends to spike when gold prices rise, regardless of who holds office. The source continued, “You have miners who are involved in other businesses, but when the price of gold increases, they immediately activate their resources and enter their areas to initiate production.” 

Though overshadowed by oil, Guyana’s mining sector (especially gold) faces real hurdles with outdated practices, environmental degradation, regulatory ambiguity and competition for talent. Yet, opportunities abound, with gold prices rising, new projects like Oko West moving ahead and Indigenous communities becoming active stakeholders, the sector is far from obsolete. For investors and operators, the next year offers challenges but also a glint of renewed promise.