To begin analyzing pre-investment risks to mining in Guyana, investors must first carefully measure the impact of long-term operating costs in the mine development, given the boom-town inflation that the country will continue to experience for the next few years.
The challenge for miners in Guyana are the massive cost increases of everything thanks to the demands of the oil industry, which has heated up the markets for labor, transportation, equipment, and real estate. An already expensive operating environment has grown much more costly since the oil began to flow in 2020.
In the long run, petrodollars will hopefully bring massive investments in infrastructure, education, and training that could open up the central and southern hinterlands to all kinds of development, including industrial mining. But in the meantime, mining is no longer a political priority in Guyana. Politically, all eyes are on how the nation will divide its petro spoils and the infrastructure needed to support the offshore oil and gas industry.
However, this does not mean that there is no longer a need for mining in Guyana – only a need for enhanced pre-investment risk due diligence. AMI has leveraged nearly three decades of experience and 200+ consulting projects in Latin America to create the 2022 Latin America Mining Risk Index, a quantitative framework to compare risk across the region’s 16 leading jurisdictions — including Guyana.
This free resource could be a good place for investors to understand where the greatest pre-investment risks lie and the areas where enhanced due diligence is needed.
Please click below to learn more about this unique report, the first to quantify mining risk in Latin America, and learn more about how it can help you in evaluating pre-investment risk to mining in Guyana and Latin America.