Mining in Guyana

Upper Demerara-Berbice region in Guyana

Bauxite mining began in 1914[15] and took off in the 1920s with substantial investment from large-scale, foreign operations such as Demerara Bauxite Company (Demba) owned by Canada's Alcan, and Reynolds Bauxite Company owned by Reynolds Metals of the US.[6] The first bauxite mine in the Upper Demerara-Berbice region opened in 1916.[16] At that time, Guyana was still the British colony known as British Guiana.[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] The British government was unsuccessful at preventing Alcan from legally owning the bauxite mines in Guyana due to the United States government threatening to cease providing Britain with weapons needed to fight in the war.[17] The British Aluminium Company (B.A.C.) acquired leases to develop bauxite mines on the Christianburg land in Linden following World War I, in order to compete with Demba, who at the time, had control of the majority of bauxite in Guyana.[17] In 1949, the B.A.C's leases were transferred to the Plantation Bauxite Company Ltd. and then transferred to Demba in 1957.[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.[15] After Guyana's independence from Britain, there was a political shift towards nationalizing these large, foreign-owned industries.[15] The government of Guyana nationalized Demba in 1971.[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.[15]

When privatization was used to improve economic prospects, majority shares were purchased once again by foreign companies. In 1985, Reynolds Bauxite Company was one of the first foreign companies to return, providing managerial assistance to Guymine at Kwakwani.[1]

Omai Bauxite Company, owned by Canadian IAMGOLD, was bought in 2007 by BOSAI, a Chinese company.[19] The other major mine in Berbice, formerly Aroaima Mining Company, is owned by Bauxite Company of Guyana Inc., a subsidiary of Russian-owned Rusal. The government maintains part ownership in both companies: 30% of Omai and 10% of Bauxite Company of Guyana.

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.[21]

Guyana had one alumina plant for separating aluminum oxide from raw bauxite ore, but it closed in 1981 as a result of "inefficient management, declining world prices for bauxite, and prolonged strikes by workers".[1][22] Prior to closure, production was about 300,000 tons processed per year.[1]

Increases in bauxite production have led to bauxite dust air pollution in the Linden area by the facility.[23]

Bauxite mining has impacted the rainforests and other habitats in Guyana through deforestation, habitat fragmentation, and soil degradation.[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.[22] The construction of bauxite mines required sand to be cleared from the land, which eventually led to the formation of a sand beach by the Demerara River.[22] The sand beach has increased flooding in Coomacka.[22]

Bauxite plant in Linden, Guyana

The mining companies did not implement restoration measures for the natural environment after bauxite mines were closed in Linden, and so pit lakes exist in areas where open pit mines used to be.[24] Pit lakes can have negative impacts on groundwater.[24] In 2018, some pit lakes in Linden were found to have higher levels of aluminium, manganese, and iron, and they were found to be acidic.[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.[17] In 1960, about 74% of the white population resided in South MacKenzie, and 98% of the Black, brown, and mixed populations lived in North MacKenzie.[16] The Demba company determined where the residents could live.[16] The white population in South MacKenzie had larger houses that were built better and had sewage systems, whereas the houses in North MacKenzie were smaller and rarely had indoor bathrooms.[17] The majority of non-manual jobs in MacKenzie were held by the white population, leaving the non-white population to have the lower-paid manual jobs.[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.) in 1944.[16] 1,900 workers were fired after the efforts to unionize in 1944.[16] A 64-day strike in 1947 led to the union gaining official recognition, but this time under the British Guiana Mineworkers Union (G.M.W.U.).[16] From 1962 to 1970, there were 47 strikes at Demba by the G.M.W.U. One notable strike was in 1964 when 3,000 employees went on strike for a week in response to a white employee calling the Afro-Guyanese workers "cannibals".[16]

The 1981 closing of the Alumina Plant in Linden directly resulted in 1,600 people losing their jobs.[22] By the 1980s, bauxite production had decreased, with around 600 workers being a part of the bauxite industry in Linden.[22] Bauxite mining was the main industry in Linden, and so the reduction of bauxite mining led to many workers having to find employment outside of the city.[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.[25]

US sanctions relating to Russian involvement in the 2016 elections has created issues.[26]