A brief history of gold in Guyana
“Get gold, humanely if possible, but at all hazards, get gold.” – Spain, 1511
“Gold in the ground is not gold.” –
Anonymous
“There is not the slightest doubt that the Guiana Goldfields are in all probability the largest undeveloped auriferous area in the world. There is evidence not only that they are the most extensive but in places among the richest.” – Statement in the Daily Argosy (British Guiana) Sept 21, 1913
Gold, as a universally recognized medium of wealth, was not only sought after for its immediate monetary value but also played a crucial role in the expansion of European empires and the development of global financial systems. Before touching on the history of gold in Guyana, it’s essential to understand the international context in which it unfolded. The late 18th and early 19th centuries saw the emergence of gold rushes around the world, from Brazil to California and Australia. The introduction of the international gold standard in 1777, and its formal adoption in 1821, played a pivotal role in formalising gold’s value globally, thereby influencing economies worldwide.
These events sparked international migrations and reshaped global trade networks, further underpinned by the stability offered through the gold standard, facilitating expansive trade and investment across borders.
Background
Gold has been more than a valuable resource for Guyana. It has been a catalyst for economic transformation, a source of prosperity, controversy, and misery from the plantation economy’s decline to the advent of modern extractive practices inclusive of oil.
As Guyana transitioned from its plantation economy, the allure of gold would soon become a new focal point for economic development, intertwining with these global narratives and positioning the country within the broader history of gold mining and trade.
The late 18th century marked a period of immense prosperity for Guyana’s plantation economy. Guyana, during this era, was renowned as a land of instant fortunes. None more so than in sugar, cotton and coffee. According to Alan Adamson, between “1789 and 1802, exports of sugar, coffee, and cotton wool surged dramatically, epitomising what many considered a golden age for the colony’s planters”. So much cotton and coffee was being produced as Adamson’s dramatic finding indicated, that for a fleeting period at the end of the eighteenth century, Guyana was “the greatest cotton producer in the world and the greatest coffee grower in the British Empire.” In this period, for example, “the export of sugar rose by 433 per cent, of coffee by 233 per cent, and of cotton wool by 862 per cent.”
However, this prosperity was short-lived. Around 1810, the region began to experience a decline, primarily due to the competition from American cotton. The American ability to satisfy the growing demand for raw cotton at marginally lower production costs gradually eroded Guyana’s dominance in the market.
Guyana’s gold rush era
An important turning point in Guyana’s economic history came with the “discovery” of gold. In 1857, reports emerged of a gold fever in British Guiana following the discovery of gold nuggets in the Cuyuni River. As ARF Webber recounts, the first significant step towards gold prospecting occurred in 1863 when RV Abraham, a jeweller from Georgetown, obtained a licence to explore the territory. A concession was established at Waririe on the Cuyuni’s right bank, marking the beginning of serious gold mining efforts in the region.
The 1870s and 1880s witnessed a surge in gold discoveries and mining activities. Notably, Henry Ledoux, the French consul in Georgetown, played a crucial role by bringing experienced gold diggers Jules Caman and Raymond Didier from Cayenne in 1879. Their discoveries, particularly Caman’s in Akaiwanna Creek and later in Conawarook, drew international attention and miners.
By 1887, following the discovery of gold in the Barama River, gold production in Guyana surged to 13,124 ounces. A contemporary report highlighted, “crowds of gold diggers flocked to the territory. Not only was alluvial gold being found, but rich veins of quartz were being everywhere encountered and it seemed a new rand was to be found in the colony. The production of gold had now leaped to 13,124 ounces, and miners from all over the world thronged to British Guiana.”
For the Daily Argosy the Guyana version of the “gold rush” received so much media attention that the “symptoms” of gold fever were described as having “a quickened pulse, increased vigour of the organs of respiration and a high degree of excitement pervading the whole nervous system.” It was stated that “the best febrifuge was a trip to the diggings, which would either kill or cure the patient.”
According to economist Clive Thomas, in 1895 Guyana “ranked as one of the 10 largest gold-producing countries in the world.” Over time, the multifaceted global gold industry encompassed several key phases: exploration, extraction, processing, refinement, distribution, investment, regulatory oversight, and the analysis of market dynamics.
The early 20th century saw further advancements in gold mining techniques. In 1902, the introduction of a hydraulic plant significantly boosted gold extraction, yielding 2,255 ounces of gold by March 1903. However, the gold industry faced challenges towards the end of the first decade of the 1900s. The rise of the balata and rubber industries, along with increased costs of wood fuel, led to a decline in corporate gold mining activities by 1909.
The July 26, 1926, edition of the Daily Chronicle contains a thorough account of a speech delivered by Joseph Eleazer, an African Guyanese member of the colonial legislature. At that time, Eleazer held the position of Financial Representative (approximately a current day Member of Parliament) for New Amsterdam. The legislative body had unanimously “adopted a resolution that explicitly prohibited the executive authority from transferring ownership of lands rich in precious metals to international corporations, prioritising instead the rights and interests of Guyanese nationals.” This resolution in the 1920s, supported also by the Popular Party led by Webber (and of which Eleazer was a member), reflected, even under a colonial administration, a relatively strong stance on “national sovereignty and economic independence in the face of foreign interests.” Considering the era (colonial) in which the resolution emerged, and by modern standards, this statement robustly defends against the occasionally too hasty relinquishment of Guyana’s valuable economic assets. It emphasises the importance of environmental safeguards and ensuring that deals fairly benefit the home country.