The Ministry of Natural Resources and the Environment says that 400 mining blocks for miners will be released shortly and it also offers tax concessions in new proposals for small miners.
In the document, ‘Small Scale Miners (inclusive of Region 10 residents) Assistance Proposal’, the ministry says that a renewed interest in the gold mining sector as a result of high prices for the mineral has resulted in the available lands being taken up and placed into operation and coupled with the price of exploration has resulted in the smaller operators being left without much property to work.
“Although several initiatives to support small scale miners were explored in the past, this proposal provides an array of initiatives that the MNRE considers as pivotal for the improvement of small scale mining in Guyana,” the Ministry says. It said that the proposed assistance should aim to transform and upgrade the activities into organized and modernized mining; make available appropriate and affordable technology and encourage its local production; assist the transfer of technology by promoting partnership between miners and large-scale investors; provide extension services in mining, mineral processing and marketing; streamline and simplify licensing procedures for artisanal miners and mineral dealers; and prepare, disseminate and enforce a code of conduct for mining and processing.
The document says that areas with economic mineral potential will be determined and allocated to small scale miners. It noted that 360 blocks were issued for the first half of 2012 and “another substantial (400) set of blocks will be issued shortly (each block is 50 acres).” The ministry also proposes to allocate land for the Guyana Women Miners Organization to assist vulnerable women in the sector and also proposes the auction of closed areas and this would be available to syndicates comprising of small miners.
In terms of training, the Ministry proposes extensive training for small scale miners in the use of GPS to aid in claim location and verification, proper mine planning to avoid unnecessary de-bushing and mining in areas with limited economic quantities of minerals; cost effective exploration; improved recovery by processing only the gravel (and not overburden and gravel); tailings management to improve productivity and reduce issuance of Cease Work Orders.
Tax concessions
With regards to fiscal incentives, the ministry proposes “accessibility to tax concessions to import and purchase equipment with improved recovery rate.”
It would also offer technical assistance and facilitate demonstration activities in all mining districts to show the benefits of exploration, proper mining and mineral recovery practices, tailings management and mine reclamation and there would be specific emphasis on the cost associated with these activities so as to allow for better business management practices.
In addition, according to the document, registered small miners will receive further technical, logistical and administrative support from the Guyana Geology and Mines Commission, and in particular the crafting of agreements with property owners to ensure that they are not forced off the claim by the owner, but allowed to continue working for an extended period. The document also speaks of development and promotion of business models to assist small miners to operate in a financially efficient manner and to invest their surpluses wisely in enterprises with a low carbon footprint.
In terms of the Legal and Regulatory Framework, the document says that the specific assistance for small-scale mining should aim to streamline the licensing procedures in order to harmonize small and large-scale mining operations; and ensure transparency and fairness by conferring ownership of mineral rights on a “first-come, first-serve” basis.
Further, the ministry says that in order to improve small-scale miners’ access to credit, the assistance proposal intends to encourage Banks to develop mining finance expertise, and establish mobile and commercial banks in mining areas; encourage financial institutions to support the sector through affordable credit schemes and start-up capital requirements; promote the use of third party guarantees to enable institutions to assist miners to get loans; facilitate the creation of mineral property markets to enable discoverers to sell their properties; and assist in the establishment of miners cooperative banks and informal financial institutions.
With regards to establishing Formal Marketing Systems, the document says that this assistance should aim at ensuring the growth of both local and export markets, by simplifying licensing procedures for dealers and traders and rationalizing and streamlining fiscal terms; providing extension services and instituting stiff penalties on mineral smugglers; facilitating establishment of competitive mineral markets close to mining areas that are operated by the major stakeholders; establishing a system of local marketing committees that will ensure smooth and efficient operations of the mineral markets and keep statistics; facilitating access to up-to-date minerals markets information; offering incentives to encourage export promotion activities; promoting formal financing schemes and direct sales to foreign buyers; and utilizing the country foreign missions to identify markets, link them to dealers and initiate promotional programmes.
Environmental
management
On Environmental Man-agement for Small-Scale Mining, the document says that there should be separate strategies for environmental management for small and large-scale mining. The assistance should aim to demonstrate and encourage the utilization of environmentally sound technologies; provide environmental information through leaflets and improve awareness through the media; build partnerships with different stakeholders with a view to improving environmental awareness and management; establish strict standards in densely mined areas and empower mining extension officers to carry out regular monitoring; specify environmental control measures based on the “polluter pays” principle; and establish proper authority structures to uphold law and order and facilitate enforcement of health and safety regulations.
With regards to health and safety, the ministry says that although advances in technology and training of employees have improved safety performance in large-scale operations, the same is not true for small-scale mining. As such, the general assistance should be aimed at establishing health and safety regulations and preventive measures for accidents and other hazards; strengthening and enforcing regulations and improving health and safety education and investment in health care facilities; encouraging mining communities to take private initiatives for private provision of essential infrastructure and services; incorporating the provision of social infrastructure and hygiene facilities in community development plans in highly concentrated mining areas; inspecting of mining sites by government health and safety staff; and encouraging other stakeholders’ involvement in enforcing health and safety standards.
On women and children issues, the ministry says that in order to address the social problems that limit effective participation of women in mining and those that lead to children being employed in mines, the assistance should sets out strategies aimed at encouraging and facilitating employment and involvement of women in mining development. It should also alleviate barriers limiting women involvement as potential investors and conduct awareness programmes in order to encourage women’s participation; enforce regulations against child labour and imposing stiff penalties on those miners who employ children; address poverty problems and provide viable alternatives; and promote education for children in mining areas and supporting and promoting productivity enhancement programmes, which would reduce the need to employ children.
In terms of the institutional framework, the ministry said that the assistance should include improving information flow for sensitizing and creating awareness of available opportunities and regulations governing the sector; strengthening the existing training institutions and establishing vocational training centres; and bringing administrative and technical support services closer to the mining centres.
