With gold prices falling below the key support level of US$1200, the Guyana Gold and Diamond Miners Association (GGDMA) is again pressing government for urgent and significant relief.
Having fallen dramatically from its 2011 high of around US$1900, the GGDMA in a statement today said it continues to monitor with deep concern the falling price of gold on the international market and is continuing its efforts to work with the government to find relief for the mining sector.
The GGDMA said it has been working in partnership with the Ministry of Natural Resources and the environment since late last year when the price began its decline and several concessions have been made to help relieve the situation. The Government has approved an additional vehicle duty free concession for miners who produce over 500 ounces of gold annually and paved the way for the duty free importation of matting used in the industry, the release noted. On the 21st of September the GGDMA met with the Minister of Natural Resources and won further support including the setting up of a working group to consider further relief for the industry. Since that date however the price has hit a record low, the release said, dipping below the $1,200 USD per an ounce and this has caused serious concern in the industry.
The GGDMA said it will once again be meeting the Minister of Natural Resources on Wednesday to press further for urgent and significant relief to the industry. The Miner’s association wants the government to urgently consider the following relief options:
• Duty free fuel for mining
• 2% reduction in royalties as long as the price remains below $1,400 USD per ounce
• 50% Relief of rental payments for Prospecting Mining Permits small scale, claims and mining permits
• Extended grace period for medium scale payments and a waiver of late payment fee penalties
• Duty free concessions for all tools and spares for equipment already listed under the Investment Development Agreement.
The association assured its members in the release that it will continue to press for these and additional relief as the low price for gold has already led to a 12% drop in gold production in Guyana. The GGDMA believes that if these concessions are granted the shortfall from production could be cut by at least 50%.
