For the second week running, the miners association and the government have issued duelling statements about whether enough is being done to help small and medium scale prospectors amid slumping gold prices.
In a statement yesterday, the Guyana Gold and Diamond Miners Association (GGDMA) said it wanted urgent action from the government to prevent the industry from coming to a standstill as gold prices continue to slide and the 2014 production target seems unattainable.
According to a GGDMA press release, the association is seeking continued dialogue with the government in light of the falling prices to avert a standstill in the industry’s development.
The association, sought to clarify the four issues on which they are in dialogue with the government, the first of which is a 2% reduction in the rental by small and medium scale miners whenever the price of gold is lower than US$1,400. Secondly, an extension to small and medium scale miners of duty-free status for spare parts on machinery for which duty- free concessions already exist as is allowed to large scale miners. The third is a reduction of tax in relation to the price of fuel. Finally, a reconvening of the inter-ministerial task force to meet, discuss and make recommendations to the President.
The miners association said there seemed to be a communication breakdown with the ministry, especially in relation to duty-free concessions on spare parts for small and medium scale miners and that of the reduction of tax on fuel. They stated for the record, while duty-free concessions have already been granted, it is only to the large scale mining operators.
The association commended the efforts made by the government with the allocation of billions of dollars for technological improvements in the mining industry particularly in relation to mercury free mining. This they said, is a long-term project and they are seeking measures that will bring immediate relief for the sector.
Commendations were also expressed to the government for the millions of dollars voted for the maintenance of the roads in the interior. The miners association however found fault with the bureaucracy which only allowed for 25% of the monies to be utilised to date.
As it relates to the fuel situation, the association received a licence to import and distribute same and for this they have expressed gratitude to President Donald Ramotar for his intervention on that issue.
Hours later, the Ministry of Natural Resources presented its own views on the matters raised by the miners.
In relation to the reduction in property rental, the ministry said it is noteworthy that discussions on specific requests by the Association (such as the reduction in property rental and royalty rates) have led to the agreed position of the Association submitting a formal proposal to the Ministry. However, irrespective of the fact that this is still to be completed, the Ministry has moved ahead with measures and initiatives while awaiting the submission and ultimate discussion on GGDMA’s position.
On the issue of duty-free concessions, the ministry said the Association is quite aware that the Ministry and the Commission have made representation for the implementation of the waivers on equipment and spares and this has been granted to the sector; not just large scale miners but also small and medium scale miners.
With regard to the fuel licence, the ministry said the miners association position should be defined clearly. “Given the request of the Association, the fuel licence was granted to allow for the cheaper importation of fuel. However, the position currently seems to be one where in addition to the Fuel Importation Licence, a reduction on the levy on fuel is also being sought”, the ministry asserted.
The ministry also said that discussions are ongoing as it relates to the maintenance of hinterland infrastructure and ensuring value for money.
The ministry noted that the Guyana Geology and Mines Commission’s Special Projects budget for 2014 would have included two major projects: the Design and Supervision of the Parika to Goshen Road and the construction of GGMC’S Office at High and Princes Streets. It said that these projects accounted for approximately 50% of the Special Projects Budget. Therefore it said that the actual hinterland roads and infrastructure was 50% of the budgeted amount and this will increase significantly with the recent award of a number of other projects
It added that the contract for the Consultancy for Design and Supervision of the Parika to Goshen Road valued at $305.0 Million, is expected to be awarded before the end of the year.
In addition, it said that contracts for the sum of $688.3 Million or 26% of the Special Projects Budget (more than half of the budget for roads) were awarded. Contracts for the following works are expected to be awarded by mid-December: Rehabilitation of the Bridge at 7 Miles Issano and rehabilitation of the road from Brian Sucre Junction to Blackwater.
The ministry release referred to a series of other interventions which have been reported before.
