Minister of Natural Resources and the Environment Robert Persaud has announced that government has granted a 10% reduction in the tax for diesel fuel imported for use in the mining sector, among other concessions.
Persaud made this announcement on Tuesday at a meeting with Guyana Gold and Diamond Miners Association (GGDMA) executives aimed at examining measures needed to ensure the sector’s viability in 2015 and beyond.
He informed the group that the requested reduction in fuel tax was approved and the necessary measures to facilitate this were being put in place at agencies like the Guyana Revenue Authority, a report from the Government Infor-mation Agency (GINA) said.
The GGDMA has cited the cost of fuel as the biggest expenditure for miners, amounting to about 40% of production cost.
“A licence has also been granted to the GGDMA to import fuel for use within the sector and certain modalities are in train to realise this,” the meeting heard. Government has also granted a proposal for duty-free concessions to miners whose operations exceed a certain level of production.
Steps to implement mercury-free mining practices are also being examined, the report said.
While the GGDMA welcomed this move, a decision is yet to be taken to determine the type of technology that will be employed in the sector.
The ministry and the mining body are actively examining proposals to determine which methods are most feasible for local mining operators.
According to GINA, at the close of the meeting both entities agreed to continue working closely to ensure that the sector’s ability to contribute to the local economy is sustained and proposed initiatives implemented.
Approximately 388,000 ounces of gold was declared in 2014, some 19% below the set target.
It is anticipated that volatile gold and diamond prices would start increasing as production begins this year.
