The proposed increase in processing fees to $4,000 per ounce of gold, is necessary to keep the Guyana Gold Board “afloat,” according to Finance Manager Eondrene Thompson.
An advertisement, which appeared in the Kaieteur News on Sunday, stated: “Notice
“All Miners/Dealers selling gold to the Guyana Gold Board please note a processing fee of G$4,000 per ounce will be charged on every transaction. This comes into effect July 1, 2017.”
However, when contacted yesterday, Thompson the notice was only “an alert,” as the board is still to decide whether it is going to take effect. Nevertheless, she explained that the increase was necessary to keep the Gold Board afloat, since it was not a profit-making organization.
She said there was need for the fees to be adjusted in order to bring a stronger income to the Gold Board and a final decision will be made by the board and all of the stakeholders within the coming week. This begs the question as to why an advertisement was placed and a date of implementation given.
“You will be duly informed on the matter. The board has to meet and discuss the logistics of the move,” Thompson said, while pointing out that when the fees were analysed it was found that there was a need for an adjustment.
When the Guyana Gold and Diamond Miners Association (GGDMA) was contacted yesterday on the issue it was related by an official that the body had not yet discussed the issue.
The official also explained that the GGDMA has a representative on the Guyana Gold Board and would wait to be briefed by that person before holding a wider discussion with members and stakeholders.
Stabroek News was also told that the current fee is $1,000.
Meanwhile, several persons who buy and sell gold said the move was a bad one and would only damage the industry.
“Any increase, whether it is small or large will always have an impact on your business. This one isn’t small so it definitely will have a negative impact. That’s a whole $4,000 on an ounce. When you think about the amount of ounces people trade there (Gold Board) then you’ll realize how much more money they will be making from this. It doesn’t make any sense,” one dealer, who did not want to be named, said.
“Now that you have to pay more it means that you’re making 300% less with every ounce you take to them so it doesn’t make sense. Why such a high figure? Why do they need an increase now of all time? So many questions have to be answered,” he said.
He also explained that no consultation was done with all the stakeholders and the move should not be confirmed unless ample discussions are held with persons from the sector.
He added that small miners will suffer the most since they will have “to pay 300% more on every ounce they take to the board”.
