Dear Editor,
As head of the mining policy drafting team under the auspices of the Ministry of Natural Resources (MNR), I thank Kaieteur News for publishing last Sunday, a few notes from the document in its article “Draft mining policy to address critical developmental challenges”. I did not see the other newspapers picking up the DPI release on the document despite the importance of mining in the economy. As the KN article noted, the green paper is now available for comment on the MNR website (https://www.nre.gov.gy/2018/10/03/green-paper-national-mineral-sector-policy-framework-and-actions-2019-2029/).
A letter cannot hope to capture the complexity of the draft mining policy. I wish to, however, highlight a few things. Reviewers should perhaps start with the description of the three overarching themes in Part III of the document. The first theme calls for optimising the governance of the industry by government agencies such as the MNR and the GGMC. The second focuses on optimising compliance by all categories of miners with laws, regulations, and other requirements. The third theme speaks to optimising the performance of the industry mainly in terms of its contribution to our national and local economies. Under each of these three unifying themes, the green paper recommends principles, policies, strategic goals, and a host of actions.
On optimising governance, the draft identifies ten principles dealing with such necessities as transparency and fairness in ministry/GGMC decision-making, and the ease with which the mining public can do business at these, and other government agencies. Concrete mechanisms here include, among others, the continued implementation of the Extractive Industry Transparency Initiative (EITI), and the establishment of a proposed independent Inspector General Office for the GGMC to serve as an oversight, investigative, and complaints authority.
Compliance issues (theme two) cover a range of matters, such as on environmental protection, occupational safety and health especially in small mines, and the full declaration of mineral production by miners. How can compliance be improved? The green paper advances several proposals, some of which emphasise and amplify existing ideas and practices.
Under the performance theme, the green paper devotes three of its five broad policies: (i) expanding mining’s contribution to national and subnational economic development, (ii) raising the attractiveness and competitiveness of Guyana’s mineral sector for large investments, and (iii) optimising the economic scope and technical capacity of small and medium-scale mining.
For (i), the draft recommends and discusses proposals on royalty rates and other fiscal measures. It also proposes a revenue sharing scheme with regions and communities with current and historic mining. It highlights the need for local content and corporate social responsibility policies specific to the nature of mining in the hinterland.
Under (ii), the green paper sets as one of its major strategic goals, the minimising or elimination of all legal, fiscal, political, informational, geological and other hindrances in the path of large and continuous investments in the sector. Such a campaign must aim to encourage and maintain as many as 50 active large-scale exploration projects year after year. Currently, there are only about ten such investments.
For (iii), the green paper advances new and existing initiatives for developing small and medium-scale mining. Among other things, the paper supports the position that policies for such miners should be underpinned by a classification scheme that recognises that miners are differently positioned with regards to their operational, technical, and financial capability. The proposal for reintroducing a miners’ assistance scheme, for instance, should target small miners with low levels of mechanisation and financial means.
As national mining policy documents go, this green paper, at over 120 pages, is one of the largest. We have tried, however, to make it user friendly. The green paper is not the final position of the MNR. Feedback is welcome.
Yours faithfully,
Sherwood Lowe
