-cites range of assistance to sector
Highlighting the series of measures implemented since 2020 to boost the mining sector, the government has warned that illegal activities by miners will not be tolerated.
“The Ministry of Natural Resources (MNR) wishes to advise that illegal mining activities will not be tolerated and is calling on all miners to follow the prescribed process to legitimize their operations. Those who are engaging in such activities should desist, or risk being prosecuted by the state. The ministry remains eager to foster greater collaboration with small and medium-scale miners to ensure the sector remains a viable one”, a statement said on Wednesday.
The ministry’s statement comes amid months of concern over gold smuggling that saw sanctions being imposed on two prominent traders here by the US Department of the Treasury.
In the statement on Thursday, the government listed the following measures for the mining sector (2020-2024):
✔ Removal of VAT on machinery and equipment;
✔ Removal of VAT on all-terrain vehicles (ATVs);
✔ Removal of VAT on hinterland travel;
✔ Ease of doing business: Miners will no longer require a police clearance to transport fuel in their vehicles;
✔ Ease of doing Business: Removal of requirement to register and take out road licence for mining equipment
✔ New motor trucks (less than four years old) of any tonnage: Removal of 10% exercise tax and 14% VAT
✔ New haulers: removal of 14% VAT
✔ New double cab pick-ups below 2000 cc; removal of 10% excise tax
✔ New double cab pick-ups between 2000-3000 cc: reduction in excise tax from 110 % to 75 %
✔ New single cab pick-ups below 3000 cc: removal of the 10% excise tax.
✔ Removal of Excise Tax on Fuel from 50% – 0%
✔ Reduction in Final Tax from 3.5% to 2.5%
✔ Removal of 10 % tributers tax.
✔ Removal of 14 % VAT on lubricating oils
Further, the statement said that the PPP/C government has reaffirmed its support to miners through the provision of medium-scale properties by way of lotteries. In addition, miners are still able to acquire mineral properties through the formal application process at the GGMC. Just recently, in April, the MNR/Guyana Geology and Mines Commission (GGMC) hosted a lottery in Bartica which saw the distribution of 150 mining blocks, and again in June, 200 blocks were distributed in Mahdia. Back in 2021, approximately 200 blocks were assigned through a similar lottery process, while some 65 blocks were allocated through an auction.
Furthermore, it said that the recent withdrawal by the large-scale operator, Troy in Karouni saw action by the Ali-led administration which resulted in the re-allocation of at least 100 mineral properties to small-scale miners who were able to access approximately 1,500 acres of land. Australian miner, Troy fled the country without implementing a mine closure plan and leaving behind a debt.
In 2021, the statement said that the GGMC’s Mines Division was tasked with a Plan of Action to reduce the backlogs of claim verification and processing of mining claims.
Unverified mining claims
“At the time, there were over 15,000 unverified mining claims which resulted in persons having to wait extended periods for their claim licenses. Since then, the division has prioritized this exercise and there has been a 70% reduction in unverified mining claims”, the statement said.
It asserted that the PPP/C government was able to restart mining in the Marudi area in Region Nine upon assuming office which benefitted a number of small-scale miners and indigenous communities. The ministry charged that these miners and communities were neglected by the former administration with the closure of mining at Marudi.
“The GGMC granted a Special Mining Permit (SMP) encompassing 1,000 acres to the Rupununi Miners Association Co-operative Society Limited, which 40 small-scale miners are representing. The mining operation is being guided by strict monitoring policies which include a Mine Plan, Mine Closure Plan, a Social Responsibility Plan and an Environmental Management Plan. In addition, the Coup Society was required to post an environmental bond”, the statement added.
A visit by Stabroek News to the Marudi Mountain in 2021 had found evidence of mining destruction and disputes among the residents in the area.
The statement said that the large-scale prospecting licence holder within the Marudi area is required to implement a Corporate Social Responsibility programme totalling US$250,000, which will benefit surrounding Amerindian communities. Further, with the aim to reduce investment costs and enable more targeted investments from both small and medium-scale miners, the government will execute Mineral Mapping exercise. This it said will contribute to low-impact mining and improve planning in mineral areas which are objectives outlined in the LCDS 2030.
The statement also said that the GGMC continues to re-focus its attention on hinterland road development through its Special Projects Unit. This ensures that miners continue to have access to their concessions with their equipment and supplies, thus, reducing operational costs. In total, this approach in 2024 has maintained at least 1200 km of hinterland road, with an approximate cost of $2.5 billion on an annual basis.
