Govt assures miners of continued support

Government has expressed its assurances to continue its support to the mining sector through ongoing collaboration at various levels.

This commitment was expressed by President Donald Ramotar and Minister of Natural Resources and the Environment Robert Persaud following a meeting with executives of the Guyana Gold and Diamond Miners Association (GGDMA) and other stakeholders to explore initiatives and interventions for the sector.

The meeting which was held on Thursday at the Guyana International Conference Centre explored several areas of support which are at various stages of implementation or under review.

The Government reiterated its collaboration with all stakeholders within the mining sector towards the viability and sustainability of the mining sector.

The GGDMA sought government’s intervention following fluctuating global gold prices.

However, it was stated that the challenges facing the sector can be collectively addressed through continued collaboration and engagements between all stakeholders.

Meanwhile, the GGDMA has again expressed appreciation for the support provided by the government for the issuance of a fuel import licence, waivers on spares and equipment for the mining sector, access to foreign currency and tax waiver on double cab pick-ups.

In a previous release, the GGDMA had said that operational costs remain the same despite the extended drop in the price of gold on the international market and recommended that Government offer concessions on fuel and certain vehicles to bring some relief to them during this period.

The drop in the price of gold has its many spin-off effects, but a steady dip in price can have very negative effects on mining operations and has been having such effects, the GGDMA said.

This newspaper had spoken to several small miners who all related that the drop in gold prices has severely affected their operations, especially since the cost of operations remains the same.

“Even though the price is down, you still have to keep producing to keep in the game. And if you are not finding good grounds to mine, then it is even worst. Where I am working, we pay Gy$80,000 to Gy$90,000 for a drum of fuel and an ounce of gold is Gy$220,000.

“It is really difficult because in some areas if you produce 10 ounces of gold it costs you 10 ounces,” related miner Mark Defreitas.