Patrick Harding
The proposed five percent excise tax on imported fuel put forward by the Guyana Gold and Diamond Miners Association (GGDMA) was overturned by government, according to the body’s president, Patrick Harding.
In August, GGDMA met with President Donald Ramotar, Finance Minister Dr Ashni Singh and Natural Resources and Environment Minister Robert Persaud, and requested several concessions, including the tax break on fuel imported from legitimate Caribbean companies.
Fuel accounts for 25-30 percent of miners’ production costs, at a time when gold prices continue to fluctuate, coupled with high prices for fuel, lubricants, spares, and replacement parts.
Harding said despite detailed explanations justifying the need for the five percent excise tax, the proposal was rejected. The GGDMA and the Natural Resources and Environment Ministry have now returned to the drawing board in the hope of developing an alternative solution to the fuel problem facing the mining industry.
Additionally, the proposal for miners to be given the opportunity to sell up to 50 percent of the gold sold to the Guyana Gold Board (GGB) for foreign currency was rejected in part. Harding told Guyana Times International that while the proposal has not been accepted in its entirety, an alternative is being sought.
In November 2011, GGB informed miners that foreign exchange was not available, but subsequent to the notice, miners were allowed up to 100 percent of their gold in foreign exchange.
“GGDMA is urgently requesting that foreign exchange be made available to assist the small and medium scale miners, during this crisis of falling gold prices, for them to import much-needed spares and machinery,” the association had said in its plea to the government.
The proposal for the government to assent to tax waivers on the importation of 4×4, 4-door open-back pickups, which are considered luxury vehicles thereby attracting heavy import duties, has been referred to the Finance Ministry and Guyana Revenue Authority.
But while the GGDMA waits for the Natural Resources and Environment Ministry to arrest many of the problems facing the industry; it has met with the newly-appointed Police Commissioner Leroy Brumell.
Firearm licences
The GGDMA president explained that Police Commissioner Brumell has agreed to accelerate the process of approving firearm licences, permits, and approval for miners to establish their private security services. Brumell reportedly advised GGDMA members to form themselves into sub-groups to hire security services, noting that firearm licences will most likely be granted to security firms rather than individuals.
Over the past 31 years, the GGDMA has aided in the transformation of the gold industry, which has grown from a declared production of 10,000 ounces to a record 438,645 ounces in 2012. A declaration of more than 460,000 ounces of gold is expected this year, and, according to Harding, miners are well on their way to surpassing this target. If the target is achieved, it will be the highest annual declared gold production in the country, surpassing that of Omai gold mine and local miners combined declaration of 456,000 ounces of gold in 2001.
