Simona Broomes
Amid falling gold prices and the drying up of capital for some miners, the Guyana Gold and Diamond Miners Association (GGDMA) has urged its members to invest in other commercial ventures as a means of guaranteeing financial security.
Gold has dropped from US$1800 to US$1200. In an advisory in the Sunday newspapers, GGDMA offered nine recommendations that can protect miners from adverse situations in times of falling gold prices and simultaneously increase production.
“Save, invest and diversify,” the GGDMA said. Additionally, the association said all categories of workers should be paid based on production and not on a fixed monthly rate. It was explained that the proposed measure will encourage cooperation at all levels as workers will keep the operation functional and profitable.
Growth
Patrick Harding
In an effort to foster growth and increase production levels, the GGDMA said miners should spend more time planning and setting production targets, with emphasis placed on budgeting. Additionally, they were urged to sell all gold to the Guyana Gold Board (GGB) or authorised dealers and pay their Guyana Revenue Authority (GRA) Tributor’s Tax, which also includes deducting 10 per cent from workers’ wages.
However, the organisation said, “We must request that there be a reduction in the unreasonable prices charged by certain transporters, fabricators and equipment and spare parts distributors. Their prices have gradually increased over the years as the price of gold had escalated, now that it is on the decline, we expect that they will also respond to this changing tide by reducing their prices.”
But Guyana Women Miners Organisation (GWMO) President Simona Broomes said current conditions within the industry do not allow many small and medium scale miners to implement some of the recommendations tabled by the GGDMA.
According to Broomes, it is a “cold, very cold situation”, as the Natural Resources and Environment Ministry does little to relive miners of challenges faced.
She alluded to a list of proposals that were made to the Natural Resources Ministry by the GGDMA in August 2013. At the time, the association had called for an excise tax of five per cent on imported fuel, explaining that fuel accounts for 25 per cent to 30 per cent of the production cost to miners.
Proposal
Against the background of falling gold prices and the high prices of fuel, lubricants, spares and replacement parts, the association said the five per cent excise tax should be given on imported fuel from legitimate oil companies in the Caribbean. But despite a lengthy justification, this proposal was overturned by the government.
Reality
“I deal with the reality,” she lamented, noting that now that the holiday season has ended, miners are experiencing difficulties starting up their operations.
GWMO has a membership of 440 persons, Broomes told Guyana Times International, noting that it will be increasing its fundraising activities to commence a revolving fund, to offer members loans in challenging times, thereby making financing easily accessible.
Due to the fluctuating gold prices, a number of miners were forced to shut down their operations while commercial banks have repossessed more than 100 excavators due to a shortfall in payments by miners.
