Prime Minister Samuel Hinds and Chief Executive Officer of Guyana Goldfields Incorporated Patrick Sheridan accompanied by President Bharrat Jagdeo, Donald Ramotar, Sir Shridath Ramphal, Finance Minister Ashni Singh, Major General (rtd) Joe Singh and other top officials of the GGMC and the gold firm pose for a photograph following the signing of the mineral agreement on November 18 at the Office of the President
The government of Guyana and Guyana Gold Fields Incorporated on November 18 signed a mineral agreement which sets the conditions for the development of a large gold mine at Aurora in the Cuyuni River.
The agreement was signed at the Office of the President. The mineral agreement was signed in the presence of President Bharrat Jagdeo, People’s Progressive Party (PPP/ C) presidential candidate Donald Ramotar, Finance Minister Dr Ashni Singh, Sir Shridath Ramphal, Guyana Geology and Mines Commission (GGMC) Chairman Major General (retired) Joe Singh, acting GGMC Commissioner Karen Livan, Guyana Gold Fields Inc CEO Patrick Sheridan and other officials of the mining company.
Sheridan said Guyana stands to benefit significantly from the agreement as it represents the largest private investment in Guyana’s history. He noted that over the life of the mine approximately, US$1 billion will be spent on the project that will see more than 8000 citizens being employed.
Aurora, he said, has a mine life of 18 years and the potential for many more years. Sheridan explained: “This project, based on the current gold price will result, through royalties and taxation, US$1.6 billion directly to the government of Guyana. This does not include taxes paid by the many employees, both directly and indirectly, involved in the project. This is money that can be invested in schools, health care, and infrastructure which will result in a higher standard of living and greater opportunity for all.”
Among the terms of the agreement are a mining royalty of five percent on gold sales at a gold price of US$ 1000/ oz or less; mining royalty of eight percent on gold sales at a gold price of more than US$ 1000/ oz; corporate income tax rate of 30 percent; no withholding tax on interest payments to lenders and duty and value added tax exemptions on all imports of equipment and materials for all continuing operations at the Aurora Gold Project, including the construction and operation of the mine.
The mining licence is the company’s permit to build and operate the Aurora Gold Project. The document is valid immediately for an initial 20-year-term with provisions for extension on application by the company.
The CEO noted that Guyana needs “massive foreign investment”, and believes that the Aurora project is “the tip of the iceberg in what is to become a very attractive place for foreigners to invest”. Thus far, Guyana Goldfields has invested in excess of US$120 million here, with some 450 persons being directly employed by the company.
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