President announces more duty-free concessions for miners

TIMES INT'L

By Svetlana Marshall

President Ramotar and Natural Resources and Environment Minister Robert Persaud flanked by the awardees and officials within the mining sector
President Ramotar and Natural Resources and Environment Minister Robert Persaud flanked by the awardees and officials within the mining sector

Investors within the mining sector would soon benefit from additional duty-free concessions, President Donald Ramotar disclosed on Monday as he declared open Mining Week 2014.

The duty-free concessions would be given for a “particular type of vehicle”, the President said, but explained that key requirements would have to be met.

“We will grant these, but we would want to tie that to gold declaration and we would want to tie it to payment of taxes,” he further explained.

Since August 2013, the Guyana Gold and Diamond Miners Association (GGDMA) had called for the Government to assent to tax waivers on the importation of 4x4s and four-door open-back vehicles. It was noted that these vehicles are still being deemed luxury vehicles and attract heavy import duties, although they are necessary for safe travel. These vehicles are often used to transport rations, spares and personnel to and from mining operations.

It was also an occasion where President Ramotar poured cold water on the notion that the mining industry, particularly the gold sector, was in “crisis” given the drop in gold prices on the international market.

According to www.goldrate24.com, one ounce of gold is currently being sold at US$1277.56 or G$263,113.18. But Ramotar said every sector has its challenges. According to him, many investors within the gold sector entered the industry at a time when the price of gold was below US$1000, but nevertheless benefited significantly when the prices surpassed US$1800.

As Guyana feels the impact, local miners, the President stressed, must be able to improve their efficiency.

“This should challenge us, we should not despair and talk about crisis, this should challenge us to do things in an even better way,” he urged the miners. They were also encouraged to aid in the process of diversification by investing within sectors and infrastructural projects.

The President had spoken minutes after GGDMA President Patrick Harding had painted the gold industry black, contending that it was in a “crisis”.

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