By Jomo Paul
[www.inewsguyana.com] –Country Manager of Guyana Goldfields/Aurora Gold Mines, Violet Smith has disclosed that when the company begins its operations it will be paying the Guyana Government the highest royalties paid from any mining project in the world.
The Memorandum of Understanding signed between the company’s principals and the Former People’s Progressive Party/Civic (PPP/C) administration is a comprehensive agreement that outlines the fiscal terms and conditions for the development and mining of the Aurora Gold Project.
Therein it is stated that the company pays mining royalty of 5% on gold sales at a price of gold of US $1,000 or less and mining royalty of 8% on gold sales at a price of gold over US $1,000.
“The eight percent is the highest royalty paid anywhere in the world, the last government negotiated with us one of the highest royalties in the world,” said Smith during a recent interview.
Gold is currently being sold at $US1, 155 and is expected to decline by a further 15% in the coming weeks. Smith was questioned about a possible renegotiation of the deal with the new government and stated that while it is not in the company’s line of sight, it should not be ruled out.
“Well we always want to renegotiate but I can’t say we have plans to of course,” Smith stated.
The company has already started commissioning its operations in Region 7 and is expected to commence work on September 15.