Urgent relief needed: Gold declarations 12% behind target – GGDMA

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Minister of Natural Resources and the Environment, Robert Persaud interacts with miners.
Minister of Natural Resources and the Environment, Robert Persaud interacts with miners.

[www.inewsguyana.com] – The Guyana Gold and Diamond Miner’s Association (GGDMA) wants urgent and significant relief granted for the industry in light of the recent slump in global gold prices.

The GGDMA says it continues to monitor with deep concern the falling price of gold on the international market and is continuing its efforts to work with the government to find relief for the local mining sector.

In a release today, the Body noted that it has been working in partnership with the Ministry of Natural Resources and the Environment since late last year when the price began its downward slide and to date several concessions have been made to help relieve the situation.

“Already the Government has approved an additional vehicle duty free concession for miners who produce over 500 ounces of gold annually and cleared the way for the duty free importation of matting used in the industry. As recent as the 21st of September the GGDMA met with the Minister of Natural Resources and secured further support including the establishment of a working group to examine further relief for the industry,” the release added.

It was pointed out however, that since that date the price has hit a record low, falling below the $1,200 USD per an ounce which has caused serious concern in the industry.

The GGDMA will once again be meeting the Minister of Natural Resources on Wednesday to press further for urgent and significant relief to the industry. The Miner’s association wants the government to urgently consider the following relief options:

  • Duty free fuel for mining
  • 2% reduction in royalties as long as the price remains below $1,400 USD per ounce
  • 50% Relief of rental payments for Prospecting Mining Permits small scale, claims and mining permits
  • Extended grace period for medium scale payments and a waiver of late payment fee penalties
  • Duty free concessions for all tools and spares for equipment already listed under the Investment Development Agreement.

The association assures its members that it will continue to press for these and additional relief as the low price for gold has already lead to a 12% shortfall in gold production in Guyana. The GGDMA believes that if these concessions are granted the shortfall from production could be reduced by at least 50%.

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