DESPITE its vulnerability to international market conditions, Guyana’s gold mining sector has continued to grow and stand on sound footing.This was according to the Ministry of Natural Resources and the Environment (MNRE) which has guaranteed that its officers would continue to engage stakeholders in an attempt to cushion the impacts of international market conditions.

The Natural Resources Ministry has said that the gold mining sector of Guyana’s economy has been the catalyst for economic growth, and has improved the economic well-being of citizens of Guyana. This, the Ministry noted, has been achieved because of the consistently rising levels of gold declaration over the last decade.

“The importance of the gold mining sector to our economy cannot be overemphasized, since gold has been the largest earner of foreign revenue for the last seven years. It is in this light that, given the low gold prices on the international markets and the resulting impact on the mining operations and the mining sector, the Government of Guyana (GoG), through the Ministry of Natural Resources and the Environment (MNRE) and the Guyana Geology and Mines Commission (GGMC), engaged the Guyana Gold and Diamond Miners Association (GGDMA), identified areas of concern, and implemented measures aimed at ensuring that the sector remains viable”, the Ministry’s release stated.

In this regard, the MNRE noted, specific interventions were made, and the Ministry is continuing to support the sector and ensure its survival, continued growth, and contribution to national development.

Additionally, significant progress has been made through constructive dialogue at the level of the Inter-Ministerial Task Force, which was formed to undertake specific interventions aimed at supporting and streamlining the sector.

The Natural Resources Ministry highlighted that, in support of the sector, the Government of Guyana and the said Ministry have, to date, succeeded in completing the following interventions in support of the sector:
DUTY-FREE WAIVERS
Requests for tax waivers of tariffs and duties on equipment and spares were supported by the Ministry, were granted by the Government, and were implemented by the Guyana Revenue Authority (GRA). Some 19 suppliers of mining equipment and spares were approved for tax waivers on the importation of said equipment. This, according to the ministry, will reduce the cost of spares and critical supplies for miners, and is an addition to the items that are currently imported duty free, such as pumps, flexes, and matting etc.

FUEL LICENCE
A fuel importation licence was granted to the Guyana Gold and Diamond Miners’ Association (GGDMA), given their appeals regarding the high cost of fuel as a main input into the production process. As such, this will allow for cheaper importation of fuel.

MERCURY FREE MINING DEVELOPMENT FUND
The Government, Ministry and stakeholders of the sector, most importantly GGDMA, are aware of the need to increase gold recoveries and eliminate the use of mercury in the gold extraction process, the statement said, adding that the adoption and use of mercury free and improved recovery technologies are even more critical now, given the low gold prices experienced by the sector.

It is in this regard that the Government and GGDMA agreed to, and established, a Mercury Free Mining Development Fund of GY$1B aimed at promoting the use of mercury-free and improved recovery technologies.

As such, collaborative work between GGDMA and GGMC are ongoing to identify and test the various technologies available, so that these processes can be adopted by mining operations and thus ensure greater recoveries, reduced costs, increased revenues, and ultimately a sustainable gold mining sector.

HINTERLAND INFRASTRUCTURE DEVELOPMENT AND MAINTENANCE
As it relates to Hinterland infrastructure development and maintenance, the Ministry of Natural Resources and the Environment and the Guyana Geology and Mines Commission continue to undertake the rehabilitation of hinterland roads and infrastructure to ensure that mining lands are easily accessible.

Discussions have been continuously ongoing in regard to maintenance of hinterland infrastructure and ensuring that value for money expended is achieved, the Natural Resources Ministry noted.

In pursuit of this, combinations of approaches were undertaken, the Ministry has said, stressing that GGMC is currently reviewing feasible road designs and construction methods that can be adopted, bearing in mind the constraint of financial resources.

However, simultaneous efforts are being made to implement Road Users’ Agreement for specific heavily traversed roads that are prone to destruction, since it is recognized that heavy usage of the road in wet conditions leads to damage and require continuous rehabilitation at significant cost.

“More importantly, the expenditure of funds on hinterland infrastructure is as a result of a collaborative effort with the relevant Ministries and the key stakeholder, GGDMA.

In 2014, GGDMA provided a list of hinterland infrastructure for rehabilitation that it deemed critical. These roads/bridges were rehabilitated, and the same approach will be undertaken in 2015, whereby GGDMA would provide its considerable insight on areas for special focus”, the Natural Resource Ministry said.

DUTY-FREE CONCESSIONS
Small and Medium Scale operations also continue to benefit from duty free access to All Terrain Vehicles (ATV), Excavators, Bulldozers, and other machinery used in the mining industry. These waivers on duty are available to new entrants to the sector and for current miners based on production levels.

Moreso, the Government only recently approved the granting of waivers for double-cab pickups to miners based on their production levels, which were used to determine the various categories and associated waivers that would apply. To this extent, three categories were established, namely, Category A (Declarants with 5,000 ounces and above annually); Category B (Declarants between 2,000 and 4,999 ounces annually); and Category C (Declarants between 500 and 1,999 ounces annually).
Added to that, miners also have a concession on fuel, which attracts only 10% CIF Excise Tax.

ACCESS TO FOREIGN CURRENCY (USD)
“The interventions of the Inter-Ministerial Task Force were successful in ensuring that miners have access to 10% of their gold sales available in US Dollars to assist in retooling, capital acquisition, and diversification of investments”, the Ministry reported.

AVAILABILITY OF NEW AREAS FOR MINING
On the 11th of August, 2014, GGMC held an auction in which a total of 939 properties were placed for location. In addition to this, lotteries were held in Georgetown and at three interior locations on the 18th of August 2014 whereby a total of 903 blocks were won during the exercise.

The Lottery and Auction were done to ensure that mining properties are continuously available to miners to sustain current operations and production levels.

WORK PERMITS
Working in tandem, the Natural Resources Ministry, GGMC, the Ministry of Home Affairs (MoHA) and GGDMA have streamlined the process for applications for work permits.

Measures were instituted to ensure that the process is expeditious and as transparent as possible, so as to ensure that mining operations are not constrained by workers not having the requisite documentation.

Given the interventions of the Ministry, the application and granting process for work permits was reviewed, and the duration for completion was reduced.

In addition to this, as was recommended by the GGDMA, the effective dates of the Work Permits were revised to be the date when they were granted, and not the date of application.

HINTERLAND SECURITY
In relation to Hinterland Security, it was reported that the Natural Resources Ministry facilitated meetings between Home Affairs Minister Clement Rohee, the Guyana Police Force (GPF) and GGDMA, to foster hope for improved security within these areas. This then led to the understanding of the security concerns and constraints facing the sector, and a working relationship was established between GGDMA and the Guyana Police Force.

In addition to this, a comprehensive security plan was developed and presented to the GGDMA, outlining the measures that would be undertaken to provide adequate security for the sector.

FIREARM LICENCES
The Ministry was instrumental in arranging meetings with the GPF to expedite the firearm applications for bona fide miners.
HUMAN RESOURCES
Instrumental in training persons in entry level skills for the mining sector, the Mining School continues to increase the pool of human resources available for miners.

Irrespective of the above mentioned areas for which successful discussions and interventions were made, the Government, the Ministry and key stakeholders are currently reviewing the following additional areas of support for the sector:

REDUCTION IN ROYALTY AND PROPERTY RENTAL RATES
The GGDMA proposed to the Ministry and the Commission the reduction of rental paid on mining properties and lowering royalty payments from the current 5 per cent, given the low gold prices that affected the sector.

WAIVER OF TARIFFS ON FUEL IMPORTATION
In addition to the fuel importation licence which was granted to allow for the cheaper importation of fuel, Government is currently reviewing the possibility of providing tariff waiver on imported fuel, the Ministry added.

Against these backdrops, it must be highlighted that Natural Resource Minister Robert Persaud had, some time ago, disclosed that the sustainability of the mining sector is critical to the long-term prosperity of Guyana.

This sector, he had said, should not be drawn into partisan politics, but must remain in the domain of unified national development.

A thriving and vibrant mining sector remains the goal of the Government and all miners and stakeholders. In this regard, the Government of Guyana remains steadfast and reiterates the commitment of the Ministry and GGMC to work in partnership with GGDMA and all stakeholders in dealing with the challenges of the industry.

The Government and its Ministries/Agencies will continue to work to ensure that the sector achieves its full potential while contributing significantly to the growth and development of Guyana.

The Ministry and GGMC will continue to work with the GGDMA and all other stakeholders for benefits for the sector.