THE steps taken by the government to cushion the impact of falling gold prices ought to be applauded, former President of the Guyana Gold and Diamond Miners Association (GGDMA), Patrick Harding has said. He was at the time commenting on the recent concessions offered to small and medium-scale miners by the government.

Based on an agreement signed by the administration, through the Guyana Energy Agency (GEA) and the Guyana Geology and Mines Commission (GGMC) and GGDMA, small and medium-scale miners will now benefit from duty-free concessions on imported equipment, and a 40% tax reduction on fuel from a high of 50%. Miners are now required to pay only 10%.
Speaking with Guyana Chronicle on Sunday, the former GGDMA President, who is now an executive member, said the association is pleased that the APNU+AFC Government has made good on its promise.
It was during the lead-up to the May 11 elections that the APNU+AFC coalition had pledged to alleviate some of the challenges facing the mining industry; issues that were considered to be sidelined by the People’s Progressive Party/Civic (PPP/C) despite the sterling contributions made by the industry to the country’s economy.
The Coalition government had followed up on this promise by announcing in its 2015 Budget presentation tax exemptions for medium and small-scale miners as a budgetary measure.
During the Budget presentation by Finance Minister Winston Jordan, it was pointed out that eligible gold miners will be exempted from the payment of custom duties on fuel, matting, ATVs, jack-hammer drills, flex hoses, expanding metals, pumps, pump housing, impellers, shaft and engines.
“Pursuant to the Customs Duties (Amendment) (No.1) Order 2004, the Government will enter into a new agreement with the Guyana Geology and Mines Commission (GGMC) and the Guyana Gold and Diamond Miners Association (GGDMA) to give effect to the grant of these tax exemptions,” the Finance Minister had stated.
Since 2013, GGDMA, under the stewardship of Harding, had been lobbying for the excise tax on imported fuel from legitimate oil companies in the Caribbean Region to be reduced to 5%, but this proposal was overturned by the then government.
It was explained that fuel accounts for 25-30% of the production cost to miners, at a time when gold prices continue to fluctuate, coupled with high prices of fuel, lubricants, spares and replacement parts.
Harding said GGDMA is simply satisfied with the steps taken by the APNU+AFC administration to assist small and medium-scale miners.
GGDMA President Terrence Adams, when contacted on Sunday, expressed similar sentiments. “We are pleased with the concessions offered,” Adams told the Guyana Chronicle.
Asked about the need for foreign exchange, Adams said though it is not high on the agenda for the association, it may come up for discussion in the future. However, he made it clear that it was not a part of the proposal made to the new administration.
In 2013, the association had lobbied the then government for miners to be given the opportunity to sell up to 50% of the gold sold to the Guyana Gold Board (GGB) in foreign exchange, but this was rejected.
In November 2011, GGB had informed miners that foreign exchange was not available but prior to the notice, miners were allowed up to 100% in foreign exchange. Now, miners only have access to 10%.
As of Sunday, the price for gold stood at US$1,138 per ounce after peaking at US$1,920 per ounce in September 2011. In 2014, gold production declined by 19.5% to 387,508 ounces from 458,105 ounces in 2013; the highest achieved since 2001.