– objects to new policies without consultation

THE Guyana Gold and Diamond Miners Association (GGDMA) Saturday indicated that they would like to see a “genuine partnership” with government as they resisted the implementation of new policies without consultation. In a strongly worded statement, the association said that over the last couple of weeks, stakeholders in the gold and diamond-mining industry have felt blindsided as they were surprised by the “sudden, rushed and high-handed” implementation of several new policy decisions. They have requested a meeting with President David Granger to iron out the issues.
The GGDMA is complaining that VAT-exemption requests will no longer be considered for heavy- duty earth- moving equipment for use in medium -scale mining; that there is a requirement to report annually on a “confidential basis” sensitive financial records regarding the operations on each Mining Permit; and the Ministry of Natural Resources’ recommendation to rescind all previously approved permission for access and egress via the river banks to access mining properties.
The body noted that these “ill-informed decisions” will significantly increase the burdens, costs and also make the management of mining operations more onerous. Additionally, the association noted that this dire scenario of non-consultation and “disregard” presently has stakeholders in the industry in a state of worry and stress.
According to the GGDMA, despite the campaign promises and commitments from the Government for waivers, tax concessions and other mechanisms designed to boost production in the industry, it has been unable to get anything beyond “lip service.”
“Now we are told even the conditions we historically enjoyed are to be taken away and we will have to pay even more to work in the industry. The traditional waiver of taxes is now being taken away and we did not even get the courtesy of a consultation” they said in the statement.
In the 1990s, the use of heavy -duty equipment, particularly excavators, was added as an important tool to aid quantity and efficiency of mineral extraction. While full duties and taxes have always been paid on spare parts for these machines, once they have been utilised in the local mining industry, the removal of all duties and taxes on the new machine itself was enjoyed by legitimate miners, the association said.
Before the introduction of VAT, Consumption Tax, which VAT replaced, was waived for heavy- duty earth- moving equipment which are utilised in the mining industry at all scales of production.
Given the removal of the VAT waiver on all heavy- duty equipment in the industry, the additional cost that a miner will have to bear on each new excavator will be between M$4.5 to M$7 and in the case of bulldozers it will be significantly higher, GGDMA stated.
The body also noted that to date, not a single miner has benefited from any of the promised concessions on fuel and other items that were granted last year October for a period of six months to tax-compliant miners.
“Despite many tax-compliant miners submitting all the requested paperwork and the GGDMA following up and meeting with the representatives of the agencies responsible for administering the concessions, namely GGMC, GRA and GEA, nothing ever materialised during the stipulated time” GGDMA said.
Annual financial report
As it is presently, the GGDMA is of the view that the majority of policies that govern the mining industry today were compiled without any consultation with representatives from the sector. This, according to them, was the main impetus that lead former President Donald Ramotar to establish a ministerial committee to meet, consult and deliberate on revisions to the Mining Act and other related policies and regulations before the revised 2012 regulations were to take effect.
The main reason was to ensure applicability and practicality, GGDMA said, adding that the consultations process on these matters were stymied and put on the back burner for numerous reasons. However, the association sought to once again reiterate to the Minister of Natural Resources, Raphael Trotman, that they would like to rekindle this process before any such dormant regulations are enforced.

Rescinding of permits
GGDMA is contending that the decision taken by GGMC and the Ministry of Natural Resources to rescind all permissions that were granted to access and egress mining properties via the river banks is “harsh and unreasonable.”
The association reasoned that the only way it can fathom that such a move is sensible and justifiable is if all the operations previously given permission were scrutinised and were all found to be in violation of the mining permission.
If this is not the case, then the GGDMA is contending that this “Peter pays for Paul and Paul pays for all” approach is very worrying and irregular. “Miners who are mining within the limits of the agreements should not be penalised for the actions of those who are in breach of the agreements,” they said.
“While we can appreciate GGMC’s desire to enforce the mining permissions/agreements and to have compliance in the sector, we wish to reiterate that it should be done via a genuine private and public partnership, where there is consultation and education before action. Transitioning the way the industry works and the manner in which miners operate cannot be done overnight, but it is a process that will take some time.”
The association also noted that if there is no genuine partnership, an unnecessary burden is placed on all the operators in the industry, and it is only natural that this will result in a growing distrust as operators continue to live in a state of fear and worry.
Further, as the lobbying body of the mining industry for over 30 years, the GGDMA reaffirmed that it stands ready to take the necessary action to protect the livelihoods of all legitimate Guyanese and other miners who have invested time, money and energy in the sector.