-gov’t, GGDMA sign pact for duty-free concessions

MINERS will soon benefit from concessions for fuel, spare parts and accessories as the Guyana Gold and Diamond Miners Trading Inc. on Wednesday signed concession agreements with the government at the Ministry of Finance.Subject Minister Raphael Trotman told the Guyana Chronicle while at the National Assembly that two agreements were inked Wednesday morning — one for fuel and the other for parts, spares and accessories, but he could not give many details about the pact. Miners who operate on a large-scale basis benefit from tax exemptions on materials, machinery, equipment, supplies and motor vehicles through the Investment Development Agreement (IDA). However, small-scale miners started benefitting from the IDA only in October 2015, when two agreements were signed between the Government of Guyana and the Guyana Gold and Diamond Miners Association Trading Inc. (GGDMA).
One agreement was for diesel fuel used in mining operations and on which excise tax is payable, to be reduced to 10%. However, during the six-month validity period of this agreement, it was never utilised by the GGDMA and the other which expired in October 2016. That agreement was for the exemption from customs duty and excise tax on ATVs (30% Excise tax payable), other rock-drilling and earth- boring tools, tubes, pipes and hoses of vulcanised rubber and fittings (flex hoses); other carpets and other textile floor coverings (matting), articulated link chain and parts thereof (expanded metal), pumps, impeller, pump housing, shaft, marine propulsion engines, motor vehicle engines, other engines, double-cab pick-ups and motor cars up to 2500cc.
Meanwhile, when asked why the Guyana Gold and Diamond Miners Association (GGDMA) has set up a special company to receive the concessions, Minister Trotman said nothing “illegal” has taken place.
He explained that the GGDMA is an organisation and “I don’t believe lawfully, an organisation can receive a concession from Government and therefore the concession was given to a company as the trading arm to the association .It is quite lawful.”
Trotman said that the granting of the concessions by the government to the trading company established by the GGDMA is not new. “This is the way it was done in the past,” he said.
Asked whether he believes that the move will prove beneficial only to large-scale miners who have the spending power, thereby squeezing small and medium-scale miners, the minister said as far as he is aware, the GGDMA is the representative of miners and “to date there is no other mining organisation representing the interest of miners; it is not for us to tell miners to organize, but I believe if there is another organisation then the Ministry of Finance would consider.”
Will only benefit the rich
A small-scale miner told the Guyana Chronicle in anonymity that the concessions will not be to the benefit of the small and medium-scale miners. The miner said small and medium-scale miners never benefited from such concessions in the past and referenced the IDA.
“I am telling you, small-scale miners will not benefit…those who are in the company are also large-scale miners and the small miners will have to go to them … this government promised consultations with all miners and not just the large-scale miners…small miners will have to travel long distances and bend to the desires of the large-scale miners,” the miner declared.
Additionally, the miner, who has worked in the industry for well over 25 years, said the GGDMA does not represent the interests of all miners and called on the APNU+AFC administration to live up to its promise. Attempts to contact the President of the GGDMA, Terrene Adams, for a comment on the matter on Wednesday proved futile.
Only last month, miners had declared that they felt betrayed by the APNU+AFC government and demanded answers, as it believed that the government intended to revoke all concessions granted them. In a statement to the media, the GGDMA had said it received “highly credible information” that government intended to rescind all concessions granted to miners, which included the removal of VAT waivers, all concessions for fuel and lubricants, motor-vehicles, spares and parts, tools and equipment.
“This is the ultimate betrayal of the miners by the APNU+AFC government and will only serve to make the already difficult industry harder, if not impossible. The association is calling on the government to restore the status quo and return ALL the concession granted to miners under the PPP/C administration.”

The body had argued that the industry is expected to produce over 600,000 ounces of gold as a direct result of small and medium-scale miners; all done without concessions. As such, the body had said if given the same concessions as foreign companies, much more gold could be produced.