– Gold Board strikes deal with mining associations
THE Guyana Gold Board (GGB) and stakeholders within the mining fraternity on Thursday agreed that there will be strategic changes to the various processing fees when gold is sold to that entity.
In a statement to the media, the Ministry of Natural Resources announced that a processing fee of $1300 per ounce from one ounce and up to and including 100 ounces will be charged, while a processing fee of $1400 per ounce for every ounce starting from 101 ounces and for every additional ounce up to 200 ounces.
Thereafter, a downward sliding scale of $1300 per ounce from 201 ounces to 300 ounces; and then $1200 per ounce for all additional ounces between 301 ounces to 500 ounces, will be charged.
There will also be a ceiling or maximum of $400,000 for all sales up to 1,000 ounces and for sales greater than 1000 ounces, the processing fee will be $400 per ounce, for every ounce above 1,000 ounces, the ministry stated.
This new, fee arrangement immediately replaces the current $2,500 per ounce fee. A week ago, Chief Executive Officer of the Guyana Gold and Diamond Miners Association, Avalon Jagnandan, said his entity had gotten government to commit to review the old fee.
The Guyana Gold Board had recently increased the fee from $1,000 to $2,500 per ounce, which had caused an outcry by small and medium-scale miners.
According to Jagnandan, the Gold Board had proposed an increase of $4,000, but that was withdrawn after the association objected. “Over the past few weeks, we received numerous complaints from miners about the $2,500 processing fee,” he said.
The association had reportedly asked the Gold Board to give an increase of $2,000 or less, but they went ahead with $2,500.
However, Thursday’s meeting with stakeholders was facilitated by the GGB chairman GHK Lall and was in keeping with a commitment made by Minister of Natural Resources, Raphael Trotman, on September 7, 2017 at Cara Lodge on the subject.
Lall met with executives of the various mining associations operating under the umbrella body, Miners United Movement, to re-examine the existing processing fee of $2,500 per ounce for gold sold to the GGB.
The GGB chairman pointed out that the new payment represents considerable compromise on the part of the minister and the GGB, especially in the face of increasingly expensive regulatory and operational requirements.
He also noted that the new fee structure is a clear acknowledgement of the contributions of the mining sector to Guyana’s economy.
Meanwhile, Vice-President of the Guyana Gold and Diamond Miners Association (GGDMA) Andron Alphonso expressed gratitude for the changes made to the processing fees.
“We are thankful for the fruitful engagement with the Chairman of the Guyana Gold Board and the resulting compromise; this new fee structure, while much less burdensome to miners, will also go a long way in assisting the GGB to offset costs associated with its operations and the very vital regulatory role that it plays in the industry today,” said the miner.
Similarly, Renwick Solomon, Chairman of the National Mining Syndicate (NMS) indicated that his body has no objection to the agreed changes as the discourse was fruitful, frank and open.
“NMS welcomed the engagement, and is looking forward to continuing collaboration in matters of mutual concern,” Solomon stated.
Executives of the varying mining associations were thanked for working with the GGB to put together a reciprocally acceptable package that provides some immediate relief to both sides, even as ongoing efforts at fiscal prudence at the GGB are being considered.
The fee will only be charged at the GGB to assist in reducing its operational costs, he added. The associations were urged to update their members on the new fee structure, as well as the importance and benefits of executing transactions with the GGB.
Also present at Thursday’s meeting held at Cara Lodge were President of the GGDMA Terrene Adams, Urica Primus, and President of the Guyana Women Miners Organisation.
