…had paid over $168.7M to GRA

As Canadian-owned Guyana Goldfields defends its decision to purchase a Twin Otter aircraft to aid in its gold mining operations, the company is holding firm that the air carrier was sought for “purely economic reasons.”
Meanwhile, in our lead story on Tuesday, the Guyana Chronicle incorrectly stated that the company had paid over some $168.7B in taxes to the Guyana Revenue Authority (GRA) during the period 2015-2018. The correct figure is $168.7M. Guyana Chronicle regrets the error.

Meanwhile, the gold mining company is battling against what it described as an “unwarranted and vicious attack” on the aviation aspect of its operations. The mining company is adamant that it was raking up a hefty flight bill that would have eventually had an adverse effect on its operations. In a full page advertisement, Goldfields said it had expended over one billion dollars between Air Services Limited (ASL) and Wings Aviation in three years.

According to the information provided by the company, those two operators had benefited the most; providing charter flights from Ogle to the company’s Aurora Mine in the Cuyuni, Region Seven, to the tune of G$1,020,493,872. Goldfields noted, however, that it could not continue its total dependency on the local companies and decided to “ease the financial strain” by acquiring its own aircraft, which is used mainly to transport its workers.

Through the privately-owned Kaieteur News, a local aviation operator who opted to remain nameless, reportedly expressed disquiet with the mining company’s decision to service some of its own flight needs. The operator alleges that at their expense, the company is reducing its local content responsibilities to save millions of dollars spent weekly on charters.

The operator even suggested that the foreign investor ignore its exorbitant flight cost concerns and continue, “…to operate five flights a day for seven days a week for the (next) five years…” The Twin Otter was purchased back in 2017, Goldfields said, and concentrates mainly on the movement of workers, while local companies are continuously sourced to deliver cargo to the Region Seven gold mine. “This decision was based primarily on economic considerations. The Twin Otter is owned by AGM and is operated by Canadian Flyers, a company that manages and operates the aircraft with Canadian and Guyanese crews, pilots and mechanics,” Goldfields said.

Apart from charted flights, the company sought to cement its support for local content and social responsibility in detailing that it had also spent over G$31,654,494,568.23 on other locally provided services such as the provision of materials and parts, food, fuel/oils/lubricants, contractor services, and educational scholarships for UG students among many others. Goldfields said that from 2015 to 2018, it used the services of 295 local suppliers.

The mining agency was also proud to highlight that almost 760 Guyanese are employed with the company and are covered by a more than $57M health insurance plan. The company said too that its gross salaries payment to local staff from 2015 to last April was almost G$5.8 billion.

In the full page advertisement, Goldfields pointed out its more than G$1 billion income tax payments from 2016 to last April; NIS contributions of over G$400 million from 2016 and G$820 million in maintenance fees for the Buck Hall to Tapir road and over $20million in donations. Goldfields pointed to other large payments made to the Guyana Revenue Authority (GRA), the Guyana Police Force (GPF) and other state agencies that have rendered services in ensuring the success of the company’s local venture.

Goldfields said they intend to, “continue to play a leading role in Guyana’s development through the modern and responsible investment in Guyana’s mineral sector.”