…Min. Trotman assures EITI report is to improve industry
MINISTER of Natural Resources, Raphael Trotman, has assured that the recent Extractive Industries Transparency Initiative (EITI) report is not meant to negatively affect small miners, but to improve transparency in the industry.
On Tuesday, in a release, the Guyana Gold and Diamond Miners Association (GGDMA) accused Guyana’s first EITI report as working to cripple the local industry. The Ministry of Natural Resources received the EITI report from the Guyana EITI on April 29, 2019 which is expected to pave the way towards positive reformation in the industry.
It includes a summary description of the legal framework and fiscal regime; the sector’s contribution to the economy; production and export data; state participation in the extractive industries; revenue collections; the sustainability of revenues; licence registers and licence allocations.
The industries studied included 24 entities and from the government, oil and gas and mining sectors. However, the GGDMA has since referred to the report as “inaccurate and uninformed about the nature of the local small and medium scale gold and diamond mining industry”.
It further claimed that the government is on a mission to “brand local miners as villains” even as it justified that providing the information the report will put small miners at risk.
“The GGDMA also recognises that the EITI report, by demanding disclosures of ownership, valuations and profits in a manner outside of the law, will expose local miners to additional criminal targeting and security risks, while also creating an easy ledger for bandits to carve up local operators,” the release stated, adding that this includes Venezuelan gangs. It gave the position that local agencies such as the Guyana Revenue Authority (GRA); the Guyana Geology and Mines Commission (GGMC) and the Guyana Gold Board are already in possession of the information.
However, speaking to the Guyana Chronicle on Wednesday, Minister Trotman acknowledged the concerns of the association even as he sought to explain the importance of the report. He reaffirmed the government’s commitment to addressing security concerns in mining locations and stated that steps will be taken to ensure that sensitive information is protected.
“I believe that the mining community has genuine concerns about security. Wherever there are valuable commodities like gold and diamonds there will be criminals trying to steal them. This has been a decades-old concern and we are working to address it and to maintain a high level of security,” Trotman said.
“Miners are concerned about disclosing their wealth and we appreciate their concern. They are already providing information to GRA and so we have to work out a way of sharing the information in a confidential manner and without breaking laws of confidentiality of information.
Following the handing-over of the report by the GYEITI, Trotman and Executives of GYEITI held a press conference on May 2, 2019.
They informed media operatives that the report was handed in to the EITI International Secretariat.
Meanwhile, Trotman stated that the process will work towards an improved investment climate; licensing strengthening; record keeping; tax collection systems and legal and fiscal frameworks. The report points to how reforms and governance can be improved while it will eventually assist in the promotion of greater economic and political stability.
On Wednesday, Trotman discouraged the notion that the EITI report is motivated by ill-intentions and reminded that while the participation of mining organisations is crucial, the process is a voluntary one.
“I don’t see the miners as not complying with EITI but rather as choosing not to participate. They are complying with the taxation laws, which is what they are obliged to do. EITI is a voluntary process,” Trotman stated, adding:
“EITI didn’t brand miners as villains. I believe society wrongly paints miners as the worst sort. The newspapers report miners engaged in all kinds of unlawful activities and as such mining and miners get a bad name unreservedly. I have explained before that this is Guyana’s first EITI report; we couldn’t expect perfection. In future, we will work to correct the mistakes and misconceptions, but we had to make a start. I believe that the various mining organisations will now agree that it’s better for them to fully participate, so as to ensure accuracy and appropriate context, than to exclude themselves.”
He stated further that Guyana’s membership in EITI is “vitally important” and was affirmed since in November 2015 by Cabinet. The Natural Resources Minister stated: “The report, which flows from membership, is an important tool for better and open government and now that we have started, there is no turning back. We just have to work hard to ensure that each report is an improvement on the former and better reflects the realities or Guyana.”