Georgetown: The closure of the sub-office of the Guyana Gold Board (GGB) in Bartica could be one of the reasons for the reported drop in the declaration of gold here, Guyana Gold and Diamond Miners Association (GGDMA) President Patrick Harding said.
Speaking recently at the Omai Wharf in Linden, Region 10, where reporters were briefed on the US$86.8 million Karouni Gold Project being executed by Troy Resources Guyana Inc, an Australian-based mining company, Natural Resources and Environment Minister Robert Persaud said there has been a drop in gold declaration.
He said while gold mining operations continue, there has been a “slow down” in sales to the GGB and other legitimate entities when compared to 2013.
Minister Persaud had called on Harding to take note, stating that small and medium scale miners must maintain the “good track record”.
Approximately 136,240 ounces of gold were declared between January and April, whiles during the same period last year, some 151,758 ounces were declared.
Harding said that while the GGDMA has not yet addressed their members on the issue of declaration as raised by the Minister, he encouraged the miners to continue to declare their gold to the GGB and legitimate buyers.
However, Harding noted that there may be several reasons the declaration of gold has dipped, including due to the closure of the Bartica sub-office of the GGB.
“That is just part of the reason and, while we always encourage our members to do the right thing so that Government can get its royalties, the closure of the sub-office has become a real inconvenience to miners wishing to declare their production,” said Harding.
The GGB’s sub-office in Bartica was closed last month following allegations of members tampering with gold bought from miners. It is believed that millions of dollars in diverted taxes and royalties were being lost due to the alleged scheme. The Natural Resources Ministry has since launched an investigation into the matter.
Harding reasoned that Bartica is the hub of mining activities and closing the sub-office posed many problems for miners, including security concerns. He added that miners may feel the need to sell their gold to the closest buyer, rather than taking the risk of travelling all the way to Georgetown to declare.
It was noted, too, by Harding that it may be tempting for miners to sell their gold to unregistered buyers. “The registered buyers have to pay a two per cent tax and so their buying price would be lesser so as to recover that tax,” he said.
Meanwhile, Harding reiterated that the aim of the GGDMA is to continue to keep its gold production up and to encourage members to embrace advanced technology for improving gold recovery.
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