Georgetown: The Ministry of Natural Resources and Environment said that Guyana’s gold mining sector has a sound footing and continues to grow. However it noted that the sector is vulnerable to international market conditions. Noting that the gold mining sector has been the catalyst for economic growth and has improved the economic well-being of citizens of Guyana, the ministry said this has been achieved because of the consistently rising levels of gold declaration over the last decade. “The importance of the gold mining sector to our economy cannot be over emphasized since gold has been the largest earner of foreign revenue for the last seven years.”
It is in this light that given the low gold prices on the international markets and the resulting impact on the mining operations and the mining sector, the Government of Guyana (GoG), through the Ministry of Natural Resources and the Environment (MNRE) and the Guyana Geology and Mines Commission (GGMC), engaged the Guyana Gold and Diamond Miners Association (GGDMA) and identified areas of concern and implemented measures aimed at ensuring that the sector remains viable.
In this regard, specific interventions were made and are continuing, to support the sector and ensure its survival, continued growth and contribution to national development.
According to the ministry significant progress has been made through constructive dialogue at the level of the Inter-Ministerial
Task Force that was formed to undertake specific interventions aimed at supporting and streamlining the sector.
To date, the Government of Guyana and the Ministry of Natural Resources and the Environment have succeeded in completing several interventions in support of the sector. Among them, the ministry said is duty free waivers on spares and equipment.
The ministry said it supported the request for the waiver of tariffs and duties on equipment and spares and this was granted by the Government and implemented by the Guyana Revenue Authority. “A list of nineteen (19) suppliers of mining equipment and spares was approved for tax waivers on the importation of said equipment. This will reduce the cost of spares and critical supplies for miners and is an addition to the items that are currently imported duty free, such as Pumps, Flexes, and Matting etc.”
Additionally, the ministry said given the request and appeals of the Guyana Gold and Diamond Miners’ Association regarding the high cost of fuel as a main input into the production process, a fuel importation Licence was granted to allow for the cheaper importation of fuel.
Development Fund
The statement said too that Government, Ministry and stakeholders of the sector, most importantly GGDMA, are aware of the need to increase gold recoveries and eliminate the use of mercury in the gold extraction process.
The adoption and use of mercury free and improved recovery technologies is even more critical now given the low gold prices experienced by the sector. In this regard, the Government and GGDMA agreed and established a Mercury Free Mining Development Fund of GYD1B aimed at promoting the use of mercury free and improved recovery technologies.
Collaborative work between GGDMA and GGMC are ongoing to identify and test the various technology available so that these processes can be adopted by mining operations and thus ensure greater recoveries, reduced costs, increased revenues and ultimately a sustainable gold mining sector.
With regards infrastructure, the ministry said it continues to undertake the rehabilitation of hinterland roads and infrastructure to ensure that mining lands are easily accessible. “Discussions are continuously ongoing as it regards the maintenance of hinterland infrastructure and ensuring that value for money expended is achieved. In pursuit of this, a combination of approach was undertaken.
GGMC is currently reviewing feasible road designs and construction methods that can be adopted bearing the constraint of financial resources in mind. Simultaneously, efforts are being made to implement Road Users’ Agreement for specific heavily traversed roads that are prone to destruction, since it is recognised that heavy usage of the road in wet conditions lead to damage and require continuous rehabilitation at significant cost.”
More importantly, the ministry said expenditure of funds on hinterland infrastructure is as a result of a collaborative effort with the relevant Ministries and the key stakeholder, GGDMA. In 2014, GGDMA provided a list of hinterland infrastructure for rehabilitation that it deemed critical. These roads/bridges were rehabilitated and the same approach will be undertaken in 2015 whereby GGDMA will provide its considerable insight on areas for special focus.
Further, it must be recalled that Minister Persaud had said earlier that the sustainability of the mining sector is critical to the long term prosperity of our nation. This sector should not be drawn into partisan politics, but remain in the domain of unified national development.
The ministry underscored that a thriving and vibrant mining sector is the goal of the Government and all miners/stakeholders and as such the administration remains steadfast and reiterates the commitment of the Ministry and GGMC to work in partnership with GGDMA and all stakeholders in dealing with the challenges of the industry.
“The Government and its Ministries/Agencies will continue to work to ensure that the sector achieves its full potential, while contributing significantly to the growth and development of Guyana. The Ministry and GGMC will continue to work with the GGDMA and all other stakeholders for benefits of the sector,” the statement concluded.
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