Gold board, miners agree to new processing fees
A new fee structure has been agreed for the sale of gold to the Guyana Gold Board (GGB), following its discussions with mining associations.
A previously agreed processing fee of $2,500 per ounce that was instituted from September 1st had drawn protests by miners. The earlier fee was $4,000 per ounce.
The Ministry of Natural Resources yesterday said in a statement that in keeping with a commitment made by Minister of Natural Resources Raphael Trotman, GGB Chairman GHK Lall met with executives of the various mining associations under the umbrella body Miners United Movement on Thursday to reexamine the processing fee.
Terrence Adams and Andron Alphonso, President and VicePresident, respectively, of the Guyana Gold and Diamond Miners Association (GGDMA), Urica Primus, President of the Guyana Women Miners Organisation (GWMO) and Renwick Solomon, Chairman of National Mining Syndicate (NMS), were present at the meeting.
In its statement, the ministry said prior to the meeting Lall laid the groundwork for thoughtful exchanges on how to address the varied interests of the mining sector and miners on the one hand, and those of the GGB and Guyanese taxpayers on the other, leading to an agreement on the following structure by all the parties present:
1. A processing fee of $1,300 per ounce from 1 ounce and up to and including 100 ounces.
2. A processing fee of $1,400 per ounce for every ounce starting from 101 ounces and for every additional ounce up to 200 ounces.
3. Thereafter, a downward sliding scale of $1,300 per ounce from 201 ounces to 300 ounces; and then $1,200 per ounce for all additional ounces between 301 ounces to 500 ounces. There would be a ceiling or maximum of $400,000 for all sales up to 1,000 ounces.
4. For sales greater than 1,000 ounces, the processing fee would be $400 for every ounce above.
According to the ministry, Lall pointed out that the new fee arrangement, which immediately replaces the current $2,500 per ounce fee, represents considerable compromise on the part of the minister and the GGB, especially in the face of increasingly expensive regulatory and operational requirements.
It said too that Lall thanked the mining associations’ executives for working constructively with the GGB to assemble a reciprocally acceptable package that provides some immediate relief to both sides, even as ongoing efforts at fiscal prudence at the GGB are under consideration. The fee will only be charged at the GGB to assist in reducing its operational costs, it was noted.
Alphonso, the statement added, voiced his gratitude for engagement 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,” he is quoted as saying.
Additionally, Solomon welcomed the engagement and said he was looking forward to continuing collaboration in matters of mutual concern.
The statement said the miners associations also committed to updating their members on the fee structure as well as the importance and benefits of executing transactions with the GGB. The GGB will also be undertaking a similar exercise.