Local miners being undervalued and under supported
The Coalition Administration is worried about the shortfall in gold production for the first quarter and the implications this would have on 2018 growth figures. It has turned to the Guyana Gold and Diamond Miners Association (GGDMA) to urge its members to increase 2018 production.
But in order for there to be a boost in gold production, the fiscal conditions must first exist. GGDMA President, Terrence Adams, wrote to the Natural Resources Minister, Raphael Trotman, on Monday imploring him to make a direct intervention. Adams noted that several months ago, the GGDMA on the basis of the collective wisdom of its management committee, called upon the government, in general, the Guyana Geology and Mines Commission (GGMC) and the Natural Resources Ministry, to take urgent action so that gold production could increase to one million ounces by 2020. The GGDMA President said, “Unfortunately, since then, the local gold miners have not been able to access the key fiscal incentives promised by the government in a timely manner. In addition, the physical infrastructural works for the mining areas are moving much slower than projected. “On top of all that, mining policy uncertainties in crucial matters are not encouraging robust expansion in by the local miners. As a result, there has been a contraction in mining activities by the large local miners…” He added, “We need urgent action to be taken now by government, the Ministry of Natural Resources and the GGMC so that the local gold miners can increase gold production if we are the projected national targets…
“It is evident that Government has, unwittingly perhaps, undervalued, and under supported the aggregate efforts of the local miners at a time when the fiscal and other incentives offered to foreign direct investment are well known, and clearly are way beyond what local investors in the gold mining sector are accorded.” The GGDMA President told Trotman that the key technical inputs for continued growth of local gold miners are well known: earth moving equipment, fuel, mine transportation, improved processing equipment such as mechanical and hydraulic concentrators and technical support from GGMC. Adams expressed that the Association’s position is straightforward; fuel, excavators’ equipment, processing equipment and transportation equipment must attract the same fiscal incentives for large scale and mechanized medium and small scale miners.
(Kaieteurnews)