Scrap metal dealers have told Stabroek Business that they are now “gravely concerned” over the likely future of the industry in the face of “clear indications” that official moves may be afoot to discontinue the trade.
Stabroek Business has been given a copy of a letter sent to Prime Minister Samuel Hinds by Secretary of the Guyana Scrap Metal Dealers Association (GSMDA) Telford Layne calling on the Prime Minister to make a definitive pronouncement on “the state of the scrap metal industry in Guyana.”
In May last year government responded to pressure from the country’s three utility companies – GT&T, GPL and GWI by slapping a ban on metal exports.
Late last year Stabroek Business was informed that the ban on scrap exports had been lifted. However, this newspaper was subsequently informed that the Office of the Prime Minister had only approved the shipping of limited quantities of ferrous metal – reportedly 9,000 tons – and that approval had been granted for some dealers to ship limited quantities of ferrous metals.
Controversy has arisen over the new metal export arrangements which are attended by a pre-loading inspection exercise that is being conducted by government officials along with officials of the three utility companies and Linmine. Cole told Stabroek Business that government has recently imposed an inspection fee – $50,000 per container in the case of ferrous metal and $75,000 which dealers have deemed arbitrary and unfair. Cole said, however, that there had been very little protest from the industry over the new inspection charges since dealers were concerned that such protests might lead to a complete drying up of exports.
Meanwhile, Stabroek Business understands that the situation with regard to normalisation of the trade is still uncertain. The GSMDA is claiming that during a meeting late last year with its consultant Mr. Ramon Gaskin, the Prime Minister had provided assurances with regard to the re-opening of the trade. However, Layne told Stabroek Business earlier this week that he had been notified by a source in the Prime Minister’s Office that the ferrous metal export trade could be closed completely as soon as the current export allocation of 9,000 tons has been exhausted.
Layne said that in the face of the prevailing uncertainty hovering over the industry it was difficult for dealers to make concrete operational plans for this year.
Meanwhile, the GSMDA says that it is yet to receive a response from government to a request for assistance in liquidating debts arising from storage fees and demurrage costs incurred when several containers of scrap had to be left lying on wharves during last year’s closure of the trade.
