The Guyana Gold and Diamond Miners Association (GGDMA) yesterday accused government of “betrayal” after reporting that it has learned that a number of concessions granted to miners would be pulled, while the Natural Resources Ministry cautioned the group against making “inaccurate” pronouncements.
“This is the ultimate betrayal of the miners by the APNU/AFC government and will only serve to make the already difficult industry harder, if not impossible,” the GGDMA said in a statement, where it announced that it has received “highly credible” information that the current government would be rescinding all the concessions granted to miners.
It said that Minister of Finance Winston Jordan is expected to make the announcement next month in his 2017 budget speech, where he is scheduled to outline plans to remove all VAT waivers, all concessions for fuel and lubricants, all concessions for motor vehicles, all concessions on spares and parts, all concessions on tools and equipment as well as the non-renewal of fuel import licences.
“This proposed backward step, to remove all waivers and concessions, will see a significant decline in the production targets next year and many more miners on the breadline. The industry is already suffering and this betrayal is going to kill mining in Guyana,” the GGDMA added, while noting that miners are prepared to take all necessary steps to ensure that the industry survives. It called on all its members to be prepared to mobilise for “strong and decisive action” to safeguard their livelihoods.
However, in a swift response, the Natural Resources Ministry said the Ministry of Finance is currently engaged in discussions regarding the concessions and other forms of support to the mining sector, including reviewing requests for renewal of the concessions. In a statement, it also asked that the GGDMA await confirmation before making pronouncements.
Sources at the GGDMA told Stabroek News that it had received leaked excerpts of the 2017 budget and that its assertions are grounded in evidence at hand. “Listen to me, for us to issue a statement like that, it means that the evidence is sound. Let the Minister of Finance himself, not (Natural Resources) Minister (Raphael) Trotman because he maybe don’t even know, let Minister Jordan say now and on record that in next year’s budget miners’ concessions won’t be yanked. Trust me, they can’t,” a GGDMA executive said.
Stabroek News tried getting comments from three other small and medium scale miners and they explained that they do not want to comment at this time but would be backing any statement given by the GGDMA as it pertains to the issue, until evidence proves otherwise.
Anti-mining stance
The GGDMA said the purported plans of the Finance Minister seem to be in direct defiance of the promises made by President David Granger to grant the industry several concessions and to which the industry initially received letters of commitments, but no action.
It noted that the gold industry is set to surpass the 600,000 ounces mark this year, with two-thirds of the figure coming from the direct effort of the small and medium-scale miners. “We have produced this much gold WITHOUT the concessions or tax breaks the foreign companies enjoy,” it pointed out, while arguing that were small and medium-scale miners granted the same concessions as the foreign companies, they could produce more than 600,000 ounces by themselves.
In its statement, the GGDMA also accused the current APNU+AFC administration of taking a “deliberate anti-mining stance” and neglecting the mining sector. The current government, it charged, has given no additional help to the industry. “They have provided no new concrete concessions and to date they have not put in one single road or other infrastructural work that directly benefits the industry,” it said, while calling on the government to restore the status quo and return all the concessions granted to miners under the former PPP/C administration.
The Ministry of Natural Resources, however, said the current administration has no intention of turning its back on the miners at such a critical time of national development.
“We can state also that the Ministry of Finance is currently engaged in discussions regarding these concessions and other forms of support to the mining sector, including reviewing requests for renewal of these concessions. We urge that the executive of the GGDMA await confirmed information from the Ministry of Finance or the Ministry of Natural Resources before making inaccurate pronouncements that do no one any good,” it said.
It further emphasised that the David Granger-led government places immense value on the contribution of mining to the socio-economic wellbeing of Guyana, and especially hails the contributions of small and medium scale miners.
The ministry also challenged the assertion by the GGDMA that the current government has not moved to offer help to the sector.
It pointed out that in the latter part of last year agreements were signed between the APNU+AFC government and the GGDMA.
“As the period of the agreement-signing would suggest, the agreements were signed under the current administration, contrary to what was said in the press release,” it said. It added that the claims that government has not given help to the industry and that it has not provided no new concrete concessions or a single road or other infrastructural work that directly benefits the industry simply have no basis in fact. It further noted that the ministries of Natural Resources and Public Infrastructure are currently engaged with members of the GGDMA to address the maintenance and opening up of hinterland roads.
But a GGDMA executive countered the ministry’s statement by saying that concessions agreed to last year make a poor case for the ministry as miners have not yet benefitted from a tax waiver on fuel because of the bureaucracy in getting the permits granted. “It was this has to be had from the GRA, you have to go to GGMC for this, go to the ministry for that and all over like a headless chicken people are running,” one miner said.
“Miners didn’t kill up themselves about the fuel because there was a drop in the prices and that kind of cushioned everything…with the tax removed on vehicles and equipment and that kind of thing ask for records because it is only about four persons that have benefitted,” another miner said.
A GGDMA executive said that the organisation has had one meeting with President Granger and when enquiring about follow-ups to discuss the sector and plans they have been given “the royal runaround” and to date they still do not know if they will get a second meeting.
They said that they then planned to seek an audience with Alliance For Change leader Khemraj Ramjattan, with the hopes that he will inform Granger of their plight and struggles. Prospects for that meeting seem bright but dates and times have to be worked out.
