See below the full statement issued:
The Government of Guyana continues to offer its unwavering support to the mining sector and wishes to reiterate the following measures, initiatives, projects and investments it has implemented since assuming office in 2020. These actions, which are in keeping with the PPP/C government’s manifesto promises, are geared towards ensuring the viability of the mining sector, particularly those at the small and medium-scale levels.
Government’s measures for the mining sector (2020-2024):
Removal of VAT on machinery and equipment;
Removal of VAT on all-terrain vehicles (ATVs);
Removal of VAT on hinterland travel;
Ease of doing business: Miners will no longer require a police clearance to transport fuel in their vehicles;
Ease of doing Business: Removal of requirement to register and take out road license for mining equipment
New motor trucks (less than four years old) of any tonnage: Removal of 10% exercise tax and 14% VAT
New haulers: removal of 14% VAT
New double cab pick-ups below 2000 cc; removal of 10% excise tax
New double cab pick-ups between 2000-3000 cc: reduction in excise tax from 110 % to 75 %
New single cab pick-ups below 3000 cc: removal of the 10% excise tax.
Removal of Excise Tax on Fuel from 50% – 0%
Reduction in Final Tax from 3.5% to 2.5%
Removal of 10 % tributers tax.
Removal of 14 % VAT on lubricating oils
Further, the PPP/C government has reaffirmed its support to miners through the provision of medium-scale properties by way of lotteries. Notwithstanding, miners are still able to acquire mineral properties through the formal application process at the GGMC. Just recently, in April, the MNR/GGMC hosted a lottery in Bartica which saw the distribution of 150 mining blocks. And again in June, 200 Blocks were distributed in Mahdia. Back in 2021, approximately 200 blocks were awarded through a similar lottery process and 65 blocks through an auction.
Also in 2021, the Guyana Geology and Mines Commission’s (GGMC) Mines Division was tasked with a Plan of Action to reduce the backlogs of claim verification and processing of mining claims. At the time, there were over 15, 000 unverified mining claims which resulted in persons having to wait extended periods for their claim licenses. Since then, the division has prioritized this exercise and there has been a 70% reduction in unverified mining claims.
The recent withdrawal by the large-scale operator in Karouni saw action by the Ali led administration which resulted in the re-allocation of at least 100 mineral properties to small-scale miners who were able to access approximately 1,500 acres of land.
Moreover, this PPP/C Government was able to restart mining in the Marudi area in Region 9 upon assuming office which benefited a number of small-scale miners and indigenous communities. These miners and communities were neglected by the former administration with the closure of mining at Marudi. The GGMC granted a Special Mining Permit (SMP) encompassing 1,000 acres to the Rupununi Miners Association Co-operative Society Limited, which 40 small-scale miners are representing. The mining operation is being guided by strict monitoring policies which include a Mine Plan, Mine Closure Plan, a Social Responsibility Plan and an Environmental Management Plan. In addition, the Coop Society was required to post an Environmental Bond meanwhile the large-scale prospecting license holder within the Marudi area is required to implement a CSR Programme totally $250, 000 USD to benefit surrounding Amerindian communities. Many of the surrounding communities have already benefited from the mining activities in the area.
To reduce investment costs and enable more targeted investments from both small and medium-scale miners, the government will undertake a Mineral Mapping exercise. The government will initiate this multi-year project which will contribute to low-impact mining and improve planning in mineral areas which are objectives outlined in the LCDS 2030.
The GGMC continues to re-focus its attention on hinterland road development through its Special Projects Unit. This ensures that miners continue to have access to their concessions with their equipment and supplies, thus, reducing operational costs. In total, this approach has maintained at least 1200 km of hinterland road in 2024 with an approximate cost of GY$2.5 billion on an annual basis.
Education and awareness in the mining sector continue to be a key enabling activity to support knowledge, growth and diversification in the sector. In this regard, the Guyana Mining School and Training Center remains committed to providing educational prequalification to technicians and tradesmen in the mining industry. The Mining School has trained at least 500 participants every year.
The Ministry of Natural Resources wishes to advise that illegal mining activities will not be tolerated and is calling on all miners to follow the prescribed process to legitimize their operations. Those who are engaging in such activities should desist, or risk being prosecuted by the state. The MNR remains eager to foster greater collaboration with small and medium-scale miners to ensure the sector remains a viable one.
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