Ministry “clarifies process” on GGMC’s financial management and operations

May 03, 2013 News

The Ministry of Natural Resources and the Environment has issued a detailed statement in an effort to set the record straight with respect to procedures in the Guyana Geology and Mines Commission (GGMC).
The Ministry stated that the intent was to address “the continuous misunderstanding and, at times, deliberate misrepresentation of the way in which the Financial Management of the Guyana Geology and Mines Commission operates”, and to “clarify this process for the benefit of the general public”.
“Historically, the Lands and Mines Department (the predecessor of the GGMC) suffered from inadequate and un-assured funding to pursue its programmes, and in particular, geological programmes. This resulted in loss of professional staff and with them, skills and experience which severely impeded the Department’s, and hence Government’s ability to attract foreign investment to the Mining Sector.
Persons with a true appreciation and understanding of the industry, including those who have worked within the industry, have over the years continued to remind us that the Commission’s semi–autonomous status greatly contributed to the creation of an environment conducive to carrying out and sustaining exploration, research and the implementation of other initiatives to attract investment.”
The Ministry said that “the Guyana Forestry Commission and Guyana Lands and Surveys Commission followed GGMC in becoming semi-autonomous agencies, attesting to the fact that this model proved beneficial to the agencies and the sectors that they serve to generate more funds and benefit from the retention and use of such funds in carrying out their work programmes and stimulating investment and growth under their respective mandates.”
In relation to legislation, the ministry said that under the GGMC Act No. 9 of 1979, the GGMC was specifically set up as a body corporate in order to establish autonomy and strengthen the framework for the mining industry in order to attract investment.
Section 4 of the GGMC Act, in stipulating certain functions, by implication (in particular section 4 (1) (c) and (e), and section 4 (3) (b) which states “The Commission shall be responsible for – the collection and recovery of all rents, fees, levies, tolls and charges (including royalties) payable under the Mining Act and any other revenues of the Commission.
Section 6 of the Act, it was noted also states that, “The funds and resources of the Commission consist of…(e.g.) all other sums or property which may in any manner become payable to or vested in the Commission in respect of any matter incidental to its functions”.
The Ministry’s statement continued: “Whilst the general public is cognizant of the fact that the mining sector has achieved record performance in 2012 at a time of high prices and particularly due to the hard work of our small and medium scale miners, it is imperative to understand that in the mineral trading sector it’s the miners who are the recipients of the proceeds through the sale of these precious metals to the Guyana Gold Board or Licenced Dealers. It is also important to note that of the total sales, only seven percent is deducted, in total, of which five percent is remitted to the GGMC (as royalties) and two percent is remitted to the Guyana Revenue Authority.”
These royalties, the Ministry said, form part of the financing that supports GGMC’s ability and capacity for effective regulation and enforcement of the Mining Sector.
“Additionally, it ensures the Commission’s ability to conduct geological field research; presence on the ground at Mines Stations and Sub-Stations and equally importantly; ability to respond speedily to complaints and disputes on the ground; and capability to mount campaigns as required for compliance enforcement, monitoring and systematic gathering of standardized information and data for factual management of the Industry, particularly the Small and Medium gold and diamond mining Sector.”

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Ministry “clarifies process” on GGMC’s financial management and operations

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