Latest update March 21st, 2025 5:03 AM
Miners granted permission for foreign $$$ accounts at local banks
Gold miners, battling for a number of concessions that will ease cost of production, has managed to wrest from Government, permission to operate a foreign exchange account at the local banks.
The miners had been battling the Guyana Gold Board for some time now to pay them in foreign currency for gold sold to that entity.
Earlier this year, several meetings were held with Government, including 
President Donald Ramotar; Finance Minister, Dr. Ashni Singh; Natural Resources Minister, Robert Persaud and representatives of the Guyana Geology and Mines Commission (GGMC).
Among other things, the miners wanted duty free concessions on pickups, a reduction on the fuel tax and payments in foreign currency for gold sold to licensed buyers.
According to the Guyana Gold and Diamond Miners Association (GGDMA), as of November 1st, permission has been granted for all miners who sell gold to the Guyana Gold Board to access a foreign currency account at a local commercial bank.
“This account will give miners access to foreign currency to purchase required equipment and spares directly from overseas suppliers, resulting in a reduction in their operating expenses,” the Association said yesterday.
But there will be requirements.
Among other things, the miner must have an established profile with the Guyana Gold Board. The client can access 10% of the accumulated sales value in US dollars from the bank, for a maximum of three months.
“If the funds are not accessed within three months, then the accumulated amount is forfeited and the cycle restarts.”
The frequency for transactions should also be within 28 days of declaration and sales as outlined by the Guyana Gold Board act.
GGDMA disclosed that the request for the funds must be made to the offices of the Guyana Gold Board which will be verifying the records for eligibility.
“Thereafter, the client will be informed by the GGB whether he/she can access the funds at the Bank of Guyana. The GBB will send the respective information to the Bank of Guyana on the client’s behalf.”
The Mining Association said that if the client does not have an existing foreign currency account at any local commercial bank; the GGB will recommend to the BOG that an account be opened on behalf of the client where the approved funds will be transferred to their desired commercial bank.
“All receipts of funds will be accessed through the client’s respective local commercial bank. The client will be informed by the GGB to check with their local commercial bank within 3 –5 working days, upon approval.”
GGDMA warned that the foreign currency benefits are not transferrable to other clients.
“The client must have a continuously active profile with the GGB after each receipt of the benefit. The foreign currency facilitation can be revised at the discretion of the Ministers of Finance and Natural Resources and the Environment.”
In recent years, gold production became one of the biggest contributors to the country’s economy, last year eclipsing rice and sugar.
Despite a drop on the world market of the price of gold from US$1900 per ounce to just over US$1200, it has been inching upwards.
The spinoffs from gold mining in recent years have been a boon to the Government. Banks have been lending money like crazy with over 4,000 excavators bought and in operation in the gold bush.
Scores or workers have migrated to the industry in an attempt to cash in.
However, the drop in prices has been worrying and the miners have been seeking ways to reduce costs and maximize profits.
This year, Guyana has set a target of 460,000 ounces with over 435,000 ounces declared already and with just over a month left.
However miners are aiming for the 500,000 ounces mark.
Last year too, Guyana broke the magical 400,000 ounces mark, the first time since the absence of large scale producer, Omai Gold Mines.
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