Latest update February 6th, 2025 7:27 AM
Nervous gold miners ask for relief amidst price jitters
The Guyana Gold and Diamond Miner’s Association (GGDMA) wants urgent and significant relief granted for the industry in light of the recent slump in global gold prices.
Gold miners are asking for relief as prices remain shaky.
Again, the mining body has stepped up calls for duty free concessions on fuel and a two percent reduction in royalties charged by Government, once the world price fall below the US$1,400 per ounce.
According to the association, yesterday, it is continuing to monitor with deep concern the falling price of gold on the international market and is continuing its efforts to work with the government to find relief for the local mining sector.
“The GGDMA has been working in partnership with the Ministry of Natural Resources and the environment since late last year when the price began its downward slide and to date several concessions have been made to help relieve the situation.”
GGDMA said that already the Government has approved an additional vehicle duty free concession for miners who produce over 500 ounces of gold annually and cleared the way for the duty free importation of matting used in the industry.
“As recent as September 21, the GGDMA met with the Minister of Natural Resources and secured further support including the establishment of a working group to examine further relief for the industry.
“Since that date, however, the price has hit a record low, falling below the US$1,200 per an ounce and this has caused serious concern in the industry.”
While the price fell below the US$1,200 mark two Fridays ago, last week the prices clawed its way back to US$1,230 per ounce. It remained around US$1,223 yesterday.
GGDMA is set to meet with Minister of Natural Resources, Robert Persaud, on Wednesday to press further for urgent and significant relief to the industry.
In addition to the reduction in royalties and fuel concession, the mining association said it will be seeking a 50 per cent relief of rental payments for Prospecting Mining Permits, small scale, claims and mining permits.
GGDMA also wants an extension on the grace period for medium scale payments and a waiver of late payment fee penalties and duty free concessions for all tools and spares for equipment already listed under the Investment Development Agreement.
“The association assures its members that it will continue to press for these and additional relief as the low price for gold has already led to a 12 per cent shortfall in gold production in Guyana. The GGDMA believes that if these concessions are granted the shortfall from production could be reduced by at least 50 per cent.”
Gold production is being regarded with significant worry as it was the biggest earner for Guyana in the last few years, amidst high world prices.
However, a slide in the price last year from over US$1,800 by as much as US$600, caused many miners to scale back operations with many of them owing banks and for equipment they had purchased.
Declaration, according to the Government last week is about 12 percent behind the target. Production broke records last year with over 480,000 ounces targeted this year.
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