Latest update November 28th, 2024 3:00 AM
Latest News
- $99B spent on Wales Gas plants to date, 58% of works completed – Prime Minister tells Parliament
- National Assembly clears $456M in Contingency Fund advances
- Hell and high water: Gaza waits for a ceasefire of its own
- Fire Service issues stern warning against maliciously set fires
- Miner stabbed to death during argument at ‘Honey Camp’
Is C. Allen one of those PPP writers now trying to hide under a veil?
DEAR EDITOR,
I refer to a letter by a C. Allen, ”Guyana Goldfield and Exxon backlash” in KN on May 21st in which Allen sought to justify the concessions granted to Guyana Goldfields (GG). While Allen was honest in describing the Exxon deal as a “terrible contract”, he then pontificates on the virtues of GG as one of the “most accountable and transparent companies that provides more revenue to the country than sugar and indeed is the largest contributor to the Government of Guyana in terms of employment, taxes paid (corporate and payroll, etc) and duties.”
I have no problem with that, save for him using” Employment” on his list of “largest“ contributions to Guyana.
Allen then tried to imply that with all the above-mentioned goodies, the media is unjust to mention GG’s concessions because the company invested “over US$150 million or G$30 billion over 10 years before finding an ounce of gold.” Was this cost audited? Surely, Allen should know that from the time Columbus sailed West in search of spices and found gold, the lure of gold has not abated. For decades now, the fastest way to raise money in Canada for investment is to speak of hearing where large deposits of gold could be found in Guyana.
In local parlance, it is called “boring gold with your ears”- it works like a miracle in Canada. No one will invest in a company who proclaims that they are going to drill on the rock of Gibraltar for gold. People invest in gold ventures in Guyana because they know that gold could be found there.
What’s the point of Allen praising GG for investing here? Of the 30 companies that Allen spoke of that came and did not find gold, most were not much interested in finding gold – they simply wanted to get their hands on investors’ money. The trick is to come here, bore some holes, inflate the cost, and pocket the investors’ money.
It is the easiest scam, all because of the “lure of gold”.
That could have been GG’s intention, but after they struck the “mother lode” they knew there was more to be made. It is doubtful that GG spent US$I50 million in ten years – boring some holes and flying samples to Canada for testing cannot cause that amount. Miners in Guyana are of the opinion that the gold content in those samples, in respect of GG, was more than enough to support their prospecting operation. That probably explain why they took so long, sending so many samples before going to production.
Allen said after gold was found, “Guyana Goldfields had to find more investors to build the mine”. It shows how little Allen understands the dynamics of the lure of gold. When you strike gold your stock price goes up; you don’t go looking for investors, they come looking for you. You inflate the initial value of your investment – that has to be recovered; it is your personal profit for taking the chance.
Allen said, “The end result was that without the concessions granted by the government, the mine would not have been feasible and…blah blah blah”. This is audacious. If small local miners without concession can work areas with small percentages of gold and make a profit, what hinders GG from doing so? Mr. Allen, no one mines gold from deep in the earth’s crust with a mattock and spade, equipment and expertise had to be brought in, environmental concerns had to be addressed; the mother lode (gold) is there to pay for that.
Why try to justify the concessions to GG, while our local miners cannot have the same? Was GG going to walk away from all that gold if they did not get those concessions? I think not.
Has Mr. Allen given any consideration as to why GG had sign for 8% royalty, which he said, “was higher than in Suriname and other mining jurisdictions”?
It is simply because the concessions granted by the Jagdeo regime were worth their weight in gold, relative to what is in the mine. The milch cow (GO-Invest) had produced for the boys. Mr. C. Allen seems to be one of those writers that the PPP had employed to counteract their critics, now trying to hide under a veil.
The continuation of concessions about to be offered to GG and the Peruvian company linked with it is indicative that the milch cow is about to produce milk for a new breed of dinosaurs. If not, let the Coalition explain their sitting for two years and counting on the recommendation of the Tax Reform Commission, which called for the review of the “exorbitant” concessions granted to companies in various sectors.
Rudolph Singh
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
The illusion of compliance
…Peeping Tom Kaieteur News- A company can meet the letter of the law. It can tick every box, hit every target. Yet,... more
Rising Gun Crimes in the Caribbean: Urgent Action required by all
By Sir Ronald Sanders Kaieteur News – There is an alarming surge in gun-related violence, particularly among younger... more
Weekend Cartoon
