Operators hike sand prices by as much as 100 percent

Jul 08, 2018 News

Minister Simona Broomes.

Operators on the Soesdyke/Linden Highway, East Bank Demerara, have announced a major hike in the price for sand from tomorrow.
However, it appears that the hike would be raising some eyebrows.
According to a notice at one of the sandpits, from tomorrow, the price for loading the Twin Steering trucks will be $5,000; trucks with Double Axle to be $4,000; Single Axle (large)- $3,000 and with Single Axle truck (small) for $2,000.
That is about 100 percent increase for each category.
The notice said that the new rates are effective tomorrow.
Under arrangements, the sand-pit operations are regulated by the Guyana Geology and Mines Commission (GGMC).
Operators before being issued licences must submit mining plans.

The notice at one of the sand pits on the increase.

In return, the sandpit pays $15 in royalties to GGMC for every tonne of sand mined.
Yesterday, Minister within the Ministry of Natural Resources, Simona Broomes, disclosed that she is unaware of the increases as she only returned into the country a few hours earlier.
She was also unaware that there were any changes to the royalties of $15 per tonne, which she admitted is low and is now being reviewed.
She said that she cannot speak for truckers who have signaled intentions to protest tomorrow.
However, it was made clear that the operators of the sandpits have been coming under scrutiny in recent times. A number of them were exporting sand.
When GGMC checked their records, it was found the royalties were not paid over.
One operator owed more than $50M in royalties. Many of them were not paying their royalties.
Under regulations, GGMC officials are supposed to carry out audit checks every three months to check records.
However, according to Broomes, over time, it was found that a few operators were even mining near roadways, undermining the foundation.
The Minister said that intolerable situation appeared to have been happening a while now with this administration inheriting it and is now attempting to correct it.
Yesterday, several truck drivers agreed that it could be a case that the sandpit operators are taking advantage.
“We have to bear the burden with tyres and maintenance. They are paying GGMC less than $50 for a tonne. They are making money. We have to pay fuel prices, which have gone up and we barely cut it. We can only pass the sand prices to our customers.”
A number of sandpit operators when contacted confirmed that indeed the prices are to be raised.
“We also have to deal with fuel increase and maintenance of equipment. What do we do?” One operator asked.
With the construction sector in swing, the demand for sand has been good business.

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