Miners, who use Mining Act loophole, granted amnesty to pay up

Nov 01, 2019 News

The Ministry of Natural Resources has granted medium scale miners amnesty despite their use of a loophole in the Mining Act which has resulted in the loss of millions in revenue to the State, each year.

GGMC Commissioner, Newell Dennison

Head of the Guyana Geology and Mines Commission (GGMC), Newell Dennison, said that the miners were given up to December 31, 2019 to clear the arrears.
He said that the decision was taken to bring relief to struggling miners after repeated requests for interventions by the Minister of Natural Resources to direct the GGMC to grant a final amnesty for miners who are in arrears in terms of payment of rental for medium scale properties was made.
Dennison noted that the amnesty is granted to all medium scale property holders who are in arrears and whose properties have not been published as cancelled in the Official Gazette.
The GGMC Commissioner said that with the period given, the penalty accrued on such arrears will attract a waiver of fifty percent (50%).
According to Dennison the GGMC has offered to waive 50 percent of arrears on outstanding rental to miners holding medium scale properties.
“The grace period will not be extended and all property holders who do not avail themselves to this offer will have their properties cancelled.
“As such, we ask miners to take advantage of the genuine opportunity which will not be extended. The land management unit is currently looking at the arrears and discussing payment plans which will enable them to still get their property.”
Dennison had previously commented on the issue surrounding the use of the provision which allows miners to pay medium scale land rental fees while operating mining claims which exceed the 12,000 acreage limit.
He noted that the Ministry has discussed but is yet to decide on ways in which to address the provision which creates a loophole for miners to pay less while having access to more mining land.
The loophole has resulted in hundreds of millions in losses to the State annually, the 2017 report of the Extractive Industries Transparency Initiative (EITI) highlighted.
The transparency body pointed out that large scale miners have cashed in on the loophole, which allows them to hold permits for multiple mining claims yet pay significantly less in land rental fees. According to the report, large-scale operators who hold in excess of 1,200 acres threshold are allowed to pay US$1 per acre on the annual rental fees as opposed to US$3 per acre yearly. According to the EITI, the practice has contributed to the total shortfall to the government at considerable amounts per annum.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News