Latest update February 1st, 2025 6:45 AM
Latest News
- Record production in Guyana, Permian help Exxon pocket US$7.3B earnings for Q4 2024
- Govt. to seek another extension from World Bank to complete Petroleum Management Project
- Three Israelis and 183 Palestinians to be freed in next Gaza ceasefire swap
- CANU warns of dangerous ‘Strawberry Quick’ drug circulating in schools
- Piecemeal information on decisions and revenue management ingredients for corruption- NRGI
$10B spent to upgrade roads in mining areas – Minister Bharrat
Kaieteur News – Since assuming office in August 2020, the People’s Progressive Party/Civic (PPP/C) administration has allocated approximately $10 billion for the enhancement of roads in mining areas.
Minister of Natural Resources, Vickram Bharrat, disclosed this during his year-end press conference on Tuesday. Bharrat highlighted key fiscal measures implemented, including the removal of VAT on equipment and machinery, tax exemptions on fuel, and a reduction in final tax from 3.5 percent to 2.5 percent. These measures are expected to inject an estimated $1.9 billion back into the mining industry.
In August 2022, the National Assembly approved the Fiscal Enactment Amendment Bill No. 2 of 2022, providing tax relief to miners. The legislation included a reduction in final tax, benefiting the industry with an estimated $1.4 billion, and the elimination of the 10 percent Tributors’ Tax, returning $300 million to affected workers.
Part of the Linden to Mabura Road
Minister Bharrat emphasized the significant investment of over $10 billion in hinterland roads, primarily in mining and logging areas. He continued, “We have started to open some new areas mostly in the Tamakay (landing Cuyuni-Mazauni), Poppy Chow (landing Middle Mazaruni area near Olive Creek) area and the Aramu area (Aramu, Cuyuni River).”
Notably, Guyana’s has been suffering massive declines in its annual declarations since 2017. Similarly this year, the Ministry of Finance Mid-Year Report 2023 attributes the decline to low declarations made by small and medium scale miners. It was stated that at the end of June, gold declarations stood at 209,756 ounces, compared with 236,728 ounces during the same period last year, an 11.4% decrease.
Moreover, this newspaper reported Omai Gold Mines, a Canadian company, views the US$190 million Linden to Mabura Road as a valuable asset to their operations in Guyana.
A screengrab of Ellingham’s presentation
Elaine Ellingham, President and Chief Executive Officer (CEO) of Omai, highlighted the benefits of the road project, emphasising its importance for transportation and logistical support. The ongoing widening and paving, funded by the government, contribute to the upgrade of the road to Brazil, bringing it within 12km of Omai property. Omai is no stranger to Guyana; the company holds a 100% interest in the Omai gold project in Guyana which produced over 3.7 million ounces of gold between 1993 and 2005. About two years ago, Omai re-entered Guyana’s mining industry, occupying the same property which host two gold deposits: the shear-hosted Wenot Deposit and the adjacent intrusive-hosted Gilt Creek Deposit.
The sod was turned for this project in May 2022, after a contract was awarded to Brazilian firm, Construtora Queiroz Galvao S.A. for the construction of the 121 kilometres road.
Minister of Natural Resources, Vickram Bharrat
In 2020, the Government of Guyana secured a loan for this project. The US$190 million road project comprises a US$112-million loan from the Caribbean Development Bank (CDB), a grant of £50 million (US$66 million) from the Government of the United Kingdom via the CDB- administered United Kingdom Caribbean Infrastructure Fund, along with US$12 million provided by Government.
Kaieteur News had reported that this project will consist of two main highways; the width of each lane is approximately 3.6 metres, some hard shoulders both sides measuring 2.4 metres, cyclist and pedestrian lane of two metres, a utility corridor, about 10 bus stops, and nine rest areas just to mention a few. The Linden to Mabura Hill road project is just the first phase that will ultimately lead to a completed Linden to Lethem road link that will then complete an overland link to Brazil.
- Elaine Ellingham, Minister of Natural Resources, People’s Progressive Party/Civic (PPP/C), President and Chief Executive Officer (CEO) of Omai, Vickram Bharrat
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
A wave of criminal deportees may be coming our way soon
Peeping Tom… Kaieteur News-It is peculiar the way the PPP/C government often finds itself staring down the barrel of... more
OAS Secretary General Election and renewed OAS Consensus
Antiguan Barbudan Ambassador to the United States, Sir Ronald Sanders By Sir Ronald Sanders Kaieteur News- The upcoming election... more
Weekend Cartoon
