Over the past four years, the government of Guyana has rolled out a series of strategic initiatives aimed at fortifying the sector as well as ensuring substantial cost savings for stakeholders. These actions, according to the Ministry of Natural Resources, are rooted in the PPP/C government’s manifesto promises to ensure the viability and sustainability of the mining industry, particularly for small and medium-scale operators.
To alleviate financial burdens on miners, the ministry reminded that the government has removed Value Added Tax (VAT) on machinery and equipment, all-terrain vehicles (ATVs), and hinterland travel. Additionally, the requirement for police clearance to transport fuel in vehicles and the registration and road license for mining equipment have been eliminated, significantly easing business operations.
The government has also waived the 10% Excise Tax and 14% VAT on new motor trucks (less than four years old) of any tonnage and removed the 14% VAT on new haulers.
New single cab pick-ups below 3000 cc are also exempt from the 10% Excise tax. Furthermore, Excise tax on fuel has been completely removed, dropping from 50% to 0%, and the final tax has been reduced from 3.5% to 2.5%. The government has also abolished the 10% tributers tax and the 14% VAT on lubricating oils.
The government’s support extends beyond tax measures to the provision of medium-scale properties via lotteries, allowing miners to acquire mineral properties through the formal application process at the Guyana Geology and Mines Commission (GGMC). Notable distributions include 150 mining blocks in Bartica in April 2024 and 200 blocks in Mahdia in June 2024.
In 2021, approximately 200 blocks were awarded through a lottery process, and 65 blocks were awarded through an auction. The withdrawal of a large-scale operator in Karouni facilitated the re-allocation of at least 100 mineral properties to small-scale miners, granting them access to approximately 1,500 acres of land.
In 2021, the GGMC’s Mines Division was tasked with reducing the backlog of claim verifications, which numbered over 15,000 unverified claims. The division’s efforts resulted in a 70% reduction in unverified claims, significantly improving the efficiency of the claim processing system.
Upon assuming office, the government also restarted mining activities in the Marudi area, benefiting small-scale miners and indigenous communities who had been neglected by the previous administration.
The ministry also noted that GGMC granted a Special Mining Permit encompassing 1,000 acres to the Rupununi Miners Association Co-operative Society Limited, representing 40 small-scale miners. This operation adheres to strict monitoring policies, including a Mine Plan, Mine Closure Plan, Social Responsibility Plan, and Environmental Management Plan.
To further reduce investment costs and enhance targeted investments, the government is undertaking a Mineral Mapping exercise as part of its multi-year project to promote low-impact mining and improved planning in mineral areas. This initiative aligns with the objectives of the Low Carbon Development Strategy (LCDS) 2030.
Additionally, GGMC has prioritized hinterland road development through its Special Projects Unit, maintaining at least 1,200 km of roads in 2024 at an approximate annual cost of GY$2.5 billion. This infrastructure development ensures that miners can access their concessions with necessary equipment and supplies, thereby reducing operational costs.
Education remains a cornerstone of the government’s strategy to support the mining sector. In this regard, the Guyana Mining School and Training Center continues to provide educational prequalification for technicians and tradesmen, training at least 500 participants annually.
Overall, the ministry said the government’s comprehensive measures, ranging from tax incentives to infrastructure development and educational support, have created a conducive environment for the mining sector to thrive. These initiatives it said, reflective of the PPP/C government’s manifesto promises, have not only provided significant cost savings but also positioned Guyana’s mining industry for sustained growth and development.
